AWF Madison increases 1H profit 17%, expects 'satisfactory' full-year result

Monday 9th November 2015

AWF Madison Group, the country's largest contract labour firm, increased first-half profit 17 percent and said it expects a "satisfactory" result for the full year.

Profit was $3.4 million, or 10.5 cents a year, in the six months ended Sept. 30, from $2.9 million, or 11.1 cents, in the year earlier period, the Auckland based company said in a statement. Revenue advanced 7.8 percent to $106.3 million, it said.

The company has been expanding its business, buying recruitment firm Madison Group in 2013 to diversify away from its core base of blue collar workers into white collar recruitment. The AWF business had a strong start to the year and demand for skilled and semi-skilled workers in metropolitan areas is expected to remain strong for the remainder of the financial year, while the white-collar Madison business had been more patchy with "modest growth" expected in the second half of the year, chief executive Simon Bennett said.

"The first six months of the current financial year have demonstrated again the strength and flexibility that comes from having two robust and independent businesses covering the spectrum of New Zealand recruitment services," Bennett said. "AWF Madison Group is confident we will deliver a satisfactory result for the full year."

The company will pay a dividend of 7.2 cents a share on Dec. 4, unchanged from the year earlier period as the number of shares on issue increased to 33 million from 27 million after it sold shares in March to repay bank debt used to fund the Madison acquisition.

AWF shares last traded at $2.40, and have shed 3 percent so far this year.

BusinessDesk.co.nz

Comments from our readers

No comments yet