Kellan Group swings to full year profit

Recruitment company Kellan Group swung to a full year profit as revenues rose on the back of growth in temporary placements.

The group reported total net profit of £0.43m in the year to 31 December 2015, compared to a net loss of £0.06m in 2014.

Adjusted earnings before interest, tax, depreciation and amortisation increased 39.7% to £1.02m while operating profit jumped 215% to £0.82m.

Revenue rose 8.3% to £24.9m, as a decline in net fee income (NFI) in permanent placements was offset by growth in temporary NFI.

Temporary NFI was up 12.2% to £4.14m while permanent NFI fell 17% to £3.57m.

“The permanent NFI shortfall was primarily made up of our loss making Quantica Technology Midlands operation and underperformance across London Perm Hospitality during the first half of 2015,” the company said.

“The London Perm team has improved significantly during H2 and is well positioned to deliver good results in 2016.”

Shares surged 27.74% to 1.60p at 1602 GMT.