Finweek English Edition - - Cover -


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.

Grenville Wil­son

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