UK-based staffing firm Kellan Group PLC (KLN:LSE) reported revenue for the six months ending 30 June 2016 of £10.0 million, a decrease of 13% compared with £11.5 million the same period last year.

“The results for the first six months of 2016 have been disappointing, although the group has had success in securing new clients and growing some areas of the business,” Richard Ward, Executive Chairman of Kellan Group, said.

“Uncertainty surrounding the EU referendum has been a distraction in H1 of 2016 with many clients taking longer to make decisions. We have also seen some general slowness post referendum in job flow and candidate attraction,” Ward said.

Currently, Kellan Group operates through its 3 recruitment brands, Berkeley Scott, Quantica and RK.

“Berkeley Scott's temporary business was flat year-on-year with the new Living Wage impacting H1 performance,” Ward said. “The Tourism, Hospitality and Leisure sector has one of the highest proportion of jobs paying the minimum wage of any sector in the UK. Berkeley Scott saw several major clients re-evaluate their staffing levels, pay structures and usage of temporary workers to negate the impact of the minimum wage on their business. January saw Berkeley Scott return to the Birmingham market to leverage many of our national contract catering clients who have been supportive of this Midlands opening.”

 “Berkeley Scott's permanent business NFI declined by 10% on H1 2015 with the London market proving to be more challenging than anticipated with NFI from London declining by 14% on H1 2015,” Ward said. “Following careful evaluation of our performance, the Berkeley Scott business was restructured with Mark Darby becoming directly responsible and managing Berkeley Scott London which, as a whole, was one of the main contributors to the underperformance. The Directors believe it is very important that this large part of the business is turned around over H2.”

 “The RK business continues to grow and has seen increased success within property, construction and manufacturing sectors. A focus on practice markets has delivered promising results, particularly in Lancashire.

 “Quantica Technology has seen its NFI decline by £290,000; of which £127,000 relates to the closure of the Birmingham branch in Q2 2015,” Ward said.

In trading today Kellan Group PLC traded at £0.999, down 20.08% on the day and 0.10% below its 52-week low of £1.00, set on 4 March 2016. Based on its current share price the company has a market value of £4.25 million.