Acquisitions and cultural change boost Impellam’s Y/E results
Impellam Group has announced its preliminary unaudited final results for the year ended 1st January 2016.
The Group announced its cultural change programme has resulted in improved customer and staff retention, while acquisitions from 2014 and 2015 had boosted its financial performance.
The Group reported overall EBITDA growth of 35.8% to £57.7m and organic EBITDA growth of 10.8%. Year-on-year gross profit increased 20.5% to £233.7m (2014: £193.9), while operating profit totalled £55.8m, a rise of 34.1% from 2014 (£41.6).
It said its 2014 acquisitions, Lorien and Career Teachers, had been successfully integrated into the Group, with strong trading performance in their first full year of ownership. The Group added the 2015 acquisitions of Global Group and Bartech had expanded its geographic, sector and service coverage.
It confirmed a strong performance in managed services with gross profit increasing significantly and the conversion of gross profit into operating profit improving in both the UK and North America.
It stated a continued focus on segmentation into Specialist Staffing and Managed Services has helped the UK Specialist Staffing businesses to improve gross profit margins from 20.0% to 20.9% and has improved overall conversion from 19.6% to 22.6%.
Lord Ashcroft, chairman of Impellam, said, “It has been another year of significant growth for Impellam and I am pleased with the performance of the Group, given that there have been challenging external factors. Our markets - in particular healthcare and blue collar - have seen disruption around caps on rates for doctors and nurses and the continuing impact of the minimum and living wage. Despite this, our robust portfolio of Managed Services and Specialist Staffing businesses has ensured we have delivered a good set of results.
“We have traded in line with expectations and have progressed well in delivering our strategic objectives, set out by our CEO, Julia Robertson last year. We completed two acquisitions in 2015, Global Group and Bartech Holdings, and both are integrating well into the Impellam family. Cultural transformation has also been high on the priority list and we are already seeing tangible results across the business.
“Subject to shareholder approval, the Board is proposing a final dividend in respect of 2015 of 10p per share, amounting to £5.0m, to be paid on 28 July 2016, following the Annual General Meeting on Wednesday 29 June 2016 at 9.00am. Other than the appointment of our Group Finance Director, Darren Mee, in February 2015 I can report that there were no changes to the Board of Directors since my report on last year's results.
“Finally, I would like to thank all of our employees for their contribution in 2015, and my fellow Board members for their support, as the Group progresses on its journey to become 'the world's most trusted staffing company.”