The Impel Group ended the first quarter of 2015 recording an increase in revenue of over seven percent and an increase in its operating profit of almost 15 percent. The largest supplier of outsourcing services in Poland started the process of renegotiating agreements with its contracting parties in connection with amendments to the acts on public procurement and a change in the social insurance system, coming into force of 1 January 2016.
An increase in consolidated revenue recorded by Impel, in comparison with the first quarter of the previous year, resulted from higher sales in both the most important business segments – Facility Management (increase of 5.3%) and Security (12.4%). Wojciech Rembikowski, Vice President of Impel S.A., commented – We are particularly pleased with an increase in revenue in the Security segment. In the first quarter we solicited a high number of new prestigious contracts, which confirms the appropriateness of the adopted strategy of competing predominantly on the quality of provided services. The proceeds from the operation of the Electronic Surveillance System also represented a significant factor which contributed to the increase in revenue generated by the Security segment. We are convinced that this element will be increasingly prominent in our financial results. During the first months of 2015 the Impel Group acquired such clients as, among others, Jastrzębska Spółka Węglowa, Scandia Życie TU, STRABAG, Budimex and mBank. The organic growth (namely new contracts on cleaning services and temporary work) was another factor which had a favourable impact on sales in the Facility Management segment. The total consolidated revenue earned by Impel S.A. in the first quarter of 2015 reached the level of PLN 424 million, representing an increase of 7.4% in relation to the corresponding period of the previous year.
Owing to higher revenue and stricter control over expenses the Impel Group was able to improve its efficiency. The consolidated operating result produced in the first quarter totalled PLN 9.3 million and was higher by 14.8% in comparison to the previous year. The net profit amounted to PLN 4.6 million, which reflects an increase of 91.7%.
Wojciech Rembikowski concluded – The solicitation of new contracts and expenses kept under control are the most important elements influencing the success of the company, which operates in the demanding market segments characterised by relatively low profitability. The financial results produced at the beginning of the year confirm our effectiveness and provide excellent prospects for business development this year.
Apart from the activities aimed at increasing sales the Impel Group prepares also to the incoming significant changes on the market. Grzegorz Dzik, President of Impel S.A., explained – We have started the process of renegotiating contracts, resulting from the amendment to the Public Procurement Law and to the social insurance system. New regulations provide for the valorisation of contracts in the case of changes to the minimum wage, the VAT rate, the rules of social insurance applicability or the level of social insurance premium – if these factors have an impact on the costs of fulfilling the order by the contractor. The obligation to pay social insurance premium in the case of mandate contracts, which will come into force of 1 January 2016, will have such consequences and will affect significantly the profitability of ordered services. We have started our internal preparations and discussions with our clients, which, on the one hand, are meant to make the clients aware of the inevitable change in the law, while on the other hand should prevent the Group from losing its market. We point out to the clients that the termination of a contract and the necessity to start a tender procedure anew will generate additional costs for them. The budget calculations taking account of social insurance premiums applicable to mandate contracts are inevitable for the whole market. All competitors have to adapt themselves to this change, because the valorisation of contracts protects jobs and the interests of employees and clients as well. The process poses a considerable challenge for the organisation, but we are determined and well prepared.
The General Shareholders Meeting of Impel S.A. was an important event which took place during the first months of 2015. The General Meeting decided on the return to the policy of paying dividend and determined the dividend for 2014 at the level of PLN 1.50 per share. The ex-dividend date was set on 30 June and the dividend payment will take place on 17 July 2015.