Impellam Group's Carlisle Support Services exits contract
Impellam has now announced it has completed the exit of one of those contracts on the terms expected.
However, we continue to experience substantial operational challenges with the second contract. Planned reengineering and restructuring of the service due to be completed at the end of the first quarter this year are proving difficult to finalise. As a consequence, additional operating losses of up to £9.8m are estimated over the remaining four year contract life in addition to those announced in December 2013. Negotiations in respect of a range of options, including exit of the contract, are ongoing.
Our preliminary results will be released at the end of February and we are pleased to say that results for the Group, save for exceptional items, will be in line with the trading statement released on 16 December. A final dividend of 7p per share will be recommended.