Final Results

RNS Number : 4462H

Impellam Group plc

22 February 2010

 



 

REPORT FOR THE YEAR ENDED 31 DECEMBER 2009

PRELIMINARY RESULTS

 

Highlights

§ Total turnover down 2.4% to £1,044.2 million (December 2008: £1,070.0 million)^

§ Turnover from permanent placement fees down 42.8% to £17.5 million (December 2008: £30.6 million)^

§ Total gross profit down 10.0% to £170.2 million (December 2008: £189.6 million)^

§ Gross profit from permanent placement fees down 43.6% to £15.8 million (December 2008: £28.0 million)^

§ Permanent placement fees now represent 9.3% of gross profit (December 2008: 14.8%)^

§ Operating costs reduced by 15.0% to £151.0 million (December 2008: £177.7 million)*^

§ Conversion of gross profit into operating profit improved to 11.3% (December 2008: 6.3%)*^

§ Operating profit £19.2 million (December 2008: £11.9 million)*^

§ Operating profit £10.0 million (December 2008: loss £2.4 million)^

§ Operating profit improved in all staffing segments

§ Debtor days are at 39.2 days  (December 2008: 38.3 days)

§ Financing costs fell 28.1% to £4.1 million (December 2008: £5.7 million)^

§ Adjusted earnings per share of 44.4p (December 2008: 16.1p)*^

§ Unadjusted earnings per share of 23.9p (December 2008: 25.5p loss)

^   The comparatives for December 2008 are set out on a pro forma basis in order to give a more meaningful comparison due to the merger of The Corporate Services Group plc and Carlisle Group Limited that concluded on May 7, 2008 (see note 1-II). 

     *  Before exceptional items and the amortisation of intangible assets

On a statutory basis:

§ Turnover for 2008 was £755.6 million

§ Gross profit was £131.9 million

§ Operating loss was £3.8 million

§ Unadjusted loss per share of 25.0p

Cheryl Jones, Chairman, commented:

"I am pleased to report that Impellam Group plc ("Impellam" or "the Group") has concluded its first complete fiscal year of post-merger trading amidst a very challenging economic environment.

Despite difficult economic conditions, the Group retained top-line performance, and efficiency initiatives were in line with the significant reductions the market experienced relative to the permanent placement sector and the general downturn in the temporary staffing sector. 

The first phase of the Group's strategy which included right sizing of the businesses, driving efficiencies into central and back office environments, initial rationalisation of the Group's brand portfolio, and improved cash management focus has been completed.  Plans for further alignment to market focus, efficiencies and cash management are on-going."

Enquries:  For further information please contact the appropriate individual below.

Impellam Group plc
Cheryl Jones, Chairman	Tel: [phone]
Andrew Burchall, Group Finance Director	Tel: [phone]
Naomi Stuart, Marketing and Communications Manager	Tel: [phone]
Cenkos Securities plc (Nominated Advisor and Broker to Impellam)
Nicholas Wells Beth McKiernan	Tel: [phone] Tel: [phone]
Threadneedle Communications
John Coles	Tel: [phone]

Note to Editors:

Impellam Group plc, traded on AIM (Symbol: IPEL), conducts business primarily in the United Kingdom and the United States, with smaller operations in Australia, Ireland, New Zealand and Continental Europe.  The Group employs more than 8,000 people, including 2,400 managers and consultants and more than 5,600 support services workers, across a network of 240 branch and regional offices. The Group operates more than 20 specialty brands across a broad range of staffing sectors which are complemented by businesses in the outsourced support services sector.  Impellam Group was formed in May 2008 through the merger of The Corporate Services Group plc and Carlisle Group Limited and is ranked 18^th on Staffing Industry Analysts' 2009 Top Global Staffing Companies List.

Business Segment	Staffing Sectors/Brands
Healthcare Staffing	The Group's Healthcare staffing segment comprises Medacs Healthcare (locum doctors, nursing, international recruitment and managed healthcare services) and Chrysalis Homecare (domiciliary care).
UK Staffing - Commercial	The Group's UK Commercial staffing segment primarily includes those brands that operate in the traditional clerical, administrative, industrial/trades and hospitality staffing markets. These principal brands include ABC Contract Services (construction and telecoms), Blue Arrow (catering, managed services, office and industrial), Carlisle Managed Solutions (managed services) and Tate (office).
UK Staffing - Professional & Technical	The Group's UK Professional & Technical staffing segment comprises the following principal brands: Austin Benn (sales and marketing), Celsian Education (teachers and school support staff), Chadwick Nott (legal), Hewitson Walker (accounting), IRC (multi-sector staffing in Ireland), S∙COM (technical) and SRG (scientific).
US Staffing	The Group's US staffing segment operates across a wide spectrum of staffing sectors.   The principal brands and their specialties include CORESTAFF Services and Leafstone (Call centre/customer care, engineering, IT, light industrial, office/clerical, professional, skilled trade and technical), Guidant Group (managed services), InfoCurrent (information/records management and library services), S∙COM (technical and telecom) and SRG Woolf (clinical research).
Support Services	The Group's Support services segment consists of several brands providing a wide range of outsourced services to clients throughout the UK.  These brands include Carlisle Cleaning & Support Services (contract cleaning and facility support services), Carlisle Security (security guarding and CCTV public space surveillance), Comensura (vendor neutral staffing & recruitment procurement) and the Recruit (retail merchandising and events) businesses.

Management report

Financial results for the year ended 31 December 2009

The table below sets out the results for the Group by segment for the year ended 31 December 2009 with pro forma comparisons against the same period in the prior year (see note 1 - II).

	Revenue				Gross profit						Operating profit/(loss)
£m	Unaudited 2009	Unaudited 2008	% change		Unaudited 2009		Unaudited 2008			% change	Unaudited 2009	Unaudited 2008	% change
Healthcare Staffing	179.0	143.9	24.4		28.2		22.3			26.5	10.3	5.8	77.6
UK Staffing - Commercial	417.6	456.3	(8.5)		60.1		77.0			(21.9)	7.1	6.8	4.4
UK Staffing - Professional & Technical	173.2	177.1	(2.3)		28.9		33.1			(12.7)	3.2	2.1	52.4
US Staffing*	164.1	175.8	(21.6)		33.1		35.9			(22.6)	0.9	0.7	0.7
Support Services	110.3	116.9	(5.6)		19.9		21.3			(6.6)	0.2	1.4	(85.7)
	1,044.2	1,070.0	(2.4)		170.2		189.6			(10.2)	21.7	16.8	29.2
Central costs											(2.5)	(4.9)
Operating profit before amortisation of intangible assets and exceptional items											19.2	11.9
Amortisation of intangible assets											(3.5)	(2.7)
Exceptional items											(5.7)	(11.6)
Operating profit/(loss)											10.0	(2.4)

  *   US Staffing percentage changes are measured in local currency

Healthcare Staffing: Turnover up by 24.4% to £179.0 million with gross profit in this segment increased by 26.5% to £28.2 million.  Operating profit of the segment increased to £10.3 million.

UK Staffing - Commercial: Turnover down 8.5% to £417.6 million and gross profit down by 21.9% to £60.1 million.  Operating profit of the segment increased to £7.1 million.

UK Staffing - Professional & Technical: Turnover down by 2.3% to £173.2 million with gross profit down by 12.7% to £28.9 million.  Operating profit of the segment increased to £3.2 million.

US Staffing: Turnover fell by 21.6%* to £164.1 million with gross profit reducing by 22.6%* at £33.1 million.  Operating profit of the segment increased to £0.9 million.

Support Services: Turnover down by 5.6% to £110.3 million.  Gross profit decreased 6.6% to £19.9 million.  Operating profit of the segment reduced to £0.2 million.

Cash flow and net debt

Net Debt at 31 December 2009 was £69.6 million (December 2008: £61.8 million). Net debt at 31 December 2009 includes early repayment of a term loan totalling £2.7 million. 

The cash generation from operating activities during the year was £1.3 million (December 2008: £17.4 million). 

During 2009, £4.6 million of cash flow generated from operations was utilised to settle restructuring provisions made at 31 December 2008.  A further £4.2 million of cash flow generated from operations was used to settle restructuring costs during the year. Additionally, £1.1 million was also paid during the year to settle an earn out agreement liability related to an acquisition by The Carlisle Group in December 2006.

Revenues in December 2009 were 7.7% higher than those in the comparable period, which, combined with a 0.9 day adverse movement in DSO, resulted in cash flow generated from operations being utilised for payroll and third party suppliers against the resulting build-up of trade receivables of £8.0 million over the prior year. 

In addition, the Group has outstanding letters of credit drawn against its US borrowing facilities amounting to £4.9 million (versus £6.1 million in 2008).

Consolidated income statement

For the year ended 31 December 2009

		Statutory		Pro forma
		Unaudited 2009	Audited 2008	Unaudited 2008
	Notes	£m	£m	£m
Continuing operations
Revenue	2	1,044.2	755.6	1,070.0
Cost of sales		(874.0)	(623.7)	(880.4)
		__________	__________	__________
Gross profit		170.2	131.9	189.6
Administrative expenses		(160.2)	(135.7)	(192.0)
		__________	__________	__________
Operating profit/(loss)	2	10.0	(3.8)	(2.4)
Operating profit before amortisation and exceptional items		19.2	8.8	11.9
Amortisation of intangible assets		(3.5)	(2.7)	(2.7)
Exceptional items	3	(5.7)	(9.9)	(11.6)
		__________	__________	__________
Operating profit/(loss)		10.0	(3.8)	(2.4)
Finance income		-	0.4	0.5
Finance expense		(4.1)	(4.4)	(5.7)
Exceptional finance expense	3	-	-	(0.4)
		__________	__________	__________
Profit/(loss) before taxation		5.9	(7.8)	(8.0)
Taxation credit/(charge)	4	4.9	(1.0)	(1.0)
		__________	__________	__________
Profit/(loss) for the period attributable to equity shareholders		10.8	(8.8)	(9.0)
		__________	__________	__________

Earnings/(loss) per share (basic and diluted)	5	Pence	Pence	Pence
Unadjusted		23.9p	(25.0)p	(25.5)p
		__________	__________	__________
Adjusted		44.4p	10.7p	16.1p
		__________	__________	__________

Consolidated statement of comprehensive income

For the year ended 31 December 2009

		Unaudited 2009	Audited 2008
		£m	£m
Profit/(loss) for the period		10.8	(8.8)
Other comprehensive income:
(Losses)/gains recognised directly in equity
Currency translation differences		(1.4)	4.4
Corporation tax related to currency translation differences		1.0	(3.5)
		__________	__________
Other comprehensive income for the year, net of tax		(0.4)	0.9
		__________	__________
Total comprehensive income for the year		10.4	(7.9)
		__________	__________

Consolidated condensed balance sheet

At 31 December 2009

		Statutory
	Unaudited 31 December 2009		Audited 31 December 2008
		£m	£m
Non-current assets
Property, plant and equipment		8.5	8.6
Goodwill		59.9	59.9
Other intangible assets		51.3	55.0
Deferred tax assets		7.5	4.3
Financial assets		3.5	4.8
		_________	_________
		130.7	132.6
		_________	_________
Current assets
Trade and other receivables		189.7	185.4
Cash and short-term deposits		9.2	11.3
		_________	_________
		198.9	196.7
		_________	_________
Total assets		329.6	329.3
		_________	_________
Current liabilities
Trade and other payables		136.8	147.5
Taxation liabilities		1.2	0.3
Bank overdrafts and other short-term borrowings		58.8	51.5
Derivative financial instruments		0.2	0.5
Provisions		4.6	6.3
		_________	_________
		201.6	206.1
		_________	_________
Net current liabilities		(2.7)	(9.4)
		_________	_________
Non-current liabilities
Long-term borrowings		20.0	21.6
Other payables due in greater than 1 year		0.9	2.0
Provisions		8.4	8.4
Deferred taxation liability		13.3	16.0
		_________	_________
		42.6	48.0
		_________	_________
Total liabilities		244.2	254.1
		_________	_________
Net assets		85.4	75.2
		_________	_________

Equity
Issued share capital		0.4	0.4
Share premium		15.5	15.5
		_________	_________
		15.9	15.9
Other reserves		92.7	93.1
Retained deficit		(23.4)	(34.0)
		_________	_________
Total equity attributable to equity holders of the parent company		85.2	75.0
Minority interest		0.2	0.2
		_________	_________
Total equity		85.4	75.2
		_________	_________

Consolidated cash flow statement

For the year ended 31 December 2009

		Statutory		Pro forma
		Unaudited 2009	Audited 2008	Unaudited 2008
	Notes	£m	£m	£m
Cash flows from operating activities
Cash generated by operations	6	0.8	4.6	18.0
Taxation refunded/(paid)		0.5	(0.5)	(0.6)
		________	________	________
Net cash generated by operating activities		1.3	4.1	17.4
		________	________	________
Cash flows from investing activities
Costs associated with acquisition of CSG		-	0.9	(2.5)
Acquisition of businesses (net of cash acquired)		-	(1.9)	(1.9)
Purchase of property, plant and equipment		(3.7)	(2.3)	(3.8)
Purchase of intangible assets		(1.4)	(1.8)	(2.4)
Net movement in other financial assets		0.6	0.7	0.4
Finance income received		-	0.2	0.4
		________	________	________
Net cash utilised on investing activities		(4.5)	(4.2)	(9.8)
		________	________	________
Cash flows from financing activities
Net movement in other long-term borrowings		(1.4)	(10.7)	(10.9)
Net movement in short-term borrowings		7.6	18.2	10.8
Capital element of finance lease payments		(0.2)	(0.1)	(0.2)
Finance expense paid		(3.8)	(3.1)	(4.8)
Dividend in specie via disposal of subsidiary		-	(4.0)	(4.0)
		________	________	________
Net cash inflow/(outflow) from financing activities		2.2	0.3	(9.1)
		________	________	________
Net increase/(decrease) in cash and equivalents		(1.0)	0.2	(1.5)
Opening cash and cash equivalents		8.6	6.5	5.9
Foreign exchange (loss)/gain on cash and cash equivalents		(1.1)	1.9	4.2
		________	________	________
Closing cash and cash equivalents		6.5	8.6	8.6
		________	________	________
		31 December 2009	31 December 2008	31 December 2008
Cash and short term deposits		9.2	11.3	11.3
Bank overdrafts		(2.7)	(2.7)	(2.7)
		________	________	________
Cash and cash equivalents		6.5	8.6	8.6
		________	________	________

Consolidated statement of changes in equity

For the year ended 31 December 2009

				Statutory Unaudited
	Total share capital and share premium				Other reserves	Retained deficit	Minority interest	Total equity
			£m		£m	£m	£m	£m
1 January 2009			15.9		93.1	(34.0)	0.2	75.2
			______		______	______	______	______
Currency translation differences (net of tax)			-		(0.4)	-	-	(0.4)
Profit for the year			-		-	10.8	-	10.8
Share based payments			-		-	(0.2)	-	(0.2)
			______		______	______	______	______
Total comprehensive income for the year ended 31 December 2009			-		(0.4)	10.6	-	10.2
			______		______	______	______	______
31 December 2009			15.9		92.7	(23.4)	0.2	85.4
			______		______	______	______	______

Notes to the financial statements

1          Basis of preparation

I.            Statement of Compliance

The financial statements presented in this financial report have been prepared in accordance with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations that are applicable to the consolidated financial statements for the year ended 31 December 2009.

The financial information attached does not constitute the full financial statements within the meaning of Section 434 of the UK Companies Act 2006. Full accounts for Impellam Group plc for the year ended 31 December 2008 have been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain a statement under Section 237(2) or Section 237(3) of the UK Companies Act 1985. The full accounts for the year ended 31 December 2009 will follow shortly, be sent to shareholders and delivered to the Registrar of Companies.

II.           Pro forma financial information

In order to enable a meaningful comparison, the comparative income statement and cash flow information included in this preliminary announcement for the period to 31 December 2008 has been included on a pro forma basis for the Group as if the merger of Carlisle Group Limited ("Carlisle") and The Corporate Services Group plc ("CSG") had taken place on 1 January 2007 rather than in May 2008.

This treatment does not fully reflect the requirements of IAS 1, Presentation of Financial Statements - revised, IAS 27, Consolidated and Separate Financial Statements and IFRS 3, Business Combinations which would require presentation of the results of Impellam from the date of its incorporation (21 February 2008), Carlisle from 1 April 2008 and CSG from the date of acquisition by Impellam Group plc (7 May 2008) to 31 December 2008. 

The pro forma financial information, which is unaudited, has been prepared for illustrative purposes only, through the aggregation of statutory and internal management financial information of Carlisle and CSG which has otherwise been prepared in accordance with IFRS. It has not been designed to, nor does it, give a presentation of the income statement and cash flow of the Group that would have been reported in accordance with IFRS had the combination actually taken place in 2007.

III.          Accounting policies, new IFRS and interpretations

The accounting policies used in this report are consistent with those applied at December 2008 with the exception of the following new or revised IFRS publications that have been adopted in the period:

International Accounting Standards (IAS / IFRS)	Effective date
IAS 1 - Presentation of financial statements (revised)	1 January 2009
IFRS 8 - Operating segments	1 January 2009

No other new and/or revised IFRS and IFRIC publications, which came into force in the period have any impact on the Group.

2          Segmental information

The Group is reporting under IFRS 8 for the first time. IFRS 8 - "operating segments" requires that the Group firstly:

·       identifies its "Chief operating decision maker" ("CODM"), which has currently been assessed as the Group's Chairman, who reviews the Group's internal reporting in order to assess performance and allocate resources.

and secondly:

·       by reference to the information supplied to the CODM, identify its operating segments and from these to identify its reportable segments.

The Chairman receives reports and discusses performance with management of the following five reportable segments:

·      Healthcare Staffing

·      UK Staffing - Commercial

·      UK Staffing - Professional & Technical

·      US Staffing

·      Support Services

Statutory

Year ended 31 December 2009 - Unaudited

Continuing operations	Healthcare Staffing	UK Staffing - Commercial	UK Staffing -Professional & technical	US Staffing	Support Services	Group Total
	£m	£m	£m	£m	£m	£m
Segment revenue	179.0	417.6	173.2	164.1	110.3	1,044.2
	_______	_______	_______	_______	_______	_______
Segment EBIT	10.3	7.1	3.2	0.9	0.2	21.7
	_______	_______	_______	_______	_______
Unallocated - Corporate cost						(2.5)
						_______
Operating profit before amortisation and exceptional items						19.2
Amortisation of intangible assets						(3.5)
Exceptional items						(5.7)
						_______
Operating profit before finance costs and taxation						10.0
Finance costs - net						(4.1)
						_______
Profit before taxation						5.9
Taxation credit						4.9
						_______
Profit for the year						10.8
						_______

Statutory

Period ended 31 December 2008 - Audited

Continuing operations	Healthcare Staffing	UK Staffing - Commercial	UK Staffing -Professional & technical	US Staffing	Support Services	Group Total
	£m	£m	£m	£m	£m	£m
Segment revenue	100.8	254.8	197.9	116.2	85.9	755.6
	_______	_______	_______	_______	_______	_______
Segment EBIT	4.3	6.9	0.2	0.4	0.2	12.0
	_______	_______	_______	_______	_______
Unallocated - Corporate cost						(3.2)
						_______
Operating profit before amortisation and exceptional items						8.8
Amortisation of intangible assets						(2.7)
Exceptional items						(9.9)
						_______
Operating loss before finance costs and taxation						(3.8)
Finance costs - net						(4.0)
						_______
Loss before taxation						(7.8)
Taxation						(1.0)
						_______
Loss for the year						(8.8)
						_______

Pro forma

Year ended 31 December 2008 - Unaudited

Continuing operations	Healthcare Staffing	UK Staffing -Commercial	UK Staffing -Professional & technical	US Staffing	Support Services	Group total
	£m	£m	£m	£m	£m	£m
Segment revenue	143.9	456.3	177.1	175.8	116.9	1,070.0
	_______	_______	_______	_______	_______	_______
Segment EBIT	5.8	6.8	2.1	0.7	1.4	16.8
	_______	_______	_______	_______	_______
Unallocated - Corporate cost						(4.9)
						_______
Operating profit before amortisation and exceptional items						11.9
Amortisation of intangible assets						(2.7)
Exceptional items						(11.6)
						_______
Operating loss before finance costs and taxation						(2.4)
Finance costs - net						(5.2)
Exceptional finance costs						(0.4)
						_______
Loss before taxation						(8.0)
Taxation						(1.0)
						_______
Loss for the year						(9.0)
						_______

3        Exceptional items

	Statutory		Pro forma
	Unaudited 2009	Audited 2008	Unaudited 2008
	£m	£m	£m
Restructuring and other costs	5.7	8.1	8.1
Cost associated with the merger	-	1.2	2.8
Loss on disposal of joint venture or subsidiary and impairment of investments	-	0.6	0.7
	____	____	____
Total exceptional items included in operating profit	5.7	9.9	11.6
Financing expenses written off on merger	-	-	0.4
	____	____	____
Total exceptional items before tax	5.7	9.9	12.0
	____	____	____

Restructuring costs relate to reorganisation and redundancy costs following a comprehensive review of structures in both the UK and US in response to the economic downturn; in 2008 certain rationalisation costs were incurred following the combination of the two businesses to form Impellam Group plc.

Costs associated with the merger relate to the various legal and professional costs incurred by both Carlisle Group Limited and The Corporate Services Group plc to effect the merger of the two businesses under the name of Impellam Group plc.

In May 2008 the Group sold its 50% interest in a loss making manned guarding security joint venture in Ireland, Carlisle Security Plus, for a nominal consideration to the joint venture partner.

The impairment of investment relates to the write down of the carrying value of the Group's investment in Clear Technology Inc, an unlisted US software development company.

Finance expenses written off relate to the costs associated with The Corporate Services Group plc's restructure of debt in 2007 which were being amortised over the period of the loans and which, on replacement by the new arrangements for Impellam Group plc, were accelerated and written off in full.

4        Taxation

	Statutory
	Unaudited 2009	Audited 2008
	£ m	£ m
Current income tax
UK corporation tax on results for the period	0.4	-
Adjustments in respect of previous periods	(0.9)	-
	________	________
	(0.5)	-
Foreign tax in the period	0.6	0.3
	________	________
Total current income tax	0.1	0.3
Deferred tax (credit)/charge	(5.0)	0.7
	________	________
Total tax (credit)/charge in the income statement	(4.9)	1.0
	________	________

The deferred tax (credit)/charge comprises the following:

	2009	2008
	£ m	£ m
Earnings of overseas subsidiaries to be remitted to the UK	-	1.8
Utilisation of tax losses brought forward	(0.4)	0.4
Current year losses carried forward	-	(0.7)
Origination and reversal of other temporary differences	(3.8)	(0.9)
Adjustment in respect of previous years	(0.8)	0.1
	________	________
Total deferred tax (credit)/charge in the income statement	(5.0)	0.7
	________	________

5        Earnings/(loss) per share

Basic profit/loss per share is calculated by dividing the profit for the year attributable to the equity holders of the Company by the weighted average number of ordinary shares outstanding during the period.

Diluted profit/loss per share amounts is on the same basis, but after adjusting the denominator for the effects of dilutive options. The only potentially dilutive shares arise from the share options issued by the Group under its share-based compensation plans, all of which are not dilutive in 2009 or 2008.

The weighted average number of shares has been calculated for the period from 1 January 2009 to 31 December 2009 and from incorporation to 31 December 2008. The number of shares so calculated is 44,998,882.

The calculations of earnings/(loss) per share are based upon the following consolidated income statement data:

	Profit/(loss) for the period			Earnings/(loss) per share
	Statutory		Pro forma	Statutory		Pro forma
	Unaudited 2009 £m	Audited 2008 £m	Unaudited 2008 £m	Unaudited 2009 Pence	Audited 2008 Pence	Unaudited 2008 Pence
Basic and diluted
Profit/(loss) for the year	10.8	(8.8)	(9.0)	23.9	(25.0)	(25.5)
Exceptional items (net of tax)	5.7	9.9	12.0	12.8	28.1	34.0
Amortisation of intangible customer relationships	3.5	2.7	2.7	7.7	7.6	7.6
	_________	_________	_________	_________	_________	_________
Adjusted profit for the year	20.0	3.8	5.7	44.4	10.7	16.1
	_________	_________	_________	_________	_________	_________

6        Reconciliation of profit/(loss) before tax to cash generated by operations

	Statutory		Pro forma
	Unaudited 2009	Audited 2008	Unaudited 2008
	£m	£m	£m
Profit/(loss) before taxation	5.9	(7.8)	(8.0)
Adjustments for:
Net interest charge	4.1	4.0	5.2
Exceptional finance expenses	-	-	0.4
Depreciation and amortisation	8.6	6.6	7.8
Other items	0.1	3.5	3.7
	__________	__________	__________
	18.7	6.3	9.1
(Increase)/decrease in trade and other receivables	(8.0)	3.0	16.7
Decrease in trade and other payables	(8.5)	(4.4)	(6.8)
Decrease in provisions for liabilities and charges	(1.4)	(0.3)	(1.0)
	__________	__________	__________
Cash generated by operations	0.8	4.6	18.0
	__________	__________	__________

7        Additional cash flow information - Unaudited

	Statutory
	1 January 2009	Cash flow	Foreign exchange	31 December 2009
	£m	£m	£m	£m
Cash at bank and in hand	11.3	(1.0)	(1.1)	9.2
Overdrafts	(2.7)	-	-	(2.7)
	__________	__________	_________	__________
	8.6	(1.0)	(1.1)	6.5
	__________	__________	_________	__________
Guaranteed secured loan note	(19.9)	-	-	(19.9)
Bank loans	(2.7)	2.5	0.2	-
Finance leases	(0.5)	0.2	-	(0.3)
Revolving credit	(47.3)	(8.7)	0.1	(55.9)
	__________	__________	_________	__________
	(70.4)	(6.0)	0.3	(76.1)
	__________	__________	_________	__________
	(61.8)	(7.0)	(0.8)	(69.6)
	__________	__________	_________	__________

8          Principal risks and uncertainties

Each business considers strategic, operational and financial risks and identifies actions to mitigate those risks on a regular basis and these risk profiles are communicated to the Group board at least annually. The principal risks and uncertainties for the year remain as they were at December 2008 and are fully detailed in the annual report and accounts which are available for download on the website www.impellam.com.

                                                                         -END-

 

END

 

 

FR UAUARRNAUUAR