AWF Madison says first-half profit will fall on weakening labour hire
Some lower margin business has been discontinued, construction activity has declined and the wet winter has reduced chargeable hours.
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Hawke’s Bay
AWF Madison Group, the country's biggest contract labour firm, said profit in the first half ending September 30 would fall after labour hiring weakened in the second quarter.
The Auckland-based company reported a profit of $3.9 million in the first half of its 2017 year, contributing to a 13% increase in full-year profit and today chief executive Simon Bennett said: "We still anticipate a good year end result." But profit as at September 30 would be behind the previous year.
"Volumes are down in AWF owing to a number of factors: some lower margin business has been discontinued – impacting revenue; at the same time a decline in construction activity and the wet winter has reduced chargeable hours from AWF's construction and civil clientele," it said in a statement. "While demand for trades is strong, this is largely being met by AWF's migrant workforce channel, which has been slower to mobilise than planned."
The company's Madison Recruitment and Absolute IT units "continue to meet management's expectations," it said, without giving details.
AWF plans to release its first-half results after a board meeting on October 25.
The shares fell 2% to $2.50 and have fallen about 2% this year.
(BusinessDesk)
Jonathan Underhill
Fri, 15 Sep 2017
Fri, 15 Sep 2017
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AWF Madison says first-half profit will fall on weakening labour hire
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