Allied Work Force profit triples on new labour contracts

Tuesday 2nd November 2010

Allied Work Force Group said profit tripled in the first half, as new labour contracts lifted sales.

Net profit rose to $1.7 million in the six months ended Sept 30, from $573,000 a year earlier, the company said in a statement. Sales rose 28% to $40.7 million after the company won a number of national accounts across its 28 branches.

Chairman Ross Keenan said the company expects a strong second half performance with the recent purchase of Panacea Healthcare and the formation of AWF Mourant, both of which would be immediately earnings accretive.

Panacea, formerly known as Auckland Nursing Bureau, provides ACC-funded nursing and support services to the disabled and elderly in the Auckland and Central North Island regions.

The AWF Mourant subsidiary was formed in October after the company bought a 75% stake in a Waihi-based mining labour provider.

AWF reported an interim dividend of 3.8 cents per share, up from 1.5 cents in the same period previously, and is payable on Nov 19.

Shares were unchanged at $1.05 on the NZX, and have increased 10.54% in value so far this year.

Businesswire.co.nz

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