FINANCIALS: Kellan Group results reveal rise from last year’s loss
Kellan Group has posted a 0.5% annual increase in revenue, buoyed by growth in its Berkeley Scott business, according to results for the year to 31 December 2017.
The multi-sector recruiter’s results reveal full-year revenue increased to £22m from £21.9m in 2016, with an operating profit of £700k, up from £400k and a net profit of £400k, compared with a net loss of £2.5m in 2016, including a non-cash impairment change of £2.6m.
Across the group’s divisions, Berkeley Scott's 2017 net fee income (NFI) grew 9.7% on 2016, with temp NFI 13.4% and perm up 2.2% on 2016. The division’s Birmingham and London offices saw 2017 NFI grow significantly over 2016, while the Bristol office declined by 17.5% due to a reduced headcount.
Meanwhile, the group’s RK business saw NFI fall 32.2% from £1.35m in 2016 to £910k in 2017. However, following changes in senior management in Q1 2017 and local management in H2 2017, the division returned to growth in H2 2017, with NFI increasing 8.6% over H1 2017.
The group’s Quantica business also saw NFI fall in the year, with NFI down £350k in 2017, though £320k of that figure related to the closure of underperforming operations in Leeds and London. The group’s remaining technology operation was broadly flat year-on-year, while retail and manufacturing operations underperformed. Consequently, the retail operation has been closed and the manufacturing team changed between Q4 2017 and Q1 2018.
Commenting on the group’s performance, executive chairman Richard Ward said he was “very pleased” with the positive impact made to the business since the appointment of managing director Liam Humphreys in November 2016.
“Under his leadership, the operational team is demonstrating good signs of growth in Berkeley Scott and positive progress in other divisions. His hands-on approach was much needed to provide a clear steer of direction. Overall group performance to date for 2018 is ahead of Board expectation and I am confident that the changes implemented will lead the Group to increase its revenue in 2018 and beyond.”
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