IPEL.L Share News (IPEL)

LONDON (Alliance News) - Planning and management services provider Impellam Group PLC saod earnings dropped in its recently ended financial year amid a challenging UK market.

Revenue in the 52 weeks to December 29 rose by 1.5% to GBP2.17 billion from GBP2.14 billion, while group supply increased by 12% to GBP1.10 billion.

However, adjusted earnings before interest, tax, depreciation, and amortisation declined 15% to GBP59.4 million and pretax profit fell to GBP37.9 million from GBP39.8 million.

Managed services spend under management, Impellam said, rose 8.8% year-on-year to GBP4.37 billion.

The company's final and total dividends were both flat year-on-year, at 13.50 pence per share at 20.50p respectively.

Impellam said the decline in adjusted Ebitda was due to a decline in gross profit from the UK Specialist Staffing businesses after Brexit, as well as austerity in the NHS and education sectors and investment in IT and digital technology.

Revenue in the period for the Managed Services division rose to GBP1.02 billion from GBP990.0 million in the UK, Europe, & Australasia but fell to GBP187.2 million from GBP188.4 million in North America.

Gross profit for the two regions rose to GBP62.7 million from GBP61.4 million and to GBP49.5 million from GBP48.8 million respectively.

Impellam's Specialist Staffing division posted a drop in revenue in the UK, Europe, & Australasia to GBP811.9 million from GBP817.8 million. In North America, this figure increased to GBP213.8 million from GBP204.4 million.

Gross profit for the business in the period in the UK, Europe, & Australasia fell to GBP140.4 million from GBP146.5 million, and in North America it climbed slightly to GBP32.9 million from GBP31.9 million.

Shares were up 2.2% on Thursday at 590.00p each.