Impellam Group plc Trading Statement (6213W)
16 November 2017 - 2:38AM
UK Regulatory
TIDMIPEL
RNS Number : 6213W
Impellam Group plc
15 November 2017
Impellam Group plc
("Impellam" or the "Company")
Trading update
Impellam plc, a leading provider of managed services and
specialist staffing expertise, issues the following trading update
prior to entering its close period for its full year results for
the 52 weeks ending 29(th) December 2017.
Trading performance
Notwithstanding the ongoing disruption in the UK healthcare
market and generally challenging trading conditions in the UK
including Brexit uncertainty, pay rate stagnation and increased
cost of compliance, whilst EBITDA is likely to be slightly below
market expectations the Board is pleased to confirm that it expects
to deliver 2017 pre-tax profits in line with market
expectations.
Younifi, our new business that provides a full-service solution
to help councils better manage, fund and provide adult social care
services, continues to gain momentum and has just reached a major
milestone. In October 2017 and following a competitive tender,
Younifi became the sole supplier on a new and highly innovative
national framework called Managing Care Solutions, led by the
procurement specialist YPO. The framework provides an easier route
for all UK local authorities, who collectively spend over GBP21bn
per year on adult social care, to purchase Younifi's solution and
there has already been clear intent from the first local authority
to adopt Younifi.
Good progress is being made in the achievement of our strategic
initiatives including new technological solutions in the UK and
Australia Healthcare markets which has resulted in 9 wins in H2.
Amongst these wins is our first Staffbank contract which is an
important milestone as we evolve our service offering to closely
align to NHS strategic objectives.
Our Group Fill initiative continues to yield results with
progress in North America being particularly noteworthy since the
acquisition of Bartech, leading to staffing margin gains from US
Managed Service programmes, which together with new implementations
have partially offset the impact of delayed 2016
implementations.
Our Australian businesses continue to perform very well in
Healthcare, Managed Services and Specialist Staffing. After seven
years' service The Honourable Shane Stone has notified the Company
of his intention to step down from the Board with immediate effect,
in order to concentrate on his charitable interests in Australia,
however the Board is pleased to confirm that he will continue to
serve as an advisor to the Company in its Australian markets.
In light of the challenging market conditions in the UK, we have
been managing the business prudently and as a result we have 110
(3%) fewer people than at the end of June 2017. Cash generation
continues to be strong and we expect net debt to be lower (circa
GBP89m) than at the end of 2016 (31 December 2016: GBP95.2m).
Outlook
Whilst the UK markets have been challenging, the Board remains
confident that the Groups strategic initiatives, combined with both
selective investment in growth opportunities and prudent cost
management will deliver sustainable profit streams into 2018.
Enquiries: For further information please contact the
appropriate individual below:
Impellam Group plc
Julia Robertson, Group Tel: 01582 692658
Chief Executive Officer Tel: 01582 692658
Alison Wilford, Chief
Financial Officer
Cenkos Securities plc (NOMAD and Corporate Broker
to Impellam)
Nicholas Wells Tel: 020 7397 8900
Mark Connelly
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 3,400 people across 182 worldwide locations.
-END-
This information is provided by RNS
The company news service from the London Stock Exchange
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