3rd Mar 2015 10:28
LONDON (Alliance News) - Recruitment business Impellam Group PLC Tuesday said it moved to a pretax profit in its last financial year, after last year's earnings were hit by hefty exceptional costs, and it also benefiting from revenue growth.
The group turned to a pretax profit of GBP31.6 million for the financial year ended January 2, from GBP1.1 million loss the year before, when it booked a total of GBP28.2 million in exceptional items and a goodwill impairment, compared with only GBP2.7 million in the year just ended.
Last year's impairment and costs were related to the group's Carlisle Support Services arm.
Impellam said revenue increased 9.1% to GBP1.32 billion, up from GBP1.21 billion last year, driven by growth in managed services and specialist staffing in the UK. Revenue increased in both the UK and US Managed Services Businesses and the UK Specialist Staffing businesses, but these increases were offset by a reduction in revenue in the US Specialist Staffing business.
"The group has delivered a strong financial performance this year in its staffing businesses and has made two excellent acquisitions in Lorien Resourcing & Career Teachers, both of which are performing in line with expectations and will be accretive in their first full year. In addition, we have completed the exit of onerous contracts in Carlisle Support Services and is on track for return to profitability," said Chief Executive Julia Robertson in a statement.
Impellam said the turnaround for its Carlisle Support Services arm helped offset a weaker performance in North America.
The group declared a final dividend of 7.75 pence per share, making a total dividend of 14 pence for 2014, an increase of 17% on 2013's payout.
Impellam shares were trading 3.6% higher mid-morning Tuesday at 639.40 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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