Consolidation Year for AWF Madison

Consolidation Year for AWF Madison

25 May 2017
Performance Full Year to 31 March 2017

• Revenue up 19% to $256.4m

• Net profit up 13% to $5.9m

• Dividend for year 16.2 cents up 6.5 %

• Successful acquisition of Absolute IT

The Board of AWF Madison Group Limited (NZX:AWF) is pleased to advise a lift in profit of 13% to $5.9 million, following completion of a year of consolidation of new leadership; continued investment in new technology; and dealing with residual legacy matters referred to in last year’s reports. The result represents steady progress in building the Group’s capability and capacity.

For the Board, Chairman Ross Keenan noted that whilst strong performance was delivered in most areas, the significant lift in outstanding debtor balance at Year End put increased pressure on the organisation; and, accordingly, a further lift in bad debt provisions has been deemed appropriate.

The residual full write off of AWF legacy technology being replaced, has been taken in the current year. Phase 1 of the transition to an integrated CRM and payroll function has been completed, a project that drew heavily on operational resource. AWF now has a strong platform giving greater functionality for sourcing, recruitment and compliance. The opportunity now is to remove duplication and gain efficiency.

Absolute IT has been successfully integrated and was earnings accretive notwithstanding transaction costs. It is performing very well and is expected to provide a good lift in earnings.

CEO Simon Bennett said he was very satisfied with the company’s positioning and its plan for growth in the year ahead to capitalise on significant opportunities from specific client demand across our 3 key markets.

Given the strong cash flow expected, the Board has declared a fully imputed final dividend of 8.2 cents per share payable on 4 July 2017 to shareholders on the register as at 27 June 2017.

Total dividends for the year therefore represent an increase of 6.5% from the previous year.

More detailed commentary on the business base now established will be covered in the Group Annual Report scheduled to be advised by 30 June 2017.

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