South African recruitment and outsourcing company Workforce Holdings (WKF: JSE) reported revenue today for the year ending 31 December 2018 of ZAR 3.0 billion (USD 206 million), up 7.3%.

In June 2018, the group acquired the South Africa-based Dyna Group, a specialist training company comprising a number of training businesses.

In July 2018, Philip Froom resigned as CEO of the group. Ronald Katz, executive chairman of the group, assumed the role of CEO, and John Macey, the head independent non-executive director, assumed the role of chairman.

During the year, South Africa saw amendments to its Labour Relations Act which meant that labour brokers (formerly known as Temporary Employment Services) can no longer be entitled to a portion of a recruit’s earnings after their third month in employment.

Workforce said its core businesses operated under uncertainty stemming from the interpretation of section 198A of the Labour Relations Act, better known as the "deeming provision", which the group said led to cautiousness in the use of certain of its services.

During the period, the group re-organised into four different segments: Staffing and Outsourcing, Training, Financial Services and Healthcare. Revenue was broken down by segment as follows.

Shared services and central costs improved by 8.0% to ZAR 83.5 million (USD 5.7 million), attributable to management interventions.

Looking ahead, Workforce says the outlook is for satisfactory growth of the group.

“The group is in the process of establishing a structure that will enable sustainable growth in all the segments of the business and which will enable Workforce Holdings Limited to act as a holding company of investments in different segments within the people services sector of the economy,” the company stated.

“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. Technology developments will set us apart in the acquisition of contracts and benefit the group in the management of our clients’ business in terms of productivity and welfare.”

In trading today, Workforce traded at ZAR 155.0 (USD 10.61), no change on the day. Based on its current share price the company has a market value of ZAR 355.4 million (USD 24.3 million).