Growth at recruitment consultancy Impellam (IPEL) continues to be driven by activity in its core UK market, where revenue and operating profit increased 37 and 29 per cent respectively. This follows on from the successful integration of the Lorien Resourcing and Career Teachers acquisitions in 2014, which are performing ahead of expectations, according to management. The group also expanded its geographical reach last year, through deals to acquire Global Group and Bartech, two businesses operating across multiple jurisdictions.
Following a recent restructuring, the group now operates under two divisions; managed services and specialist staffing. Specialist staffing, which includes businesses such as Tate and Medacs, continues to contribute the most to the bottom line, while the managed services business saw a 51 per cent year-on-year increase in revenue. Again this was helped along by IT staffing business Lorien, although a £74m hike in divisional spending impacted profitability.
Following these results, broker Investec has increased its earnings forecast. It now anticipates adjusted pre-tax profit and EPS at £59m and 101p respectively, up from £46m and 88.4p in 2015.
| IMPELLAM (IPEL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 808p | MARKET VALUE: | £401m | |
| TOUCH: | 800-815p | 12-MONTH HIGH: | 853p | LOW: 620p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 387p* | NET DEBT: | 61% | |
| Year to 1 Jan | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012^ | 1.10 | 32.9 | 54.0 | nil |
| 2013^ | 1.20 | 15.8 | 22.2 | 12 |
| 2014^ | 1.20 | -1.1 | -2.3 | 12 |
| 2015^ | 1.30 | 31.6 | 59.6 | 14 |
| 2016 | 1.77 | 39.4 | 72.2 | 17 |
| % change | +36 | +25 | +21 | +21 |
Ex-div: 7 Jul Payment: 28 Jul *Includes intangible assets of £290m, or 584p a share ^Year to 2 Jan | ||||
