The Kellan Group is initiating further cost-cutting measures as its net fee income continues to decline. 

In Kellan’s AGM statement covering the period from 1 January 2009 to 30 April 2009, Tony Reeves, Kellan Group co-chairman, said: “The first quarter of 2009 saw revenues and net fee income reduce by 10% and 14% respectively over the final quarter of 2008 and by 34% and 42% respectively over the comparative quarter in the prior year. 

“Our net fee income remains in decline and we have initiated further cost cutting, including to our property and IT infrastructure.

“We have also further reduced our employee headcount which forms the most significant part of our cost base. Staff numbers at the end of April 2009 were 245 compared to 364 last year.  

“Despite these additional cost reductions that we have implemented since year end, we currently anticipate that the outlook for the full six month trading period will return an operating loss.”