Wrap Text
Short-form announcement: Reviewed Provisional Results for the Year Ended 31 December 2020
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 - Reviewed provisional results for the year ended 31 December 2020
Non-financial achievements:
- Level 2 B-BBEE contributor
- 33 884 - Average weekly assignees
- 82 582 – Training instances
- 8 356 - Learners on learnership programmes
- 54 - Registered learnerships
- 83 496 - Medical examinations conducted
- 50 740 - Funeral and medical policies issued
- 160 000 - Lives covered through EAP * call centre
* Employee Assistance Programme
Financial summary:
- Revenue decreased by 13,9% to R2,7 billion (2019: R3,2 billion);
- EBITDA decreased by 45,5% to R76,9 million (2019: R140,9 million);
- EBIDTA in the second half increased by 77,7% to R86,4 million (2019: R48,6million)
- Cash flow from operating activities increased to R164,3 million (2019: R35,7 million);
- EPS decreased by 67,3% (including impairment) to 13,9 cents per share (2019: 42,5cents per
share)
- HEPS decreased by 71,7% to 12,0 cents per share (2019: 42,4 cents per share)
- The directors elected not to declare a final dividend in order to conserve cash resources in light of
current economic circumstances; and
- Second half recovery from investment clusters, aside from financial services, puts Workforce in a
strong position for 2021 growth recovery.
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/2021/jse/isse/wkf/YE20.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 preliminary condensed consolidated financial statements were reviewed by the group’s auditors,
Crowe (Johannesburg), who expressed an unmodified opinion thereon.
Revenue contribution
FY 2020 Improvement HY2 2020 HY 1 2020
(Rm) (deterioration) in HY2 (Rm) (Rm)
2020 vs HY 1 2020
(%)
Staffing and 2 164 843 21,28% 1 186 496 978 347
Outsourcing
Training 247 017 27,14% 138 266 108 751
Financial Services * 54 633 -86,11% 6 665 47 968
Healthcare 311 002 25,11% 172 847 138 155
EBIDTA contribution
FY 2020 Improvement HY2 2020 HY 1 2020
(Rm) (deterioration) in HY2 2020 (Rm) (Rm)
vs HY 1 2020
(%)
Staffing and
Outsourcing 127 359 77,82% 81 517 45 842
Training 27 563 57,53% 16 860 10 703
Financial Services * -55 028 -87,20% -6 243 -48 785
Healthcare 49 568 37,37% 28 686 20 882
*The Financial Services cluster experienced a difficult year and results were affected in part due to the
shutdown of the Babereki Product Division and the effects of Covid-19. A decision was taken to write
off a portion of the loan book amounting to a net R46,5 million.
During the first six months of year the investment clusters were particularly impacted by Covid-19.
There was, however, a visible step change after July 2020, as lockdown levels eased, and our clients
reopened for business. This was carried through the results, with a much-improved second half to the
financial year.
Cluster executives quickly consolidated their positions, cut costs, implemented technology and got on
with business. This resulted in a substantially better result in the second half of the year, with certain
investment clusters exceeding expectation and others coming very close to returning to near-normal
levels of utilisation of services and earnings patterns.
Outlook
We remain hugely encouraged by the way that the investment clusters were able to claw back their
position in the second half of the year, with a stringent focus on debt collection, costs and on cash
generation. This position will continue, and we look forward to a greater contribution from each of the
investment clusters and a total improved group result in the coming year.
The recent Budget Speech was encouraging and business friendly rather than heavily weighted
towards ideology. We eagerly await the rollout of infrastructure projects as a growth driver for the
economy, understanding that although South Africa will only reach pedestrian growth in the coming
years, the country still needs infrastructure spend to achieve a higher economic growth path into the
future. We keep a watchful eye on similar large projects being developed in the geographies we
operate in outside of South Africa where Workforce can add tremendous value as a relevant and
significant supplier.
Additional growth opportunities are present in the mining sector, given the increased demand for
commodities.
We will remain dedicated to our core competencies as market conditions will likely remain challenging
for the foreseeable future. However, four decades of experience, a very strong network of teams
across the business, organised into investment clusters with a common purpose to ensure success
and growth, makes for a force that cannot be underestimated.
By order of the board
JR Macey RS Katz WP van Wyk
Chairman Chief executive officer Financial director
Johannesburg
31 March 2021
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
JSE Investor Services (Pty) Limited
13th Floor
19 Ameshoff Street
Braamfontein
2000
www.workforce.co.za
Date: 31-03-2021 09:50:00
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