Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


AWF says core annual earnings to decline, Madison grows

AWF says core annual earnings to decline, Madison acquisition shows growth

March 31 (BusinessDesk) - AWF Group, the contract labour firm, warns blue-collar annual earnings will come in below last year’s record, despite a strong contribution from its new white-collar recruitment acquisition, Madison Group.

The Auckland-based company anticipates lower earnings from its core business in the 12 months ending March 31 than a year earlier, without being specific, as its core blue-collar business struggles to match labour supply with demand, it said in a statement. AWF made a net profit of $6.9 million in 2013, including the sale of its Panacea Healthcare unit. Excluding the gain on the sale, it reported underlying earnings of $5.4 million on sales of $130.5 million.

“As signalled in November, the productivity of the core AWF business has continued to fall short of last year’s record performance, and will lead to that part of the group delivering an overall result lower than last year,” Huddleston said. “This will be somewhat offset by the excellent Madison contribution.”

AWF shareholders approved the $36 million Madison acquisition in November, which is forecast to lift underlying earnings to $8 million and sales to $200 million in 2015.

Huddleston said Madison has delivered against forecasts in the five months since joining the AWF group, and the company will update targets for the 2014/15 financial year when it reports the annual result on May 28.

The shares were unchanged at $2.80, and have slipped 3.5 percent this year.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news