Allied on track for busy season

Simon Hull says demand is also growing from infrastructure projects. Picture / Dean Purcell

Newly listed labour-hire firm Allied Work Force says it is on track to meet its full-year earnings projections as it heads into its busy summer season.

The company reported its inaugural half-year result yesterday - a net profit of $1.32 million for the six months to September 30.

The result, achieved on revenue of $34 million, compared with a pro-forma sales figure of $29 million the previous year. It excludes goodwill amortisation of $218,000.

No comparison of net profit is available as Allied Work Force consolidated various businesses before its sharemarket listing in July.

The result is in line with prospectus forecasts and reflects the seasonal nature of the business - with the lion's share of turnover generated in the second half.

Managing director Simon Hull expects strong demand for labour over summer and says the company is on track to meet its prospectus full-year net profit projection of $3.1 million.

The warehouse sector, which made up almost 20 per cent of revenue, was quiet through the winter but was ramping up as expected for the Christmas rush, he said.

Labour demand from food processors and manufacturers had fluctuated during winter but those industries were showing stronger demand, as was the commercial construction industry, which made up 30 per cent of revenue.

Hull also pointed to growing demand from infrastructure and roading-related work with Government investment in the sector signalled.

Allied Work Force provides casual labour for those industries from 22 branches nationwide.

It is forecasting revenue of $74.2 million in the year to next March, which is almost twice its 2003 earnings of $38 million.

Last month, the company acquired a 64 per cent interest in the agricultural labour-hire business Contract Labour Services, which gives it a platform on which to build on Hull's aim to supply seasonal pickers to orchards.

But it is not forecasting a financial contribution from Contract Labour Services in the second half.

Allied will pay its first dividend as a public company of 3.57c a share on November 30.

Its shares closed unchanged at $1.45 last night, after listing at $1.50.