Impellam trading loses momentum

AIM-listed Impellam (LON:IPEL) has reported that adjusted EBITDA fell by 15.6% to £50.2 million during the 53 weeks ended 4th January as it faced tough conditions in UK healthcare, education. and retail markets. The company also had issues with higher compliance costs and IT investments that contributed to operating profits being cut in half.

Chairman Lord Ashcroft commented: “We have continued to invest selectively in line with our strategy, whilst maintaining control on costs and cash. Our focus on international expansion to reduce reliance on the UK and to increase scale continues, whilst we continue to strengthen our Managed Services proposition globally.

Our Managed Services businesses delivered strong growth, particularly in Australia. The merger of our UK and US Managed Services businesses has further broadened our capabilities and service offering. We have also seen expansion of our Specialist Staffing businesses in Europe, with new locations opened in Germany and Switzerland.

We have also continued to invest in our people and technology to ensure that Impellam Group is equipped to adapt to the changing world of work“.

The price of shares in the staffing company fell by 15.14% to 464.60p (as of 13:20 GMT).