Impel Group: good results in difficult times

Impel Group: good results in difficult times

More than PLN 1.2 billion in revenues and more than PLN 40 million in profit after nine months of 2014, as well as record sales in the third quarter – these are the latest financial results of Impel Group. “They confirm the steady growth that we are able to achieve in a very difficult environment” emphasize representatives of the Polish Champion.

Impel Group, which is the largest Polish provider of outsourcing services, generated more than PLN 1.2 billion in revenue in the first nine months of this year.

“The eight percent increase in revenue that took place in the last three quarters confirms the systematic trend of increasing the scale of operations that has lasted for more than twenty years” explain Impel’s representatives.

The consolidated operating profit after nine months reached PLN 43.8 million, and net profit (attributable to equity holders of the parent company) reached PLN 23.7 million. This means an increase of 10% and 17.3% compared with the same period of 2013. The third quarter brought the highest ever sales of PLN 431.6 million.

“Impel Group’s financial results confirm the steady growth that we are able to achieve in a very difficult environment, resulting, on the one hand, from changes in the system of subsidies for the employment of disabled people that are negative for entrepreneurs, and on the other – a very difficult situation in the market of security services in Poland” highlights Wojciech Rembikowski, Vice President of Impel SA.

Impel implements electronic handcuffs

In Impel it is emphasized that an important event for the group in the third quarter was the launch of the Electronic Supervision System (the so-called electronic handcuffs), which involved the implementation of a contract signed with the Ministry of Justice.

“Until the end of September the new system embraced all people sentenced to this kind of punishment, i.e. about 4,500 persons. It was the largest operation of this kind in Europe, in which the new provider efficiently implemented a new computer system within thirty days and kept the continuity of penalties for all persons covered by the electronic surveillance” explains Mirosław Gerber, CEO of Impel Security Poland.

The contract for the commissioning and operating of the Electronic Supervision System was executed by a consortium of companies led by Impel Security Poland. It is worth noting that the entire project involves another Polish Champion – SMT Software.

The estimated value of the contract for the period of 54 months is PLN 214 million. Security Segment, the leading group of which is Impel Security Poland, during the first three quarters of 2014 reached PLN 354.8 million in revenues, a very similar result to that achieved in the previous year.

A clear 12 percent increase in sales was recorded by the Facility Management segment, which for three quarters of 2014 generated revenues of PLN 861.2 million. The most important events of the past few months in this area of Impel Group’s activities include the dynamic 30% revenue growth in the company Impel Tech Solutions, which implements technical installation projects, in particular, low voltage systems, on the customers’ premises.

The Company has entered into a PLN 14 million contract for the emerging POSNANIA Shopping Centre in Poznan – the third largest facility of this type in Poland.

Important legal changes for the group

In addition to current developments in operations, the third quarter of this year brought a very important change in legislation for Impel.

In mid-October the amendment to the Public Procurement Act was introduced. It provides, amongst other things, indexing of the value of contracts concluded for a period longer than one year in situations in which the parties have no impact (among others, in terms of the increase in the minimum wage, tax value and social security contributions).

In addition, in the case of newly organized public contracts, price will not be the only criterion for the selection of bidders.

“This is a very important and beneficial change for the entire market. Indeed, it eliminates many of the problems which existed not only for Impel Group, but also for entrepreneurs from a very wide range of industries. The absence of the possibility of indexation rates in new situations with factors that increase costs and cannot be planned, destroyed margins in many segments of services over the years, condemning contractors to having to cover from their own means the effects of decisions of the regulator. This change gives a chance for normalizing conditions for the functioning of public procurement markets and the gradual recovery of results lost over the years” says Vice President Rembikowski.

The government is working on another amendment to an Act that is significant to Impel Group – the social insurance system. The proposal approved by the Parliament and referred to the Senate assumes that social security contributions will be paid on account of commission contracts as of 1 January 2016 and allows termination of contracts concluded under public procurement law in cases where the parties do not agree to change the value related to an increase in wages in labor costs.

“We are pleased that the legislature took into account the comments received by entrepreneurs and gave time to adjust to the changes. It is important that the company received a real tool to renegotiate long-term contracts in progress. This will help to reduce the risk that some of the long-term contracts would become unprofitable when social contributions on account of commission contracts have to be paid” adds Wojciech Rembikowski.