WORKFORCE HOLDINGS LIMITED - Trading Statement

Trading Statement

Workforce Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 2006/018145/06)
Share code: WKF       ISIN: ZAE000087847
(“Workforce” or “the Company”)


TRADING STATEMENT


In terms of the Listings Requirements of JSE Limited, companies are required to publish a trading statement as
soon as they become reasonably certain that the financial results for the period to be reported on will differ by more
than 20% from that of the previous corresponding period.

Accordingly, a review by management of the financial results for the six months ended 30 June 2023 indicates that:

-   the earnings per share (“EPS”) is expected to be between 0.23 cents and 3.17 cents, reflecting a decrease of
    between 98.44% to 78.44% compared to the EPS of 14.7 cents for the six months ended 30 June 2022; and

-   the headline earnings per share (“HEPS”) is expected to be between 0.24 cents and 3.16 cents, reflecting a
    decrease of between 98.36% to 78.36% compared to the HEPS of 14.6 cents for the six months ended 30 June
    2022.

During the six months ended 30 June 2023, the Company faced various business challenges due to a high interest
rate environment, suppressed economic growth, generally low levels of business confidence, loadshedding and
muted demand for its services.

The combination of the aforementioned factors resulted in nominal revenue growth, together with a reduction in
gross margin percentages. The decrease in profitability was exacerbated by an increase in operating expenses as
the Company had established an overhead structure designed for anticipated business levels and growth that
ultimately did not materialise.

In March 2023, the Company recognised the imbalance and immediately initiated corrective measures, including
restructuring and right-sizing. The primary focus was on reducing operating expenses and implementing margin
enhancement strategies. The positive financial impact of these initiatives, which has been evident since June 2023
and, taking into account the seasonal factors in the business, should result in the Company improving its profitability
during the second six months of the financial year.

The financial information on which this trading statement is based has not been reviewed or reported on by the
Company’s auditors.

Workforce’s financial results are expected to be released on SENS on or about 24 August 2023.


Johannesburg
2 August 2023

Designated Adviser
Merchantec Capital

Date: 02-08-2023 10:00:00
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