| Wed 26 Nov 2008, 12:16 | | KEL - Kelly Group - Kelly posts strong growth despite deteriorating economic |
|
KEL
KEL
KEL - Kelly Group - Kelly posts strong growth despite deteriorating economic
climate
KELLY GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1999/026249/06)
ISIN: ZAE000093373
Share Code: KEL
("Kelly Group" or "the group")
KELLY POSTS STRONG GROWTH DESPITE DETERIORATING ECONOMIC CLIMATE
Johannesburg, 26 November 2008 - Comprehensive employment services and outsource
solutions provider the Kelly Group today reported strong growth for the year
ended 30 September, with operating profit increasing by 28% to R146.9 million
and headline earnings per share increasing from 78.46 cents to 102.30 cents, an
improvement of 30% on the previous year. A dividend of 36 cents (2007: 30
cents) was declared.
Overall the South African operations` revenue grew by 14.9% for the full year
although growth in the second half was slower at 12.5%. Full year earnings
before interest and tax (EBIT) growth for the South African operations was
33.2%, with growth in the second half still very strong at 29% but lower than
the 39.6% achieved in the first half.
Chief executive Grenville Wilson attributed the robust performance to further
productivity gains, technological advances, expansion into new markets sectors
and cost savings, all of which were reflected in the improvement in the
operating margin to 6.58% from 5.76% last year and 4.72% the year before last.
Wilson said the group continued to make staff training and personal development
a priority, and ongoing training at all levels of the organisation remained a
core function during the year. "A wide range of skills development and value
training programmes equip our people not just with technical skills but also
with a unique service ethos," he said.
Looking ahead, Wilson said that it was clear that trading conditions would
remain tough for the foreseeable future, and that margins and volumes in certain
segments would be under pressure. "Despite this challenging environment, we are
still confident that there are a number of growth opportunities within our
portfolio which, if successfully exploited, will help offset any slowdown we are
currently experiencing in certain segments in our business," he said.
"The recent acquisition of leading ICT skills development company Torque IT and
the establishment of an ICT placement division by Kelly are just some examples
of the growth opportunities out there in the market, given that the current
shortfall of qualified ICT practitioners is estimated to be at some 70 000."
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: 26/11/2008 12:16:01 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.
