FINANCIALS: Impellam sees rise in revenues but fall in profits
Impellam has seen revenues increase 3% year-on-year, according to results for the six months to 29 June 2018.
However, the managed services and specialist staffing provider also saw gross profit fall 3.3% to £135.5m from £140.1m in H1 2017.
The group’s managed services businesses in the UK, US and Australasia performed ahead of expectations, with 14 new client wins in H1 and healthcare managed services increasing GP by 49.4% in the UK, Europe and Australasia.
Net debt was cut by 14.1% from £92.1m in H1 2017 to £79.1m in H1 2018.
Expanding on the group’s performance, CEO Julia Robertson pointed to 13.8% GP growth for the group’s UK, Europe and Australasia managed services businesses, with nine new client wins including a new client win for Guidant with Whitbread.
She added the group is continuing to win new business in the healthcare managed services market and is in the process of implementing 12 NHS contracts onto its new ShiftWise technology, managing £65.7m of new NHS spend.
However, the group’s US managed services business was adversely affected by an unfavourable exchange rate and three client losses in 2017, though Robertson added this business has a “strong” pipeline of new opportunities.
Moving on to the group’s specialist staffing businesses, Robertson revealed the group’s UK private sector brands performed ahead of 2017 against uncertain markets with double digit adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) growth for Blue Arrow (industrial, office and catering), Onezeero (IT), Tate (secretarial) and Chadwick Nott (legal).
The group’s UK education and healthcare businesses, however, continued to experience challenges due to cost constraints in the public sector, the impact of IR35 and a shortage of candidates.
In the US, GP decreased by 4.7% (at constant currency rates), adversely affected by reduced volumes in the US automotive sector and candidate shortages.
The group’s Australian businesses saw GP increase 35%, while Robertson added the group has also engaged with Serco Group with a view to extending its services from the UK to Australia.
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