5th Sep 2014 07:51
LONDON (Alliance News) - The Kellan Group PLC shares surged higher in early trade Friday after the company said it narrowed its first-half loss on a rise in net fee income and a step-up in cost savings in the period.
Shares were up 60% in early trade to 0.8 pence, putting them comfortably atop AIM gainers.
The recruitment company said its pretax loss in the first half to June 30 was GBP74,000, compared to the GBP1.2 million loss posted a year earlier.
Revenue was down slightly in the half year, to GBP10.7 million from GBP11.1 million last year, but net fee income for the company rose by 6% to GBP3.9 million, from GBP3.7 million in the first half of 2013. Net fee income per fee earner at the business rose 19% year-on-year in the first half and 7% against the second half of 2013.
The rise in net fee income was driven by an 8.2% rise for its RK arm in the first half against the second half of 2013, and by a rise for its Berkeley Scott business to GBP2.2 million from GBP2.1 million a year earlier.
It also said its Quantica business was well positioned for growth in the second half on the back of the expansion of the business and a key client win in KP Snacks.
The group also got a boost from its cost-cutting measures, with a 19% fall in administrative expenses in the first half year-on-year and an 8.2% reduction against the second half of 2013.
Adjusted earnings before income, taxation, depreciation and amortisation was GBP0.3 million, against a GBP0.5 million loss a year earlier.
"We are determined to build on the success achieved during the first half of 2014, with continual investment in our people and our IT infrastructure in order to ensure that we are best equipped to take advantage of the opportunities expected to arise from the improving recruitment industry and UK economy as a whole," said Kellan Executive Chairman Tony Reeves.
By Sam Unsted; [email protected]; @SamUAtAlliance
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