Workforce’s interim core profit surpasses preCovid 2019 levels, but opts for no dividend

WORKFORCE, the JSE-listed labour services group that provides staffing, outsourcing, and training services to companies, has opted not to declare a dividend for 2021 due to the weak economic circumstances.

The company said at the release of results for the year to December 31, 2022, that it was concerned about the potential effects of the war in Ukraine on the global economy.

“The Russian invasion of Ukraine is likely to strike a devastating blow to global growth if the war is permitted to escalate and if no negotiated settlement is reached soon.

“Although it is too early to tell with any certainty what impact this will have on Workforce, the following could potentially be impacted: the fuel price, and this will negatively impact industries and businesses downstream.

“There are certain sectors that could benefit, such as commodities, mining, industrial machinery used in mining, etc. Some businesses may be negatively affected, for example, the Training and Education cluster with training initiatives being postponed, and our Financial Services business could be negatively impacted,” the company said. Workforce, which operates in six countries, has 32 trading brands, including Worldwide Staffing and Teleresources. It employs about 1 300 permanent staff.

Revenue improved 29.6 percent to R3.5 billion, with core profit increasing by 98.4 percent to R152 million, which is 8 percent higher than in 2019, boosted by R40.8m from a special employment tax incentive extended by the government due to the pandemic. “The financial scorecard is showing resilience due to the diversified investment cluster positioning of the business, as well as the adaptability of the business to ensure it remains relevant in brands, products, and services to all the people it supports,” the company said

The Training and Education cluster delivered a good performance for the year, building on the strong performance of the first six months, the company said.

According to Workforce, the Healthcare cluster experienced revenue growth of 6 percent compared to the previous financial year, which was organic in nature, with the cluster contributing 9 percent of revenue to the group.