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Impel in 2016: renegotiation of prices due to higher labour costs

24 f 2017

In 2016, Impel Group - Poland's largest provider of outsourcing services - generated over PLN 2 billion of sales revenues, an increase of PLN 216 million comparing to the last year. Its operating profit amounted to PLN 41.9 million and net profit - to PLN 20 million.


Analysis of Impel Group’s service portfolio shows that Facility Management and Business Process Outsourcing recorded an increase in sales revenues in 2016. Facility Management (cleaning services, patient care, technical services, security services, catering, clothing rental, real estate management) and Digital Services & Business Process Outsourcing (accounting services, HR and payroll services, document management, tax advisory, SAP competence centre, IT infrastructure, IT application development, e-commerce solutions, cash processing) generated respectively: PLN 1,844.2 million and PLN 182.7 million in sales revenues. Comparing to the previous year, Digital Services & Business Process Outsourcing maintained its profitability level at 11%, reaching over PLN 20 million of operation profit.


“In 2016, again we had to renegotiate prices for our services. Consequently, we started negotiations with most of our clients, making it clear that legal change consisting of charging civil law contracts with social insurance contributions up to minimal salary is the most important and the highest-ever one-off increase in labour costs. Last year’s experience was very helpful in those negotiations. Most of our clients accept increased costs, as they know that continuity of cooperation, quality of services and client-oriented approach depends on staff engaged.”, explains Wojciech Rembikowski, Vice-president of Impel S.A. Management Board.


In 2016, Impel Group’s companies of Facility Management Segment reconfirmed its leading position in cleaning services ant technical service for real estate, by increasing revenues by 12.4%, comparing to the previous year. FM companies gained contracts for prestigious facilities and mass events, focusing on industrial, retail chain and financial sector. After years of low margins, Security recorded an abrupt increase in profitability and the highest increase in revenues at 16%.


 “One of the first products offered by Impel was outsourcing of broadly conceived security services. Security results are characteristic of the whole sector. After six years of decreasing prices, we could finally take a deep breath. We decided not to accept further decrease in profitability, we terminated contracts which could contribute to negative result in the future and we concluded new agreements, on new market and competitive conditions. Security's growth is possible, based on innovative technical and organisational solutions." - says Grzegorz Dzik, President of Impel S.A. Management Group.


Digital Services & Business Process Outsourcing developed steadily in 2016, increasing revenues by 7.6%.


“We need to focus on specialised services, because FM is strongly influenced by new labour market regulations. Social security contributions, wages, minimal salary and remuneration expectations are now considerably higher, so we look for clients with low labour cost rate and we are mainly interested in: automation, robotisation and integration of new technologies services. IT based management is growing, and future competitive strengths correspond, in my opinion, not to IT itself, but to IT-oriented business processes. Impel Group strives for maximizing practical IT-based solutions for Clients. We are the Polish leader in variety of services. Our day-to-day contact with thousands of clients allows us to get to know their needs and best business practices. We constantly update our expertise in business consultancy, introducing new services components, improving efficiency of management. We are trilateral partnership: for client, our company and our employees who look for satisfaction and decent remuneration for providing services. This is our direction created during two years of constant negotiations resulting from abrupt changes in law”, underlines Grzegorz Dzik, President of Impel S.A. Management Board.


press release (255,01 kB)