IMPELLAM GROUP PLC-FINAL RESULTS FOR THE YEAR ENDED 30 DECEMBER 2022

IMPELLAM GROUP PLC-FINAL RESULTS FOR THE YEAR ENDED 30 DECEMBER 2022

RECORD RESULTS IN AN EXCEPTIONAL YEAR

The audited results above include the following changes to the preliminary results released on 30 March 2023:

·      With no effect on gross profit and operating profit, and representing a netting of pass-through cost, Total Group and Continuing Group Revenue has decreased by £10.7m.

·      The Total Group and Continuing Group tax charge has been reduced by £8.4m as a result of removing a deferred tax balance that was not required to have been recognised.  This has increased profit after tax by this amount as well as improving earnings per share. There is no cash impact of the adjustment.

(1) Total Group results are presented before the discontinued operations

(2) Operating profit before amortisation of acquired intangible assets and impairment (see note 2)

(3) % change measured at constant exchange rates

(4) Net cash/(debt) pre IFRS 16 is used as the basis for banking covenant calculations

Key operational highlights

Impellam delivered strong financial results in 2022 and our strategic progress has accelerated as a result of the divestment of traditional businesses in our Regional Specialist Staffing and Healthcare portfolios setting Impellam up for sustainable growth.

Full-year performance for the total Group led to record highs in revenue of £2.53bn (2021: £2.26bn) and gross profit of £314.8m (2021: £267.0m). Adjusted operating profit1 was up 41.6% to £41.5m (2021: £29.3m).

Special dividends of £50m were declared in 2022 (110.8 pence per share) with £25m recognised and paid in the year. A further Special dividend of £35m (77.8 pence per share) was declared in March 2023 following the completion of the sale of the Healthcare and Regional Specialist Staffing businesses. Going forward this allows the Group to return to a dividend policy. As previously announced, it is the Company's intention, subject to the Group's trading performance, to re-commence the payment of annual dividends, starting in January 2024 of £25m. This represents a 9% forward yield on closing share price on 28 March 2023.

All onward financial information, unless otherwise stated, is based on the Continuing Operations of the Group.

Group revenue was up 23.2% (20.5%*) on the prior year at £1.95bn (2021: £1.58bn) and gross profit was up 27.3% (19.8%*) to £204.9m (2021: £161.0m). Adjusted operating profit1 was up 38.3% (27.9%*) to £27.8m (2021: £20.1m).

STRATEGIC

·      To accelerate progress with our long-term strategy to focus on high-value growth opportunities across our UK & Europe, North America and APAC regions - in January 2023 we entered into an agreement to sell Healthcare (Medacs Global Group in the UK, Ireland and APAC) and Regional Specialist Staffing (Blue Arrow, Chadwick Nott, Career Teachers and Tate in the UK). This transaction completed on 3 March 2023 for cash consideration of £85m on a debt-free, cash, normalised working capital basis. This followed the sale in February 2022 of Corestaff in North America to swipejobs Inc.

·      Continuing operations are our digitally-enabled Managed Services (Guidant Global, Comensura and Flexy in the UK & Europe, North America and APAC) and our talent-rich STEM businesses (Lorien, SRG, Carbon60 and Bartech in the UK & Europe and North America).

·      We are now a more focused and agile business, well positioned for growth globally across attractive Managed Services and STEM markets.

·      Throughout the year, we continued to make key investments in people, technology and customer centricity.

FINANCIAL 

·      Exceptional performance across the Group delivered 38.3% (27.9%*) increase in adjusted operating profit1.

·      Strong revenue and gross profit growth across all regions with APAC delivering a record increase of 31.6% (30.8%*) in gross profit, UK & Europe up 26.2% (25.7%*) and North America up 28.3% (14.6%*).

·      Net cash (pre IFRS 16) of £30.3m compared to net debt1 of £(15.0)m in 2021 (includes net sale proceeds from Corestaff of £15.4m and final repayments of Covid-19 related support of £9.1m as well as a £25m special dividend paid in December 2022).

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