Profits rise 13.4% at Impellam Group
30 March 2012
International multi-sector recruiter Impellam Group’s operating profits rose by 13.4% to £34.8m in the year ending December 2011, according to preliminary unaudited results released today.
Thurs, 16 Feb 2012
International multi-sector recruiter Impellam Group’s operating profits rose by 13.4% to £34.8m in the year ending December 2011, according to preliminary unaudited results released today.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 13.9% to £47.5m and adjusted operating profits increased by 16.2% to £38.7m.The group also recorded net cash of £1.8m at the year’s end, compared with net debt of £17.8m on 31 December 2010.
Conversion of gross margin to operating profit increased to 19.1% (2010: 16.8%). Basic earnings per share increased 15.6% to 54.0p (2010: 46.7p)
Cheryl Jones, Impellam Group chairman says she is pleased that the group “concluded 2011 with a strong set of financial results whilst at the same time completing several important milestones in support of repositioning the group’s businesses”.
And she points to two key factors in the group’s performance.
“First, the financial structuring of the group has been critical for the company in that a highly leveraged historic debt position had to be addressed. Conversion of margin to profit and through to cash flows has been an imperative in this regard and remains so going forward.
“Execution of the strategy in 2010/2011 has allowed the group to repay in full and on the due date in 2011 its final obligations under the £20m guaranteed secured loan notes; and both of the group’s UK and US financing facilities were also successfully renewed during the year.”
Jones continues: “Second, the strategy requires the group to align its brands into focused market-facing businesses. To support this divisional and group strategy, two new holding companies have been established in 2011 to house the realigned Medacs Healthcare and Carlisle Support Services brands.
“The UK and US Staffing businesses have begun the realignment of their brands to support accelerated development of evolving client requirements for managed service offerings and client Innovation; moreover, accelerated development of the science, engineering and technology related brand activities is also key. Restructuring of these businesses is underway.”
Jones also indicates that the group is looking for a capital reorganisation. “To this end, Impellam will shortly be seeking shareholder and court approval for a capital reorganisation. Contingent on such approval, the company will then have sufficient distributable reserves to be in a position to pay a cash dividend starting with the 2012 interims. The capital reorganisation will also provide for other forms of capital transactions capable of delivering value to the shareholders. Further details will be sent to shareholders in due course.”
International multi-sector recruiter Impellam Group’s operating profits rose by 13.4% to £34.8m in the year ending December 2011, according to preliminary unaudited results released today.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 13.9% to £47.5m and adjusted operating profits increased by 16.2% to £38.7m.The group also recorded net cash of £1.8m at the year’s end, compared with net debt of £17.8m on 31 December 2010.
Conversion of gross margin to operating profit increased to 19.1% (2010: 16.8%). Basic earnings per share increased 15.6% to 54.0p (2010: 46.7p)
Cheryl Jones, Impellam Group chairman says she is pleased that the group “concluded 2011 with a strong set of financial results whilst at the same time completing several important milestones in support of repositioning the group’s businesses”.
And she points to two key factors in the group’s performance.
“First, the financial structuring of the group has been critical for the company in that a highly leveraged historic debt position had to be addressed. Conversion of margin to profit and through to cash flows has been an imperative in this regard and remains so going forward.
“Execution of the strategy in 2010/2011 has allowed the group to repay in full and on the due date in 2011 its final obligations under the £20m guaranteed secured loan notes; and both of the group’s UK and US financing facilities were also successfully renewed during the year.”
Jones continues: “Second, the strategy requires the group to align its brands into focused market-facing businesses. To support this divisional and group strategy, two new holding companies have been established in 2011 to house the realigned Medacs Healthcare and Carlisle Support Services brands.
“The UK and US Staffing businesses have begun the realignment of their brands to support accelerated development of evolving client requirements for managed service offerings and client Innovation; moreover, accelerated development of the science, engineering and technology related brand activities is also key. Restructuring of these businesses is underway.”
Jones also indicates that the group is looking for a capital reorganisation. “To this end, Impellam will shortly be seeking shareholder and court approval for a capital reorganisation. Contingent on such approval, the company will then have sufficient distributable reserves to be in a position to pay a cash dividend starting with the 2012 interims. The capital reorganisation will also provide for other forms of capital transactions capable of delivering value to the shareholders. Further details will be sent to shareholders in due course.”
