AWF plays down price spike query after shares jump to highest level in 3 1/2 years
David Lazarus responded that the company remained within continuous disclosure obligations
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Hawke’s Bay
AWF Madison Group, the country's largest contract labour firm, played down an inquiry into a recent share price spike that's seen the stock trade near a three-and-a-half year high.
NZX Regulation sought an explanation over a 13 percent gain in the share price between April 3 and April 24, to which AWF company secretary David Lazarus responded that the company remained within continuous disclosure obligations. AWF last posted a price-sensitive announcement to the NZX on Nov. 2 when it declared its $15.3 million acquisition of Absolute IT recruitment firm unconditional.
The shares have climbed 24 percent since that Nov. 2 announcement to trade at their highest level since July 2013. The stock is trading at a price-to-earnings multiple of 17.02 times, compared to P/E multiple of 15.52 times for the S&P/NZX All Index, according to Reuters data.
AWF set "modest goals" for the year ended March 31, 2017, with a goal of bouncing back from a dip in earnings in 2016 when it bore a $1.3 million restructuring bill. It lifted first-half profit 15 percent to $3.9 million as a tight labour market stoked demand for its contract services and expected that dynamic to continue through the second half of the year to deliver "double-digit earnings growth for the full year".
Companies with March and September balance dates are set to report earnings from next week.
(BusinessDesk)
Paul McBeth
Thu, 27 Apr 2017
Thu, 27 Apr 2017
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AWF plays down price spike query after shares jump to highest level in 3 1/2 years
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