Casual work provider reports good year

AWF chairman Ross Keenan

Many fulltime jobs may be under threat in the current recession, but the spin-off has been boom times for the casual employment sector.

Casual labour firm Allied Work Force Group today reported a 13.6 per cent rise in full year profit to $2.15 million.

That was despite a 9.8 per cent fall in revenue, compared to a year earlier, for the 12 months to the end of March, to $77.33m.

Chairman Ross Keenan today said the group was continuing to win an increasing number of high value national accounts, at a time when there was an increasing availability of skilled labour.

But labour demand fluctuations posed significant challenges to match work availability with supply.

Demand continued to be more evident and consistent in the provincial centres and cities outside Auckland, he said.

The economic environment continued to deliver variables almost daily, largely around a lack of confidence by industry to commit to longer term forward labour requirements.

The group would be among a minority of New Zealand companies with zero debt, Keenan said. It had more than $4m in cash at balance date.

While increases had been made in write-off provisions, particularly around some regional construction activity, to fully cover all contingencies, as at March 31 debtors were at a level of more than 90 per cent current.

Managing director Simon Hull said a focus on cost efficiency and review of all aspects of the contract labour model were positioning the company well for an economic recovery, when it came.

But the company's business practice was assuming a continuing difficult trading environment for the next 12 to 18 months.

A final fully imputed dividend of 3c per share was to be paid, taking the total dividend for the year to 6.5cps, compared to 5.8cps last year.

Allied Work Force shares last traded at 70c on Wednesday, having ranged between 80c and 50c in the past year.

- NZPA