Sharechat Logo

AWF Group expects strong annual profit growth

Wednesday 25th July 2012

Text too small?

Contract labour company AWF Group expects strong profit growth this year, managing director Mike Huddleston told the annual shareholders' meeting.

"We have budgeted to continue to grow strongly and we are hitting our targets at present with no significant signs of weakness," Huddleston said.

"We are well on the way through winter and are pleased to confirm that we are much more seasonally resilient than we once were," he said.

AWF's annual net profit for the year ended March 31 fell 19 percent to $2.6 million because of non-cash write-downs. Underlying earnings rose 27 percent.

Huddleston said the company doesn't have any specific targets for further geographic growth now it is well represented across the country but does see potential for further acquisitions.

"The group in its present shape is far from mature and we believe that there remains plenty of potential for development within our existing businesses," he said.

AWF's strategy of broadening its scope from providing blue-collar labourers into providing higher-skilled staff "has delivered" and it intends to continue developing into sectors where it is either not present or not strong.

"Such sectors may include customer service and call centre staff, white collar temporary and potentially white collar permanent staff," Huddleston said.

"Entry to such a large sector, which could bring volume sufficient to double our present business, is unlikely to be by way of a cold startup."

In the past couple of years, AWF has bought a number of new businesses, Panacea Healthcare, Nursing New Zealand, the Waihi-based AWF Mourant gold mining operations, and Tradeforce NZ which provides skilled temporary staff to manufacturers, warehouses and food processors.

AWF shares are 1 cent lower at $2.52, off their high last month at $2.70. The shares have been trending higher from $1.78 at last year's annual shareholders' meeting.

  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 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
Allied Work Force bounces back as employment growth returns