Workforce Holdings (WKF:JNB), a South Africa-based provider of staffing and outsourcing, reported revenue rose 10.0% in the first half of its fiscal year ended 30 June with growth in the firm’s staffing and training operations. The company said revenue increased as it repositioned itself amid a difficult environment.

Total first-half revenue was ZAR 2.36 billion (USD129.3 million). Workforce Holdings had released results on 29 August.

“The group had to counter the effects of economic pressure including loadshedding, the country being greylisted, logistics and port infrastructure impediments and high interest rates,” according to a report by Workforce Holdings. “All this culminated in margin erosion. By implementing a series of corrective actions and repositioning, operating costs have come down, and profitability has returned, albeit not at the anticipated level.”

Loadshedding is the deliberate shutdown of parts of an electric power system to prevent the failure of the entire system, according to Dictionary.com.

Full benefits of cost reduction are expected to be realised in the second half of the year, according to the company. It also noted the economic cycle is now much more positive, primarily due to reduced levels of loadshedding.

Workforce Holdings has 102 branches in South Africa and operates in 10 other countries.

Workforce Holdings - H1 2024

Revenue by Segment

Guidance

“We remain hopeful that interest rates in South Africa, which are still running at the highest level the country has experienced in a long time, will be reduced, which should stimulate economic growth,” the company wrote in a press release. “All indications are that the Government of National Unity’s impact will increase spending on infrastructure development projects, which will have a favourable impact across the group.”

Share price

Shares in Workforce Holdings closed at ZAR 135.00 (US$7.59) on 29 August when it reported earnings, unchanged from the previous close of ZAR 135.00.