Wrap Text
Unaudited Condensed Consolidated Interim Financial Results
Workforce Holdings Limited
Incorporated in the Republic of South Africa
(Registration number: 2006/018145/06)
Share Code: WKF ISIN: ZAE000087847
("Workforce" or "the company" or "the group")
Short-form announcement
Unaudited condensed consolidated interim financial results for the six months ended 30 June 2020
Highlights
- Revenue decreased by 16,9% to R1,3 billion (2019: R1,5 billion);
- EBITDA, before impairments, decreased by 52,2% to R44,1 million (2019: R92,3 million);
- Cash flow from operating activities increased to R307,6 million (2019: R48,5 million);
- EPS decreased by 146% (including impairment) to -8,5 cents per share (2019: 18,5 cents per share)
- EPS (excluding impairment) of 8,7 cents per share (2019: 18,5 cents per share)
- Headline EPS decreased by 146% to -8,5 cents per share (2019: 18,6 cents per share)
- Healthcare cluster delivering revenue growth of 4% and EBITDA growth of 31%;
- The acquisition of Chartall Business College was successfully integrated into the training cluster;
and
- The directors elected not to declare an interim dividend in order to conserve cash resources in
light of current economic circumstances.
This short-form announcement is the responsibility of the directors. It is only a summary of the
information in the full announcement and does not contain full or complete details. The full version,
as published on SENS, can be found on the company's website at www.workforce.co.za or accessed
using the following JSE link
https://senspdf.jse.co.za/documents/2020/jse/isse/wkf/HY20.pdf.
The full announcement is available for inspection at the registered office of the company and the
sponsor, at no charge during normal trading hours. Copies of the full announcement may also be
requested from the company via email on vrech@kris.co.za and the sponsor on
sponsorteam@merchantec.co.za.
Any investment decision by investors and/or shareholders should be based on consideration of the
full announcement published on SENS and on the company's website.
The arrival of COVID-19 resulted in Workforce only operating businesses within the group that were
classified as essential services. This resulted in an immediate and substantial decline in turnover across
the clusters, aside from the healthcare cluster. This continued for the months of March, April and May
2020 and in June 2020, Workforce started to see a recovery and is now operating at a much higher
level of utilisation of its services. The drop in turnover was successfully countered by temporary and
permanent cost saving measures, a renewed focus on debtor collections, delaying creditor payments
where possible as well as fully utilising government-initiated relief measures. Management believes
that the pandemic triggered a chain of actions which has enabled a stronger and more sustainable
Workforce business.
Management envisages that going forward, in the second six months Workforce will return to a much
higher level of utilisation which will result in a near-normalisation of the previous patterns of earnings.
Workforce was able to produce strong cash and the resultant sustainability of the business, despite
the impact of COVID-19.
The ETI, a programme which incentivises the employment of unemployed youth between the ages of
18 and 29, remains a significant contributor to group financial results. In the six months under review,
the ETI contribution was higher due to the COVID-19 additional relief which was available from April
to July 2020.
By order of the board
JR Macey RS Katz WP van Wyk
Chairman Chief executive officer Financial director
Johannesburg
21 August 2020
Executive directors
RS Katz
WP van Wyk
Non-executive directors
JR Macey
S Naidoo
S Thomas
KN Vundla
I Ross
Designated Adviser Company secretary
Merchantec Capital S van Schalkwyk
Registered office Commercial bankers
The registered office, which is also the principal ABSA Business Bank
place of business, is:
11 Wellington Road
Parktown, 2193
PO Box 11137
Johannesburg
2193
Transfer secretaries
Link Market Services South Africa Proprietary
Limited
11 Diagonal Street
Johannesburg, 2001
www.workforce.co.za
Date: 21-08-2020 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
