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AWF Group shareholders today voted for the creation of a New Zealand recruitment leader approving the company's 36 million New Zealand Dollar (NZD) acquisition of white collar labour hire business Madison Group as signposted by the Daily News last week.
The approval paves the way for AWF to complete the acquisition of Madison on 2 December 2013 to create a group generating revenues of approximately NZD200 million, almost 3 times the sales of any other recruitment company in New Zealand. Madison is forecast to lift AWF underlying after tax earnings from NZD5.4 million in the year to 31 March 2013 to approximately NZD8.0 million in 2015. Earnings per share are forecast to rise from 20cps in 2013 to 30cps in 2015.
AWF Chairman Ross Keenan said: "We are delighted shareholders have approved this acquisition. It will provide AWF with a major strategic presence within the white collar recruitment and contracting sector."
AWF Chief Executive Mike Huddleston said: "We have been searching for the right opportunity to expand from the blue collar sector into white collar recruitment for some time as our clients have been telling us they wanted a one-stop-shop solution. Madison was the natural progression.
The Madison Group is a market leader in the recruitment sector with offices in the Auckland CBD, East Tamaki, Hamilton, Wellington and Christchurch. It was founded in in 1998, offers temporary, contract and permanent staffing solutions throughout New Zealand. In addition to its core business of permanent and temporary recruitment, Madison's services also include an executive contracting division, an IT recruitment division and a division focussed on providing labour hire solutions.
AWF Group (NZX: AWF) is New Zealand's largest provider of temporary staff and one of the country's largest employment facilitators. Each day they place an average of 3,000 workers into temporary employment through their network of 34 branches in 21 New Zealand towns and cities. They are also placing a growing number of workers into permanent employment.
Having achieved a national presence, AWF Group's strategy is now to penetrate deeper into the sectors they already service including: manufacturing and food processing; warehousing; transport; construction; civil and infrastructure maintenance and waste management, whilst also seeking new sectors for growth opportunities. The company operate three separate business units: AWF Labour, AWF Manufacturing and Logistics and AWF Trades together with Tradeforce Recruitment.
AWF Group Ltd (AWF:NZC) closed the day at 2.90 up 7.41%, 14.71% below its 52-week high of 3.40, set on 15th May, 2013, but 17.89% up on a year ago. This means the company is valued at 69.67million NZD.