Kellan records loss but sees ‘much stronger’ 2010

Wed, 31 Mar 2010

IT, accountancy, hospitality, leisure and professional services recruiter Kellan Group has made a loss of £4.4m but has already seen ‘much stronger performance’ in 2010.

The results for the year ended 31 December 2009 reveal:

·      a loss of £1.76m on adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) (2008: profit £2.6m)

·      an improved second half with an adjusted EBITDA loss of £355,000 compared to an adjusted EBITDA loss of £1.4m the first half of the year

·      a continued focus on cost reduction in line with income levels with headcount cut from over 350 in 2008 to 180, while the office network was consolidated in London, Leeds, Manchester and Birmingham resulting in 17 operational offices, including the move to a single head office in London in March.

John Bowmer and Tony Reeves, co-chairmen of Kellan, says: “With the sector facing the worst trading conditions in over three decades, 2009 has undoubtedly been a challenging year for the group.

“In response to the substantial drop off in revenues we were required to make some difficult decisions and significantly reduce our cost base during the course of the year. However these corrective actions, while painful, together with a slight improvement in trading have resulted in a much improved performance in the second half of the year.”