Torque IT bolsters Kelly
Listed staffing solutions provider Kelly Group reported a loss for the full year, but says this situation would have been worse without Torque IT's profit.
The company yesterday reported its results for the year to September and said revenue declined marginally, moving 3% lower, to R1.99 billion.
However, the company reversed its previous profitable position, reporting a R21.7 million loss, compared with a gain of R26.3 million a year ago, after accounting for R33.2 million in impairment charges, finance charges and tax.
In the results commentary, the group says: “Torque IT continues to meet and exceed expectations, target and prior year comparatives, this year being no exception.”
Recently appointed CE Gareth Tindall says, despite challenging trading conditions and the significant internal changes required to position the group going forward, its substantial revenue base remains intact.
Torque IT and the company's US operation, M Squared Consulting, helped the company avoid a financial situation that would have been “worse”, says Tindall.
[EMBEDDED]Tindall says, however, that training has been affected by a slowdown, but Torque grew turnover and profitability “nicely”. Torque IT's turnover improved 6%; profit growth was not separately disclosed.
Torque IT, which comprises three divisions, offers Cisco, Microsoft and Novell training. It has branches in Johannesburg, Pretoria, Cape Town, Nairobi (Kenya) and Luanda (Angola), and provides training in over 24 countries in Africa.
Tindall says he has yet to work out a strategy to grow Torque IT, as he has been focused on other issues within the company and has “left the good things alone”. However, he says there is no reason why the unit cannot benefit from cross-selling to other entities within the company.
Kelly has several units, including Kelly, PAG, Accountants on Call, M Squared, Kelly Industrial and InnStaff. The company says its new strategy of greater inter-divisional cooperation and an aggressive sales drive should lift its results going forward.