Trading Statement

RNS Number : 7285T

Impellam Group plc

18 December 2012

 



Impellam Group plc ("Impellam" or the "Company" or "Group")

Pre close trading statement

Impellam is pleased to announce that trading during the second half of the year has been stable, despite continuing difficult economic environments in its key UK and US markets. The Group is expecting year on year revenue growth across all of its staffing businesses.  

Increasing buyer sophistication and the increased use of framework agreements has resulted in further pricing pressure within certain business areas.  As a result, we are expecting a small percentage reduction in full year net fee income.  Operating profits, before share option charges and before restructuring charges that are expected to be around £5.5 million, are therefore likely to be around £3.0 million lower than the prior year.  Adjusted EPS is expected to be broadly flat as a result of lower interest charges, driven by a reduction in the Group's debt and a reduction in the number of shares in issue following several share buy backs completed during the year.

Following an extensive restructuring of the Group, the cost base has been reduced which will deliver further benefits as we enter 2013.  This, coupled with contract wins and our bias towards temporary staffing relative to permanent placement, provides a degree of resilience to the Group's earnings and cash generation and we therefore expect to see a return to operating profit growth in 2013.

During the year, the Group commenced payment of a dividend and also returned cash to shareholders through a programme of share buy backs in the market.  The return of cash to shareholders remains a key objective for the Group and, to that end, the Board is considering the payment of a one off special dividend of not less than £15.0 million following release of the preliminary statement in February.  Further details of this will be announced in due course.

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

Impellam Group plc                                          

Andrew Wilson

Andrew Burchall                                                                                               Tel: [phone]

Cenkos Securities plc

(Nominated Advisor and Broker to Impellam)   

Nicholas Wells                                                                                                   Tel: [phone]

Threadneedle Communications  

John Coles                                                                                                           Tel: [phone]

Note to Editors:

Impellam Group plc conducts business primarily in the UK and North America, with smaller operations in Australia, Ireland, New Zealand and mainland Europe. The Group employs nearly 6,000 people, including 2,200 managers and consultants and more than 3,500 support services workers, across a network of 230 branch and regional offices. The Group operates more than 15 specialty brands across a broad range of staffing sectors which are complemented by businesses in the outsourced support services sector. Impellam Group is ranked 19th on the Staffing Industry Analysts' 2012 Top Global Staffing Companies List.

 

END

 

 

TSTEDLFFLLFEFBX