Net fee income up over 25% YoY for Impellam
Impellam has provided a trading update for the first quarter of the current financial year to 1st April 2016.
The group states that it performed strongly in Q1. The integration of the recently acquired Global Group and Bartech businesses is proceeding as planned and both businesses are performing well, it added.
Overall net fee income increased by 27.2% compared with the same period in 2015 (7.5% organic growth), with a particularly strong performance in temporary staffing and managed services offsetting slight weakness in permanent placement fees. The latter represented only 11.2% of the net fee income in the quarter. The conversion of net fee income into earnings before interest and tax ("EBIT") was 22.6% in Q1, up from 16.4% in Q1 FY15. Net debt at the end of Q1 was lower than management expectations.
The company stated “Whilst the junior doctors' strikes in the UK have had an impact in Q1, our UK healthcare business has responded positively to the introduction of caps on doctors' and nurses' rates and this performance, combined with our growth internationally following the acquisition of Global Group, means that we are confident that our healthcare business will perform better than we originally expected in 2016.
“We have recently implemented several new managed service wins including Airbus through Guidant and Daisy and Wonga through Lorien in the UK and are implementing a number of contracts in Australia through our Comensura business. The pipeline of opportunities across all our managed service businesses remains strong.
“Overall, we remain on track to deliver results for the full year in line with management's expectations, with the strong Q1 performance underpinning the Board's confidence in the prospects for the Group.”