AWF MADISON FIRST HALF PROFIT FALLS DESPITE REVENUE LIFT

MEDIA RELEASE

25 October 2017

AWF MADISON FIRST HALF PROFIT FALLS DESPITE REVENUE LIFT

The board of AWF Madison advise difficult winter conditions in the construction market impacted
first half earnings for AWF Madison, masking a strong lift in group revenue and cash flows.
Net profit after tax for the six months to 30 September 2017 was $3.4 million, 13% lower than the
$3.9 million reported for the first half of the last financial year.
Most of the fall was attributable to softer sales at blue collar recruiter AWF. Timing and weather
issues saw building and maintenance activity ease off after the June quarter (see 15 September
advice to market).
Group revenue rose by 20% to $143.1 million, boosted by a strong performance from IT recruiter
Absolute IT, while revenue at white collar recruiter Madison eased slightly. Our decision to enter the
IT recruitment sector and further diversify has certainly been validated.
AWF Madison chief executive Simon Bennett said short-term factors were masking a sustainable
improvement in the Group’s underlying performance.
“Tighter working capital controls have resulted in a reduction in receivables from trade debtors, and
we finished the half year with a strong bank balance. Despite a disappointing trading performance
from AWF, the strength of our cash generation and current activity levels give us confidence we will
deliver a good financial performance for the full March 2018 year.” Bennett said.
In addition, Madison would benefit from the start of work on the 2018 Census contract during the
second half.
The Board confirmed a steady, fully-imputed interim dividend of 8 cents per share will be paid on 27
November 2017 to shareholders registered at 5pm on 20 November 2017.


HIGHLIGHTS - HALF YEAR TO 30 SEPTEMBER 2017
 Revenue up 20% to $143.1 million
 NPAT down 13% to $3.4 million
 Underlying earnings down 6.5% to $4.2 million
1

 Cash from operating activity stronger at $11.9 million
 Dividend steady at 8 cents per share

For further information contact:

Simon Bennett 021 036 8387
Chief Executive Officer


Ross Keenan 021 685 655
Chairman


1
Underlying earnings is a non-GAAP measure which adjusts for amortisation of identifiable intangible assets
acquired through acquisition of subsidiaries, profit on disposal of subsidiaries and impairment of goodwill. In
the opinion of the directors, underlying earnings more correctly reflects the operating performance of the
Group. The treatment is consistent with the previous reporting period.


6 months to 6 months to

30-Sep-17 30-Sep-16

(unaudited) (unaudited)

$000's $000's
Underlying Earnings


Profit for the period 3,418 3,930
Add back amortisation of intangible assets 1,077 767
Tax effect on adjustments (302) (215)

4,193 4,482


Total underlying earnings is attributable to:


Equity holders of the parent 4,193 4,482

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Appendix 1
2.1
2.2-a
2.2-b
2.2-c
2.2-d
2.2-e
2.2-f
3.1
3.2
3.3
3.4
3.5
1.3(l)
2.3(a)
Revenue143,078 119,284
Investment revenue- 7
Direct costs(986)(1,531)
Employee benefits expense(129,001)(104,933)
Depreciation and amortisation expense(1,864)(1,162)
Impairment- (222)
Other operating expenses(5,998)(5,044)
Finance costs(741)(585)
Acquisition related expenses- -
Profit before tax4,488 5,814
Income tax expense(1,070)(1,884)
Profit for the period3,418 3,930
- -
Profit for the period3,418 3,930
Other comprehensive income- -
Total comprehensive income for the period, net of tax3,418 3,930
Profit for the year is attributable to:
Equity holders of the parent3,418 3,930
Non controlling interests
3,418 3,930
Total comprehensive income is attributable to:
Equity holders of the parent3,418 3,930
Non controlling interests
3,418 3,930
Earnings per share
Total basic earnings per share (cents/share)10.512.1
Total diluted earnings per share (cents/share)10.512.1
Consolidated Income Statement
Reporting Period
Previous
Corresponding Period
$NZ'000$NZ'000
There are no material changes in accounting policies applied in the preparation of the financial statements.
The full tear financial statements have been audited.
All statements are prepared in accordance with New Zealand Equivalents to International Financial Reporting Standards.
There are no accounting policies which the directors believe are critical to the portrayal of AWF Madison Group
Limited's financial condition and results and which require the directors judgements and estimates about matters that
are inherently uncertain.
The interim financial statements have not been audited
See attached file for further comment
CommentsSee attached file
Dividend Payment Date27-Nov-17
Record Date20-Nov-17
Interim/Final DividendAmount per securityImputed amount per security
Interim8.0 cents3.111
security holder3,418-13.0%
Half Year Preliminary Announcement
AWF Madison Group Limited
Results for announcement to the market
Reporting PeriodSix months to 30 September 2017
Net profit (loss) attributable to security holders3,418-13.0%
Profit (loss) from ordinary activities after tax attributable to
Previous Reporting PeriodSix months to 30 September 2016
Amount (000s)Percentage change
Revenue from ordinary activities143,07819.9%

2.3(b)
Assets
Non-current assets
Property, plant and equipment3,076 2,543
Goodwill (Prior year comparative restated)38,620 30,784
Other intangible assets16,948 13,134
58,644 46,461
Current assets
Trade and other receivables33,593 27,853
Cash and cash equivalents10,317 6,967
43,910 34,820
Total assets102,554 81,281
Equity and liabilities
Capital and reserves
Share capital27,534 27,624
Treasury account- (319)
Retained earnings429 451
Equity-settled employee benefits reserve9,893 9,893
Equity attributable to equity holders of the parent37,856 37,649
Total equity37,856 37,649
Non-current liabilities
Borrowings33,500 21,000
Deferred tax Liabilities (Prior year comparative restated)2,596 2,256
36,096 23,256
Current liabilities
Trade and other payables24,781 19,072
Bank Overdraft- -
Borrowings- -
Taxation payable201 971
Provisions200 333
Acquisition Earn Out Provision3,420 -
28,602 20,376
Total liabilities64,698 43,632
Total equity and liabilities102,554 81,281
$NZ'000$NZ'000
Consolidated Balance Sheet
Reporting Period
Previous
Corresponding Period
Recognition of share-based payments207 81
Equity at end of period37,856 37,649
Dividends paid(2,705)(2,636)
Equity at beginning of period36,936 36,274
Profit for the period3,418 3,930
Consolidated Statement of Changes in Equity
Reporting Period
Previous
Corresponding Period
$NZ'000$NZ'000

2.3(c)
Cash flows from operating activities
Receipts from customers154,350 124,776
Interest Received- 7
Payments to suppliers and employees(138,915)(111,465)
Net cash generated from operations15,435 13,318
Income taxes paid(2,815)(1,334)
Interest paid(741)(585)
Net cash from operating activities11,879 11,399
Cash flows from investing activities
Proceeds on disposal of property, plant and equipment72 71
Payments for property, plant and equipment(248)(997)
Payments for other intangible assets(27)-
Acquisition - -
Net cash from/(used in) investing activities(203)(926)
Cash flows from financing activities
Proceeds from the issue of share capital229 -
Dividends paid(2,705)(2,636)
Proceeds from borrowings- -
Repayment of borrowings- -
Net cash from financing activities(2,476)(2,636)
Net increase in cash and cash equivalents9,200 7,837
Cash and cash equivalents at the beginning of the year1,117 (870)
Cash and cash equivalents at the end of the year
Bank balances and cash10,317 6,967
2.3(d)
2.3(e)There are no dividend or distribution reinvestment plans in operation.
2.3(f)
2.3(g)
2.3(h)There are no associate or joint venture entities at the reporting date.
Contribution to profit
Acquisitions/Disposals
Acquisition
Entity nameAbsolute IT Limited
Control gained or lost100%
Date of gain or loss of control1-Nov-16
Reporting Period
Previous
Corresponding Period
Control gained or lost
Date of gain or loss of control
Reporting Period
Previous
Corresponding Period
$NZ'000$NZ'000
$NZ'000$NZ'000
Contribution to profit1,508 0
Disposal
Entity name
Net Tangible Assets per Security-$0.46-$0.12
Net Tangible Assets per Security
Reporting Period
Previous
Corresponding Period
Net Tangible Assets(15,116)(4,013)
Dividend per share0.080$ 0.080$
Total dividend monies$2,644,575$2,649,695
Payment Date27 November 20175 December 2016
Number of shares on issue (ordinary plus restricted)33,057,19333,121,193
$NZ'000$NZ'000
Final Dividend
Reporting Period
Previous
Corresponding Period
Consolidated Cash Flow Statement
Reporting Period
Previous
Corresponding Period

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Ordinary and Restricted SharesNZAWFE0001S8
EMAIL: announce@nzx.com
Notice of event affecting securities
AWF Madison Group Limited
David LazarusDirectors Resolution
09-526-877509-526-266325102017
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In dollars and cents
Retained Earnings
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NZD
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$
20 November, 201727 November, 2017