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Impellam Group plc - Pre close trading statement

Impellam Group plc - Pre close trading statement

Impellam is pleased to announce that trading during the second half of the year has been stable, despite continuing difficult economic environments in its key UK and US markets. The Group is expecting year on year revenue growth across all of its staffing businesses.  

Increasing buyer sophistication and the increased use of framework agreements has resulted in further pricing pressure within certain business areas.  As a result, we are expecting a small percentage reduction in full year net fee income.  Operating profits, before share option charges and before restructuring charges that are expected to be around &pound5.5 million, are therefore likely to be around &pound3.0 million lower than the prior year.  Adjusted EPS is expected to be broadly flat as a result of lower interest charges, driven by a reduction in the Group's debt and a reduction in the number of shares in issue following several share buy backs completed during the year.

Following an extensive restructuring of the Group, the cost base has been reduced which will deliver further benefits as we enter 2013.  This, coupled with contract wins and our bias towards temporary staffing relative to permanent placement, provides a degree of resilience to the Group's earnings and cash generation and we therefore expect to see a return to operating profit growth in 2013.

During the year, the Group commenced payment of a dividend and also returned cash to shareholders through a programme of share buy backs in the market.  The return of cash to shareholders remains a key objective for the Group and, to that end, the Board is considering the payment of a one off special dividend of not less than &pound15.0 million following release of the preliminary statement in February.  Further details of this will be announced in due course.

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