Trading Update

RNS Number : 8923R

Impellam Group plc

15 December 2016

 

Impellam Group plc

("Impellam" or the "Company")

Trading update

Impellam plc, a leading provider of managed services and specialist staffing expertise, issues the following update prior to entering the closed period for its full year results for the 52 weeks ended 30^th December 2016.

Trading performance

Notwithstanding the well-publicised disruption in the UK healthcare market and the increased uncertainty following the UK referendum, the Board expects to deliver 2016 EBITDA broadly in line with market expectations.

Trading performance in the UK has been mixed. Some of our UK specialist businesses have seen weaker performance compared to the same period last year and we continue to be impacted by disruption in the healthcare markets as a result of Government announcements regarding caps on locum pay rates and agency margins. This has impacted performance within our UK doctors business.  Our market leading managed services businesses have continued to perform well, benefiting from 10 new client wins including Willis Tower Watson, Veolia, Johnson Matthey and Kings College Hospital and have a strong pipeline.

Since the announcement of the interim results on 30^th July 2016, the Company has continued to see strong performance across its US businesses. The integration of the Bartech business continues to proceed as planned and the business has performed well in 2016 with some notable new client wins and extensions of services.  Delivery of the synergy cost benefits following the combination of the legacy Impellam and Bartech businesses are in line with management's expectations.  In addition, the weakening of sterling has provided a currency translation benefit.

Our Australian business, whilst relatively small continues to perform well with sizeable  new contracts wins in our Comensura business including New South Wales and New South Wales Justice.

On a group level, cash generation continues to be strong and we expect net debt to be materially lower than at the end of 2015 and in line with market expectations.

Outlook

Whilst the Board is pleased with  the positive results from Impellam's UK Managed Services, US and  Australian businesses and the progress made in 2016  with the Group's strategic plan, it recognises the prevailing uncertainty in the UK and will therefore continue to manage the business prudently, whilst investing in opportunities to drive profitable growth.

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

Impellam Group plc
Julia Robertson, Chief Executive Officer Alison Wilford, Group Finance Director	Tel: [phone]
Cenkos Securities plc (NOMAD and Corporate Broker to Impellam)
Nicholas Wells Mark Connelly	Tel: [phone]

Note to Editors:

Impellam Group plc, traded on the AIM (Symbol: IPEL) is a leading provider of Managed Services and Specialist Staffing expertise and is primarily based in the UK and North America, with smaller operations in Asia Pacific, Ireland and mainland Europe.  Impellam Group plc provides fulfilling jobs at all levels, including doctors, lawyers, accountants, nurses, teachers, scientists, receptionists, drivers, chefs, administrators, engineers, technology specialists, cleaners, security guards, and manufacturing and warehouse operatives. Impellam Group plc is the 2nd largest staffing business in the UK and 6th largest MSP provider worldwide (as measured by Spend Under Management), employing over 3,300 people across 220 worldwide locations.

 

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