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Impel: Growth on the difficult market
In Q3 2013, the Impel Group – the largest group of companies providing business services in the domestic market – achieved sales revenue of PLN 406.1 m and operating profit of PLN 17.4 m. Sales revenue YTD has increased by PLN 102.3 m i.e. by 9,8 %, of which PLN 78.1 m is from the acquired companies and PLN 24.2 m have been generated organically.
The third quarter has been the period of systematic increase in consolidated revenues from the sales of the Impel Group's subsidiaries and further strengthening of its market position. However, despite a satisfactory growth rate, the quarterly operating profit decreased by PLN 2.3 m against Q3 2012. EBIT YTD has reached PLN 38.5 m and the net profit exceeded PLN 20 m.
‘Stable increase in revenue in 2013 is mainly attributed to the consolidation of subsidiaries purchased at the end of 2012. Lower organic growth related to new or renewed contracts reflects the current situation on the Polish service market. There is a high polarisation in the industry between facility management services that remain exonomically realistic and price pressure existing on the market of security services. In spite of the difficult market situation, the decision to purchase the companies from the security sector to increase Security segment was a directional decision that strategically complemented our offer’. – says Wojciech Rembikowski, vice president of Impel S.A.
Analysis of the financial performance by business segments confirms that the Facility Management (cleaning services, facility management and distribution) has a leading position. This segment generated sales revenues of PLN 791 m, with operating profitability of 4.6%. In this sector we have observed the highest sales dynamics, i.e. 13.4% (increase of PLN 93.6 m), whereas the operating profit reached PLN 36.8 m.
“Facility Management has been for years an unquestionable leader on the Polish market. The coherent and consistent policy for winning business from the main Polish sectors e.g. a public health care sector, a financial sector (e.g. the contract signed with the Getin Noble Bank for over PLN 17 m), industrial sector (the contract for leasing contract staff with Krajowa Spółka Cukrowa SA. For over PLN 15 m) or class A office buildings allows us to keep stable margins, adjusting the quality and the range of services to the client expectations changing during the economy slowdown. We also made decisions to develop new, specialised services that require high capital expenditure at first; however, in the longer run, the financial and operational risks related to the implementation of the new technologies is compensated with high profitability of the contracts signed.’ – adds Grzegorz Dzik, President of Impel S.A.
The accumulated Q1-Q3 2013 revenue from the Security segment totalled PLN 359 m, the operating profitability 0.8%, and operating profit PLN 2.9 m. These values significantly differ from the assumed values that were used in the projected organisational and capital changes, building the strategy for the increase of value in the future Impel Safety S.A listed company. As there is no improvement envisaged in the market situation of this market segment in Poland, the decision on spin off has been suspended and delayed until the market change and improvement of operating performance based on the commercial increase in security rates.
‘‘In spite of a very difficult situation on the market of security services, our current strategy assumes revenue increase in the following years, in particular based on the expansion of the product portfolio in line with the client expectations and world-wide tendency towards outsourcing. The Security Segment will actively work on obtaining new clients and contracts in the segments that we currently service; we are not excluding potential acquisitions either. We will intensify works on process and cost optimisation, aiming mainly at improvement of the profitability accompanied by the increase in revenue. – emphasizes Grzegorz Dzik, President of Impel S.A.