In the Q1 2014 the Impel Group - the largest Polish provider of outsourcing services - achieved sales revenue of PLN 394.7 million, an increase of PLN 44.1 million compared to the previous year. In the same period, the Group generated operating profit of PLN 7.7 million.
Analysis of the results of the two largest business units indicates consistent implementation of growth in revenue, performance and return on sales by the Facility Management segment and maintenance of the rate of revenue growth through organic growth and acquisitions accompanied by lower performance and profitability in the Security segment. The Facility Management segment achieved revenue of PLN 279.7 million, an increase of PLN 35.7 million (14.6%).
The Facility Management Business Unit strengthens its position in the segment of health care. The contracts won in the area of cleaning and patient assistance services at the Provincial Hospital in Zielona Góra and the contracts concluded with 105 Military Hospital and Outpatient Clinic and the Independent Public Health Care Centre (ZOZ) in Żary are evidence of consistent implementation of the strategy of maintaining the position of the strongest company in the industry. Both agreements increase revenue by a total of PLN 31 million. Under the acquired contracts, the companies will provide services in the areas of specialized cleaning and round-the-clock maintenance of cleanliness of hospital space and outdoor areas, patient assistance services, and daily patient catering and in-hospital transport services.
"We perceive the signed contracts as an unambiguous confirmation of Customer satisfaction with the existing cooperation and the quality of our services. The contracts also strengthen our leadership position in this market sector. They are also the result of our strategy of combining several services offered in the extensive portfolio of the Impel Group, in this case: cleaning services and catering services. Thanks to the synergy we are increasing revenue and optimizing services while maintaining high standards of cooperation expected by our Customers. We are clearly improving the result for the segment, which increased to PLN 11.1 million (in the same period last year it amounted to PLN 6.7 million), and its profitability (4%), which brings us closer to global standards achieved in our industry," stresses Wojciech Rembikowski, Vice-President of Impel S.A.
In Q1 2014 the Security Business Unit achieved revenue of PLN 115 million, an increase of 8.4 million (7.9%). The revenues of the segment were positively affected by consolidation of Impel Cash Solutions Sp. z o.o. (formerly: Brink's C.L. Polska Sp. z o.o.), a company purchased in the first quarter of last year. In the Security segment the companies of the Impel Group continue to struggle with fierce competition (continuous downward pressure on rates in the products of manned guarding of property and cash processing) and, at the same time, give up on some of low-margin contracts (mainly military units).
"For security services the year 2014 continues to be difficult. This is due to a number of factors: an increase in the minimum wage, dynamically (without maintaining sufficient vacatio legis) changing law, among others regarding subsidies for the employment of people with disabilities, or the announced plans regarding obligatory contributions to social security, and lack of changes regarding the ability to renegotiate the terms of agreements under the Public Procurement Law. Over the past four years we have seen a steady increase in labour costs (representing over 98% of the costs incurred for the implementation of security services) whereas, paradoxically, the level of remuneration for security companies, calculated as a rate per man-hour, has been falling. This situation is reflected by the results. At this point, the solution for us is an adjustment of strategic priorities, which closely combines dynamic growth of sales in the years 2014 - 2016 with development of profitable sales. We have taken decisive action to increase prices for services to reasonable levels," adds Mirosław Greber, President of the Management Board of Impel Security Poland.
On 25 April 2014, a consortium of Impel Security Poland (leader), SMT Software, EBS and ITM Poland signed an agreement with the State Treasury - the Ministry of Justice. The contract includes the start-up, operation, support and development of the Electronic Supervision System, the so-called electronic handcuffs. The agreement binds the parties for a period of 54 months, with estimated revenue of PLN 214 million gross.
"The Security segment is consistently developing services in new areas of the market, such as e.g. airport and rail transport security, and focuses on development of specialized products. One of the areas in which Impel intensifies its activities is monitoring, allowing it to use high-tech solutions. The effect of this action is the signing of a contract for operation and support of the Electronic Supervision System. We are strengthening our competence and gaining new experiences. This is a crucial moment in the difficult market of Security and the biggest contract won in a tender in the history of the company is a good omen for the coming months. We are looking for areas that generate higher margins with lower labour costs. The bad situation of the entire market forces us to forge new paths for growth," says Miroslaw Greber, President of the Management Board of Impel Security Poland.