Kelly moves from loss of 25.9c to profit of 9c

Kelly says it is unsure what impact the new Labour Relations Act will have on recruitment companies. Image: basketman Free Digital Photos

Despite revenue inching down by 1% to R1.422bn‚ the group managed to control overheads‚ with its domestic operations achieving savings of R35.1m.

In August this year‚ the group concluded the strategic sale of its US operations for US$11m. It also finished the first part of its drive to focus on growing its South African business.

Kelly said the proceeds from the sale of its US operations, as well as the group restructuring its funding in May, contributed to a fall in net finance costs to R13.8m from R17.5m in 2012.

Although it was difficult to quantify the effect of the amendments to Labour Relations Act passed by parliament‚ Kelly said the expected industry consolidation should be positive for the group.

Management said however‚ it was still cognisant of the fact that industry conditions remained challenging and that much was needed to restore the group's market position and profitability.

Kelly decided against declaring a dividend and to use the cash to execute its strategy of investing in and growing its local business.