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Kellan Group plc - Half yearly results for the six months ended 30 June 2012

Kellan Group plc - Half yearly results for the six months ended 30 June 2012

Kellan is a market leading recruitment business operating across a wide range of functional disciplines and industry sectors.

The Group aims to develop, through acquisition and organic growth, a portfolio of premium brands within the currently fragmented recruitment sector in the UK. Currently, through its three recruitment brands, Berkeley Scott, Quantica and RK, the Group has the capability and resource to recruit professionals into finance & accounting, information technology, supply chain & procurement, contract management, retail, manufacturing, catering, hospitality & leisure and human resources sectors.

Financial summary

&middot Adjusted EBITDA maintained with a loss of &pound0.1 million (six months ended June 2011: loss &pound0.1 million).

&middot Increased savings made by streamlining administrative expenses (exclusive of impairment), resulting in a 17.1% reduction against the comparable period in the prior year and a further 10.7% reduction against second half of 2011.

&middot Basic loss per share reduced to 0.60p (six months ended June 2011: loss 0.67p).

&middot Cash outflow from financing activities of &pound0.7 million (six month ended June 2011: inflow &pound0.6 million).

&middot In September 2012, &pound1.40 million raised through a new share issue plus a &pound1.26 loan million facility put in place for the purpose of repaying senior bank debt at more favourable interest rates and to fund the growth in the number of fee earners with the aim of executing the board's growth strategy.

&middot &pound0.65 million of loan notes converted to equity in September 2012 to reduce financing costs and improve leverage ratio for the Group.

Operational summary

&middot New revenue streams launched within core brands - 'niche within niche'

o Finance in Hospitality

o Hotel senior appointments

o Technology in Utilities

&middot New markets with excellent prospects entered:

o Human Resources launched in January and performing ahead of expectations

o New brand launched in commercial & industrial sector in H2

&middot Significant new customer wins and key major accounts retained

&middot Apprentice development programme launched to identify and nurture new talent

&middot Group-wide training and development programme initiated

&middot Brand and website refreshment programme accelerated

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

&middot Continued restructuring and consolidation of property portfolio delivered cost saving synergies throughout the Group

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