IT, accountancy, hospitality, leisure and professional services recruiter Kellan Group witnessed a ‘gradual recovery’ in 2010, according to the year ended 31 December 2010.

The group’s results reveal:

·     Revenue of £29.83m up 1.2% from £29.46m in 2009

·     Net fee income (NFI) of £12.39m down from £12.86m in 2009, with H2 2010 NFI of £6.56m up 12.6% on H1 2010 and 8.7% up on H2 2009

·     Continued focus on administrative expenses (excluding impairment, amortisation, shared-based payments, onerous leases and restructuring costs) reducing by 14.9% year-on-year from £14.43m in 2009 to £12.28m in 2010

·     Adjusted EBITDA profit for the year of £0.10m against a loss of £1.56m for 2009

·     Cash from operating activities of £0.23m, up from £1.8m loss in 2009

·     £1.35m raised subsequent to the year end through the issue of shares and convertible loan stock to fund the growth in the number of fee earners with aim of executing management’s growth strategy.

Co-chairmen John Bowmer and Tony Reeves said: “2010 was a year in which we saw gradual recovery of the recruitment markets in which we operate following a tough 2009.

“In February 2011 the group secured an additional £1.35m of funding together with a deferral of quarterly loan repayments throughout 2011 totalling £0.84m. This, in addition to renegotiated bank covenants, puts the business in a very much stronger financial position going forward.

“The additional funding will be used to recruit fee earners to grow the business by expanding marketshare in existing markets and developing new geographical markets from the group’s network further strengthening the positioning of the group’s specialist brands.”