broomfielder
05 Sep 2015
Re: Interims I think it's because of the cyclical nature of this industry that KLN have got to optimise the current 'good' times - we really should be hearing more about the Group's strategic plans but I guess that's not how it operates.
BOWOOD
05 Sep 2015
Re: Interims I do wonder if we could see the integration of Paul Bells recruitment interests where I believe Ward has an involvement. We must of course be aware that the sector, whilst doing well is a cyclical one and will level out in two three years time. I agree that liquidity is a problem for KLNBW
broomfielder
05 Sep 2015
Re: Interims You could well be correct BOWOOD - there could well be justifiable reasons for NFI not increasing but Interims are never that detailed. However even on full Aud Accs the Notes could be more expansive.Part of the problem is that the Group don't do PR it seems. This might help to manage the SP in the coming months. However KLN don't seem that concerned. Equally they seem not to realise how beneficial a more liquid, stable/increasing SP can be for the Group. Surely their Treasury management isn't that backward?I can see the SP drift without some positive news. However Sector info could well aid us as others are clearly prospering in the current very positive environment for UK recruiters. Your observation on the previous Chairman buying back in may prove something is afoot behind the scenes, who knows.As you say NBBs figures and comments will be interesting (even for a non investor).B
BOWOOD
05 Sep 2015
Re: Interims PS. It will be interesting to see how another recovery recruiter/executive search company,NBB, has done when it reports later this month.
BOWOOD
05 Sep 2015
Re: Interims I tend to agree with you broom fielder, NFI is key and it may be the loss making offices that have contributed to this but that cannot be the only reason. New consultants may have contributed as the costs of bedding them in can be high. Amin costs down but there was a share based credit of £150k which helped. Not too impressed though and I fear the sp will reflect this over the coming months as any sales will spike the MMs. We could see it below 2p. What do you think?
broomfielder
04 Sep 2015
Re: Interims Good to see a return to profit at the PBT line. Otherwise I am a bit underwhelmed if I'm honest - the NFI line is key for the recruitment industry and I was certainly looking for an uplift on the back of increased Turnover (sequential increases in NFI in 2013 and 2014 was rightly trumpeted by the Chairman at end of last financial year).The reasons for the increase in Cost of Sales which is not transparent is of course particularly relevantNet Cash flow from Operating Activities is down from similar period last which is a concern. The reduction in Invoice Discounting is welcome but this has substantially reduced Cash at H1 - further Equity issue coming?Reducing the debt burden would be ideal but there is little cash available at the Period end. And I agree liquidity in these shares has to be improved and Mr Bell's holding has to be restructured if need be in to Voting / Non voting etc classes of equity. There plenty of shares but not enough in free float.All in all while there's still a lot to be happy about I can't help thinking something more radical is needed to move the Group to the next and more appropriate level.B
Waste_not_want_not
04 Sep 2015
Re: Interims Results look as expected to me. Do not really understand NFI but cash flow looked good and improving and that is my main metric for small AIM companies.As noted before I deal with Kellan and have found that their finance department and purchasing very well run - firm and fair. Cannot comment on the recruitment market generally other than difficult to find staff at moment for me in different sector.As a long term investor my view was over 3 pence I might take some 'profit'. Given I could buy at 2.25 p this morning topped up a little.There is very little volume going through at moment so going to be volatile pricing and the issues for Mr Bell and his arrest etc are unsettling I guess for large investors and really he needs to sell down some of the shares in order to provide a better market for the equity.I guess he has the £ 1.36 million of loan notes which I would like to buy ! , 10-112% interest would be welcome. More realistically if the company uses its cash to pay these back early that would help the share price imho. As above seems good value at 2.25 (£ 7.5 million market cap) and over 3p and thus over £ 10 million market cap is going to need EBITDA in excess of £ 1 million I would have thought per annum.
BOWOOD
04 Sep 2015
Re: Interims Good to see an operating profit but this was thanks to reduced administration costs. I would have been happier if NFI had improved on the increased turnover. Any thoughts?
broomfielder
03 Sep 2015
Interims Should the figures be as strong as we hope I think we will see some considerable upward movement in the SP.However the likelihood of sellers will also be great so I expect some volatility in the SP. If the Market made any sense, we should consolidate at least around recent levels before more serious investors evaluate the prospects of further growth. But there again does AIM ever make any sense?B
BOWOOD
03 Sep 2015
Re: Interims I am expecting the half year results tomorrow and if the sp does not move up on them I would hope it can at least consolidate around current rerated levels
BOWOOD
03 Sep 2015
Re: Interims I share your view B that a fair value is the 4p plus level. KLN continues to recover from a bad period and has, over the past couple of years consolidated its operations and looks better set to grow. There is little liquidity in ths stock and even small value selling seems to cause the mm's to mark down. A bit like NBB
broomfielder
02 Sep 2015
Selling into recent SP increases. Given the recent strength of the SP its not surprising (for KLN) there's been a significant amount of selling.With the Mkt Cap on the cusp of going under £5m again this in my view looks undervalued PROVIDED the awaited Interims confirm the return to Profit and generally all round strong performance.I guess you take a view and make your choice but my own view is that while the SP has improved it should be capable of getting closer to 4p.B
broomfielder
01 Sep 2015
Re: Interims Dependant upon how strong the H1 performance actually is (and of course not just the headline numbers), there is potential IMO for M Cap to reach £14-£15m which would broadly equate to around the 4p per share. If further growth in NFI with strength across all areas, the SP could move on from there.With its historic losses, trying to construct a Peer Group to measure KLN's key numbers against is somewhat trying but the Group are going to have to drive their Operating Profit / NFI to match and then surpass its smaller competitors. A positive result and a positive story to tell coupled with further growth and improvement expected should improve investor sentiment immeasurably.The above only my views and everyone should do their own research and take own advice etc.B
BOWOOD
01 Sep 2015
Re: Interims Good end to the day - lets see if we can push on a bit more tomorrow. GLA
BOWOOD
01 Sep 2015
Re: Interims SP looking good at 3p where the m/c is about £10m. What's a fair valuation? Any thoughts?
