| Wed 25 Jan 2012, 10:01 | | KEL - Kelly Group Limited - Kelly Group to look outside for growth |
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KEL
KEL
KEL - Kelly Group Limited - Kelly Group to look outside for growth
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" or "the company")
KELLY GROUP TO LOOK OUTSIDE FOR GROWTH
Johannesburg, 25 January 2012 - A sharpened external focus, greater
interdivisional collaboration and improved customer service, should lift
comprehensive employment service provider Kelly Group`s future results, the
company said in its annual report published today.
Chairman Moss Ngoasheng said the past year had been a disappointing one for
Kelly Group, with the continuing volatility in global markets, jobless growth in
the South African economy and uncertainty regarding the implementation of new
labour laws again negatively impacting on the group`s performance.
Group revenue for the year of R1.99 billion was 3% down on 2010 and operating
profit of R15.6 million was 52% down on the prior year. The group posted a net
loss of R21.7 million, after accounting for R33.2 million in impairment charges,
and finance charges and taxation.
During this period, the group rolled out a number of internal innovations,
designed to meet its strategic objective of leveraging technology to streamline
operations, reduce costs and develop a sustainable competitive advantage.
In the same report, chief executive Gareth Tindall said these system changes
represented the single biggest intervention in the group since its listing in
2007 and were not without their challenges. While achieving their intended
objectives, the changes took their toll on the group`s results.
Tindall said since assuming its leadership in July last year, he had noted that
the group had become too dependent on large contracts and that an urgent
revision was required to improve the business mix and increase permanent
billings. "It has become increasingly apparent that the group has turned out to
be too internally focused and has lost touch with its traditional strengths of
recruitment and a high service ethos," he said.
"A number of initiatives are currently underway or in the pipeline to resolve
these issues, including strengthening executive management through the
appointment of a chief operating officer and reviewing non-performing and non-
core business units."
For further information contact Gareth Tindall, CEO, on 011 722 8062 or Ferdie
Pieterse, financial director on 011 722 8048
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
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 25/01/2012 10:01:00 Produced by the JSE SENS Department.
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