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Impel exceeds 1.5 billion zlotys in 2013

24 f 2014

In 2013 the Impel Group - the largest Polish provider of outsourcing services - achieved sales revenue of 1,561.2 million zlotys, which represents an increase of 144.5 million zlotys compared to the previous year. In 2013, the Group maintained its operating profit of the previous year - it amounted to 40.2 million zlotys.

An analysis of the results of the Impel Group's portfolio of services shows that in 2013 all business units of the Group posted an increase in sales revenue. In 2013, the two largest units - Facility Management (i.e.: cleaning services and technical maintenance) and Security - achieved sales of 1,079.6 million zlotys and 481.6 million zlotys, respectively. In relation to the previous year, Facility Management maintained its level of profitability, obtaining higher margins on new contracts, and improved its operating result.

"The market situation resulting from an increase in the minimum wage and the dynamically changing law (among others, regarding subsidies for employment of people with disabilities, the announced plans regarding introduction of mandatory social security contributions, and lack of changes regarding the ability to renegotate the terms of the Public Procurement Law) spurred us to take decisive action on obtaining higher prices for our services. The market leader, which is experienced and highly competent in the management of business support services, has arguments that customers understand. Our renegotiations are difficult, but effective indexation is the basis of a loyal and diligent work for a client; it is also the cheapest form of obtaining the best service", explains Wojciech Rembikowski, Vice President of the Management Board of Impel SA.

In 2014, the Impel Group companies in the Facility Management segment strengthened their leadership in the provision of cleaning services and technical facility maintenance. The segment acquired contracts in the industrial sector, retail chain services and, as in previous years, in the health care sector. Growth is maintained through acquisitions. In the first quarter of 2014 we purchased the real estate management company Integrum Management Sp. z o.o. with its registered seat in Warsaw (formerly known as RedNet Management Sp. z o.o.). The segment recorded revenue growth of 11%, i.e. 106.4 million zlotys, with operating margin of 4.4%.

"From the beginning of its business activity, Impel has been specializing in services related to the provision of broadly defined security. The results of the Security Segment fully reflect the current situation of the whole industry. Over the past three years, the drastic pressure by customers to reduce the prices has led to very low operating profitability, which fell below 1% in 2013. The security sector requires a complete overhaul. It can be aquieved through consolidation of the fragmented market. This is the only way to quickly reverse the negative trend and foster growth by raising prices. The security segment has growth potential. The market will be stimulated by improved economic climate, increased level of income (which will make security services more affordable), constant, real and alleged risks of crime and terrorism, and changes in legislation. The introduction to the market of new devices, many of which facilitate alarm monitoring services, fuels demand for consultancy services in this area and for system integration. In Poland we have one of the highest numbers of security personnel relative to the population and one of the lowest pay rates of security personnel in the EU.

The security services industry in Poland is fragmented. The five largest companies have an approximately 35% share in the market. In the UK the top five account for 55%. According to our observations, the situation is similar in other developed markets. There is a lot to change and it is our strategy for this segment," adds Grzegorz Dzik, President of Impel SA.

Due to the nature of the provided services, our industry is very sensitive to the changing legal environment, in particular as regards labour costs.

"For the past 10 years we have operated in an unfavourable legislative environment, over which we have no control. The services segment is based on managing the work of tens of thousands of people, and therefore its sensitivity to the instability of law relating to labour costs is the greatest. The government and the members of parliament have not yet taken any action aimed at a real pay rise; instead, they only increase its taxation. This results in the mass emigration of Poles abroad, high unemployment rate, the growth of the grey economy, and decreasing revenue of the Social Security system. As many as 26.8 percent of people in Poland work under civil law contracts. This rate is the highest in Europe. Employees earn less and less because there is no long-term policy to reform the labour market, such as by changing the Law on Public Procurement. The undertaken measures do not resolve the underlying issue; they are only intended to shift all responsibility onto employers. In light of this unfavourable business environment, I consider it a success that the Impel Group was able to repeat its results year on year", emphasizes Grzegorz Dzik, President of Impel SA.

DOC
Impel exceeds 1.5 billion zlotys in 2013 (115 kB)
In 2013 the Impel Group - the largest Polish provider of outsourcing services - achieved sales revenue of 1,561.2 million zlotys, which represents an increase of 144.5 million zlotys compared to the previous year. In 2013, the Group maintained its operating profit of the previous year - it amounted to 40.2 million zlotys.