Wrap Text
Short-form announcement: Summarised Condensed Consolidated Results for the Year Ended 31 December 2019
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
Summarised condensed results for the year ended 31 December 2019
Highlights
- Revenue increased by 7.1% to R3.2 billion (2018: R3.0 billion);
- Headline earnings per share decreased by 5.1% to 42.4 cents (2018: 44.7 cents);
- Earnings per share decreased by 7.6% to 42.5 cents (2018: 46.0 cents);
- Net asset value per share increased by 17.0% to 308 cents (2018: 264 cents);
- Acquisition of Chartall Business College (post year-end); and
- The directors have elected not to declare a dividend in order to conserve cash resources
in light of current economic circumstances.
Key audit matters were raised by the auditors and an unqualified audit opinion was provided.
The full auditor's report contained in the integrated annual report 2019 can be found on the
company's website at www.workforce.co.za. There is no (i) material uncertainty relating to
a going concern or (ii) emphasis of matter or (iii) reportable irregularity or (iv) material
inconsistency in the audited financial statements.
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 www.workforce.co.za or accessed using the following JSE link
https://senspdf.jse.co.za/documents/2020/jse/isse/wkf/YE19.pdf.
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. Given the lock-down
these will be sent electronically upon request.
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 year under review focused on the development of internal leadership, information
technology, geographic expansion and ensuring that the structure of the organisation can
support the future of human capital services. Workforce continues to encounter a faltering
economy with an increasing unemployment rate and negative investor sentiment.
In one of the most challenging operating environments to date, EBTIDA for the year decreased
by 19.0% from R173.9 million to R140.9 million. Most of this decrease is attributable to
modest sales growth of 7.1%, flat gross margins in absolute terms and an 8.3% increase in
operating expenses.
Additional operating expenses were incurred to support a significant drive from the healthcare,
training and Africa clusters to increase their capacity in the areas of human capital, technology,
geographical expansion and the establishment of new verticals. This was undertaken to
ensure a strong base off which to generate additional income from current and future
business initiatives.
The 2018 results have been restated due to the adoption of IFRS 16, which was adopted
using the full retrospective method during the 2019 financial year. Workforce has lease
contracts for property and motor vehicles, and the comparative information in the consolidated
financial statements has thus been restated. In compliance with the new standard, the group
has recognised "right-of-use assets" and "interest-bearing borrowings" for all qualifying
leases. This resulted in an opening retained earnings adjustment of R2.9 million at
1 January 2018.
SUBSEQUENT EVENT: COVID-19
The COVID-19 pandemic has created an unprecedented global crisis and an uncertain and
unpredictable business environment for the entire South African economy. Given the high
degree of uncertainty of the effect of the pandemic on our operating environment, we are
unable to estimate the financial effect of this event.
We have taken steps to protect the income of our employees using both internal resources
and those that have been made available by government. We have also been proactive in
securing ongoing cash flow for the business by focusing on overhead reduction, cash
preservation and stringent credit management. Despite the national lockdown negatively
impacting some of our clients and certain of our business activities, we also have a fair
portion of clients and our own business clusters that are deemed to be essential services
and we are experiencing strong demand in these areas. Considering these factors,
management is confident that the business has the necessary capabilities and resources in
place to cope with this situation.
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the annual general meeting of the company's shareholders will
be held at 10:00 on Wednesday, 10 June 2020 at 11 Wellington Road, Parktown, to transact
the business stated in the notice of the annual general meeting, which is contained in the
integrated annual report and the full announcement.
The board of directors of the company determined that, in terms of section 62(3)(a), as read
with section 59 of the Companies Act, 2008 (Act 71 of 2008), as amended, the record date
for the purposes of determining which shareholders of the company are entitled to participate
in and vote at the annual general meeting is Friday, 29 May 2020. Accordingly, the last day
to trade Workforce shares in order to be recorded in the Register to be entitled to vote will
be Tuesday, 26 May 2020.
By order of the board
JR Macey
Chairman
RS Katz
Chief executive officer
WP van Wyk
Financial director
Johannesburg
31 March 2020
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
Parktown
2193
PO Box 11137
Johannesburg
2193
Commercial bankers
ABSA Business Bank
Transfer secretaries
Link Market Services South Africa Proprietary Limited
11 Diagonal Street
Johannesburg
2001
Company registration number
2006/018145/06
www.workforce.co.za
Date: 31-03-2020 10:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
