| Mon 20 Aug 2007, 12:00 | | KEL - Kelly Group Limited - Chief executives newsl |
|
KEL
KEL
KEL - Kelly Group Limited - Chief executives newsletter
KELLY GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1999/026249/06)
ISIN: ZAE000093373
Share Code: KEL
CHIEF EXECUTIVE`S NEWSLETTER
Dear Stakeholder
This is the first in what is intended to be a regular series of newsletters
designed to keep our shareholders and others with an interest in the group
informed about developments at Kelly. I hope you will find it useful.
Performance overview
Nine months into our first year as a JSE-listed company, our core staffing
businesses in South Africa, led by our flagship Kelly brand are all
performing strongly on the back of a buoyant market. Turnover and EBITDA
continue to grow at half year levels over the previous year. The
efficiency drive by the group has led to significant productivity gains
which continue to improve the group`s EBITDA margin. On the permanent
placement side, revenue was up between 40% and 50% driven by a volume
increase of above 30% and real productivity of 16%. Outsource revenue
continued to grow strongly between 25% and 35%, average head-count rose by
23% and productivity improved by about 13%. (These figures have not been
reviewed or audited by the company`s auditors.)
The only South African operation which did not meet expectations was
Renwick but I am confident that it will show a quick turnaround under its
new managing director Georgina Barrick. Her appointment has also freed the
group`s deputy chief executive Vuyi Radebe, who had been looking after
Renwick on an interim basis, to focus on the development of our business
process outsourcing enterprise, where there are exciting growth
opportunities.
As I noted when we published our interim results in May, our American
business is currently down due to the completion of a major project. The
division will still be a major contributor to the overall performance but
full year EBITDA will be down on the previous year. The underlying core
business is moving in the right direction aided by a strong productivity
improvement drive, a renewed focus on core activities and a reduction in
overheads.
Thanks to the strong showing from our South African operations, we remain
on track to meet our full-year EBITDA expectations.
In the meantime, we remain focused on our immediate strategic priorities,
which are to continue optimising our existing businesses, drive
efficiencies, keep costs down, and improve our client and candidate
acquisition channels, while reviewing a number of strategic acquisition
opportunities on an ongoing basis.
Empowerment shareholders
The group outlined their empowerment strategy in the prospectus at the
listing of the Kelly Group. A broad base empowerment consortium consisting
of the Safika Group and Ditikeni Investment Company has acquired the 10% of
shares from Brait Private Equity Funds, thereby finalising the group`s
empowerment transactions.
The Kelly Group now has an effective black ownership of 33.8% made up as
follows:
* Kelly Black Management Trust 3.0%
* Temo Capital 2 (Pty) Ltd
(Chairman`s indirect investment) 2.0%
* Safika Group 23.8%
* Ditikeni Investment Company 5.0%
-----
Total Black Ownership 33.8%
=====
Brait Private Equity Fund now holds 10.9% shares in the Kelly Group and
management, staff and directors hold 22.4% direct and indirect effectively.
Kelly scoops Top Women Award
At the annual Top Women Awards held last week, Kelly was presented with the
award for the top engendered company in the private sector. The award was
given to Kelly in recognition of its commitment to the empowerment of women
in the workplace.
Kelly Group execs to lead APSO
Elias Monage, the company`s group human resource executive, has been
appointed president of the Association of Personnel Service Organisations
of South Africa (APSO). He joins Bev Jack, the company`s group skills
executive, who sits on the APSO board as vice president. APSO was
established in 1976 to safeguard the interests of all sections in the
industry. It represents members in their dealings with the government and
promotes adherence to the highest ethical standards in business.
Services SETA grading for Kelly
The Kelly Group has become the first in our industry to receive the
Services SETA`s three-star customer service grading. This indicates that
Kelly complies with the highest international standards and service levels.
The underlying systems to achieve this grading were already in place before
the Services SETA`s audit took place, and it is reassuring to know that our
existing systems already conform to the highest international standards.
Topping the polls
For the fourth consecutive year, Kelly`s Johannesburg and Pretoria
operations were voted the best employment agency by readers of The Star and
the Pretoria News.
Annual results
The group`s results for the year to September will be published before 30
November 2007. There will be a presentation on the results in Johannesburg
on the day the results are published and in Cape Town the following day.
If you would like to attend either of these presentations, please e-mail
your details to our investor relations office at kellygroup@dpapr.com.
Yours sincerely
Grenville Wilson
Chief executive
Sandton
20 August 2007
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 20/08/2007 12:00:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
