27th Feb 2014 14:48
LONDON (Alliance News) - Impellam Group PLC Thursday said it swung to a pretax loss in its recent full year as restructuring costs from its Carlisle Support Services Operations hit company finances.
The employment agency posted a pretax loss of GBP1.1 million for the twelve months ended December 27, 2013, compared from a pretax profit of GBP15.8 million the previous year, despite its revenues remaining flat at GBP1.21 billion.
Impellam issued a profit warning in December saying that while trading improved in the second half due to better economic conditions in its key markets, profits will be hit by restructuring costs at its Carlisle support services business.
In February, the company said it expects to post operating losses of up to GBP9.8 million due to an onerous long-term contract at Carlisle Support Services.
At the time the company said the losses will be booked over the remaining four years of the contract and its full year results, excluding exceptional costs, would be around GBP5 million lower than the previous year.
On Thursday, the company posted a one-off contract exit cost of GBP23.0 million for the Carlisle Support Services business, which made up the vast majority of its losses.
As expected, the company announced a final dividend of 7 pence per share, bringing its total dividend to 12p for 2013. For 2012, Impellam paid a one-off special dividend of 35 pence, in additional to a normal annual dividend of 12p.
Impellam shares were up 5.4% to 410.00 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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