LONDON (Alliance News) - Recruiter Kellan Group PLC on Monday said it swung to profit in 2015 thanks to lower administrative costs from the restructuring actions it undertook in 2014, while revenue ticked higher.
Kellan said its pretax profit rose for 2015 was GBP426,000, compared to a GBP55,000 loss a year earlier. The turn to profit was driven by lower administrative costs in the business, following the restructuring of its small business-focused RK division in 2014.
Revenue rose to GBP24.9 million from GBP23.0 million in the year, following an acceleration in revenue growth in the second half of the year. Revenue grew by 16% in the second half from the first half, while net fee income grew 7.9% in the second half against the first.
Kellan said the new customer relationship management system it has developed was installed in the fourth quarter was driving a further improvement in results so far in 2016, cutting the administrative burden on its staff and allowing them to focus on increasing sales.
Kellan shares were up 32% to 1.65 pence on Monday morning, one of the best performers in the London market.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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