MARKET CAP = R935m
ASSESSMENT Generally well liked and respected in the workplace; prepared to work harder for improved results. Kelly is a familiar name – even outside staffing circles – and is, technically speaking, a partial listing of assets once held in Logical Options. The group – now headed by former Avis boss Grenville Wilson – owns well-known brands such as Renwick, Kelly and PAG.
Ahead of its keenly anticipated listing on the JSE, Kelly acquired Frontline to bolster its position in the higher end of the financial placement market where its Accountants On Call and PAG already had a presence.
With around R300m raised at listing via a private placement, you can only presume Kelly will be scouring the fragmented staffing landscape for a number of bolt-on deals. But with the capable Wilson driving operations, shareholders can also look forward to internal efficien- cies that will ensure that any top-line growth in a buoyant industry is achieved on the best possible margins. Kelly recorded revenue of R1,6bn and gross profits of R78m for its 2006 financial year. Market estimates put Kelly’s headline earnings for the year to endSeptember at around 80c/share – meaning a rather reasonable forward p:e ratio of around 11,5.