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UK – Kellan Group H1 revenue up 3%, but net fee income down 4%

22 September 2017

UK-based staffing firm Kellan Group PLC (KLN:LSE) reported revenue today for the six months ended 30 June 2017 of £10.3 million, an increase of 3% compared with £10.0 million for the same period last year.

(£ millions) H1 2017 H1 2016 Change
Revenue 10.3 10.0 3%
Net Fee Income 3.2 3.3 -4%
Adjusted EBITDA 0.3 0.2 52.1%

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

“The results for the first six months of 2017 have been mixed at an operating segment level,” Richard Ward, Executive Chairman, said.

The group announced that Berkeley Scott's temporary business has seen growth in H1 2017 with NFI increasing 18% compared to H1 2016. Berkeley Scott's permanent business was flat year-on-year compared to H1 2016.

Meanwhile, the RK business continued to decline with NFI in H1 2017 down £0.3 million compared to H1 2016. The senior management was changed in Q1 2017 and the business has now stabilised and is expected to return to growth in Q4 2017. “A change in focus in order to create a specialist temporary team will take time to deliver results, but is key to improving the temporary/permanent split,” Ward said.

The Quantica business has seen its NFI decline by £173,000 over the same period; of which £79,000 relates to the closure of the underperforming London operation in Q1 2017 and £32,000 relates to the closure of the underperforming Manchester and Leeds operations in 2016.

Kellan Group also reported that its H1 results will not be posted to shareholders but will be available on its website.

As of last trade, Kellan Group PLC (KLN:LSE) traded at £0.65, no change on the day and 26.21% above the 52 week low of £0.515 set on 18 October 2016. Based on its current share price the company has a market value of £2.21 million.