Sharechat Logo

Allied Work Force bounces back as employment growth returns

Wednesday 19th May 2010

Text too small?

A strong labour market pick-up in the second half of the financial year to March 31 saw Allied Work Force to an after-tax profit of $2.0 million, slightly off last year's $2.1 million. The shares soared 18% to 80 cents on the NZX.

Core earnings (ebitda) at $3.4 million compared with $3.7 million the previous year, the company said, although it did not post any accounts with its NZX statement.

Chairman Ross Keenan described the result as a "very strong performance", driven by a well-distributed spread of earnings across the economy in the second half, after the severe effects of the local and global recessions in the first half year.

"Second half performance was very impressive with net profit after tax at over two-and-a-half times first-half earnings, and over 50% up on the second half of the previous year."

Managing director Simon Hull told BusinessWire demand for labour had continued to strengthen into the new financial year and "long may it last", although some businesses hit hard by recession were still vulnerable to collapse even as the economy recovered.

"We are being extremely vigilant with debtors."

Keenan said earnings were well distributed across the key business areas of manufacturing, food processing, logistics, construction and rural services.

"The group remains with a strong bank balance; no debt and continued to examine sector growth opportunities," said Keenan in a statement to the NZX, but a potential acquisition flagged at the half year had not gone ahead.

A final dividend of 4.5 cents a share will be paid on June 25 (record date June 18), for total dividends in the year of 6 cents.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

AWF founder Hull sells $7.25M stake at 7.9% discount to boost liquidity
AWF more than doubles profit on Panacea sale, will pay special dividend
AWF posts jump in sales, earnings, points to signs of Christchurch rebound
AWF Group expects strong annual profit growth
AWF to buy back shares in preparation for incentive scheme
AWF buys South Island nursing home help service
AWF to pay up to $3.5 mln for Tradeforce NZ recruitment agency
AWF blames RWC for shortfall in profit growth, shares gain
AWF Group forecasts profit rise
Allied Work Force set to buy Panacea Healthcare