| Thu 22 Nov 2007, 14:01 | | KEL - Kelly Group Limited - Kelly Sparkles with fi |
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KEL
KEL
KEL - Kelly Group Limited - Kelly Sparkles with first annual results
KELLY GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1999/026249/06)
ISIN: ZAE000093373
Share Code: KEL
("Kelly" or "the group")
KELLY SPARKLES WITH FIRST ANNUAL RESULTS
Johannesburg, 22 November 2007 - Comprehensive employment and outsourcing
services provider the Kelly Group, listed on the JSE in April this year,
made the most of buoyant conditions in the employment market to post robust
results for the 12 months to September.
Revenue grew by 20.3% over the previous year to just under R2 billion and
earnings before interest, taxation, depreciation and amortisation (EBITDA)
increased by 31% to R128.1 million. Operating profit rose 47% to R114.8
million and the operating margin improved from 4.7% to 5.8% on the back of
strong real productivity gains. A dividend of 30 cents per share was
declared.
Chief executive Grenville Wilson said all the group`s core businesses in
South Africa, led by its flagship Kelly brand, had produced outstanding
results, growing revenue by 27.6% and EBITDA by 46.9% over the previous
year. The permanent placement operations` revenue was up 30.35% and the
temporary staffing businesses revenue grew by 27.2%. The group`s North
American business, while still a major contributor to overall performance,
had a drop in EBITDA, mainly as a result of the completion of a big project,
but is back on a growth track.
Kelly also had a strong cash generation performance with cash generated from
operating activities increasing from R26.4 million to R78.8 million. Cash
balances at year end were R103.2 million.
"Over the past three years, Kelly has achieved a compound annual growth in
revenue of almost 20% and has improved its operating margin significantly.
This improvement is being driven by a strategy which focuses on brand power
and customer service, supported by the rationalisation of back office
functions, the elimination of market overlaps and substantial efficiency
improvements," Wilson said.
"In the year ahead, we will continue to focus on optimising our existing
businesses, developing our people, driving efficiencies, keeping costs down
and improving our client and candidate acquisition channels. Given the
expected continuation of favourable economic conditions, the group should
sustain its organic growth momentum, but we also remain on the lookout for
further acquisition opportunities."
Kelly has recently acquired specialist financial recruiter Frontline which
has strengthened the group`s presence in the upper end of the financial
placement market. Subsequent to the year-end, Kelly has also acquired the
call centre business iChoices, expanding its footprint in the business
process outsourcing sector. The iChoices deal is subject to the
satisfactory completion of a due diligence by 28 February 2008 and
Competition Commission approval.
For further information call Grenville Wilson, CEO Kelly Group, on 011 722
8009
Issued by du Plessis Associates on behalf of Kelly Group Limited. dPA
contact Helen McKane Tel : +27 11 728 4701, Fax: +27 11 728 2547, Mobile:
082 330 2034 or e-mail: kellygroup@dpapr.com
website : www.kellygroup.co.za
Date: 22/11/2007 14:01:01 Produced by the JSE SENS Department.
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