Revenues have fallen at Kellan Group but the group believes the UK is in the early stages of recovery, according to the group’s half-year interim report 2010.

The group’s results reveal:

• revenue of £14.4m to 30 June 2010 (June 2009: £15.2m) and a loss for the period of £0.7m (June 2009: loss £3.2m)
• administrative expenses excluding amortisation, onerous leases and restructuring costs of £6.4m, 21.9% below H109 and 2.8% down on H209
• adjusted EBITA (earnings before interest, tax and amortization expenses) loss of £0.2m (June 2009: loss £1.6m) with the second quarter 2010 seeing business break even

Chief executive Ross Eades says: “Following a tough trading climate in 2009, improving macro economic signs as we entered 2010, together with feedback from our clients, indicate we are at the early stages of a recovery in the recruitment cycle.

“However, most of our clients continue to be cautious in terms of staff investments making it difficult to predict how this recovery will impact the traditional cycles of temporary and permanent recruitment. As a result, forward visibility remains low and demand unpredictable.”