Employment and staffing services group Workforce Holdings is expected to dip into the red in the year to end-December.
The company said on Wednesday it expected to report a headline loss per share of between 11.36c and 16.04c compared with headline earnings per share (HEPS) of 46.8c a year ago.
The loss per share is expected to be between 11.27c and 15.94c compared with earnings per share (EPS) of 46.7c before.
“In addition to lower profitability due to adverse trading, the results were severely affected by out-of-the-ordinary expected credit loss levels, which caused a negative movement of approximately 35c per share,” it said in a trading statement.
No further details were given.
In August 2023, Workforce fired 10%-15% of its permanent staff and closed some of its businesses after the growth it expected failed to materialise.
For the six months to end-June 2023, the group reported an 88% drop in profit year on year to R4.2m and HEPS, a common profit measure in SA that excludes certain items, by a similar margin to 1.7c.
Workforce provides staffing, outsourcing and training services, and its investment clusters include staffing and outsourcing, training and education, healthcare, and financial services.
Established in 1972, the company now operates in 10 countries outside SA, but virtually all its profits are still generated in SA.
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