Referendum-induced uncertainty has been blamed by many recruiters for a weaker UK market last year. Yet Impellam (IPEL) had more to contend with than most, battling a shortage in education candidates, and knock-on effects from NHS pay caps. The latter meant fewer locum doctors and nurses willing to work for the public sector, reducing the NHS’s spend on staffing agencies and Impellam's UK specialist staffing revenue.
The managed services division, which provides outsourced recruitment services, grew in popularity. Client spend under management was up 9 per cent, while market share rose on the back of seven new contract wins. That business accounted for more than half of adjusted cash profit.
Management’s strategy to reduce its reliance on the UK has also been paying off. Domestic business accounted for two-thirds of overall gross profit last year, down from 81 per cent in 2014. Its Australian businesses – including Comensura and Medacs Global – were particularly strong, more than doubling adjusted cash profit. Meanwhile, the value of work undertaken by its North American brands on behalf of its managed service clients increased by more than a third, largely thanks to the acquisition Bartech in 2015.
Analysts at house broker Cenkos expect adjusted EPS of 81.5p during the 12 months to December 2018, up from 63.5p in the previous year.
| IMPELLAM (IPEL) | ||||
| ORD PRICE: | 578p | MARKET VALUE: | £291m | |
| TOUCH: | 570-585p | 12-MONTH HIGH: | 810p | LOW: 490p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 517p* | NET DEBT: | 29% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 1.20 | -1.1 | -2.3 | 12 |
| 2014 | 1.30 | 31.6 | 59.6 | 14 |
| 2015 | 1.78 | 39.4 | 72.2 | 17 |
| 2016 | 2.14 | 39.8 | 87.4 | 20.5 |
| 2017 | 2.17 | 37.9 | 61.9 | 20.5 |
| % change | +1 | -5 | -29 | - |
| Ex-div: | 5 Jul | |||
| Payment: | 9 Aug | |||
| *Includes intangible assets of £292m, or 581p a share | ||||
