AWF Group’s solid revenue growth rewards investors

May 16 2012

AWF Group’s solid revenue growth rewards investors

The Directors of AWF Group (AWF) have advised a strong performance for the year 31st March 2012.

Revenue at $119.2m (previously $95.8m) well exceeded the $100m target earlier referred to. The growth in revenue also saw a lift in EBITDA (earnings before interest, tax, depreciation, and amortization (including impairments)) of 23.7% to $7.4 million (previously $6.0m).

Chief Executive Mike Huddleston says the company saw increased demand for recruitment and placement of high calibre temporary and permanent staff with both existing and new customers. “As we have witnessed over the last couple of years, AWF is in its element in uncertain times.” he says.

AWF’s result includes a full year from the group’s acquisitions Panacea, which operates in the healthcare sector, and AWF Mourant, which is in the mining sector, but only includes two month’s trading from recently acquired Tradeforce.

In the year to 31/3/12 the reported earnings of the Group were affected by the amortization of identifiable intangible assets associated with recent acquisitions and by the impairment of goodwill on the Group’s Wellington Construction Operations.

NPAT at $2.6m was lower than the previous year ($3.2m) reflecting the significant write down of non cash items as required under NZIFRS standards. Accordingly Directors have resolved to additionally note underlying earnings in future reporting.

Underlying earnings adjusts for non cash items of amortization and impairment of goodwill and in the opinion of Directors more correctly reflects the operating performance of the Group. Underlying Earnings for the year to 31/3/12 were $4.6m, a lift of 26.8% on the previous $3.6m.

On that basis, underlying earnings per share lifted to 17.4 cents from 13.8 cents a year earlier.

Given this strong performance Directors have declared a final dividend of 8 cents per share providing a total for the year of 13 cents per share, up from 10.2 cents per share last year.

Shareholders will receive a fully imputed dividend payment on June 29th June 2012 (to shareholders registered on 22nd June 2012).

*Underlying Earnings adjusts for non-cash items of amortisation and impairment of goodwill. In the opinion of Directors Underlying Earnings more correctly reflects the operating performance of the Group

The Group will hold its Annual Shareholders Meeting on Wednesday 25th July, 11am, at the Barry Court Conference Centre in Parnell, Auckland.

ENDS

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