Kellan Group Plc
Kellan Group PLC , a leading IT, accountancy, hospitality, leisure and professional services recruitment group, announces its preliminary results for the group for the 12 month period ended 31st December 2008.
Operational and Financial Highlights
2008 was a year of two distinct halves. H1 saw revenue & profits substantially up on the previous year. In H2 we were hit by the global economic downturn. Full year results are significantly ahead of prior year but well down on our expectations.
At year end a non-cash goodwill impairment charge of 5,049,000 has been made against two of the business units acquired to reflect the current economic conditions of the markets in which the businesses are operating.
Loss for the period of 4,456,000 (2007: Loss 1,762,000) with an Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation adjusted to add back onerous lease provisions, restructuring costs, share based payments charges and goodwill impairment) of 2,643,000 (2007: 402,000).
Adjusted cost base to more challenging trading environment. Q1 2009 ends with a reduced headcount from December 2008 of 20%.
Following the move into the new head office in March 2009 all the remaining synergies promised following the acquisition of Quantica plc have been delivered.
The company has undertaken a significant office consolidation exercise in London, Leeds, Manchester and Altrincham resulting in 19 operational offices, a reduction of 5 in the past year.
Basic loss per share is 5.1p (2007: Loss 5.4p). Adjusted Earnings per share (after adding back the impairment of goodwill), both basic and diluted, at 0.7p is a significant increase over the prior year (Loss 5.4p).
Operating cash inflow of 3,452,000 (2007: outflow 3,454,000) driven significantly through focused credit control activity. Year end Days Sales Outstanding (DSO) of 39 (2007: 48).
John Bowmer and Tony Reeves, Co-Chairmen of Kellan, commenting on these results said,
"The 2008 reporting period has been extremely challenging and our strategy has been to focus on our strengths, core business and cost control. Our balance sheet remains strong as a result, and we are well positioned to continue to operate effectively in these challenging market conditions. It's a time of great uncertainty, however we will continue to keep focused and ensure costs are in line with trading during the down turn so we are well positioned to take advantage of new opportunities that will emerge from these difficult times.
"We remain committed to our strategy to grow the Group both organically and by acquisition and we fully expect these challenging market conditions to reveal some exciting opportunities".