Strong sales grow Allied Work Force profit

Strong sales performance grows Allied Work Force profit

Allied Work Force Group (AWF) has finished the first half year to the end of September with a net profit after tax increase of 204% to $1.74 million, compared with $573,000 for the same period the previous year.

New Zealand’s specialist provider of temporary staff to industry, commerce and more recently the healthcare sector, turned the profit off the back of a 28% increase in sales to $40.7million.

Chairman Ross Keenan says AWF won major national accounts across its 28 branches in the group and at the same time made a determined effort to hold operating costs.

“As a result, the Board is delighted to announce a lift in the interim dividend to 3.8 cents per share, compared with 1.5 cents per share for the same period last year,” Mr Keenan says.

The dividend is payable on November 19 to shareholders on the register on November 12, 2010.

Mr Keenan says AWF is expecting a good second half. The recent purchase of Panacea Healthcare Limited has gone unconditional and on current revenues it will be immediately earnings accretive for the group.

Panacea has provided ACC funded home and community support services certified care for the disabled and elderly and companionship and nursing services in the Auckland and Central North Island areas during the past 30 years.

Simon Hull, AWF’s Managing Director, says the group’s move into the healthcare sector comes after significant research into potential growth areas for the company. Forecasts for the healthcare sector, especially considering New Zealand’s aging population, had shown high future demand.

AWF also moved into the mining sector in October with an acquisition of a Waihi-based mining labour provider to form AWF Mourant Limited. Demand for temporary staff in the core AWF business sectors of distribution, manufacturing, processing, transport, infrastructure, construction and general labouring remains strong.

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