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AWF Madison expects more growth

NZ Newswire logoNZ Newswire 27/10/2016 Sophie Boot

The country's largest contract labour company AWF Madison Group has lifted first-half profit 15 per cent, which it said reflected improved productivity that has continued into the second half.

Net profit rose to $3.9 million in the six months to the end of September from $3.4m a year earlier, while revenue rose 13 percent to $119.3 million, the company said in a statement.

AWF is recovering from a drop in profit in 2016 when it faced $1.3m of restructuring costs related to winding down its Craig Henwood joint venture in Christchurch.

On Friday it said operating costs had grown just 5 per cent in the period, reflecting tight management control and improved productivity, and said "signs of improved yields were evident and continuing" at the end of the first half.

"AWF has had a strong start to the year, growing both revenue and earnings," chief executive Simon Bennett said.

"The tight labour market is resulting in strong demand in the city centres and we expect this to continue. We are capitalising on this increased demand and we are starting to achieve margin growth. Madison contributed modest revenue growth and is positioned well in the market to continue to deliver good results."

The company announced it had bought IT recruitment group Absolute IT for $15.3m earlier this month, with the deal expected to settle on November 1. Absolute IT posted revenue of about $65m in the year to March 2016.

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