Management at recruiter Impellam Group (IPEL), which operates brands including Blue Arrow and Tate, spent last year reorganising the group into two segments. The changes were designed to provide greater focus for the business. Chief executive Julia Robertson said the business had previously been "trying to be all things to all businesses". So despite a faltering performance from Impellam's North American specialist staffing business, group operating profit for the year came in at £34m from £0.4m in 2013.
Group performance continued to be affected by "onerous contracts" relating to its Carlisle support services business. Revenues for this business were down 18 per cent in 2014, but Ms Robertson said the business is on track to return to profitability. The beginnings of the UK recovery fed through to the group's managed services business, where revenues were up almost a quarter to £597m.
The group acquired IT staffing businesses Lorien Resourcing and Career Teachers during the year. The purchases are aligned with management's aim of substantially reducing outsourcing expenses in key areas. Ms Robertson said other areas the group would consider expanding into through acquisition include accounting and finance, HR and procurement.
House broker Cenkos expects adjusted EPS of 75p this year, up from 59.6p in 2014.
IMPELLAM GROUP (IPEL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 653p | MARKET VALUE: | £316m | |
| TOUCH: | 640-665p | 12-MONTH HIGH: | 653p | LOW: 415p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 319p* | NET DEBT: | 9% | |
| Year to 2 Jan | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 1.1 | 26.8 | 46.7 | nil |
| 2012 | 1.1 | 32.9 | 54.0 | nil |
| 2013 | 1.2 | 15.8 | 22.2 | 12** |
| 2014 | 1.2 | -1.1 | -2.3 | 12 |
| 2015 | 1.3 | 31.6 | 59.6 | 14 |
| % change | +10 | - | - | +17 |
Ex-div: 9 Jul Payment: 31 Jul *Includes intangible assets of £167m, or 341p a share **Excludes special dividend of 35p a share | ||||
