Workforce reports improved second half

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Workforce reports improved second half

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Published Date: 2021-04-01 | Source: Stephen Gunnion | Author: Stephen Gunnion

Workforce reports improved second half

While full year revenue and earnings fell due to Covid-19, the group says most divisions bounced back after a difficult first half.

Workforce Holdings says it made a good recovery in the second half of its financial year after its operations were impacted by the Covid-19 lockdown during the first six months. It attributes the improved performance to its Staffing and Outsourcing business, while its Financial Services cluster experienced a difficult year, due to the effects of Covid-19, as well as the shutdown of its Babereki product division.

The human capital services group provides temporary and permanent recruitment, training and skills development through its operating companies.

In its Training investment cluster, where training was previously provided in person and in classrooms, Workforce said the accelerated adoption of technology by the group enabled a range of training, education and development options to be delivered.

The Healthcare cluster, being classified as an essential service, delivered strong results throughout the reported period.

It said the acquisition of OpenSource, which operates in the SAP space, and which was effective post year-end, further supported the ability of its Recruitment investment cluster to provide services to specialised areas within the recruitment market.

The Financial Services closed its Babereki product division after many clients were laid off or put on short time and weren't able to afford their instalments. It also stopped issuing loans during that period, resulting in it writing off a portion of the loan book amounting to a net R46.5-million.

Revenue for the year to end-December declined by 14% to R2.7-billion. Earnings before interest, tax, depreciation, and amortisation (Ebitda) fell 46% to R76.9-million, cushioned by a stronger second-half performance when Ebitda increased by 77% compared to the interim period in 2019. Earnings per share (EPS) fell 67% to 13.9c, while headline EPS declined by 72% to 12c. It hasn't declared a final dividend in order to preserve cash due to current economic conditions.

Workforce's shares didn't trade yesterday, closing unchanged at R1.11.





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