NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

FOR IMMEDIATE RELEASE

28 April 2022

("Impellam", the "Group" or the "Company")

Q1 trading update

Appointment of Financial Adviser

Q1 trading update

The Board of Impellam (AIM:IPEL) is pleased to provide a trading update for the thirteen-week trading quarter ended 1 April 2022 (the "Quarter").

The Company experienced strong trading in the Quarter with revenue of £612.7m² and gross profit of £72.0m² growth of 16.9%¹ and 29.0%¹ respectively against the first quarter of 2021.  Revenue and gross profit for the Quarter were above pre-pandemic levels, with gross profit up 12.4%¹ and 13.7%¹ respectively on the first quarter of 2019.

Earnings before interest, depreciation and amortisation (EBITDA), prior to IFRS 16 adjustments, for the Quarter was £10.1m² up 68.3%¹ on the first quarter of 2021 and up 44.3%¹ and 60.3%¹ on 2020 and 2019 respectively.  Adjusted operating profit (operating profit before the amortisation of acquired intangibles) for the Quarter was £8.0m² up 107.7%¹ on the first quarter of 2021 and up 76.1%¹ and 102.5%¹ on the first quarter of 2020 and 2019 respectively.

With continued positive operating cash generation over the quarter, together with the proceeds from the disposal of Corestaff, the Group had net cash of c£5.0m as at 1 April 2022 (pre-IFRS 16).

As previously reported on 7 February 2022 the Group completed the disposal of Corestaff its US-based Light Industrial brand, to swipejobs Inc., a US private digital staffing company, for cash consideration of approximately £14m ($19 m).  In the year ended 31 December 2021, Corestaff, then part of in the Group's Regional Specialist Staffing portfolio, generated revenue of £98m, gross profit of £12.8m, and an operating profit of £1.2m. Corestaff's net assets at 31 December 2021 were approximately £6.9m.

Commenting on the first quarter results Julia Robertson said "Trading in the first quarter of 2022 has continued at the high levels we experienced over the second half of 2021 with revenue and gross profit growth in all regions and across all segments against the first quarter of 2021.  It is extremely pleasing to be able to report that we have returned to a cash positive position at the end of the quarter."

¹On a continuing basis (with the exclusion of the disposal of Corestaff) and at constant currency

²On a continuing basis (with the exclusion of the disposal of Corestaff)

Appointment of Financial Adviser

Further to the announcement released on 12 April 2022, the Company announces that it has appointed Houlihan Lokey UK Limited ("Houlihan Lokey") to act as its financial adviser to assist the Company in working alongside Lord Ashcroft to explore a potential sale of his shareholding (the "Proposal").

Canaccord Genuity Ltd remain as the Company's NOMAD and Broker.

Enquiries:  For further information please contact:

Prior to publication the information communicated in this announcement was deemed by the Company to constitute inside information for the purposes of article 7 of the Market Abuse Regulations (EU) No 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations No 2019/310 ('MAR'). With the publication of this announcement, this information is now considered to be in the public domain.

Disclaimers

Canaccord Genuity Limited, which is authorised and regulated in the United Kingdom by the FCA, is acting as NOMAD and corporate broker exclusively for Impellam and for no one else in connection with the Proposal and will not regard any other person as its client in relation to the matters referred to in this announcement and will not be responsible to anyone other than Impellam for providing the protections afforded to clients of Canaccord Genuity Limited, nor for providing advice in relation to the Proposal or any other matter referred to in this announcement.

Houlihan Lokey UK Limited ("Houlihan Lokey"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively as financial adviser to Impellam and no one else in connection with the Proposal and will not be responsible to anyone other than Impellam for providing the protections afforded to clients of Houlihan Lokey or for providing advice in relation to the Proposal or any other matters referred to in this announcement. Neither Houlihan Lokey nor any of its affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Houlihan Lokey in connection with this announcement, any statement contained herein or otherwise.

Rule 26.1 disclosure

In accordance with Rule 26.1 of the Code, a copy of this announcement will be available on the investor section of the Company's website at https://investors.impellam.com/ by no later than 12 noon (London time) on the business day immediately following the date of this announcement. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

Note to Editors:

Our Managed Services businesses are enabled by talent-focused Specialist Staffing brands with deep heritages, vertical sector expertise and loyal candidate networks.  Clients across the world trust us to deliver Managed Services and Specialist Staffing in the UK, North America, Asia Pacific and Europe.

Working with them are 2,900 Impellam people, bringing a wealth of expertise through our 13 market-leading brands across 70 locations. Every year, we connect carefully chosen candidates with good work at all levels.  They include technology and digital specialists, scientists, clinical experts, engineers, nurses, doctors, lawyers, teachers, receptionists, drivers, chefs, administrators, warehouse and call centre operatives.

Underpinning everything we do is our Virtuoso strategy which recognises it is our people who make the difference. Virtuosos make and deliver on promises, and grow with their customers through sector, service or international expansion which ensures there is never a need for a customer or candidate to leave Impellam.  Impellam is the largest Global Talent Acquisition and Managed Workforce Solutions provider in the UK, and 7th¹ in the world.

For more information about Impellam Group please visit: www.impellam.com.

1   By SUM (confirmed by Staffing Industry Analysts).  Spend Under Management (SUM) is the total amount of client expenditure which our Managed Services brands manage on behalf of their clients. This equates to revenue earned where Impellam acts as principal plus gross billings to customers where Impellam acts as agent (2019 published numbers). Management use this measure as it reflects the total value of the client spend to the Group and not just the revenue generated

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