| Tue 29 Jul 2008, 12:00 | | KEL - Kelly Group Limited - Chief Executives Newsletter |
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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
("the Kelly Group")
CHIEF EXECUTIVE`S NEWSLETTER
Coping well with challenging times
As expected, South African business confidence was shaken over the past quarter
by the global economic jitters and by rising inflation, high interest rates and
political uncertainty at home. While some industry sectors, notably those
focused on infrastructure development, tourism and commodities, continued to
show strong growth, others such as financial services and retail took a
battering.
Considering this environment, the Kelly Group is doing reasonably well, although
the rate of revenue and EBIT growth is obviously not at last year`s high levels.
Overall, group revenue grew by 13.9% for the quarter, marginally up from the
previous two quarters. Revenue from the group`s South African operations grew
by 14.9% during the quarter, while revenue from our American operations grew by
9.8% over the same period. It is worth noting that this growth was entirely
organic, while the results for the comparable period were impacted by the
Frontline acquisition.
Our flagship Kelly brand, which plays primarily in the white-collar staffing
space, experienced a slowdown in revenue growth but still managed to achieve a
satisfactory increase in EBIT. The rest of the business units, with the
exception of Kelly Industrial, all showed strong revenue and EBIT growth, with
Renwick posting a particularly good turnaround performance. It is also worth
noting that our focus on the US operations has started paying off in terms of
improving results. Kelly Industrial`s revenue grew substantially but its EBIT
declined and it has been placed under new leadership.
Looking ahead, it is likely that trading conditions will remain tough for the
foreseeable future, and that margins and volumes in certain segments will be
under pressure for the rest of this financial year and probably beyond. Despite
this challenging environment, we are confident that the Kelly Group should be
able to deliver reasonable growth for the year to 30 September 2008.
PAG launches new interim management division
PAG has established a new division, called GAP Executive Management Solutions,
aimed at supplying highly skilled and experienced senior business executives to
companies, parastatals and government on an interim basis.
The business model for the new division has been identified from similar
solutions offered by M Squared in America, where the use of highly skilled
executives on short-term or part-time contracts to address critical management
issues is common practice. This resourcing strategy, known internationally as
interim management, is rarely used in South Africa, despite the country`s
critical skills shortage at the very senior level.
The types of assignments GAP Executive Solutions will cater for include:
interim appointments to key management positions while vacancies are being
filled, rapid skills and knowledge transfer to newly appointed managers; project
management of organisations in transitions such as merger or acquisition
activity; the facilitation of strategy development and implementation; non-
executive and independent directorships for listed companies; operational
executive management when the incumbent is unavailable; and BEE structuring and
management.
Kelly takes gold at the Contact Center World`s 2008 (EMEA) Awards
Kelly was presented with the gold award for "Best Community Spirit" at the 2008
annual Contact Center World`s Europe, Middle East and Africa Awards ceremony in
recognition of the company`s outstanding contribution towards social upliftment
projects in its community and, in particular, its upskilling initiative in
Alexandra.
Kelly now qualifies to compete for the "Best Community Spirit" world title at
the Contact Center World Global Finals, which takes place in Las Vegas in
December this year.
Kelly has now opened a new branch in Soweto, which hopes to follow the success
of Kelly Alexandra. It offers free computer-based upskilling on all widely used
computer packages and provides residents with extensive lecture-based training
on soft skills.
Kelly has also partnered with the Department of Education to provide 1 000
previously disadvantaged Grade 11 and 12 students from 50 Gauteng government
schools with job-shadowing opportunities. This initiative, known as Ikusasa
Lami, aims to address South Africa`s critical skills shortage, while developing
and providing these learners with exposure to different job roles.
RPO now offered through the Kelly Group
We have expanded our portfolio of services to include recruitment process
outsourcing (RPO). RPO is a form of business process outsourcing where an
employer outsources all or part of its recruitment activities to an external
service provider.
This service allows us to act as a company`s own internal HR department,
managing the entire recruitment process from job profiling, screening and
induction to training and performance management. By using this service,
companies will improve their time to hire, increase the quality of the candidate
pool available to them, while reducing costs and improving legislative
compliance.
Yours sincerely
Grenville Wilson
Chief executive
Sandton
29 July 2008
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 29/07/2008 12:00:01 Produced by the JSE SENS Department.
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