Recruitment firm Kellan said it narrowed full year losses in the year ended December 31st 2011 and looks to future trading with optimism after it streamlined the business.
The IT, accountancy, hospitality, leisure and professional services recruitment company said pre-tax losses reduced to £5.9m in the year from £10.7m in 2010.
Revenue slipped to £26.9m from £29.8m as it reduced administrative expenses to £16.3m from £22.71m previously. Kellan took a non-cash goodwill and intangibles impairment charge of £5m, down from £9.5m the previous year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"2011 was another challenging year for Kellan Group, but one in which adjusted EBITDA profit for the year of £0.17 million showed a 54.5% increase against 2010 and costs were reduced by a further 13% through tight control," the group said in a company statement.
Aligning its business with the market, it reduced its workforce to 162 from 185 in 2010.
Net cash outflow at operating level was £0.64m for the year compared to £0.23m inflow.
Kellan added: "After a slow start to 2011 there were short lived signs of an upturn before renewed concerns around the Eurozone and sovereign debt hit business confidence and forced a further retraction of the recruitment market."
"The group has used this time to reshape a number of its key brands in readiness for the delayed but inevitable upturn as well as successfully controlling and further reducing costs. With additional funding now secured, the group is out of survival mode and can now look forward with real purpose, determination and optimism."
CJ
