Record year for AWF Group

For immediate release May 24 2011

Record year for AWF Group

AWF Group’s directors report the group (formerly Allied Work Force Group) made a record net profit after tax of $3.2 million for the year ended March 31, 2011 - an increase of 60% on the previous year’s result of $2 million.

The result includes an adjustment required by Accounting Standards for amortization associated with the purchase of Panacea Healthcare Ltd and AWF Mourant Ltd. Without that adjustment the comparative operating profit increased 90% on the previous year to $3.8m.

Earnings before interest, tax, depreciation and amortization (EBITDA) were a record $6 million, an increase of 76% on the $3.4 million for the prior year.

Sales reached $95.8 million, exceeding the previous year’s result by 36% ($70.3m). Panacea Healthcare contributed almost $7 million in the six months since acquisition, in line with forecasts.

Managing Director Simon Hull says the excellent performance by the group is a credit to management and leadership at all levels, as sales growth and earnings were well distributed across New Zealand and from increasingly diversified sectors. Vigorous cost management continues.

He says the group also continues to examine further sector growth opportunities and the momentum established in recent months has carried on in to the current financial year.

Chief Executive Mike Huddleston says the group has continued to move from strength to strength throughout the year on a foundation of good quality, specialist, temporary and permanent staff.

“AWF has solidified its leadership in the employment market and achieved some very real success during the year, winning significant new accounts,” Mr Huddleston says.

“We have witnessed strong growth across all sectors of our business although manufacturing, food processing and logistical support have been the standouts. “Construction has been more subdued but has been countered by growth in roading and infrastructure development,” Mr Huddleston says.

Dividend

Given the record performance at all levels the AWF Board is pleased to advise it has declared a Final Dividend of 6.4 cents per share making a total for the year of 10.2 cents per share setting another record for the group.

The dividend will be paid on 24th June 2011 (to shareholders registered 17th June 2011) and carries full imputation credits.

The group also advises that the Annual Shareholders Meeting will be held on Wednesday 27th July 2011 at the Barry Court Motel in Parnell, Auckland. Further details will be advised in due course.

About Allied Work Force: Website: www.awf.co.nz

AWF was founded in 1988 by Simon Hull and grew from a need in Auckland for temporary and casual on-hire labour. The first branch was set up in Penrose and the head office remains there. The group is now one of New Zealand’s largest employers and is listed on the NZX. It is the biggest supplier of temporary staff in New Zealand with 28 branches from Kaitaia to Invercargill. In recent years it has diversified from predominantly supplying construction and general labourers to also providing workers for other sectors including distribution, manufacturing, processing, transport and infrastructure, mining and healthcare.

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.

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