Sharechat Logo

AWF expects 1H sales growth near 61%, flags fatter earnings, debt reduction

Friday 5th September 2014

Text too small?

AWF Group, the contract labour firm, anticipates first-half sales will grow almost 61 percent with the addition of white-collar recruitment firm Madison Group, and signalled bigger earnings as a result.

The Auckland-based company expects sales of almost $100 million in the six months ending Sept. 30, up from $62 million a year earlier, with net profit and underlying earnings likely to increase significantly, it said in a statement. The Madison acquisition is "performing extremely well" and AWF said it expects to pay the full purchase price of $36 million, with a $6 million earn-out to be paid near the end of November.

AWF shareholders approved the Madison acquisition last year, which is forecast to lift underlying earnings to $8 million and sales to $200 million in 2015.

The company said it's considering a debt reduction programme, and expects to give shareholders an update by the end of the year, which is "likely to include the opportunity for shareholder participation," it said. AWF had borrowings of about $30.7 million as at March 31, according to its annual report.

The shares rose 2.1 percent to $2.48 yesterday, and have dropped 14 percent this year, lagging the 6.6 percent increase on the NZX All Index over the same period.

 

 

 

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

12th November 2019 Morning Report
MARKET CLOSE: NZ shares gain, retirement villages buoyed by Auckland housing market bounce
NZ dollar rises, shrugging off US-China trade war woes
Long-serving ACC investment chief calls it a day
Institutional investors continue to shun Fonterra
Card spending stalls; dearer petrol crowds out other goods
Abano directors cave to takeover by scheme of arrangement
Fletcher dismisses subcontractor claims as vague
11th November 2019 Morning Report
Odds favour a rate cut but it's a line ball call

IRG See IRG research reports