Economic uncertainty good news for Allied

Casual labour providers are likely to be among the few companies hoping to do well out of an economic downturn and the signals are Allied Work Force will be one of them.

Managing director Simon Hull said the labour hire company, which listed in July, was benefiting from uncertainty in the market with demand for its casual workers in December up 10 per cent on the year earlier.

The rise was across most sectors, especially construction and logistics, and the firm expected it to continue.

"People are just a bit unsure where it's going to go for the next 12 months so they're more likely to staff themselves with temps," said Hull, who started the company 17 years ago.

Allied provides casual labour for all areas of blue-collar work from 22 branches nationwide and, drawing on a pool of about 8000 skilled and semi-skilled workers, is one of the country's largest employers.

It acquired a 64 per cent interest in the agricultural labour-hire business Contract Labour Services in October, providing a platform on which to build on Hull's aim to supply seasonal pickers to orchards.

Hull said so far, demand from the agricultural sector was strong as it approached its busy season.

In November, Allied said it was on track to meet its prospectus full-year net profit projection of $3.1 million.

It earns most of its revenue, forecast to be $74.2 million in the year to March, between Christmas and May.

Allied shares were steady yesterday at $1.20.