Impellam started out on the dividend trail by announcing a 7p payment with its half-year figures, which showed stable trading despite the dour economic and employment outlook. Underlying pre-tax profits were flat at £15.1m in the first 26-week period as a resilient UK staffing business and growth in the US and medical and government divisions offset tough trading in technical markets. Reported numbers were dampened by £3m in restructuring costs.
Impellam has completed the first stage of its share buy-back programme, purchasing some 572,193 shares for £2m, and it plans to further tidy up the register by buying back all shareholdings of 100 shares or less. Shareholders in this group will receive a cash payment equal to the market value of the shares held.
Revenue growth was reported in the UK staffing business up 14 per cent, US staffing up 9 per cent and medical and government up 2 per cent. But in the technical and Carlisle divisions revenue was flat and fierce competition saw margins eroded, with both gross and operating profits down. House broker Cenkos upgraded full-year pre-tax profit forecasts from £39.5m, to £40.3m, giving EPS of 69.8p (from £34.8m and 58p in 2011).
IMPELLAM (IPEL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 325p | MARKET VALUE: | £143m | |
| TOUCH: | 320-325p | 12-MONTH HIGH: | 363p | LOW: 220p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 7 | |
| NET ASSET VALUE: | 310p* | NET DEBT: | 9% | |
| Half-year to 29 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 549 | 15.1 | 25.4 | nil |
| 2012 | 591 | 12.1 | 20.9 | 7.00 |
| % change | +8 | -20 | -18 | |
Ex-div: 1 Aug Payment: 13 Sep *Includes intangible assets of £108m, or 244p a share | ||||
