Mon 9 Sep 2019, 7:05 WORKFORCE HOLDINGS LIMITED - WKF : Unaudited Condensed Interim Financial Results
WKF : Unaudited Condensed Interim Financial Results:
Unaudited Condensed Interim Financial Results

Workforce Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/018145/06)
(JSE Share Code: WKF ISIN: ZAE000087847)
("Workforce" or "the company" or "the group")

Short-form announcement
Unaudited condensed interim financial results


- Revenue increased by 7,7% to R1,5 billion (2018: R1,4 billion)
- Cash generated from operations increased by 28,5% to R48,5 million (2018: R37,7 million)
- EBITDA increased by 5,2% to R80 million (2018: R76 million)
- Positioned to benefit from diversification
- EPS decreased by 6,1% to 18,5 cents per share (2018: 19,7 cents per share)

Five-year comparison at June

                                                           2019     2018     2017     2016     2015
EBITDA (R'000)                                           80 043   76 113   67 328   65 935   38 870
Earnings per share(cents per share)                        18,5     19,7     18,7     18,0     12,2
Headline earnings per share (cents per share)              18,5     19,7     18,6     19,7     15,6
Net asset value per share (cents per share)                 282      237      215      173      134
Tangible asset value per share(cents per share)             166      121      132      110      105

This short-form announcement is the responsibility of the directors and is only a summary of the
information in the full announcement. The full version can be found on the company's website at or accessed using the following JSE link Copies of the full 
announcement may also be requested at the company's registered office and at the office of the 
sponsor, at no charge, during office hours from Monday, 9 September 2019 to Friday, 
13 September 2019. 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.

Workforce continues to make excellent progress in realising its vision of being a diversified
services company with various subsidiaries that provide an extensive range of innovative,
integrated and diversified people solutions to all industry sectors in southern Africa in all our
clusters. The group has a strong commitment to its core areas of competence yet remains cognisant 
of the need to identify and expand into new areas for growth.

The staffing and outsourcing cluster (includes recruitment and Africa clusters) experienced low
growth and a reduction in EBITDA of 20% to R65 million (2018: R76 million) due to economic and
legislative challenges.

The training cluster improved EBITDA by 42% to R27,3 million as a result of  a higher gross margin
and organic growth in turnover. Dyna group, our latest acquisition, contributed R2,8 million to 
the increase in EBITDA. The training cluster now contributes 25% to total EBITDA, compared to 17% 
in the previous year.

The healthcare cluster invested in new business growth resulting in an increase in EBITDA of 53%
to R15,9 million (2018: R10,3 million).

Fair value adjustments and depreciation resulting from acquisitions amounted to R9,9 million
(2018: R6,6 million).

Looking towards the second half of our financial year, we believe the outlook for the economy
remains constrained. Notwithstanding the challenging economic and labour environment, management 
continues to identify growth opportunities in the segments within which the group operates and 
remains committed to its growth and diversification strategy.

Workforce has a number of new initiatives in the financial services cluster that are coming to
fruition, which will better position this cluster in the market-place. We look forward to the
numerous infrastructure projects, both in South Africa and in neighbouring countries, in which
Workforce is able to become a meaningful, relevant and significant player.

Financial summary

                                                                                      Six months to
                                                                    Six months to              June
                                                                             June              2018
                                                               %             2019          Restated
                                                          change          (R'000s)          (R'000s)
Revenue                                                        8        1 532 511         1 422 920
Net finance costs                                             14          (15 031)          (13 193)
EBITDA                                                         5           80 043            76 113
Profit before taxation                                        (9)          38 304            42 015

By order of the board

JR Macey                 RS Katz                               WP van Wyk
Chairman                 Chief executive officer               Financial director

9 September 2019

Executive directors
RS Katz
WP van Wyk

Non-executive directors
JR Macey 
S Naidoo 
S Thomas 
KN Vundla 
I Ross

Designated Adviser
Merchantec Capital

Company secretary
S van Schalkwyk

Registered office
The registered office, which is also the principal place of business, is:
11 Wellington Road

PO Box 11137

Transfer secretaries
Link Market Services South Africa Proprietary Limited
11 Diagonal Street

Commercial bankers
ABSA Business Bank

Company registration number
Date: 09/09/2019 07:05:00
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