| Wed 7 May 2008, 12:16 | | KEL - Kelly Shrugs Off Slowdown To Post Strong Gro |
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KEL
KEL
KEL - Kelly Shrugs Off Slowdown To Post Strong Growth
Kelly Group Limited
Registration number: 1999/026249/06)
(Incorporated in the Republic of South Africa)
ISIN: ZAE000093373
JSE code: KEL
("Kelly Group" or "Group`s")
KELLY SHRUGS OFF SLOWDOWN TO POST STRONG GROWTH
Johannesburg, 7 May 2008 - Comprehensive employment and outsourcing services
provider the Kelly Group today reported strong growth for the six months to
March, with operating profit increasing by 39% to R61.6 million and normalised
headline earnings per share soaring from 26.00 cents to 38.55 cents.
Chief executive Grenville Wilson said the group had succeeded in meeting its
revenue and profit targets for the period in spite of a business climate which
deteriorated markedly in the second quarter as a result of disruptive power
blackouts, higher interest rates and increasing inflation. He attributed the
improvement in operating profit to the group`s focus on productivity gains,
growth in the permanent placement market and low-cost production, which boosted
the operating margin from 4.6% to 5.7%.
The tougher trading conditions impacted on the group`s high-volume outsourcing
business but the slowdown in this market sector was more than offset by
increased penetration of the blue-collar and hospitality sectors and by growth
in the low-volume but high-margin permanent placement market.
"Our strong showing in the permanent placement sector is a reflection of another
solid performance of our staffing brands as well as of the general shortage of
professional skills," Wilson said.
Wilson said despite the slowdown in the economy he is confident that the group
will continue to produce satisfactory growth in revenue and operating profit.
This, he said, would be achieved through continued margin improvement, market
share gains in certain segments, the penetration of new market sectors and
additional revenue streams from new services.
For further information call Grenville Wilson, CEO Kelly Group, on 011 722 8009
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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
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Date: 07/05/2008 12:16:01 Produced by the JSE SENS Department.
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