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Impellam Group bolstered by strong first quarter

Published: 09:23 05 May 2016 BST

Pictured - a done deal,  a woman shakes hands after securing a new employment deal....
Net fee income increased by 27.2% against the same period last year, the second largest staffing business in the UK told investors.

Staffing and managed services specialist Impellam Group PLC (LON:PEL) saw shares nudge higher as it unveiled a strong performance in its first quarter and said it was confident on its prospects.

Net fee income increased by 27.2% against the same period last year, the second largest staffing business in the UK told investors.

Its recently acquired Global Group and Bartech businesses were performing well, while a strong show in temporary staffing and managed services offset weakness in permanent placement fees, it added.

Conversion of net fee income into earnings before interest and tax (EBIT) was 22.6% in the first quarter, up from 16.4% in the  same period last year, leaving the group well placed to achieve a key strategic objective of conversion of net fee income into EBIT of 25% in 2017, it said.

The recent  junior doctors' strikes in the UK have impacted the first quarter, the group said, but its UK healthcare business had responded positively to the introduction of caps on doctors' and nurses' rates.

It reckons its healthcare business will perform better than the firm originally expected in 2016. 

"Overall, we remain on track to deliver results for the full year in line with management's expectations, with the strong Q1 performance underpinning the board's confidence in the prospects for the group," said chief executive Julia Robertson.

Shares added 1.58% to 802.5p.

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