Wrap Text
Unaudited Condensed Consolidated Interim Financial Results for the six months ended 30 June 2024
Workforce Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 2006/018145/06)
Share code: WKF ISIN: ZAE000087847
("Workforce" or "the company" or "the group")
Unaudited Condensed Consolidated Interim Financial Results for the six months ended 30 June 2024
Key features of the six-month period:
- Revenue increased by 10% to R2,355 billion (2023: R2,142 billion)
- Gross profit of R432,6 million achieved (2023: R431,9 million)
- EBITDA increased by 82% to R59,6 million (2023: R32,8 million)
- Cash generated from operations amounted to R42,2 million (2023: R22,5 million)
- EPS and HEPS increased to 12,6 cents per share (2023: 1,7 cents per share)
- Days sales outstanding reduced to 43 days (2023: 48 days)
- Investment cluster operations have continued to trade, contend and adapt exceptionally well in the face
of pressures in the operating environment, supported by decades of experience and the digitisation of
services
- Level 1 B-BBEE compliance maintained
Results announcement
This results announcement is the responsibility of the directors of Workforce, and is only a summary of the
information contained unaudited condensed consolidated interim financial results for the six months ended
30 June 2024 ("Results") and does not contain full or complete details. The Results, as published on SENS,
can be found on the company's website at www.workforce.co.za or accessed using the following JSE cloudlink:
https://senspdf.jse.co.za/documents/2024/jse/isse/wkf/HY24.pdf.
Any investment decision by investors and/or shareholders should be based on consideration of the full
announcement. These Results have not been audited or reviewed by the group's auditors, Crowe
(Johannesburg).
Commentary
The first six months of the 2024 financial year clearly showed that the quick remedial action taken to counter a
previously harsh economic operating environment has started to take effect.
The group had to counter the effects of economic pressure including loadshedding, the country being grey listed,
logistics and port infrastructure impediments and high interest rates. 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. The full benefits of the cost reduction are expected to be realised
in the second six months of the 2024 financial year.
Revenue for the period increased by 10% to R2,355 billion (2023: R2,142 billion), and in line with a quick
repositioning of the business, operating expenses decreased by 6% to R373,8 million (2023: R399,1 million) for
the period.
Pleasingly, EBITDA increased by 82% to R59,6 million (2023: R32,8 million). The total comprehensive income
for the period was R25,7 million (2023: R4,2 million) and headline earnings per share ("HEPS") for the period
increased from 1,7 cents per share to 12,6 cents per share.
The business generated cash flow from operating activities of R40,9 million, ending the period with cash and
cash equivalents of R79,1 million. A deliberate focus on collections allowed for trade receivables to drop to
R937,5 million (2023: R977,5 million).
The group is well positioned to benefit from the base of growth and diversification. The debt-to-equity ratio of
Workforce over the period was 0,47 (2023: 0,53).
Outlook
The Workforce group has a robust, diverse, and relevant foundation in place that allows expertise, experience,
skills, digitalisation, and knowledge to be expanded to optimise the product offering within and across investment
clusters and geographies. We continue to make progress in all aspects of our conscious diversification strategy.
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.
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.
By order of the board
JR Macey RS Katz WP van Wyk
Chairman Chief executive officer Financial director
Johannesburg
29 August 2024
Corporate information
Executive directors
RS Katz
WP van Wyk
Non-executive directors
JR Macey (Chairman) (Independent)
S Thomas (Independent)
KN Vundla (Independent)
S Naidoo
Designated Adviser
Merchantec Capital
Company Secretary
S van Schalkwyk
Commercial bankers
ABSA Business Bank
Registered office
The registered office, which is also the principal place of business, is:
11 Wellington Road
Parktown, 2193
PO Box 11137
Johannesburg
2193
Transfer secretaries
JSE Investor Services Proprietary Limited
13th Floor
19 Ameshoff Street
Braamfontein
2000
www.workforce.co.za
Date: 29-08-2024 10:40:00
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 
