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

 


AWF expects 1H sales growth near 61%, flags fatter earnings

AWF expects 1H sales growth near 61%, flags fatter earnings, debt reduction

By Paul McBeth

Sept. 5 (BusinessDesk) - AWF Group, the contract labour firm, anticipates first-half sales will grow almost 61 percent with the addition of white-collar recruitment firm Madison Group, and signalled bigger earnings as a result.

The Auckland-based company expects sales of almost $100 million in the six months ending Sept. 30, up from $62 million a year earlier, with net profit and underlying earnings likely to increase significantly, it said in a statement. The Madison acquisition is "performing extremely well" and AWF said it expects to pay the full purchase price of $36 million, with a $6 million earn-out to be paid near the end of November.

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

The company said it's considering a debt reduction programme, and expects to give shareholders an update by the end of the year, which is "likely to include the opportunity for shareholder participation," it said. AWF had borrowings of about $30.7 million as at March 31, according to its annual report.

The shares rose 2.1 percent to $2.48 yesterday, and have dropped 14 percent this year, lagging the 6.6 percent increase on the NZX All Index over the same period.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news