AWF annual profit falls 23% on goodwill writedown, sales rise
AWF Group, the contract labour company, reported a 23 percent fall in net profit as it wrote down the value of its goodwill, even as it lifted sales by 19 percent.
BUSINESSDESK: AWF Group, the contract labour company, reported a 23 percent fall in net profit as it wrote down the value of its goodwill, even as it lifted sales by 19 percent.
Net profit fell to $2.6 million in the 12 months ended March 31 from $3.2 million the previous year. That included non-cash accounting adjustments from amortisation and an impairment charge on goodwill. AWF's sales rose to $119.2 million from $95.8 million, beating the $100 million target announced in October.
"The company saw an increased demand for recruitment and placement of high caliber temporary and permanent staff with both existing and new customers," Mike Huddleston, chief executive said in a statement.
The shares climbed 8.3 percent to $2.60 in trading today.
The result included full-year earnings from the group's acquisition of Panacea, which operates in the healthcare sector, and mining sector business AWF Mourant. It only includes two months trading from the recently acquired Tradeforce.
The Auckland-based company's earnings before interest, tax, depreciation and amortisation (EBITDA) rose about 27 percent to $7.4 million. Underlying earnings, which strip out non-cash items, climbed about 27 percent to $4.6 million.
The board announced it will pay a final dividend of 8 cents per share. That takes the total annual payment to 13 cents per share for the year, up from 10.2 cents in 2011.
Hannah Lynch
Wed, 16 May 2012
Wed, 16 May 2012
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AWF annual profit falls 23% on goodwill writedown, sales rise
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