Recruitment group Workforce Holdings managed double-digit growth in full-year profit, benefiting from organic and acquisitive growth.
The small-cap company reported on Thursday that net profit increased 18.6% to R91.90m in the year to end-December as revenue grew 29.4% to R2.52bn. Headline earnings per share (HEPS) rose 20% to 40c.
Workforce employs 1,186 people and pays 32,304 temporary contractors on a weekly basis. In addition, during 2016 the group trained more than 14,500 people, issued more than 24,000 lifestyle benefit insurance policies and conducted more than 50,000 medical examinations through its 27 operating brands.
The results were achieved primarily due to a strong performance in the group’s two largest operating segments — staffing and recruitment, led by the core blue-collar workforce staffing business; and the training segment, which benefited from the acquisition of Prisma Training Solutions in October 2015.
"Our diversification strategy is starting to bear fruit with our businesses outside of our core staffing segment now contributing 21% of group ebitda [earnings before interest, tax, depreciation and amortisation]," CE Philip Froom said in the statement. "Our training segment, in particular, buoyed by our acquisition of Prisma, has grown significantly and now contributes R24.3m to ebitda."
The stock was down 0.42% to R2.36 in early trade on the JSE, giving the company a market value of R575.20m.
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