Tremendous Effort By Impellam
& lsquo;Tremendous Effort’ By Impellam
Impellam Group plc Preliminary Results - Unaudited
Key Strategic Highlights
Ø Revenue increased by 7.0% to £1,210.8 million (2011: £1,131.4 million)
Ø Gross profit decreased by 4.5% to £174.1 million (2011: £182.3 million)
Ø Permanent placement mix 11.3% (2011: 11.1%)
Ø Adjusted operating profit* decreased by £3.1 million to £33.6 million (2011: £36.7 million)
Ø Earnings before interest and tax of £17.3 million
Ø Conversion of gross margin to adjusted operating profit* 19.3% (2011: 20.1%)
Ø Basic earnings per share 22.2 pence (2011: 54.0 pence)
Ø Adjusted* basic earnings per share 59.0 pence (2011: 58.3 pence)
Ø Net cash of £16.8 million at 28 December 2012 (30 December 2011: £1.8 million)
Ø UK receivable finance agreement with Barclays renewed for three more years and extended to £70 million
Ø Special dividend of 35 pence per share, approximately £15.4 million, payable on 10 April 2013 to all shareholders on the register on 2 April 2013
Ø Final dividend of 5 pence per share proposed to be approved at the AGM to be convened for June and dates to be announced in due course.
* Adjusted operating profit before non-recurring expense items, goodwill impairment and share based payments
Andrew Wilson, Chairman commented: "The year's operating performance reflects a tremendous effort by each of our four divisions against a back drop of continuing difficult economic environments and trading conditions in their respective markets. Whilst revenue increased, margin compression meant that we ended the year with operating profits down against 2011 although adjusted EPS increased to 59.0 pence per share. However, sensible balance sheet management has meant that the Company has been able to return £5.9 million to shareholders, in the form of a maiden 7 pence per share interim dividend and through a programme of share buy backs in the market, whilst still delivering an improvement in the Group's cash position at the year end. The Board believes that the restructured operating model provides a degree of resilience to the Group's earnings and a platform for sustainable cash generation. We have therefore declared a special dividend of 35 pence per share, in total approximately £15.4 million in addition to the proposed final dividend of 5 pence per share."
Business segment results
&minus Impellam United Kingdom: Turnover increased 10.6% to £762.2 million whilst gross profit decreased by 4.5% to £102.6 million. Operating profit decreased marginally by £0.2 million, to £26.5 million.
&minus Impellam North America: Turnover increased 5.6%* to £178.0 million and gross profit increased by 2.6%* to £36.0 million. Operating profit decreased marginally, by £0.1 million to £3.8 million.
&minus Medacs Healthcare Group: Turnover increased 0.5% to £187.7 million while gross profit decreased by 6.8% to £26.0 million. Operating profit decreased to £8.3 million.
&minus Carlisle Support Services: Turnover decreased 6.6% to £82.9 million and gross profit decreased 22.8% to £9.5 million. Operating profit decreased to £0.4 million.
Cash flow, debt and net assets
The Group generated £26.7 million of cash from operating activities in the year (2011: £28.4 million). Days sales outstanding (DSO) for the Group was 38.4 at 28 December 2012 compared to 35.3 at 30 December 2011.
Net cash increased by £15.0 million to a net cash position of £16.8 million as at 28 December 2012 (30 December 2011: £1.8 million). In addition, the Group has outstanding letters of credit drawn against its US borrowing facilities amounting to £3.8 million (30 December 2011: £3.6 million).
At 28 December 2012, the Group had net assets of £133.5 million (30 December 2011: £129.3 million).