In the first half of 2013, the Impel Group – the largest group of companies providing business services in the domestic market – achieved sales revenue of PLN 743.5 million, an increase of more than PLN 54.3 million, i.e. 7.9% compared to the first half of 2012. In the same period, the Group generated operating profit of PLN 21.2 million.
Since the beginning of 2013, the Impel Group's business model has changed and is based on two segments: Facility Management and Security. Evaluation of the results confirms that the decision to merge the Distribution segment with the Facility Management segment has brought the desired results. Sales revenue of the merged segments has reached PLN 511.1 million, i.e. over PLN 46 million more than in the first half of last year. The rate of revenue growth has exceeded 10%, of which organic growth has reached 7.2%. The operating result of the segment has increased by 26%.
"The Group's performance in 2013 has been primarily influenced by stable and consistent winning of contracts by Facility Management, which has also improved its results owing to the synergy effect of fusion with the Distribution segment. We have streamlined administrative costs and reorganized marketing activities and the products lines of catering, logistics, brokerage, as well as health and safety. We are strengthening our leadership position in the field of cleaning services, where we have an estimated market share of over 17%. Our focus is on development and delivery of comprehensive business services in line with Customer expectations," says Grzegorz Dzik, President of Impel SA.
In the Security segment, sales revenue stood at PLN 232.3 million, which means an increase by 7.5 million, i.e. 3.3% compared to the same period last year. The revenue growth of the segment is positively affected by consolidation of the newly acquired companies Gwarant and Impel Cash Solutions sp. z o.o. (formerly: Brink's C.L. Polska Sp. z o.o.). On the other hand, the lower segment results are due to the continued high competitiveness in this market, which is confirmed by the fact that in recent months two large global players in the security industry, i.e. Brink's C.L. and G4S, have withdrawn from the Polish market.
"Purchase of new companies means increased costs of financing acquisition activities and initially lower profitability due to restructuring costs. Our strategy for the difficult times ahead is to consolidate the market, which is of particular importance is the Security segment. However, expansive fight in the market to secure new contracts does not mean we are willing to cooperate at any cost. I believe that the prices in the Polish Security segment have reached the bottom and we can now expect an increase in the value of these services. Our strategy to respond to increased competition, pricing pressures, and rising labour costs in the Security segment is to develop specialized products (monitoring, cash processing, and airport security), introduce electronic security that complements manned security, and create an efficient, homogeneous security group, capable of tapping into new markets, including foreign ones. Growth means implementation of new services based on latest technologies," says Wojciech Rembikowski, vice president of Impel SA.
From the point of view of organizational strategy of the Group, the most important directional decision taken by the Management Board of Impel SA this year has been to divide the Impel Group and introduce a new entity to the Stock Exchange - Impel Safety SA. The division of Impel SA will consists in spinning off an organized part of the Company providing business services and its contribution in whole to Impel Safety SA based in Wroclaw, in which Impel SA currently holds 100% of the shares. A similar process of a spin off of development activities from the Impel Group and their launch into public trading had positive effects for investors and also increased the growth potential of the company. Spinning off and achievement of market independence of the current Security segment by floating Impel Safety SA on the Warsaw Stock Exchange will create better conditions to compete and a clear pricing of these services, increasing opportunities for further consolidation.
"The main arguments that led the Management Board to take the decision included increased transparency and managerial efficiency of the Impel Group to the shareholders and potential investors by simplifying structures and focusing on more homogeneous areas of business. We will also increase both our ability to compete in the market and the value of the business segment associated with the security services. We obtain a reliable market valuation of the activities in the area of security services with the possibility of effective measurement of its results. We are committed to give investors greater flexibility of investing in Impel SA or Impel Safety SA depending on the type of their activities," emphasizes Grzegorz Dzik, President of Impel SA.
The division of Impel SA will be performed without reducing the share capital of ISA. The spin-off will be made from supplementary or reserve funds of ISA. At the same time, the share capital of Impel Safety will be increased through an issue of Division Shares, to be issued through public issue aimed at the shareholders of ISA. As a result of the division, the investors holding shares of Impel SA on the Reference Date will become shareholders of Impel Safety by virtue of law without the need to subscribe and pay for Division Shares. The share exchange ratio has been set at 1:1.