Friday, 29 March 2024

Announcement

FLLYR: AWF: CONSOLIDATION YEAR FOR AWF MADISON

26 May 2017 08:30NZX
25 May 2017
Performance Full Year to 31 March 2017
o Revenue up 19% to $256.4m
o Net profit up 13% to $5.9m
o Dividend for year 16.2 cents up 6.5 %
o 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 $5.9million, 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.
For the Board,
Ross B Keenan.

For further information contact:

Simon Bennett
Chief Executive Officer
021 036 8387

Ross Keenan
Chairman
021 685 655
End CA:00301730 For:AWF    Type:FLLYR      Time:2017-05-26 08:30:39
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