In the first quarter of 2011 the Impel Group – the largest group of companies providing services for business in Poland – produced revenue from sales at the level of PLN 288.7 million, which represents an increase by more than PLN 22 million, i.e. 8.4%, as compared to the first quarter of 2010. The Group earned an operating profit of PLN 10.3 million and a net profit at the level of PLN 7.9 million.
In the first quarter revenue from sales was higher by 8.4% than the figure recorded in the corresponding period last year. This change was brought about in equal parts by an organic growth in sales and revenue generated by the acquired companies, providing services, among others, to companies from the heavy industry and power sectors – Arcelor Mittal Poland and Dalkia Łódź SA as well as Agrobud BHP, a logistics and commercial company, and Brokers Union, an insurance intermediary.
The analysis of the largest business units’ achievements shows that two factors had a significant impact on the Impel Group’s results in the first quarter. One factor is a consistent increase in revenue from sales achieved in the Facility Management segment, whose revenue exceeded PLN 143.2 million (an increase by almost 15%) in the first quarter. The other consists of significantly increased competition and price pressure, accompanied by growing employment costs in the Security segment, whose revenue did not change in relation to Q1 2010, reaching the level of PLN 99.1 million in 2011. The highest sales dynamics in the first quarter was recorded by the Distribution segment, ranked third in the Impel Group in terms of size, including catering and laundry services, rental of work clothes and delivery logistics, whose revenue increased by more than 21% and totalled PLN 46.3 million. The IMPEL Group’s consolidated net profit earned in the first quarter totalled PLN 7.9 million.
In the first quarter of 2011 the Group effected two acquisitions: it acquired 51% of shares of Agrobud BHP SA, specialising in the production and distribution of work clothes and distribution of occupational health and safety products, and 51% of shares of Brokers Union Sp. z o.o. – one of the largest insurance brokers in Lower Silesia.
As explained by Danuta Czajka, Vice President of Impel SA, “The purpose of acquisitions is to develop the area of logistics and sales of occupational health and safety products by Impel. In addition, it represents the implementation of the Distribution Business Unit’s strategy, based on development and strengthening of its position as a supplier of comprehensive services and products. Up till now the service including logistics and sales of occupational health and safety products was provided for the Impel Group companies and for many other Polish companies, Zakłady Chemiczne PCC Rokita and PKN Orlen taking the lead. Through the acquisition of Agrobud BHP SA we consolidate the market and enhance the competence in this area. Our objective is to become the leader in the area of goods logistics in Poland. Owing to this acquisition the Impel Group has opened up to the eastern market – China – where we make purchases, attractive in terms of both price and quality, thus optimising the Group’s expenses, but also improving competitiveness of our commercial activity. Brokers Union is an experienced broker based in Wrocław, rendering comprehensive insurance advice services. Insurance intermediation is a new service, naturally complementing the products available in Impel’s offer. We want to exploit the potential of Brokers Union both to satisfy the Group’s internal needs and to offer packages including insurance services to our clients. At present, Impel provides not only security and cleaning services, but also specialist accounting, personnel and payroll, IT and temporary work services. In the nearest future we want to focus on their development and active creation of an image of a supplier of comprehensive services for business”.
The Impel Group has strengthened its leadership position in the segment of cleaning services, dynamically increasing its revenue. The Group is also looking for new opportunities for growth and further development of competence in new areas. The implementation of a contract on providing complete handling service for the airport in Poznań was started on May 1st 2011.
Wojciech Rembikowski, Vice President of Impel SA, states that “Impel provides services that extend the scope and enhance the diversity of its activity. At the end of last year an agreement was signed between Impel Airport Services and Enter Air, one of the largest charter airlines in Poland. The agreement concerns the provision of complete handling services for Enter Air airlines: passenger and luggage service and plane service at the airstrip on the premises of the Poznań-Ławica Airport. Impel Airport Services is the first private company on the market of handling services in Poland. It has introduced a new quality of services provided for air carriers, and owing to its belonging to the Impel Group it can guarantee investment in technology and safety.”
The Security Group, despite the more difficult market situation connected with significantly fiercer competition in the sector, which translates into lower margins, and a reduced volume of cash counted on the financial markets using the Cash Processing services, develops its services on the basis of the state-of-the-art solutions and intends to become the leader of the Polish market of GPS and visual monitoring. The Group plans to achieve a dynamic increase in these services, acquiring several thousand vehicles for monitoring every year. It offers the cheapest active vehicle protection package on the market. For institutional clients such as transport, construction and car rental companies we offer an additional tool to manage their fleets, designed for optimisation of vehicle utilisation by planning and control over working time of their employees driving at work. Owing to this functionality the expenses incurred by a company for its fleet management can be reduced by even 40%.
Wojciech Rembikowski, Vice President of Impel SA, comments: “We observe the market and its needs, and therefore, we are constantly looking for new solutions. For us development consists in continuous implementation of new services – today – on the basis of the state-of-the-art technologies. At time of cost optimisation enforced by, among others, unpredictable changes of fuel prices, the GPS monitoring system is useful in every transport or trading company. Where vehicles are the basic working tool, and concurrently the highest expense, the greatest benefits resulting from the implementation of the GPS monitoring system can be obtained. The fuel consumption is reduced, savings made on transport and insurance costs are visible and the driver’s working time is used in an optimum way. The system installation results in savings from several hundred to even several thousand zloty per vehicle. The active protection service reduces also the risk of vehicle theft. Visual monitoring is a new service, introduced half a year ago. This service is a perfect choice for companies in the finance sector and service chains which want to increase the efficiency of their security solutions. Visual monitoring complements manned guarding, and in the case of smaller facilities it may serve as a replacement for guards.”
This year the Group plans to spin off the property development activity from Impel SA. The Management Board has made a strategic decision on transferring the whole of this activity to Vantage Development.
Danuta Czajka, Vice President of Impel SA, comments: “We are finalising the first stage of construction of the Centauris residential estate in ul. Ślężna in Wrocław. We have been expanding the detached houses estate located in the southern suburbs of Wrocław, in Sadków. Still in May this year Vantage Development SA will start the construction of Promenady Epsilon, an office building. It is the first stage of construction of Promenady Wrocławskie, an office and residential complex in the centre of Wrocław. By spinning-off the property development activity we want to enable our investors to make a clear choice between objects for investing. At present, the shares of IMPEL held by our investors represent both service outsourcing and property development areas. After the spin-off the transparency and clarity of the Impel Group’s structure for the public market will be enhanced. The two types of activity function according to different rules, respond in a different way to changes in the legal environment, are influenced differently by the economic situation and also have different clients for their services and employ different tools to attract them. In the future every investor will be able to choose which company’s activity is the target of his investment and financial decisions”.