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AWF Becomes Full Service Recruitment Provider

3rd December 2013

AWF Completes Madison Acquisition to Become Full Service Recruitment Provider

AWF Group has completed its acquisition of white collar employment specialist Madison Group, creating a New Zealand recruitment leader.

The combination results in a company with revenues of approximately $200 million, almost three times the scale of any other recruitment company in New Zealand.

AWF Chief Executive Mike Huddleston said: “The completion of the Madison acquisition represents a coming of age for AWF. Eight years ago when we listed on the NZX we said we wanted to become the first choice for employment to industry and workers alike.

We achieved this goal in the provision of temporary semi-skilled and trades qualified staff long ago. But the acquisition of Madison consolidates our position in white collar and permanent recruitment and now allows AWF to provide trustworthy, reliable and committed staff across all sectors of industry and all levels of business.”

“When AWF started in business twenty five years ago it initially provided labourers to the construction and civil sectors. Now we have a nationwide network of 38 branches in 22 towns and cities and are a trusted partner of many of New Zealand’s largest enterprises, be they involved in Government, insurance and banking, communications, manufacturing and food processing, construction and infrastructure.

After adding Madison to our group, we will not only place over 3,500 temporary staff and contractors in work every day, but we will also facilitate the placement of over 2,500 staff into permanent employment annually.

Meanwhile, our stature in the New Zealand investment community has grown. AWF’s market capitalisation has risen from $39.2 million just after listing in 2005 to $74.8 million today.

We had been searching for the right opportunity to expand from the blue collar sector into white collar recruitment for some years as our clients have been telling us they wanted a one-stop-shop solution. Madison is the perfect fit to compliment the services delivered by AWF.

Since we announced our intention to acquire Madison we have witnessed a significant level of excitement among our clients and prospects about the opportunities the combination will create. We are looking forward to a bright future together.”

About Madison Group (www.madisongroup.co.nz)
The Madison Group is a market leader in the recruitment sector with offices in the Auckland CBD, East Tamaki, Hamilton, Wellington and Christchurch. It was founded in 1998 and, offers temporary, contract and permanent staffing solutions throughout New Zealand. In addition to its core business of permanent and temporary recruitment at all levels from contact centre and business support through to senior management, Madison’s services also include an executive contracting division, an IT recruitment division and a division focussed on providing temporary labour solutions.

AWF has acquired Madison for a maximum purchase price of $36 million, comprising: $30 million paid at completion and an additional payment of up to $6 million which is payable subject to the earnings of Madison’s business for the 52 weeks following 4 November 2013 exceeding certain thresholds. Madison is currently on track to achieve these thresholds. Madison is also forecast to lift AWF underlying after tax earnings from $5.4 million in the year to 31 March 2013 to approximately $8.0 million in 2015. Earnings per share are forecast to rise from 20cps in 2013 to 30cps in 2015.

About AWF Group (www.awf.co.nz)
AWF Group has over 25 years grown to become New Zealand’s largest recruitment company. On average, we place 3500 staff each working day of the year into temporary and contract employment. And each month we place over 200 staff into permanent positions. Our network of 38 branches in 22 towns and cities across New Zealand ensures we are always able to react to our client’s needs.

We operate three separate business units: Allied Work Force, Tradeforce Recruitment and Madison Group. We provide employees across a broad range of commercial and industrial sectors at all levels of business.

Having achieved a commanding national presence, AWF Group’s strategy is to maintain a steady organic growth path by penetrating deeper into the sectors we already service whilst also seeking new sectors for growth opportunities by acquisition. We pride ourselves on our ability to understand client staffing needs and to respond to those needs quickly and efficiently in line with the AWF Group motto: “Right People, Job Done”.

ENDS

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