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KEL - Kelly Group Limited - Kelly Group to look outside for growth KELLY GROUP LIMITED (Incorporated in the Republic of South Africa) (Registration number 1999/026249/06) ISIN: ZAE000093373 Share code: KEL ("Kelly Group" or "the group" or "the company") KELLY GROUP TO LOOK OUTSIDE FOR GROWTH Johannesburg, 25 January 2012 - A sharpened external focus, greater interdivisional collaboration and improved customer service, should lift comprehensive employment service provider Kelly Group`s future results, the company said in its annual report published today. Chairman Moss Ngoasheng said the past year had been a disappointing one for Kelly Group, with the continuing volatility in global markets, jobless growth in the South African economy and uncertainty regarding the implementation of new labour laws again negatively impacting on the group`s performance. Group revenue for the year of R1.99 billion was 3% down on 2010 and operating profit of R15.6 million was 52% down on the prior year. The group posted a net loss of R21.7 million, after accounting for R33.2 million in impairment charges, and finance charges and taxation. During this period, the group rolled out a number of internal innovations, designed to meet its strategic objective of leveraging technology to streamline operations, reduce costs and develop a sustainable competitive advantage. In the same report, chief executive Gareth Tindall said these system changes represented the single biggest intervention in the group since its listing in 2007 and were not without their challenges. While achieving their intended objectives, the changes took their toll on the group`s results. Tindall said since assuming its leadership in July last year, he had noted that the group had become too dependent on large contracts and that an urgent revision was required to improve the business mix and increase permanent billings. "It has become increasingly apparent that the group has turned out to be too internally focused and has lost touch with its traditional strengths of recruitment and a high service ethos," he said. "A number of initiatives are currently underway or in the pipeline to resolve these issues, including strengthening executive management through the appointment of a chief operating officer and reviewing non-performing and non- core business units." For further information contact Gareth Tindall, CEO, on 011 722 8062 or Ferdie Pieterse, financial director on 011 722 8048 Issued by du Plessis Associates on behalf of Kelly Group Limited dPA contact Helen McKane Tel: +27 11 728 4701, Fax: +27 11 728 2547, Mobile: 082 330 2034 or e-mail: kellygroup@dpapr.com website: www.kellygroup.co.za Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 25/01/2012 10:01:00 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
