30th Jul 2019 11:10
(Alliance News) - Impellam Group PLC on Tuesday said profit fell sharply in the first half of 2019, and it has now launched a transformation programme to cut costs.
The recruitment company reported revenue growth of 2.5% for the 26 weeks to July 5 to GBP1.14 billion from GBP1.11 billion reported a year earlier. On a like-for-like basis, revenue advanced by 1.4%.
Meanwhile, interim pretax profit dropped by more than a half to GBP5.6 million from GBP12.1 million a year ago.
Impellam explained it is focused on transforming the company and creating a business model which will improve collaboration and reduce costs. The new segmental structure will allow increased integration of the brands under collaborative management, Impellam said.
The new business segments will comprise of Global Managed Services, which includes core managed service providers Guidant Global and Comensura; Global Specialist Staffing, comprising of the technology and life sciences brands; Regional Specialist Staffing, which includes the brands that are industry specialists in their own territory; and Healthcare, comprising of Medacs Global Group.
"The new structure of the business is accelerating collaboration between the brands and continued focus on group supply is delivering benefits to both the Managed Services and Specialist Staffing businesses," said Chief Executive Julia Robertson.
Impellam has not declared an interim dividend. Instead, the company said it will undertake a share buyback programme commencing in the third quarter of 2019 worth GBP12 million, the same amount it would have paid via a dividend.
Looking ahead, the company does not anticipate an improvement in external market conditions in the second half of 2019 but expects an improvement in conversion of gross profit to adjusted earnings before interest, taxes, depreciation, and amortization due to reduced costs.
Impellam shares were trading 0.5% lower on Tuesday in London at 440.00 pence each.
Related Shares:
IPEL.L