UK-based staffing firm Kellan Group PLC (KLN:LSE) reported revenue yesterday for the six months ended 30 June 2018 of £10.8 million, an increase of 5% compared with £10.3 million for the same period last year. Net Fee Income (NFI) remained flat at £3.2 million.

Profit after tax of £42,000 during H1 2018, compared with a loss after tax of £21,000 during the comparable period last year.

Meanwhile operating profit increased to £170,000 from £111,000 during the same period last year.

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

In Berkeley Scott, the temporary business grew year-on-year (+8%), driven by an increase in the group’s client base and a new approach to NFI delivery; the permanent business however declined by a similar amount, resulting in overall NFI being flat year-on-year. According to the group, client demand remains stable, and the business has seen a strong increase in a number of national accounts, as well as several significant new account wins.

The Quantica business saw its NFI decline (-13%), primarily due to a reduction in headcount and underperformance from the Manufacturing operation. Although NFI has declined, the overall profitability has improved.

In the RK business, NFI was flat year on year. The group said that its change in focus in order to create a specialist temporary team in 2017 is delivering results. This has helped to offset underperformance from the permanent operation.

The Kellan Group also announced that it is considering whether de-listing its shares from trading is in the best interest of shareholders.

The group’s directors have conducted a review of the benefits and drawbacks to the company and its stakeholders of continuing the company's admission to trading on AIM.

“The Board said it is considering whether retaining the company's admission to trading on AIM is in the best interests of the company and its shareholders as a whole,” the Kellan Group stated. “The process for the cancellation of company's admission to trading on AIM, if proposed, would require approval of not less than 75% of shareholders voting at a general meeting.

“The company will engage with shareholders to discuss the possible Cancellation and seek irrevocable undertakings to this effect, if applicable,” the group stated. “The Board is aware that the proposed cancellation, should it be approved, will make it more difficult for shareholders to buy and sell the company's ordinary shares should they wish to do so.”

The Kellan Group said further updates will be provided in due course.

Looking ahead, the Board is confident 2018 performance will be in line with management's expectations.

In trading yesterday, Kellan Group shares closed at £0.36, down 48.5% on the day. Based on its current share price the company has a market value of £1.05 million.