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Unaudited Condensed Consolidated Interim Financial Results for the six months ended 30 June 2023
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 2023
Key features of the six-month period:
- Revenue increased by 7% to R2,1 billion (2022: R1,9 billion)
- Gross profit of R431,8 million achieved (2022: R424,7 million)
- EBITDA reduced to R32,8 million (2022: R68,7 million)
- Cash generated from operations amounted to R22,5 million (2022: R64,6 million)
- EPS decreased to 1,7 cents per share (2022: 14,7 cents per share)
- HEPS decreased to 1,7 cents per share (2022: 14,6 cents per share)
- Days sales outstanding 48 days (2022: 50 days)
- Investment cluster operations have continued to trade, contend and adapt exceptionally well in the face
of pressures in the operating environment, supported by decades of experience and the digitisation of
services
- Level 1 B-BBEE compliance maintained
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/2023/jse/isse/wkf/HY23.pdf
The full announcement is available for inspection at the registered offices 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.com
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 as a whole. These unaudited condensed consolidated interim financial
results have not been audited or reviewed by the group’s auditors, Crowe (Johannesburg).
Commentary
The first six months were challenging due to several factors, including low levels of economic activity,
loadshedding, high interest rates, lack of client confidence, and decreased demand for personnel services.
Overhead costs increased by 12% because of burgeoning inflation rates and operating expenses (“opex”), which
were geared for growth that did not occur due to the prevailing economic climate. We embarked on remedial
action during March to right-size our businesses and to better position the group for the coming year.
The effects of our interventions have become apparent since June 2023 as our cost base has been better aligned
to our operational requirements.
We would like to express our appreciation to the investment cluster heads and their teams for their positive
handling of the challenging operating conditions. This further demonstrates the exceptional level of expertise
and market awareness present in each cluster.
Outlook
Our projections for the second six months of the year indicate that lower operating costs and a seasonally better
second half of the financial year will result in overall improved profitability for the group.
We anticipate that the challenging business environment will continue for the balance of the year and into 2024,
but believe that we are better-structured to withstand the headwinds. As government and private sector
investment into infrastructure development continues to grow, this should impact positively on our own business.
Our expansion into Africa and beyond is showing positive signs and we believe this to be an important
development and opportunity for the Workforce group in the future. Our diversification policy that we continue to
implement through the different investment clusters, will continue to develop and significantly contribute to group
profitability and to our risk management initiatives in the medium term.
By order of the board
JR Macey RS Katz WP van Wyk
Chairman Chief executive officer Financial director
Johannesburg
24 August 2023
Corporate information
Executive directors
RS Katz
WP van Wyk
Non-executive directors
JR Macey (Chairman) (Independent)
S Thomas (Independent)
KN Vundla (Independent)
S Naidoo
Designated Adviser
Merchantec Capital
Company Secretary
S van Schalkwyk
Commercial bankers
ABSA Business Bank
Registered office
The registered office, which is also the principal place of business, is:
11 Wellington Road
Parktown, 2193
PO Box 11137
Johannesburg
2193
Transfer secretaries
JSE Investor Services Proprietary Limited
13th Floor
19 Ameshoff Street
Braamfontein
2000
www.workforce.co.za
Date: 24-08-2023 07:05:00
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