11th Apr 2014 07:41
LONDON (Alliance News) - Shares in Kellan Group PLC rose strongly Friday after it posted a narrowed pretax loss for 2013, and said its markets were showing signs of stabilising, with some returning to growth.
The recruitment company posted a pretax loss of GBP1.7 million, narrowed from GBP2.6 million in 2012, despite revenue declining to GBP23.4 million from GBP24.2 million, as it cut down administrative costs and posted a lower impairment of goodwill.
Although revenue was down on 2012, revenue for the second half of the year was GBP12.3 million, up from GBP11.1 million in the first half, showing signs of improvement. Kellan said that the recruitment market had showed signs of stabilising, and certain sectors of the market had seen growth.
"The group's second half results are encouraging and demonstrate that we are on the path to recovery," Executive Chairman Tony Reeves said in a statement.
The company said it had focused its business on its strongest markets like hospitality and leisure, technology and accounting and finance.
Its Berkeley Scott business, which recruits in the hospitality and leisure markets, won a number of clients during the year, while specialist IT business Quantica Technology performed well, with revenue rising to GBP4.4 million.
Revenue at its financing and accounting arm RK Group declined to GBP2.8 million, from GBP3 million, but restructuring meant that profit improved to GBP500,000 from GBP240,000.
Shares in Kellan were trading up 18% at 0.50 pence Friday morning, the biggest gain on the London market.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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