| Thu 7 May 2009, 12:16 | | KEL - Kelly Group Remains Firm In Deteriorating Market |
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KEL
KEL
KEL - Kelly Group Remains Firm In Deteriorating Market
Press Release
KELLY GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registered number 1999/026249/06)
Share code: KEL
ISIN: ZAE000093373
("Kelly Group" or "the group")
KELLY GROUP REMAINS FIRM IN DETERIORATING MARKET
Johannesburg, 7 May 2009 - Comprehensive employment services provider the Kelly
Group reported growth in revenue of 8% for the six months to March 2009, despite
trading conditions which continued to deteriorate as a result of the economic
slowdown.
Chief executive Grenville Wilson said that under the circumstances the group did
well to maintain margins and EBIT at levels close to those of the previous year.
He attributed the group`s creditable performance to an improvement in
productivity by its South African staffing division with the average temp
headcount per permanent employee up 10% on the previous reporting period; a
slight improvement in the outsource margin; and Torque IT, which contributed to
EBIT in its first half-year reporting period.
Overall, the group`s South African operations posted a 4.5% growth in revenue
with the group`s flagship brands Kelly and PAG showing an improvement in EBIT
over the previous reporting period. In the USA, the group`s M Squared operation
felt the pinch of the recession with revenue declining 11.3% in dollar terms.
Average outsource headcounts for the first six months were down 6% on the same
period last year but outsource revenues showed growth of 2.6% for the first six
months due to an increase in revenue recovered per headcount employed.
Permanent placements made by the group decreased by 33.4% for the reporting
period, reflecting the trend by companies to cut back on fixed overhead. This
was, however, offset by an increase of 25% in the group`s average placement fee
resulting in a net decline of 16.7% in permanent placement revenues for the
first six months.
Wilson said despite a particularly weak April he expected to see a slight
improvement in trading conditions in the second half of the year with certain
sectors of the economy, such as tourism, hospitality, sporting events and those
relating to infrastructure showing some growth. "Internally, we intend to
counter the effects of the economic slowdown through a continued focus on margin
improvement, market share gains, the penetration of new market sectors and the
development of new services," he said.
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: 07/05/2009 12:16:01 Produced by the JSE SENS Department.
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