AWF
28/05/2014 15:34
FLLYR
REL: 1534 HRS AWF Group Limited
FLLYR: AWF: AWF Builds for the Future as Madison Acquisition Delivers
New Zealand's largest recruiter AWF Group (NZX:AWF) reports a year of
consolidation as its newly acquired subsidiary Madison Recruitment delivered
a strong performance during its first five months within the AWF Group.
Revenue for the year to 31 March 2014 rose 14% to $148.69m up from $130.48m
in 2013. However, net profit for the year was $3.95m, down 43% on the
previous year's record $6.92m as AWF invested in staff to prepare for its
next phase of growth. The prior year's result benefited from a $2.24m gain on
the sale of its subsidiary Panacea Healthcare.
Underlying Earnings, which adjusts for items of amortisation and the profit
on the disposal of the subsidiary, fell 14% to $4.65m, from $5.42m in the
prior year. Earnings Before Interest, Tax, Depreciation and Amortisation
(EBITDA, reached $8.39m in 2014 against $8.34m recorded for 2013.
AWF Group Chairman Ross Keenan said: "The 2014 financial year presented
challenges of tough competition and tight labour markets at a level we have
not seen for some years.
Additionally, our growth over the past 3 or 4 years has required us to
strengthen our internal capability to lift customer service levels
commensurate with our market leading position. This investment in the Group's
future will ensure we remain well positioned to continue to deliver the
service levels that differentiate us from the competition.
In the AWF Board's opinion underlying earnings, more clearly reflects the
operating performance of the Group. And on this measure, the AWF Group,
including Madison Recruitment, has turned in a creditable performance
especially in light of the ongoing investment we are making for the future.
Reflecting this performance in underlying earnings, the Board has declared a
fully-imputed final dividend of 7.6 cents per share, taking total dividends
for the 2014 financial year to 14 cents per share." In 2013 AWF paid
dividends totalling 15.6 cents per share, excluding a 3 cents per share
special dividend. The final dividend will be paid on 27 June 2014 to
shareholders registered as at 20 June 2014.
AWF Group Chief Executive Mike Huddleston said: "Availability of both skilled
and semi-skilled temporary staff, particularly in Auckland and Christchurch
has certainly tightened and is expected to do the same in the Wellington
region.
However we are well advanced in our country-wide recruitment initiatives and
our training, development and immigration programmes. We are confident these
steps will deliver a strong pipeline of talent to draw upon to meet the
markets' demands.
I am pleased to also report Madison has performed well and in line with our
high expectations. The AWF Group is winning significant new business as a
direct result of the combined AWF and Madison business proposition. The new
opportunities Madison is providing in the permanent recruitment sector have
countered the challenges of the tight labour supply and the business should
provide balance for the AWF Group in the future."
Mr Huddleston said at this early stage of the 2015 year the Group was
performing well and to plan.
For further information:
Ross B Keenan Mike Huddleston
AWF Group Chairman AWF Group Chief Executive
021 685 655 027 577 3057
Refer to attached announcement for a reconciliation between underlying
earnings and net profit.
About AWF Group (www.awf.co.nz)
AWF Group has, over 25 years, grown to become New Zealand's largest
recruitment company. On average, we place 3,500 temporary staff and
contractors each working day of the year into temporary employment and each
month we place as many as 200 staff into permanent positions. Our network of
38 branches in 22 towns and cities across New Zealand ensures we are always
able to react to our client's needs.
End CA:00250974 For:AWF Type:FLLYR Time:2014-05-28 15:34:53
