Multi-sector recruiter and managed services provider Impellam Group has announced an operating loss of £2.4m for the 12 months ending 31 December 2008. This compares with a loss of £3.4m in 2007.

Turnover was up 9.7% at £1.07bn (2007: £975.3m).

The company admits that it was affected by “a market tightening in the recruitment marketplace” towards the end of 2008, and that its traditionally strong finish to the year “was not as marked as we would normally have expected”.

Turnover in the group’s UK commercial businesses increased by 12.3% to £457.4m.

EBITDA (earnings before interest, tax, depreciation and amortisation) fell to 1.9% compared to 2.1% in 2007. 

Impellam’s principle brands in this market are Blue Arrow, Carlisle Managed Solutions, ABC Contract Services and Tate.

The group noted the particular impact of the contraction in UK car manufacturing on its managed services business.

Turnover in the group’s healthcare businesses (Medacs, Chrysalis Care) was up 3.7% at £143.9m.

The group’s US businesses saw turnover fall by 13.2% to £175.8m.

Turnover at the group’s support services businesses was down 2% at £116.9m.  These businesses comprise Carlisle (cleaning and security), Comensura (vendor neutral procurement) and Recruit Event Services.

The cost of merging Carlisle and CSG amounted to £10.9m.

To provide a meaningful comparison with 2007, these figures are on a pro forma basis ie as if the merger of Carlisle and CSG had taken place on 1 January 2007 rather than in May 2008.

Desmond Doyle, Impellam’s chief executive, says: “considering the extraordinary economic conditions in our key markets of the US and UK, I believe these are solid results.

“The business rationale for the merger of Carlisle and CSG has not changed and we continue to review our portfolio of businesses to ensure we have a strong focused group well placed to benefit when the economic environment improves.”

Impellam says the investigation into accounting irregularities at Recruit Event Services has been completed.  It says that provisions amounting to £6.5m have been made against revenues and associated billed and unbilled receivables, of which £2.4m fall into the period to 31 December 2007.  The company admits this is “slightly higher than expected”.