• Revenue increased by 14,5% to R1,4 billion
• EBITDA increased by 4,7% to R69 million
• Net asset value per share increased by 22,9% to R2,15
• Tangible net asset value per share increased by 19,6% to R1,32
• Cash flows from operating activities improved to R45 million (June 2016: R10 million)
• Headline earnings per share (“HEPS”) increased by 5,1% to 18,6 cents
• Diluted earnings per share increased by 6,4% to 18,3 cents

24 August 2017, Johannesburg – Workforce Holdings, the listed human capital services company, whose subsidiaries specialise in outsourcing, recruitment and specialist staffing, training and consulting, employee health management, process outsourcing, financial services and lifestyle products, today released its interim results for the six months ended 30 June 2017.

Despite the current challenging economic and labour environment, the group improved revenue with an increase for the first six months of 14.5% to R1.37 billion (2016: R1.19 billion). Revenue grew organically by 8.4% with the remainder being acquisitive growth.

“Acquisitions continue to be an important source of growth and diversification for Workforce and we remain committed to our acquisition strategy,” says Philip Froom, Group CEO of Workforce.

Gross margins declined from 24.4% to 22.9% because of a reduction in trading volumes in the relatively high margin energy infrastructure sector. While these customers have mostly been replaced, this new business was concluded at slightly lower margins.

EBITDA increased by 4.7% to R69.0 million (2016: R65.9 million).

Earnings per share increased by 3.9% to 18.7 cents per share (2016: 18.0 cps) and headline earnings per share increased by 5.1% cps to 18.6 cents per share (2016: 17.7 cps).

“We are pleased with our improved cash generation, which we will continue to drive and whilst Workforce is cost conscious we still intend to invest in the future growth of the group in the form of green field businesses, technology, human capital and improved shared services,” says Froom

Operational review

During the period the five reporting segments were consolidated into three to better represent the current core trading activities of the group and provide a simpler understanding of the operating entities comprising Workforce.

“Our Training and Healthcare segment, fueled by recent acquisitions, has experienced good growth in line with our strategic intent,” said Froom. Turnover for the first 6 months in the Training and Healthcare segment grew by 55% to R104.9 million (2016: R67.7 million) and EBITDA by 14.4% to R15.1 million (2016: R13.2 million).  The Training and Healthcare segment now contributes 13.5% (2016: 12.4%) of Group EBITDA.


The recent Labour Appeal Court judgement relating to the Temporary Employment Service (“TES”) industry has attracted much press coverage with its perceived negative implications for TES providers. What is relevant is that there has been an Application for Leave to Appeal this judgement lodged with the Constitutional Court. This action suspends this judgement and reinstates the initial Labour Court ruling, which found that a temporary employee working longer than three months and earning less than R205 433 annually is deemed to be an employee of both the TES provider and the TES provider’s client and that these parties are jointly and severally liable for any employment related obligations relating to that employee.

The TES industry is confident that the Constitutional Court will uphold the initial ruling and it is estimated that there will be clarity in this regard within the next 12 months.

In conclusion Froom indicates that, “although the economy and labour market is currently challenging we continue to identify growth opportunities organically and acquisitively across the operating segments of our group.”



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