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Revenue fell 10.2% on a constant currency basis at global staffing firm Impellam Group plc in the six months ended July 3. The Luton, England-based company reported the decline was caused by the response to Covid-19.

“During March 2020, as the world began to respond to the global pandemic through lockdown measures, we, like most organizations, began to experience the impacts on trading, felt most severely in Q2,” CEO Julia Robertson said.

Impellam also reported it is cutting headcount by 12%.

(£ millions) H1 2020 H1 2019 % change % constant currency H1 2020 (US$ millions)
Revenue £1,024.7 £1,135.9 -9.8% -10.2% $1,279.2
Gross profit £115.2 £135.2 -14.8% -15.4% $143.8
Gross margin 11.2% 11.9%      
Profit for the period (£27.1) £3.9 nm   $33.8

The biggest impact in gross profit was in the UK, where gross profit fell 19.9% in constant currency. Gross profit fell just 3.6% in North America and 8.3% in Asia Pacific.

Impellam also noted a £22.2 million (US$27.7 million) noncash impairment charge in the first half that was driven by Covid-19.

Revenue by service types

(£ millions)H1 2020H1 2019% changeH1 2020 (US$ millions)Global Managed Services£357.1£372.0-4.0%$445.8Global Specialist Staffing£284.7£336.0-15.3%$355.4Regional Specialist Staffing£284.4£326.4-12.9%$355.0Healthcare£123.5£123.00.4%$154.2Intersegment revenue-£25.0-£21.5-$31.2Total£1,024.7£1,135.9-9.8%$1,279.2

Robertson said the company began reopening offices during June and July in a measured way.

The company also said it anticipates periodic lockdowns across the regions it serves over the coming months. It plans to use the lessons it learned in the second quarter to adapt quickly and mitigate business interruptions.

Share price and market cap

Shares in Impellam closed up 3.24% to £255.00 (US$332.15) in London and were 15.86% above their 52-week low. The company had a market cap of £113.4 million (US$147.7 million).


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