KELLAN GROUP PLC Announces Its Results.
Kellan Group PLC a leading IT, accountancy, hospitality, leisure and professional services recruitment group, announces its results for the Group for the 12 month period ended 31 December 2009.
Operational and Financial Highlights
Loss for the period of 4,423,000 (2008: Loss 4,456,000) 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 Loss 1,767,000 (2008: Profit 2,643,000)
Continued focus on cost reduction in line with income levels Headcount reduction from over 350 in 2008 to 180 today
Further office space consolidation in London, Leeds, Manchester and Birmingham resulting in 17 operational offices including the move to a single Head Office in London in March
Significantly improved second half with an Adjusted EBITDA loss of 355,000 compared to an Adjusted EBITDA loss of 1,412,000 in the first half of the year
Basic loss per share constant at 5.1p (2008: loss 5.1p). Adjusted loss per share (after adding back the impairment of goodwill), both basic and diluted, at 5.1p (2008: Profit 0.7p)
1 million raised subsequent to the year end through the issue of convertible loan notes to shareholders and cash position continues to be monitored carefully
Appointment of new CEO bringing significant multi-sector and acquisition experience to the Group
Investment in our people through the launch of a group wide SAYE scheme
Industry award nominations for Quantica and Berkeley Scott
Refocusing of our search business strategy through the appointment of a single Group MD for the Quantica and the RK search and selection divisions and the re-establishment of isis executive search within Berkeley Scott
Positively received rebrands of the RK Accountancy and RK Supply Chain businesses
John Bowmer and Tony Reeves, Co-Chairmen of Kellan, commenting on these results said,
"With the sector facing the worst trading conditions in over three decades, 2009 has undoubtedly been a challenging year for the Group. In response to the substantial drop off in revenues we were required to make some difficult decisions and significantly reduce our cost base during the course of the year. However these corrective actions, whilst painful, together with a slight improvement in trading have resulted in a much improved performance in the second half of the year.
2010 has started with a much stronger performance than 2009 and we are optimistic that with our focus on increasing market share in each of our brands, we will benefit from an improvement in revenues and will be well positioned for the upturn.
We remain committed to our strategy to grow the Group both organically and by acquisition and we fully expect the continuing market conditions to reveal some potential opportunities in the latter part of the year."
Despite a continuing lack of visibility in demand the difficult market conditions that the Group has experienced over the last 12 months are beginning to ease slightly and the Group has started 2010 with a much stronger performance than 2009. The forthcoming year will, however, continue to challenge the wider recruitment sector and cash liquidity remains a key issue for the business. During 2010 the focus will remain on organic growth and increasing market share in each of the Group's brands whilst continuing to enforce rigid controls over costs.
Whilst the immediate focus for the Group remains on achieving organic growth in the business in the short to medium term the Group continues to monitor and evaluate relevant acquisition opportunities and prospects and will take full advantage of any suitable opportunities that arise.
We are confident that with our multi-brand approach we are very well positioned for when the market improves and we remain positive about the long term prospects for Kellan.