Daily News

View All News

South Africa – Kelly Group returns to profitability

24 May 2013

Revenue at South African staffing firm Kelly Group (KEL:JNB) declined -4% in the six months to March to USD 72.535 (ZAR 695.497 million) as the staffing sector remained challenging in the period. Gross profit dropped -8% to USD 15.091 (ZAR 144.706 million).

The company is unrelated to the US staffing firm of the same name.

Despite the decline in revenue, the recruiter returned to profitability as it made an operating profit of USD 0.5 million (ZAR 4.798 million), compared to a loss of USD 0.6 million (ZAR 5.963 million) at the same time a year ago. Total income in the period amounted to USD 0.557 million (ZAR 5.343 million), while last year the firm made a loss of USD 1.4 million (ZAR 14.011 million).

Kelly also said it planned to sell its US operations and raise USD 11 million. The sale agreement was finalised in April and is expected to be completed by July 2013, subject to shareholders’ approval.

Regarding the company’s future prospects, the firm said: “It is expected that industry conditions will remain tough for the remainder of the financial year. The Board is confident that the current strategy will assist the Group in recovering its market position and profitability over time.”

Kelly Group provides recruitment, outsourcing, and staffing services. The firm specialises in permanent and temporary recruitment, executive and scarce skills searches and online talent management solutions. Last year, the firm made revenues of around USD 190 million (ZAR 1.9 billion).

Comments

Add New Comment

Post comment

NOTE: Links will not be clickable.
Security text:*