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Kellan Group Watchful of an Unhelpful and Irritatingly Turbulent Environment

Kellan Group Watchful of an Unhelpful and Irritatingly Turbulent Environment

The Kellan Group PLC Half-yearly results for the six months ended 30 June 2011

Kellan Group PLC a leading IT, accountancy, hospitality, leisure and professional services recruitment group, announces its half-yearly results for the Group for the six month period ended 30 June 2011.

Highlights

Financial summary

&middot Improved adjusted EBITDA levels resulting in a loss of &pound0.1 million (June 2010: loss &pound0.2 million).

&middot Increased savings made by streamlining administrative expenses (exclusive of impairment), resulting in a 12.5% reduction from H1-2010 and a 10.3% reduction from H2-2010.

&middot Basic loss per share reduced to 0.7p (June 2010: Loss 0.9p).

&middot Cash inflow from financing activities of &pound0.6 million (June 2010 outflow: &pound0.2 million).

&middot Reduction in revenue to &pound13.2 million (June 2010: &pound14.3 million), a result of the Group moving away from unprofitable business. Further demonstrated by a reduced loss for the period of &pound0.6 million (June 2010: loss &pound0.8 million)

Operational summary

We are confident that, despite the evident difficulties in the economy, there are significant opportunities for the Group to achieve improved revenues. To maximise these exciting opportunities the Group has been involved in a number of far-reaching and key strategic initiatives that should bring, barring a significant downturn in the labour market, much enhanced revenues in 2012 and beyond.

&middot New services launched by core brands. These will maximise some exciting opportunities in established markets and also gain new market share in previously unexploited markets

&middot Further launches planned into fresh recruitment sectors identified as robust and under-populated

&middot Recruitment of key leadership staff, well-known in their respective markets, to drive the business forward which in turn is making the Group increasingly more attractive to experienced recruiters

&middot Berkeley Scott launched a new senior appointments service. It now offers a comprehensive recruitment service at all levels across its market from temporary waiting staff through to Director-level

&middot In the Part-Qualified/Qualified market, RK Accountancy is rebranding as Robinson Keane Finance Professionals and is rapidly building a leadership team of well known, proven professionals. Here we have already identified avenues for business in both established and new customers and have established a presence in the key urban areas of the UK.

&middot RK Accountancy brand is now more sharply defined and the team is focused on delivering a more assertive service to its very active markets

&middot Quantica Technology has established a London hub from which it will serve the busy and resilient South of England market and mainland Europe where it has already secured exciting opportunities

&middot Quantica Retail is mirroring the globalisation of the retail market and is establishing its brand as a European market-leader in senior level recruitment, opening many new territories up to Kellan Group companies. It has added an e-commerce offering which is gaining traction swiftly

&middot Investment in the business infrastructure to provide best-in-class tools to all areas of the Group

&middot Consolidation of premises delivers cost saving synergies throughout the Group.

&middot Further streamlining of operations with the discontinuation of RKAcumen, RKConnect and RKCatalyst brands.

&middot Continued focus on consolidation and cost base rationalisation, whilst identifying critical areas of investment that will enable the Group to support growth more efficiently.

The much-enhanced leadership team is already reinvigorating a talented and experienced workforce, now supplemented increasingly by proven recruitment professionals who share the Kellan vision of an exciting and progressive future.

Whilst watchful of an unhelpful and irritatingly turbulent environment which makes predictions problematic and somewhat unreliable, we nevertheless look forward with confidence to reporting excellent progress during 2012.

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