broomfielder
16 Sep 2016
Re: Interims Albeit anecdotal in nature, I am struggling to unearth anything positive about the UK recruitment market at the moment. It seems, the best news is that it isn't quite as bad as it might be.From past discussions with the Co, I had been expecting a bit more Corporate activity by now and this was well before Brexit appeared on the scene (Inc the lead-up period). The long drift since that time is worrying and it's no real surprise the SP continues to slip albeit on nominal volumes.The concern I have is the apparent lack of direction and a clear road map for their business plan (unlike NBB for instance). If they have these, then I am not aware, but hey we are just Shareholders! I don't think the sector will improve for some time given the endless timescale / uncertainty of Brexit and all its implications and I do think unfortunately there will be a shake-out in the period ahead. Endless restructures without a clear end-game it seems doesn't inspire confidence.B
BOWOOD
14 Sep 2016
Interims B - I am still a bit concerned about KLN and the particular reference made about Berkeley Scott London in the interim report as being very important to get sorted as this had been a concern and responsible for the poor performance. Do you think there are big issues there and if so what effect could these have on the overall group. Small recruiters seem to be struggling although NBB looks as if it could become a good recovery/growth story over the next couple of years.
BOWOOD
01 Sep 2016
Re: Sector Yes a bit more impressive. They have a good brand of course, liquidity, and have a global spread which could have a positive reach back into the UK.
broomfielder
01 Sep 2016
Sector Fairly sparkling results reported today from Hays across most areas of their business.Whilst their UK activities were more challenging largely due to the wider uncertainties both in the lead up to and following the EU referendum, they did manage a very creditable 14% uplift in Operating Profit.Yes, it can be done.B
BOWOOD
21 Aug 2016
Re: Way Ahead In a way I feel that KLN has stalled and needs a shot in the arm and unless they do there is little future. They have worked hard to get where they are but now it needs a new person at the top to take it forward. I do not think Ward is the right person - he is too close to Paul Bell and I am not convinced that he is the right man for the job, I am also not convince that he has a good tract record that is helpful to KLN. I feel that BNN now has more potential.
broomfielder
20 Aug 2016
Way Ahead In my view, KLN are themselves a legitimate takeover target based on recent performances - the fact that significant improvements have been achieved count for little if the final push to sustainable profitability cannot be attained. This is where the attitude and aspirations of our key shareholders could be key. However, their very existence could act as a barrier to a 3rd party's interest.As I mentioned previously, we really need some dynamic leadership here.B
BOWOOD
20 Aug 2016
Re: Half Year Results I feel further cost cuts will be difficult so scaling the business is what they need to do. Blame Brexit by all means but all businesses will need to deal with that one. KLN are strong in Hospitality and a weaker £ should encourage more tourists for the third qtr at least and perhaps the Christmas season will encourage more trade. If the back office can cope with more work and smaller competitors are struggling then bolts on acquisitions should be on the agenda. I think the CFO has worked hard in the KLN journey but I fear he has not had much support from others on the top table.
broomfielder
19 Aug 2016
Re: Half Year Results The more I read through these results, the more depresting they become.The fairly radical restructures undertaken by the Group have clearly worked only to a limited extent and whilst control of Overheads is both sensible and laudable, it does look as if the Group's ability to write new profitable business as a way of driving growth has also been severely restricted.It's thus quite one thing to cut costs but if it starts to cut into the business (as it seems to have here) then there is something fundamentally wrong.In my view, H1 was a period in which we should have seen a targeted aquisition. With the much vaunted support of Kln's key shareholders, I would have thought that a properly identified target, capable of delivering genuine synergies would be both appealing and essential. Essential, as after all there is only so much you can cut costs before you start dismantling your own business.My fear is that KLN don't know where this inflection point in their business actually sits. If that's the case, it's truly a worry.Come on Kellan, get on the road, get some Investor presentations going and tell us exactly what the Group's short and medium term plans are. We need detail on the key performance hurdles lying ahead but what we really need is somewhat more basic - a road map on where the Group is headed and equally importantly, how we are going to get there and in what sort of timescale.Over to you Kellan!B
BOWOOD
19 Aug 2016
Re: Half Year Results Yes I read lots of gloom within the report - softening and restructuring are not words I like to hear. Brexit will get the blame - uncertainty etc, for what I suspect will be a poor and loss making second half. I had hoped there would be some positives to come from hospitality engagements with more tourists likely but that was not a message I had from the report. Large shareholders supportive so says the note but I fear dilution could be on its way within the next twelve months or so. Its seems as if KLN has returned to where it was about four years ago notwithstanding the hard work done on containing admin expenses.KLN is highly geared and it is the top line and NFI that is needed to drive the business forward but with current uncertainty this may be difficult. Bolt on acquisitions that don't add to an increase in admin costs will help.
broomfielder
19 Aug 2016
Re: Half Year Results Like you B, I am disappointed with these results.Not much detail to get behind, but the sentiment expressed is clear enough. It simply isn't the performance we wanted (or needed). To be honest, I was hoping for a robust H1 with the damage from Brexit only being evident in the final few months. That's not really coming through from what I see reported (and the inflex in the comments expressed).And yes, H2 doesn't fill me with a great deal of enthusiasm either.We really need some dynamism from the BoD to move things forward ....and quickly! B
BOWOOD
19 Aug 2016
Re: Half Year Results Now we have them and I must confess I am a little dissapointed as I thought the results were going to show better progress. Is it all about Brexit? I cannot see KLN making much or any recovery in the second half. It had been hard work to get to where we were at the last finals and now it looks as if we have to start again. Not too sure about Ward either.
broomfielder
11 Aug 2016
Half Year Results The half year figures are normally announced in about 3 weeks time and while the progress towards greater PT Profits for Kellan had been generally expected, I guess the wider uncertainty created by the Brexit vote will have had a detrimental impact on the recruitment industry.Just hope it hasn't derailed things to much here as it's been a long and weary ride for so many staff and shareholders already.Have to say the gentle slip in the SP has been particularly disappointing in recent months but without meaningful news it's hard to get investors excited.B
broomfielder
17 Jul 2016
Re: Sector I agree with your comments B.Irrespective of people's political views, the country has to find a way through but I guess the world we live in today is more and more prone to a roller coaster ride as so many are influenced very profoundly by the various forms of media that now seem central to our lives.Social media and the Internet generally simply fan the flames of a newsworthy story whether its wholly fact based or not. When uncertainty gives rise to fear, the worry then is the level and type of irrational behaviour it can drive. There are regretably all too many examples of this.Some have already found its way to HM Gov and no doubt some Corporate Boardrooms so it simply adds to our risk as investors. If nothing else you can expect a number of incompetent companies/directors etc to blame Brexit for all sorts of ills that in reality have nothing to do with it........Apologies for drivelling on a bit! B
BOWOOD
17 Jul 2016
Re: Sector I agree that the sector seems to have been one of the worst hit by the result. But the only thing I read and hear about is uncertainty and a lack of confidence, yet not withstanding a slowing in the economy that has been happening for several weeks everything seems to be going along OK. Unless we are careful I fear we will talk ourselves into a down and out situation that does not in fact exist. Why do people react to fear rather than ignor it? A couple of good items of news and a return of our AAA rating will completely reverse the way we are thinking.
broomfielder
16 Jul 2016
Sector Reed Group reporting buoyant market conditions and positive recruitment demand since the EU Ref result (somewhat in contrast to others in the field and the general consensus that Corporates will be sitting on their hands etc until matters become clearer).I have to say that the EU Ref result was in my view the last thing the recruitment industry needed but if things are indeed looking much 'like business as usual', I for one will be pleasantly surprised and happy to be proved wrong.B
