UK-based staffing firm Kellan Group PLC (KLN:LSE) reported revenue today for the year ending 31 December 2017 of £22.0 million, an increase of 0.5% compared with the same period last year.

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

The group added that an impairment review undertaken in 2017 resulted in no impairment charge (In 2016 the company incurred a £2.6 million impairment charge related to its Quantica Group business).

Berkeley Scott's 2017 Net Fee Income grew by 9.7% over 2016 with both temporary and permanent operations seeing growth. The temporary operation for 2017 grew by 13.4% over 2016, and the permanent operation grew by 2.2%. 

Net Fee Income from the RK business declined by 32.2% from £1.35 million in 2016 to £0.91 million in 2017. However, the group added that the RK business saw a growth in Net Fee Income during H2 of 8.6% over H1 2017. Kellan Group added that although productivity remains low, the business has shifted focus to develop separate temporary and permanent operations, which positions the business well to grow in 2018 and 2019.

Net Fee Income from the Quantica business declined by £0.35 million in 2017, although £0.32 million is related to the closure of underperforming operations in Leeds and London.

In 2017, Kellan stated that it leveraged its back office support function to generate an added income stream by providing back-office Finance support to businesses. During 2017, the group generated revenue of £217,000 via this model.

“Overall group performance to date for 2018 is ahead of Board expectation and I am confident that the changes implemented will lead the group to increase its revenue in 2018 and beyond,” Richard Ward, Executive Chairman, Kellan Group, said.

In trading today, shares for Kellan Group traded at £0.80, up 10.34% on the day. Based on its current share price the company has a market value of £2.7 million.