Workforce defies difficult job market to grow profit

Workforce Holdings says the company achieved “pleasing results” for the six months to June, despite working in an environment in which few jobs are being created.

The company grew its revenue 14.5%, to R1.4bn in the halfyear to June. Earnings before interest, taxation, depreciation and amortisation increased 4.7% to R69m.

The company’s net asset value per share increased 22.9% to R2.15. Its tangible net asset value per share rose 19.6% to R1.32.

Workforce is a holding company whose subsidiaries specialise in outsourcing, recruitment and specialist staffing, training and consulting, employee health management, process outsourcing, financial services and lifestyle products.

During the reporting period, the group consolidated its five previous reporting segments into three segments: staffing and outsourcing; training and healthcare; and financial and lifestyle.

Cash flows from operating activities improved to R45m during the reporting period compared with R10m for the half-year to June 2016. Headline earnings per share rose 5.1% to 18.6c and diluted earnings per share increased 6.4% to 18.3c.

No dividend was declared as the group wanted to keep funds for acquisition opportunities.

CEO Philip Froom said he was very happy with Workforce’s results, especially given the difficult market conditions.

“We have done very well amid challenging market conditions. Our training business is very strong and we are crossselling services across our businesses. While I cannot give forward looking numbers, I can say we are confident of what we are doing internally and that the next six months are set to be strong. We are happy that most of our profit comes out of SA and that there is growth in the country.”

The majority of the issued shares in Workforce are held by the company’s founder and chairman, Ronny Katz.