Allied Work Force bounces back as employment growth returns

Wednesday 19th May 2010

A strong labour market pick-up in the second half of the financial year to March 31 saw Allied Work Force to an after-tax profit of $2.0 million, slightly off last year's $2.1 million. The shares soared 18% to 80 cents on the NZX.

Core earnings (ebitda) at $3.4 million compared with $3.7 million the previous year, the company said, although it did not post any accounts with its NZX statement.

Chairman Ross Keenan described the result as a "very strong performance", driven by a well-distributed spread of earnings across the economy in the second half, after the severe effects of the local and global recessions in the first half year.

"Second half performance was very impressive with net profit after tax at over two-and-a-half times first-half earnings, and over 50% up on the second half of the previous year."

Managing director Simon Hull told BusinessWire demand for labour had continued to strengthen into the new financial year and "long may it last", although some businesses hit hard by recession were still vulnerable to collapse even as the economy recovered.

"We are being extremely vigilant with debtors."

Keenan said earnings were well distributed across the key business areas of manufacturing, food processing, logistics, construction and rural services.

"The group remains with a strong bank balance; no debt and continued to examine sector growth opportunities," said Keenan in a statement to the NZX, but a potential acquisition flagged at the half year had not gone ahead.

A final dividend of 4.5 cents a share will be paid on June 25 (record date June 18), for total dividends in the year of 6 cents.

Businesswire.co.nz

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