In the first quarter of 2013, the Impel Group - the largest provider of outsourcing services in Poland - generated revenue from sales at the level of PLN 351.1 million, which represents an increase in relation to the previous year by PLN 17.8 million, i.e. 5.3%. The Group earned the operating profit of PLN 6.4 million.
This year the merger of two business units, Facility Management and Distribution, has been carried out, and therefore, the results are reported in a new format, resulting from the combination of these segments. The analysis of the results achieved by the business units shows a consistent increase in revenue from sales in the Facility Management segment (including the Distribution segment), which exceeded PLN 245 million in the first quarter. The Security segment recorded revenue at the level of PLN 106.2 million, the figure being lower by PLN 3.9 million in comparison with the corresponding period of the previous year.
Wojciech Rembikowski, Vice President of Impel S.A., explained, ‘We are running an informational campaign among our Clients, whom we make aware that the conclusion of contracts for our services which is based exclusively on the LOWEST PRICE criterion is detrimental to both parties. In the first quarter we did not observe any positive effects of our activities; under the current legal circumstances clients act according to the lowest price imperative, which is the only, and, unfortunately, convenient factor for the awarding entity, influencing the selection of the bid in the tender procedures organized pursuant to the provisions of the Public Procurement Law. According to the report of the Public Procurement Office, in 2012 in Poland 92% of all tenders were concluded on the basis of the lowest price criterion. In its current shape the Public Procurement Law prohibits to renegotiate the conditions for contract execution. Since the costs of labour increase and the level of subsidies on account of the employment of the disabled is gradually reduced, our operating profit in the Security segment is lower and the profitability of provided services has decreased. Our largest segment, Facility Management, has far better results in terms of growth and stabilized profitability.'
The economic slowdown affecting the construction sector in Poland, for which the Impel Group companies carry out technical projects, had an important impact on the results produced in the first quarter and led to a lower rate of revenue growth. A manifest reduction in the number of orders and announced tenders could be observed, which resulted in a 30% decrease in revenue generated by this part of our business.
The Impel Group is constantly looking for opportunities to develop its activity and the possibility of increasing the profitability and profits is offered by the provision of highly specialized services. Impel Cleaning, the leader in the sector of cleaning services, by acquiring the shares of Climbex S.A. has gained the possibility of direct cooperation on a new and promising market in Saudi Arabia.
Bogdan Dzik, President of Impel Cleaning, stated that, ‘Climbex, a company belonging to the Impel Group, which provides the cleaning services for industrial plants and facilities, signed its first contract for the cleaning of oil tanks in Saudi Arabia, owned by Aramco, the world potentate in oil extraction and processing, meeting over 10% of the world demand for this raw material. Climbex provides the service of automatic oil tank cleaning by applying the world's unique technology. Climbex has been granted the exclusivity for the use of this technology in the Persian Gulf countries. We are in the possession of two such unique installations. One is used in Poland and the other in Saudi Arabia, where further investments are planned. This service in more profitable in comparison with other services that we render and the market potential is considerable.'
On the Polish security market the competitors are still at price war, accompanied by increasing pay expectations. We withdrew from carrying out numerous contracts, because they ceased to be profitable. We are trying to improve the profitability of contracts for manned guarding by becoming more selective in our actions on the market, which, however, has a negative impact on the revenue growth rate. The new sales, i.e. the contracts won in the first quarter, are more profitable, which predicts the negative trend reversal.On 21 March 2013, Impel Security Polska signed the final agreement on the acquisition of 100% of the shares of Brink's C.L. Polska Sp. z o.o., specializing in cash handling and transport.
Wojciech Rembikowski, Vice President of the Management Board of Impel S.A., commented that, ‘Owing to this acquisition Impel Security Polska will strengthen its position on the cash handling specialist services market. The services provided by Brink's C.L. Polska Sp. z o.o. include the transport of cash and valuables, including the replenishment of self-service bank facilities, and cash processing. The company's operational infrastructure is well developed throughout the country - it runs its business through 16 Cash Handling Centres and 20 Cash-In-Transit Units. It renders its services to significant clients representing the banking sector. The acquisition of Brink's C.L. Polska will enable us to develop dynamically our business in the area of highly specialized cash handling services and will strengthen our market position. Owing to the acquisition of Brink's we have enhanced our operating potential. We are taking over smoothly the management of the entity and ensuring the highest quality of service to its existing Clients. We have been consolidating the market, as the example of other highly developed countries shows that only big players are able to succeed.'
The Impel Group is the largest Polish group of companies providing services. It has 20 years of experience of cooperation with demanding Clients who are provided with services by a network of branches throughout Poland. Impel has an extensive range of competences, enabling it to optimise such areas as work organisation, technology selection and staff management. The Group offers the largest number of services for business on the Polish market, in the following business units:
The Group provides services to about four thousand companies throughout Poland. It manages the work of more than fifty thousand people.
The philosophy underlying the Impel Group's operation comprises support for social, cultural, and sport undertakings and care for those who need it. Impel owns the Impel Volleyball company which manages a women's volleyball team, Impel Wrocław. Together with the Foundation "To Rescue Children with Cancer" and the medical team of the Wrocław Medical University the Group supports the construction of a new seat for the Bone Marrow Transplantation, Oncology and Paediatric Haematology Clinic - Przylądek Nadziei (Cape Hope).