Impellam To Post Additional Operating Losses On Onerous Contract

LONDON (Alliance News) - Impellam Group PLC said Thursday that it expects to post additional operating losses of up to GBP9.8 million due to an onerous long term contract at its non core business, Carlisle Support Services.

The losses will be booked over the remaining four years of the contract.

The company said that it had exited one of two onerous contracts, but that it had experienced operational challenges in the second. It said it is in talks about a number of options for the second contract, including a potential exit.

Impellam maintained that its full year results, excluding exceptional costs, will be around GBP5 million lower than the previous year, hit by restructuring costs at its Carlisle support services business. It will recommend a final dividend of 7 pence per share.

Shares in the staffing and outsourcing company were trading down 6.5% at 365.55 pence Thursday morning.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

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