Losses Grow Kellan
Losses Grow Kellan
Half yearly results for the six months ended 30 June 2013
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, engineering, contract management, retail, manufacturing, catering, hospitality & leisure and human resources sectors.
• In the six months ended 30 June 2013, the Group incurred a loss before tax of £1.2 million (six months ended 30 June 2012 £0.65 million) on revenue of £11.1 million (2012: £11.7 million).
• Basic loss per share reduced to 0.56p (six months ended June 2012: loss 0.61p).
• Increased savings made by streamlining administrative expenses (exclusive of impairment), resulting in a 2.7% reduction against the comparable period in the prior year and a 2.3% reduction against second half of 2012.
• Cash outflow from financing activities of £0.2 million (six months ended June 2012: £0.7 million).
• Increase in cash and cash equivalent to £0.2 million (six months ended June 2012: £0.1 million)
• Fundraising of £1.5 million, comprising £0.9 million in equity and £0.6 million in unsecured convertible debt with the Company's largest shareholder completed in August 2013.
• Consolidation of Kellan Group brands and restructure of leadership team to create focus and specialist structure at senior operational management level.
• Continued investment in I.T. to improve infrastructure and performance across all areas.
• Productivity per fee earner improving by 13% from Q1 to Q2 of 2013.
• Business demonstrating improved performance with both Yorkshire & Preston showing strong growth.
• New preferred supplier accounts coupled with new client wins and the cross fertilisation of business from other brands have resulted in NFI being in line with expectation.
Quantica Search & Selection
• Considerable improvement in year on year productivity per fee earner.
• As a key strategy we have achieved a number of significant client preferred supplier account wins with industry leading businesses.
• The establishment of a key sector focus has resulted in significant client wins within the hospitality branded and SME market place and the contract and facilities market.
• A number of framework agreements and business wins have been achieved in our core London temp business, with consolidated supplier arrangements being agreed with a number of key clients.
• The London H&L and Chefs business in general is achieving significant growth and is a key focus area for perm development in Berkeley Scott.
• Quantica Technology has continued to build it's presence in London & regional UK operations with increased revenue streams from mainland Europe, in particular Germany & Switzerland.
• Business well positioned for growth in H2 2013 with increasing revenues coming from mainland Europe.