BOWOOD
13 Jan 2016
Re: Sector I guess it is always more difficult for larger players like MP and Hays to grow revenues but I feel KLN continues to recover, and the acquisition of Quantica was at an unfortunate time just ahead of the recession. Also KLN has substantial back office capacity to absorb the needs of a developing business and operational gearing can be very positive for recruiters. I think that KLN will benefit from the continued economical recovery and with their finances becoming more stable will begin to add to its earning potential.
broomfielder
13 Jan 2016
Sector First M Page and now today Hays, report challenging conditions in the UK where growth for the period was up 2% and 1% for the respective Companies.In both cases, much stronger performances were reflected in various Overseas markets - Hays reporting 16% uplift in their European/Worldwide activities with Germany, France and other major countries all showing 10%+ growth.Rather suggests the UK recovery has peaked with other European countries beginning to see real traction in their own economic recoveries at least as suggested by the growth in staff hiring/recruitment.B
BOWOOD
28 Dec 2015
Update Last year we had an update in early January. Indications are that the year has gone very well and with the sector doing well we may see the SP moving upward as there is little liquidity.
broomfielder
09 Oct 2015
Re: Sector News I think you hit the nail on the head B.When organic growth becomes restricted then it rather narrows down the options somewhat if real growth is to be delivered going forward.As stated previously we are probably overdue some consolidation within the Sector which of course can deliver the requisite growth as well as other economies .......if done successfully.B
BOWOOD
09 Oct 2015
Re: Sector News Good growth on top of good growth becomes more difficult but I feel recovery situations such as KLN and NBB could outperform over the coming couple of years. At the moment though I feel that KLN with a mc of £6m may have some of the potential factored in.
broomfielder
08 Oct 2015
Sector News Hays, one of the UKs largest recruiters, reported softer growth in their Q1 figures released today.Broadly, in contrast to last year, growth for the key UK market averaged 5% compared to 10% at the same stage last year. What's significant is that they are seeing the wider effects of the Global slowdown now having an adverse effect despite the generally accepted strength of the UKs economy.Clearly early signs that the UK recruitment market will (....or has already) become more competitive. Very relevant to Kellan.Not the best news in town, but hardly something that hasn't been signalled by the trends evident in the global economy for almost all of this year.There is still growth out there so prudent cost management through improved systems and working practices should still deliver improved profitability for KLN in H2 barring something totally unexpected.Finally, I just wish the UK could adopt the US practice of requiring all listed / public companies to issue full Quarterly performance figures (and not the overly brief H1/Interim figs and the largely non existent Quarterly data).Now that I think would genuinely help investors and justify any increased costs to companies.B
broomfielder
25 Sep 2015
Re: Group Performance and discussion wit... I agree B. It came across during our chat that delivery of positive and improving results over a period was key to their objectives as understandably after their difficult times they have to demonstrate their recovery is robust and well balanced etc.A final point on the Interims - I am not trying to be smart but had a line from the Chairman been included which stated the rebalancing of sales toward less risky and more sustainable income streams was the reason for the reduced NFI all of which was in line with expectations, then the perception of the Results may have been subtly changed. After all the ratio of Adjusted EBITDA / NFI actually improved to above 10% from c9% at end 2014 so profitability is clearly improving. It's just what measure you use.A lot of positives still to bear fruit but as with all recoveries, when things start to get better, remaining focused often becomes more difficult. Things are definitely looking up for the Group (IMO).B
BOWOOD
25 Sep 2015
Re: Group Performance and discussion with KL... Thanks B. IMO Rakesh has always been happy to engage with the smaller shareholder and I believe has been the main driver in the KLN turn around. It's always difficult for a business to recover as notwithstanding the recovery in the sector available finance is difficult to come by and this is perhaps why we have some larger share holdings. I think KLN will do very well over the next couple of years but in the short term we must expect the sp to struggle to hold 1.5p for a mc of £5
broomfielder
24 Sep 2015
Group Performance and discussion with KLN I am delighted to say that KLN have (IMO) joined the growing band of AIM Companies not only prepared to engage with small pi's but make every effort to accommodate a number of queries put to them.Group FD, Rakesh Kirpalani, kindly offered a face to face meeting to discuss a number of points I raised in connection with the recently announced Interim figures. In light of my distance from London, these issues were discussed during an open and detailed telecon.The following represents only very brief aspects of our discussion which I have attempted to reproduce accurately and faithfully.My key concern (in the H1 figures) was the decline in Net Fee Income despite the overall increase in Sales and the lack of transparency on the Cost of Sales (which had increased apparently disproportionately).At the risk of over-summarising, this was primarily a result of the Group effecting changes in its business income streams as it understandably has looked toward a better blend of income ie one which is less susceptible to volatility in differing economic conditions. This should stabilise in the short term. Q3 is the Group's seasonally strongest trading period. Current trading performance is in line with expectations. Continued focus on Overheads will be maintained with further reductions possible. Discussion on increasing liquidity of the Group's shares took place as RK / Group BoD accept this is an area they would like to address albeit acknowledging the 'difficulty' in satisfying all shareholders when a large % is held long term by very supportive parties.When key financial information is often unavailable to PIs, discussions direct with Senior Company officials is always welcome and while noone should seriously expect anything of a price sensitive nature, a much better understanding of your investment is virtually guaranteed.What's more Rakesh would welcome shareholder contact from interested parties which has to be good from everyone's perspective.B
BOWOOD
21 Sep 2015
Re: SP and M Capital I'm in for the long term and have been for some time and I must say that I was a little disappointed with the figures and the current mc of £6.2m at 1.75 looks too much for new investors.
broomfielder
20 Sep 2015
SP and M Capital I hope you are wrong BOWOOD but in this market your views on the SP could well come to pass. My involvement with the Group is not of longstanding but I am looking more to medium than short term as a timescale for my investment.One of many frustrating features (to me) appears to be KLN's lack of Investor Profile and any concern they may have to keep their shareholders informed (beyond the what is required to comply with AIM and wider Company law) appears non existent. It actually appears more akin to a Private than a Public one.Time to bang on their door I think.B
BOWOOD
17 Sep 2015
Re: broomfielder Yes BF I'm in for the long term but I do agree that we can expect the SP to drift as sellers will not be offset by buyers. Until we see NFI moving higher we could see 1p for a m/c of about £3.4m
broomfielder
17 Sep 2015
Re: broomfielder I agree BOWOOD. The Interims in my view were disappointing and at the very least we need the full story behind the bald numbers and more importantly a roadmap on how they see the Group develop over the 6-12 months ahead. After all the performance was a bit of a curate's egg.Provided they are able to demonstrate progress (esp on NFI) then some decent PR could boost interest in the Group significantly. Without these the SP looks as if it will drift until some of the major shareholders decide to alter their holdings.B
BOWOOD
16 Sep 2015
broomfielder What do you think. MC about £6.5m to buy in but I'm not convinced that this value can be justified based on half year figures. Any thoughts?
BOWOOD
08 Sep 2015
Re: Interims With more news scheduled I fear the offer price will drift below 2p and possible a little lower. Important to show that we can grow NFI in MOP
