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Impel: 16% growth in revenue

25 f 2012

Grzegorz Dzik, President of the Management Board of Impel S.A., says: "Comparison of the results for the first halves of 2011 and 2012 shows consistent implementation of the strategy of the Impel Group. The intense process of eliminating the effects of increased labour costs (a 2% increase in pension contributions and an increase in the minimum wage as well as a reduction of subsidies on account of employment of the disabled) is the factor having the greatest impact on the Group's results today. It should also be noted that public procurement rules are inadequate for today's market needs i.e. increase in the quality and safety of service delivery. Under the current legal status resulting from the Public Procurement Act, the consequences of legal changes having an impact on the costs of providing services cannot be transferred to the buyers as part of ongoing contracts. This introduces a situation where the profitability of a service provider is temporarily reduced. The current standard in the terms of reference is: "the lowest price" (healthcare, administration, the army). Both above-mentioned factors are interrelated and result in an increase in business costs far exceeding the rate of economic growth. In the current legal situation, all the consequences of legislative changes are transferred to the employers. The Impel Group, thanks to successive restructuring decisions that order its internal processes, reorganisation, and customer trust in the company, consistently maintains double-digit growth in sales revenue. Steady growth is part of our strategy. Our Groups operates in a tough and challenging environment. Although we offer our customers more and more specialized products and improve the quality, prices of our services go down; the lowest price imperative reached a level that is difficult to accept. Our restructuring competence, IT resources, contact centre, and committed staff allow us to compete by building a market advantage. Our position is stable and our results show that we understand the changing market conditions and set new trends.”

In terms of business segments, the highest revenue from sales was generated by Facility Management. In the first half of 2012 it amount to PLN 328 million, an increase by PLN 33 million compared to the first half of 2011. In the same period of 2012, Security achieved revenue in the amount of PLN 225 million, an increase by PLN 25 million. A particularly high growth rate was also obtained by the third segment - Distribution, whose revenue in the first half of 2012 reached PLN 137 million, an increase by 38% compared to the same period last year.

Significant events, contributing to the growing prestige of the Group, included tenders won and services rendered by companies from the Facility Management and Security segments during the Euro 2012 Football Championships.

 

Wojciech Rembikowski, Vice-President of Impel SA., explains: "In the first half of the year, a major event for the Impel Group was the 2012 UEFA European Football Championship, hosted by Poland and Ukraine. Several companies of the Impel Group provided services to UEFA. Some of the services were performed for the first time at such large mass event. We are very pleased with our success and the high evaluation of our work, which confirms the Group's ability to flexibly respond to emerging, unique market needs and to adapt its services to the expectations of the Customers.”

 

Impel intends to continue its efforts to consolidate the market of outsourcing services. The Group can finance acquisitions with own funds and the available credit facilities.

 

Grzegorz Dzik, President of Impel SA., adds: “Acquisitions are just one element of our growth strategy. We met our commitments regarding market consolidation that we accepted when we entered the Warsaw Stock Exchange in 2003. We believe that organic growth in the challenging domestic market is just one of the possibilities. We intend to maintain the rate of growth of the Group and its development driven by more successful acquisitions. On 29 August 2012 we purchased 75% shares in Climbex S.A. In 2011 the sales revenue of the Company exceeded 22 million zlotys. It is an extension of the range of cleaning services at the Business Unit - Facility Management. Purchase of Climbex expands our competence with regard to cleaning of industrial installations, including vacuum removal of loose materials. This is a promising business. We see a lot of demand for such services both in the domestic and foreign markets. The recipients are power plants, petrochemical and chemical companies, and cement plants. This is an innovative service, which due to the high barrier to entry can only be provided by a handful of companies. This will be our competitive advantage. We definitely want to buy highly specialised companies through which we will gain professional competence in new markets. We are looking for highly profitable, innovative entities whose products could be cross-sold with the other products of the Group. We want to gain experience and know-how in the areas which so far have not been penetrated by our Group; we do not rule out expansion in foreign markets. We also think about new entities centred on environmental issues.”

At the same time, the Group strives to consistently and steadily increase its potential through organic growth. It develops competence in areas that required it to work out performance standards from the ground up. The company maximises the effectiveness of its individual segments.

 

“Our Company Impel Airport Partner is strengthening its position in the aviation market of handling services in Poland. The past holiday season confirmed the Company's capacity and potential. An increase in the number of flights associated with EURO 2012 and holiday charter flights, seen in the context of their effective handling by Impel Airport Partner, vindicated the chosen direction of development in this line of business. We believe in this area of our activities and we remain committed to its development through consistent realization of the objectives,” stresses Wojciech Rembikowski.

DOC
Impel: 16% growth in revenue (55.5 kB)
In the first half of 2012, the Impel Group – the largest group of companies providing business services in the domestic market – achieved sales revenue of PLN 689 million, an increase of more than PLN 95 million compared to the first half of 2011. In the same period, the Group generated operating profit of PLN 22 million. Impel consistently pursues a policy of rapid revenue growth with the goal of reaching PLN 2 billion by the end of 2014. The presented half-year results are consistent with the expectations of the Management Board of Impel SA, which supports the strategy of development through organic growth and intensification of acquisition efforts.