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Impel Group’s stable growth

26 f 2014

During nine months of 2014 revenue at the level exceeding PLN 1.2 billion was earned by the Impel Group – the largest provider of outsourcing services in Poland. An eight percent increase in revenue achieved after three quarters corroborates the trend for the consistent expansion of the Group’s scale of business, lasting now for over twenty years. The third quarter also brought in a change in legal regulations, important and beneficial for both the Group and the whole services market in Poland.

 

The Impel Group’s consolidated revenue recorded after three quarters of 2014 totalled PLN 1,242.8 million, which at the growth rate of eight percent on an annual basis represents the continuation of the strategy for growth, implemented by the Group for the last twenty years. Consolidated operating profit after nine months reached PLN 43.8 million and net profit (attributable to shareholders of the parent) totalled PLN 23.7 million. It represents an increase by 10% and 17.3%, respectively, in comparison with the corresponding period last year. In the third quarter alone the highest level of sales in history was recorded – reaching PLN 431.6 million. As Wojciech Rembikowski, Vice President of Impel S.A., commented, ”the Impel Group’s financial results confirm its consistent development, achieved despite the very difficult environment, manifesting itself by changes in the system of subsidised employment for the disabled, unfavourable for entrepreneurs, on one hand, and on the other, by a very difficult situation on the Polish market for security services”.

 

The launch of the Electronic Surveillance System (the so-called electronic bracelets), resulting from the implementation of the contract signed with the Ministry of Justice, was an important event for the Group in the third quarter. Mirosław Gerber, President of the Management Board of Impel Security Polska, informed that, “by the end of September the new system included all convicts serving a sentence of this type, i.e. about 4.5 thousand people. It was the largest operation of this type in Europe, where a new service provider effectively implemented an IT system in a period of 30 days and maintained the continuity of serving the sentence for all people covered by the electronic surveillance system”. The agreement on the launch and operation of the Electronic Surveillance System is executed by a consortium of companies, whose leader is Impel Security Polska. The value of the contract concluded for a period of 54 months was estimated at PLN 214 million. Over three quarters of 2014 the Security Segment, in which Impel Security Polska is the leading company, produced revenue at the level of PLN 354.8 million, which is the figure similar to the result achieved in the previous year. 

A noticeable increase in sales, exceeding twelve percent, was recorded in the Facility Management segment, which generated revenue at the level of PLN 861.2 million over three quarters of 2014. In this area of the Impel Group’s activity the events of the last nine months included a dynamic increase in revenue, exceeding 30 percent, in Impel Tech Solutions, a company which implements the designs of technical installations at the clients’ facilities, low current systems in particular. In POSNANIA, a shopping centre under construction in Poznań, the third-ranking facility of this type in Poland in terms of size, the company concluded a contract having the value of PLN 14 million.

 

Apart from current events in the operating activity, the third quarter of 2014 also brought in a change in the legal regulations, which is very important from the Group’s point of view. On 17 October an amendment to the Public Procurement Law came into force, providing for, among others, the valorisation of the value of contracts concluded for a period longer than one year under the circumstances which are beyond the control of the parties to such contracts (including, among others, an increase in the minimum wages, VAT and social security contributions). In addition, in the case of newly awarded public procurement contracts the price will no longer be the only criterion for the selection of bidders. Mr Rembikowski, Vice President, emphasised that, ”this change is very important and beneficial for the whole market. It eliminates many problems which not only the Impel Group, but also entrepreneurs representing numerous other sectors had to cope with. The lack of the possibility of valorising the rates in situations where unforeseeable factors, increasing costs, were encountered ruined margins in numerous service segments over the years, forcing contractors to pay from their own pockets for the economic consequences of decisions taken by the regulator. This change provides an opportunity to normalise the conditions of operating on the public procurement market and to rebuild gradually the financial performance undermined over the past years”.

 

The Polish Parliament (the Sejm) is working on an amendment to another act, important for the Impel Group, regarding the social insurance system. The proposal accepted by the Sejm and put forward to the Senate assumes that social security contributions will be paid on account of commission contracts as of 1 January 2016 and provides the possibility of terminating contracts concluded pursuant to the Public Procurement Law in the case where the parties are unable to reach an agreement on a new value of remuneration related to an increase in labour costs. As Wojciech Rembikowski said, “we are pleased with the fact that the legislator has taken account of the comments submitted by entrepreneurs and has given the time to adapt to the changes. It is also important that companies have been provided with a real tool for renegotiating long-term contracts in progress. Owing to this,  the risk that a part of long-term contracts becomes unprofitable on the day when social contributions on account of commission contracts have to be paid will be reduced”.

DOC
Impel Group’s stable growth (116 kB)
During nine months of 2014 revenue at the level exceeding PLN 1.2 billion was earned by the Impel Group – the largest provider of outsourcing services in Poland. An eight percent increase in revenue achieved after three quarters corroborates the trend for the consistent expansion of the Group’s scale of business, lasting now for over twenty years. The third quarter also brought in a change in legal regulations, important and beneficial for both the Group and the whole services market in Poland.