In the second quarter, the Facility Management Segment, in which cleaning services generate considerable earnings, reported revenues of PLN 105.7 million, while retaining its profit margins from the previous quarter. Growing income levels and improved profit margins are also reported in the second of the main service segments i.e. Security where revenues reached PLN 97.2 million.
Wojciech Rembikowski, Vice President of Impel SA Management Board says: “We focus our attention on achieving high dynamics of revenues in the segments of mature services i.e. cleaning services and security, where we aim at increasing profit margins of contracts. Our results prove that despite strong resistance of the market our assumptions are being realized. The dynamics of our development is dependent upon growing costs of labour. They are reflected in the level of the national minimum wage, which over the past year rose by over 35%, and the expectations of employees keep. We want our contracts to be indexed to the level of increased minimum wage. The resulting terms of the contracts provide the Client with the guarantee that expenses are calculated in a reliable manner, and the service provider can adjust proceeds from the contract to the dynamically changing labour costs, on which the provider has no influence”.
The Impel group prolonged its cooperation with Kredyt Bank SA. Impel Cash Handling specializing in cash processing signed a 3-year contract, under which it will provide cash-in-transit and cash processing services for outlets of the bank across the country. The total estimated value of the contract is over PLN 60 million. A contract with Kredyt Bank was also signed in July by Impel Cleaning. Under the contract, the company will provide cleaning services for approx. 240 outlets of the bank. The company also renewed its contract with City Council Housing and Letting Office in Poznań. The total estimated value of both contracts, entered into for 1.5 and 3 years respectively, is PLN 14 million.
Wojciech Rembikowski adds: “We get on with the contracts which we find prestigious and exert significant influence on the Group’s revenues. We are the leading provider of services in the healthcare sector and keep the leading position among the providers of outsourcing services to financial institutions. The stability of our market position is retained owing to quality, comprehensive offer, and constant exploration of new opportunities for development of specialized services, based on nationwide reach.”
As from July 1st 2008, the Impel Group commenced operation in the SAP system. Thus, the first stage of implementation of the Integrated IT System was completed. The project is one of the biggest and most sophisticated ventures of that kind in Poland, as it comprises over 20 companies of the Group. The new system enables the Group to process information faster and more efficiently, resulting in higher quality of services, provided both outside and inside the Group. This is bound to increase competitive edge. Coherent and complete management information in all business areas (CRM, Contact Center, ERP, HR, and Infrastructure) will generate benefits at all levels: customer relations, service provision, internal processes as well as internal processes and materials&providers logistics.
Another significant event within the Impel Group is the signing of a conditional contract with Lux Med Sp. z o.o. concerning the sale of 100 % shares of Promedis. The selling price of the shares is PLN 37 million. A certified auditor will establish any possible price adjustment by October 31st 2008. Completion of the transaction is scheduled for the end of August 2008.
Wojciech Rembikowski comments: “The market of private medical services in Poland is involved in dynamic consolidation in recent months. We decided that it is the best moment to sell shares of the company whose services were not part of the core business of the Impel Group. Following several months of negotiations, we finally decided on Lux Med, i.e. the company whose offer came closest to our expectations as far as the terms of the transaction are concerned. The disposal of Promedis shares is a one-off event, which will have significant and positive impact on the financial results of 2008.”