MEDIA RELEASE

Level 6, 51 Shortland Street
PO Box 105 675, Auckland 1143
Tel 09 526 8770 Fax 09 579 0224
awfmadison.co.nz
MEDIA RELEASE
29 May 2019
One-offs and refocus affect revenue, earnings at AWF Madison
AWF Madison Group [NZX:AWF] today announces lower revenue and earnings for the March 2019 financial year
as a result of a refocus in our blue collar division, AWF, and non-recurring factors. The level of Dividend is
maintained as a result of continuing strong cash flow and confidence in the year ahead.
• Revenue down 4.1% to $267 million
• NPAT down to $2.0 million
• Acquisition of JacksonStone & Partners complements and extends our presence in permanent and
contracting recruitment
• Final dividend steady at 8.2 cents per share
Lower Group revenue of $267.8 million was driven largely by AWF. A highly successful year at Absolute IT
helped lift the revenue contribution from our white collar sector to just under 57% of Group revenue, from 51%
in FY18.
At AWF, revenue fell by 10.8% to $115.8 million as the division continued to shift focus from high cost-to-serve
customers in favour of higher-margin business.
As identified in the Interim result announcement, there have been a number of one-off or non-recurring factors
that affected AWF’s profit contribution, which decreased from $4.8 million to $1.3 million.
• A number of customers in the construction sector were placed in receivership or liquidation, impacting
earnings and resulting in bad debt write offs of $1.1 million.
• Regulatory issues impeded AWF from redeploying migrant workers on guaranteed wages to cities and
regions where they were needed, at a direct cost of $1.5 million, plus lost opportunity margin.
AWF Madison CEO Simon Bennett said the Group was still committed to the AWF offer, but needed to address
the division’s focus, as announced during the year.
“We’ve made good progress re-evaluating business that was consuming large amounts of resource for very little
return.
“AWF has many long-standing customers who we value highly. We’ve been redeploying resource to better
service them, and we’re now better positioned to look for, and win, similar customers.
“At a Group level, we see our ability to source both blue collar and white collar workers for our customers as a
unique competitive strength.”
Failures and losses in the construction sector were unprecedented in AWF’s history. Bennett said that these had
affected AWF in two separate ways, with a number of customers unable to pay money owed to AWF, and in
addition, company liquidations around the country having left some AWF migrant workers stranded.

Level 6, 51 Shortland Street
PO Box 105 675, Auckland 1143
Tel 09 526 8770 Fax 09 579 0224
www.awfmadison.co.nz
“Regulatory barriers prevented us from redeploying them where they were needed,” Bennett said. “We took
the decision to continue to retain and pay them, and we are engaging with officials to see how we can avoid
these roadblocks in the future.”
Madison’s revenue and earnings contributions were lower than in FY18, which had included a large one-off
Managed Service contract.
Secured in March 2018, Madison’s new Contingent Workforce Managed Service has successfully completed its
first year of a four-year contract. Madison will keep seeking opportunities for these innovative contracts, which
are attracting considerable customer interest.
Absolute IT continued its strong financial performance in its second full- year contribution since acquisition in
late 2016.
The IT recruitment market remained buoyant throughout the year, allowing Absolute IT to increase revenue,
gross profit and EBITDA.
During the year, the Group repaid $3 million of bank debt. At balance date term debt stood at $33 million.
A fully imputed Dividend of 8.2 cents per share will be paid on 9 July 2019 to shareholders on the register at 24
June 2019. The Dividend Reinvestment plan will continue to apply.
AWF Madison has committed to a new initiative, The Work Collective, which is dedicated to improving social
outcomes through employment. The purpose is to support people who, for various reasons, experience work to
be unattainable and may also find the employment process inaccessible.
Bennett said a number of the Group’s customers have committed to support this initiative by offering work
opportunities.
“We’ve been looking for some time for a way we can leverage our expertise, networks and resources to help
those who want to work, but face barriers to employment.” Bennett said.
The Work Collective will function as a social enterprise whose primary purpose is to grow employment
opportunities for marginalised people. The majority of profits will be reinvested into support services for these
groups.
POST BALANCE DATE
JacksonStone & Partners Limited acquisition announcement (see below):
• Earnings accretive
• Purchase Price payable in tranches, subject to achievement of performance targets
• Acquisition funding from existing debt facilities
FY20
The outlook for FY20 is positive.
Madison and Absolute IT are performing strongly, underwritten by continued high levels of economic activity
and JacksonStone will contribute positively to 10 months of the current year.

Level 6, 51 Shortland Street
PO Box 105 675, Auckland 1143
Tel 09 526 8770 Fax 09 579 0224
www.awfmadison.co.nz
While further failures among AWF’s construction industry customers cannot be ruled out, as a result of applying
stricter credit terms, AWF now has a higher-quality customer book, with no large concentration of exposure.
Bennett said AWF had reduced its cost base, and was now geared to return 4% to 6% EBITDA on turnover
approaching $120 million.
Ends



Simon Bennett For the Board:
Chief Executive Ross Keenan, Chairman 021 685 655

For further information contact Simon Bennett:
09 917 1010

JacksonStone & Partners Limited
JacksonStone was established in 2011. The business has a very experienced team of directors, consultants and
support staff. The business has gone from strength to strength and now has 30 staff. The consultants have an
average of 15 years industry experience which is well beyond the average of our existing AWF Madison
businesses. Its reputation for quality service delivery is unrivalled.
JacksonStone has successfully recruited CEO and C-suite roles for large numbers of central and local
government organisations along with high profile corporate and not-for-profit clients. The breadth of service
includes executive search, recruitment and top-level contracting assignments.
• Turnover for year ending 31 March 19 in excess of $32 million
• Normalised EBITDA for year ending 31 March 19 in excess of $3.0 million
• Growing contribution from ongoing search and recruitment revenue above 30% of gross margin
The transaction is structured with an initial payment of $6.7 million on closing and an estimated $3.8 million
payable in three instalments over the next couple of years, subject to JacksonStone achieving defined
performance targets. This aligns the vendors with AWF Madison’s goals over the coming years and provides an
incentive for the vendors to continue to drive performance.
There are great synergies with our other businesses and we are excited at the prospects for a broader offer
amongst our white collar businesses.

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Template
Distribution Notice

Updated as at 8 May 2019

Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer AWF Madison Group Limited
Financial product name/description Ordinary Shares and Restricted Shares
NZX ticker code AWF
ISIN (If unknown, check on NZX
website)
NZAWFE0001S8
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies X
Record date 24/06/2019
Ex-Date (one business day before
the Record Date)
21/06/2019
Payment date (and allotment date for
DRP)
09/07/2019
Total monies associated with the
distribution
1

$ 2,802,957
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZ
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.11388888
Total cash distribution
3
$0.08200000
Excluded amount (applicable to listed
PIEs)
NIL
Supplementary distribution amount $Nil
Section 3: Imputation credits and Resident Withholding Tax
4

Is the distribution imputed Fully imputed X
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial $0.03188888

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
4
The imputation credits plus the RWT amount is 33% of the gross distribution for the purposes of this form. If the distribution is fully
imputed the imputation credits will be 28% of the gross distribution with remaining 5% being RWT. This does not constitute advice
as to whether or not RWT needs to be withheld.

product
Resident Withholding Tax per
financial product
$0.00569444
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
Nil
Start date and end date for
determining market price for DRP
24/06/2019 28/06/2019
Date strike price to be announced (if
not available at this time)
02/07/2019
Specify source of financial products
to be issued under DRP programme
(new issue or to be bought on
market)
New Issue
DRP strike price per financial product
$ Calculated as the volume weighted average sale
price for all AWF Madison shares sold on the NZX main
board over a period of five business days starting
24/06/2019
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
24/06/2019
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
David Lazarus
Contact person for this
announcement
David Lazarus
Contact phone number 09 526-8775
Contact email address David.lazarus@awfmadison.co.nz
Date of release through MAP

29/05/2019

---

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 8 May 2019


Results for announcement to the market
Name of issuer AWF Madison Group Limited
Reporting Period 12 months to 31 March 2019
Previous Reporting Period 12 months to 31 March 2018
Currency NZ

Amount (000s) Percentage change
Revenue from continuing
operations
$267,805 -4.1%
Total Revenue $267,805 -4.1%
Net profit/(loss) from
continuing operations
$2,013 -60.1%
Total net profit/(loss) $2,013 -60.1%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.11388888
Imputed amount per Quoted
Equity Security
$0.08200000
Record Date 24/06/2019
Dividend Payment Date 09/072019
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
-$0.47625317 -$0.46358195
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to Financial Statements
Authority for this announcement
Name of person

authorised
to make this announcement
David Lazarus
Contact person for this
announcement
David Lazarus
Contact phone number 09 526-8775
Contact email address david.lazarus@awfmadison.co.nz
Date of release through MAP

29/05/2019

Audited financial statements accompany this announcement.

---

11AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209ILCEDSOFO1 L
Annual Report 2019

SECTION NAME1AWF MADISON GROUP ANNUAL REPORT 2019AWF MADISON GROUP ANNUAL REPORT 2019
Contents
CHAIRMAN’S REPORT 2
CEO’S REPORT 4
THE EVOLVING WORLD OF WORK 6
GROUP MANIFESTO 10
BUSINESS PLAN 13
AWF BUSINESS PLAN 14
MADISON BUSINESS PLAN 16
ABSOLUTE IT BUSINESS PLAN 17
SOCIAL ENTERPRISE 18
OUR LOCATIONS 19
FINANCIAL COMMENTARY 20
BOARD OF DIRECTORS 21
CORPORATE GOVERNANCE STATEMENT 22
INDEPENDENT AUDITOR’S REPORT 26
FINANCIAL STATEMENTS 28
NOTES TO THE FINANCIAL STATEMENTS 32
SHAREHOLDERS’ STATUTORY INFORMATION 75
DIRECTORY 80
“Our underlying strength and
confidence in the year ahead
ensures we can maintain our
dividend for our shareholders.
We are pleased with the
repositioning of the business
and excited about the year
ahead. We are equally excited
to formalise and drive our
social initiatives into a Social
Enterprise, recognising that
people are at the heart of our
business and that we have

a strong social conscience.”
Key FinancialsRevenue
Net Profit
After Tax
Down 4.1%
Operating
Cash Flow
Shareholders’
Funds
Total Assets Total Dividend
for the Year
Net Bank Debt
31.03.19
16.2
cents per share
FY2018,
$11.5 million
Unchanged on
prior year
FY2018,
$29.7 million
FY2018,
$36.9 million
FY2018,
$105.3 million
$26.6
$9.5
$95.5
$34.8$2.0
$267.8
Million
Million
Million
MillionMillion
Million
Simon Bennett, CEO

3AWF MADISON GROUP ANNUAL REPORT 2019CHAIRMAN’S REPORTCHAIRMAN’S REPORTAWF MADISON GROUP ANNUAL REPORT 20192
These losses have been the greatest
we have experienced in the more than
30 years dealing in this sector, and
has unfortunately also included the
demise of excellent long-standing client
relationships, where those companies
have in fact been overwhelmed by
counterclaims.
In the general labour provision areas,
we also noted in our advice to
Shareholders of consciously withdrawing
from lower margin business during the
year, and have done so to a level of over
$14 million in revenue per annum; in
the blue collar sector. Whilst giving up
such revenue is initially a painful call, we
have been able to progressively re-deploy
productive resources to better yielding
business and accordingly key clients are
telling us of improved customer service
levels in the workplace.
Further, the uncertainty and inflexibility
of officialdom around the placing of key
skilled migrant workers in the major
centres added significant non-recoverable
costs. The inability to freely move these
workers between cities and regions to
maximise use of skills where such skills
are in high demand was quite mystifying,
particularly as AWF is guaranteeing
wages in any case.
On a more positive note, the purchase
of Select Recruitment, based in Dunedin,
has provided significant synergies and
growth to the Southern Region of the
AWF business and assisted in delivering
on permanent recruitment opportunities.
This is a growth business and permanent
placements feature highly in AWF
objectives and we have made good
progress in this area.
The Group has maintained a powerful and
thorough focus on Health & Safety, and
it is important that as a Board, we reflect
on the excellent safety culture within our
leadership, employees and contractors.
As a Board, we wonder if vigilance across
the sector is where it should be to ensure
Health & Safety compliance.
We have previously advised the practice
of Board members each attending
detailed Operational Health & Safety
Committee meetings throughout the year.
Founding Director Simon Hull continues
to chair the Board Health & Safety
Committee, and rigorously tests
workplace practices borne out of his
long involvement in workplace safety.
The blue collar component will always
be valued and important. However, we
recognise that the risk and compliance
costs make this space less attractive in
the current environment. We believe
firmly in the Group’s strategy to de-risk
and diversify by adding additional white
collar business.
With our white collar brands, Madison
and Absolute IT, several successful
joint presentations have demonstrated
the value of the synergies of these
businesses and the excellent platform
that has been achieved.
In particular, Absolute IT had a stunning
year both in terms of profitability and
new clients won. Over the year our senior
leaders have continued to grow and
develop the business for growth. There
is however, a recognition that competition
for our talented recruiters will continue
to be the norm in IT recruitment and
indeed throughout our whole industry.
Madison traded well but did not achieve
all the growth that we expected. However,
the effect of the completion of our large
Managed Service project contract has to
be factored into this comment.
With a future strategic growth focus,
Madison signed a significant contingent
workforce Managed Service Contract and
is targeting a wider portfolio of activities
in the 19/20 Financial year. Madison also
won the hotly contested Seek sponsored
Most Innovative Agency of the Year award.
So, a very mixed year financially, but
some very significant milestones achieved
against where to position the business
going forward. It’s been a much longer
journey to stability and growth than we
had expected, but we do now consider that
we have established that position.
We were pleased to be able to declare
a final dividend of 8.2 cents per share,
maintaining the previous years’ total
dividend of 16.2 cents per share. We
expect to be able to steadily grow
dividends as we move ahead from here.
As a Board, we wish to acknowledge the
ongoing commitment of our management
team, led by Simon Bennett. In Simon
we have a strong and focused leader;
determined to build a sustainable platform
for growth – an aim we all embrace.
For the Board,
Ross B Keenan
Chairman
Chairman’s
Report.
Dear Shareholder,
Whilst it is certainly disappointing to report
a further fall in profitability, I believe we
have well signalled particular challenges the
Group has met during the financial year.
The fact however is that we have suffered in
the construction sector, where the level of
client failure in the face of their own

dealings with major construction firms has
caught AWF with high bad debt levels.
Ross Keenan, Chairman

541AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209CEO’S REPORTCEO’S REPORT
In broad terms we were reasonably
happy with our achievements in the
white collar sector. We have strong
teams within the businesses, and good
levels of engagement. As for our clients
and the wider business environment,
engagement and retention of our
people is a key factor for success.
Madison and Absolute IT increased
revenue from $149.5 million to $151.9
million and delivered a small decline in
NPBT from $6.0 million to $5.6 million.
Absolute IT has delivered earnings
growth since acquisition. The business
delivers high-quality work in an evolving
sector that we expect will continue to
grow. Understanding the uniqueness and
factors for success for Absolute IT has
been more important than thinking about
what to change. We have common goals
with our operating systems and have
dedicated resource this year to optimise
our systems and gain some better client
and candidate functionality, along with
developing efficiencies for consultants.
Madison was able to reorganise the
business, as our largest workforce project
came to an end, ensuring we could
effectively re-deploy both our internal
talent and the learnings gained.
We grew the core business but did not
fully ‘fill the earnings gap’ created
following the end of the project.
Absolute IT’s Auckland branch moved
in to 51 Shortland Street, where our
head office and Madison are located,
in early January. Late last year
Madison’s Wellington branch moved in
to Cornerstone House in Customhouse
Quay, where Absolute IT is located. The
businesses work well together and we
are beginning to see some good leverage
of resources and client relationships.
Our shared service functions have now
integrated Absolute IT onto our accounting
and IT platforms. This has given us
peace of mind from a risk perspective.
All three businesses are in the process
of migrating to a common email domain,
with the telecommunications already
migrated. This is also leading to greater
investment in digital and marketing
capability that we can share across
the Group. We believe we have the
most innovative recruitment marketing
function in New Zealand, which gives
us better results for our clients. We are
also providing insights and analytics that
our large clients are very eager for.
Much of this capability is being proven
in our managed service operations,
which are centred on our work with a
government organisation undergoing
significant business transformation.
We are pursuing other opportunities
to enable us to offer these types of
solutions; not only in Madison, but in
Absolute IT and AWF too. The global
trend for companies and government
organisations to leverage their contingent
workforce via a Managed Service appears
to be moving to New Zealand, as we
are getting regular inquiries. Madison
has recently been awarded a pilot
bespoke RPO for a large government
department, which further emphasises
the demand and demonstrates our agility
in providing non-traditional solutions.
Building and leveraging capability
across our operating businesses is a
key part of our strategy. We believe now
that we have capacity and capability
to bring another business into the
Group and grow its earnings. We are
excited to have agreement to acquire
JacksonStone & Partners Limited;
a highly reputable executive search
and recruitment consultancy. It is a
fantastic business which will work
alongside Madison and Absolute IT.
JacksonStone has been in business for
10 years and is a key advisor to
government and private sector clients,
working at the topmost levels of
recruitment. They are trusted and
sought after by business leaders
across the country. The Vendors have
committed to working in the business
for at least 30 months. This acquisition
complements our family of businesses
very well. It further diversifies us
from the blue collar sector, which has
become increasingly challenging over
the last few years. The acquisition is
significantly earnings accretive from
day one, with good incentives in place
for the working vendors to continue to
grow earnings over the next 30 months.
We are grateful for the support of our
key Shareholders for our Dividend
Reinvestment Plan. We signalled our
intention to build some headroom into
our balance sheet to carry out such
a transaction as we have achieved.
The reality of a large drop in earnings
in AWF was not something we had
anticipated a year ago. In fact, to the
contrary, we were expecting to grow again.
However this was not to be the case as
we saw revenue in AWF fall from $129.8
million to $115.9 million and NPBT drop
from $4.9 million to $1.3 million. Having
communicated this softening at half year
and no upturn in the second half, we
reviewed and reconfigured the business
to reduce our cost base. We have a cost
base for a lower level of business to
ensure we can be more selective with
clients. We want to ensure we reduce
both credit risk and safety risk. In fact,
one of our largest former clients was
recently prosecuted by Worksafe and fined
more than $300,000 for failing to keep a
worker safe. This emphasised to us that
servicing this low-margin and high-risk
business was inappropriate for us.
We lost three of our workers this year
on the roads. This took a considerable
personal toll on our people who were
connected to those men, but of course
this paled in significance to the loss
experienced by their families. It reinforced
in our minds the significance that work
plays in people’s lives, but also the
important role we play in keeping them
safe. A recent survey of our
AWF workers endorsed what a great
job we do in terms of care, respect
and provision of meaningful work; and
the opportunity we have to make a
difference in the lives of many more.
With this in mind, and with the
experiences we have, we have established
to a new initiative committed to social
outcomes. We will utilise our knowledge
and processes to help give support to
those who find work unattainable and
the employment process inaccessible.
A number of current clients have
committed to assisting us with this
initiative through provision of work
opportunities. Many large organisations
are now interested in the impact of
their purchasing decisions beyond the
service or resource they are buying.
Building a social enterprise within the
business will enable clients to support
pro-social outcomes when they work
with us. We believe we will be able
to expand the workforce and begin
to deal with the country’s systemic
unemployment issues; a true ‘win-win’
for our business, and this country.
AWF Madison is well-positioned for
the year ahead. Our white collar
businesses are strong and we are
adding a complementary white collar
business to the Group. Given the Dividend
Reinvestment Plan and our strong cash
flows, we are able to keep our dividends
steady, despite our drop in earnings.
We expect to be able to reduce debt,
and with the anticipated lift in
earnings, look to growth in dividend
income when AWF can again make
a good earnings contribution.
I’m proud of the work that my team has
put in this year, and of what they have
been able to achieve. We look forward to
delivering a better financial performance
to our Shareholders in the year ahead.
Our People
Resilient.
Focused.
Confident.
Building a social
enterprise within
the business will
enable clients to
support pro-social
outcomes when
they work with us.
Simon Bennett, CEO
CEO’s Report

761AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209THE EVOLVING WORLD OF WORK THE EVOLVING WORLD OF WORK
Some Context: The Evolving World of Work
Those who have chosen a career
in recruitment will tell you it’s an
incredibly fascinating and challenging
industry; now more so than ever as
the world of work rapidly evolves.
As the largest recruitment organisation
in New Zealand, we work with a diverse
range of employers and job hunters.
Some are struggling to keep up with
the fast pace of change across the
world of work, while others are fully
embracing it. Across the Group, AWF
Madison is building capability to take
advantage of disruptive technologies
and global trends in the world of work.
We have progressed from the start of
the digital age, to the complex fusion
of technologies that marks the fourth
industrial revolution. The speed and
scale of this revolution has been
estimated to be 3,000 times the impact
of the third industrial revolution, and
we see technology merging more
and more with humans’ lives.
Consumer expectations and progressive
technologies are enabling new ways
of doing business, bringing disruption
to whole sectors. In this landscape
business leaders must challenge
the way they operate, drive product
evolution and ensure the capability of
their team for the future of work.
People need to continually cultivate
their skills, and understand that career
paths will look different to those of the
past. And, government must work quickly
to understand the changing landscape
they are regulating. Whilst they have
recently commissioned research into
how New Zealand can maximise
opportunities and manage the risks,
the velocity of change may mean the
landscape will be different by the
time the research is complete.
Shifting Skills Base
A McKinsey report found that by 2030,
up to 14% of the global workforce
may need to change work because of
digitisation, automation and artificial
intelligence. Closer to home, an OECD
report released in 2018 estimated
that 10% of New Zealand jobs are
at risk of automation and a further
22.8% of jobs will likely change.
The types of skills our country needs will
shift over the next few years, and it is clear
that we need to be proactive in the way
we prepare for this change. We applaud
initiatives like the pilot programme that
will be run by The Manufacturers Network
bringing the manufacturing, education,
union and government bodies together
to address the skills shift in this sector.
As a significant employer of temporary
workers for large manufacturing clients,
we are mindful that our own workforce
will need to adapt to changing technology.
It’s been pointed out that whilst jobs will
be displaced or changed, new jobs will
be created in response to future issues
and opportunities that we do not yet
have solutions for. History also tells us
that we find new ways to create value
in commodities. For example, we do
not stop at just producing basic food for
sustenance, we find ways to turn food
into entertainment. Amazon’s example is
incredibly interesting – they have deployed
thousands of robots into their warehouses
to augment workers. Recruitment,
however, has far from stopped. In fact, it
continues to rise as increased efficiency
has led to soaring consumer demand.
What automation, AI and machine learning
are unable to replace (at present anyway)
is the human element – intuition and
interpersonal skills. While perhaps you
can’t teach intuition, soft skills can be
harnessed and it’s important that we
assist our workforce with communication
and interpersonal skills. This is also
important as the world of work moves
towards a team-centric approach.
The Organisation of the Future
Deloitte reports that building the
organisation of the future is the
foremost HR issue. We understand that
organisations will need to recalibrate
for a disruptive and unpredictable
future that requires speed, agility and
adaptability. Indeed, many of our clients
are investigating, planning or trialling
agile, team-centric models and fostering
talent mobility within their organisation.
Consumer expectations and
progressive technology are enabling
new ways of doing business,
bringing disruption to whole sectors.
In this landscape business leaders
must challenge the way they
operate, drive product evolution
and ensure the capability of their
team for the future of work.
We need to
be proactive
in the way
we prepare
for change.

981AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209
Beyond policy, those who seek non-
standard work, be it through the gig-
economy, freelancing or temporary work,
also need support with life requirements
such as securing credit and mortgages.
Banks however, find it difficult to
assess irregular and small salary
amounts as legitimate, stable income.
Organisations also need an easier
landscape to utilise contingent workers
who do variable hours. The difficulty
in adhering to the ever-increasing
complexity of the Holidays Act has caused
widespread issues for government
and private sector organisations alike.
The upcoming review of the Act is very
welcome. There is a great deal more
industrial action and union activity in the
current political environment. We applaud
the Government’s crackdown on worker
exploitation and increases in the minimum
wage, but workforce flexibility cannot by
stymied by old world views and outdated
Employment legislation. We are actively
advocating for positive change in this area.
The Evolving
World of Recruitment
Many have speculated that the recruitment
industry is at risk of disruption; that
automation, AI and machine learning
will see the recruiter extinct in the
near future. While technology drives
disruption, technology is also the way
businesses can drive transformation.
Our view is that technology will change
the way we do some things; automation
of repetitive tasks will enable our people
to spend more time on higher value
tasks that require human intuition and
interpersonal skills. It is this aspect of
our people’s capability that delivers a
differentiated customer experience.
When a business operates in a
crowded category, competing on
price is tempting. But it is only
sustainable if they can drive down the
cost of delivery. In the recruitment
sector however, the cost of delivery,
especially in our legislative landscape,
is only increasing. If not competing
on price, then customer retention and
customer experience is paramount.
We seek ways for technology to enable
us. We won’t validate and push ideas to
market because it appears innovative.
If it does not solve a customer problem it
is likely to fail. Our innovation strategies
start with listening to our customers,
understanding the customer experience
and the reflection points along the journey.
Technology also drives our clients’ and
candidates’ expectations. They seek
interactions and information that is
in real-time. Our focus on continuous
improvement is imperative as our industry
changes, and as communication platforms
evolve and expectations change.
We strive to be close to our customers
in our businesses, and believe that the
feedback loop is crucial to understanding
how we are doing, what we are doing
well and what we need to zero in on.
Absolute IT has been using the Net
Promoter Score methodology to measure
brand loyalty since 2016, and Madison
implemented it in 2017. AWF has also
measured its candidate NPS on two
recent occasions. We are working towards
aligning the three businesses so that
NPS is measured at the same stages
of the candidate and client journey.
We know that the recruitment businesses
who are challenging themselves with
honest feedback, and using technology
to enable their teams to be even more
human, will remain relevant in the era
of the fourth industrial revolution and
will adapt to the new world of work.
We often see that career paths today are
becoming more akin to a jungle gym than
a career ladder. Traditional career paths
were linear progressions, however today
we see that lateral transitions are great
for breadth of experience and building
technical expertise. It is encouraging to
see that many organisations are looking
at how they can offer opportunities for
development, and support internal hires,
career planning and skills assessment.
It is evident that some people are at risk
of being left behind by the digital economy.
These include people whose jobs may be
displaced by automation, and those who
lack digital skills. In a rapidly changing
landscape, the half-life of skills is swiftly
falling, so how do employers ensure their
people can access the learning they need?
Amongst this complexity, it is clear that
to ensure their organisation has the skills
to adapt, businesses need to revamp
their career pathways and learning and
development framework, and encourage
talent mobility within their organisation.
Expanding the Talent Supply
Businesses that are developing innovative
strategies and working to reap the benefits
of digital transformation will not get far
if there is a talent shortage and a skills
mismatch. The urgency to expand the
talent supply is critical, and failure to do so
could lead them out of the market. What
we know is required is a focus on skills
needed, rather than titles and credentials.
When we assist employers with
permanent recruitment, we often need
to challenge the credentials they specify
as requirements. Specific experience
and the need for qualifications often
restrict the pool of potential applicants.
Instead, we need to recruit for skills and
competencies. Organisations need to
identify the gap between the skills they
have, and the skills they will need.
The global unemployment rate in
2018 was 5.2%, the lowest it has been
in 28 years. Now, and in the future,
there will be increased competition for
migrants globally. As recruiters, we
think employers still have a way to go in
ensuring a level playing field for migrant
workers when it comes to permanent
vacancies, especially when there has
been no prior New Zealand experience.
In these cases, part of our role is to
consult and advocate for the best people
for the job. For short term work, we
have recognised the need to employ a
migrant workforce ourselves, to support
our clients’ project needs. BusinessNZ
recently implored our politicians to
stop treating immigration as politics
and our first-hand experience of the
challenges that come with this type
of solution would have us concur.
Workforce Augmentation
Technology has supported new ways
of working – from enabling flexible
working arrangements and remote
working, to creating more opportunities
for self-employment through access
to a global market. Employers who do
not have flexible working practices and
the infrastructure to support it will find
it hard competing for talent who will
happily trade in the nine-to-five construct
for alternative work arrangements.
The push for businesses to be innovative
and adaptable means there is a
greater emphasis on agile workforces
to meet short to medium term
goals. It is necessary to augment the
workforce through contingent workers.
Contingent workers include agency
temps, independent contractors and
freelancers – those not engaged on a
permanent basis. Many do not enter
the contingent labour market because
in New Zealand it is not perceived as
providing income security. It will be some
time before that view changes. However,
expanding the contingent labour market
would help New Zealand be in a better
position to achieve economic growth.
To plan for the future of work, businesses
must be able to imagine the possibilities
rather than be constrained by legislative
frameworks that were suited to the
old world of work. Denmark, often
lauded as a flexible labour market, has
proactively encouraged the rise of gig
workers through legislation that values
this type of work the same as traditional
employment, ensuring worker rights.
In contrast, New Zealand is lagging in
policy to support taxation and provide
employment benefits.
Our innovation
strategies start
with listening to
our customers.
THE EVOLVING WORLD OF WORK THE EVOLVING WORLD OF WORK

11AWF MADISON GROUP ANNUAL REPORT 2019GROUP MANIFESTOGROUP MANIFESTOAWF MADISON GROUP ANNUAL REPORT 201910
What
Drives
Us.
Whether it is through building one new
relationship or tackling the challenges within
New Zealand’s labour market, our businesses
aspire to influence the growth and success of
our country. We believe it is possible to deliver
strong returns for our shareholders in a way
that also provides better outcomes for our
people, our customers and our country.
We have a clear proposition in our three
businesses providing distinct advantages in the
channels in which we operate, to our clients and
candidates. At the same time, we are building
strong capability in our shared service functions,
in sourcing, recruitment marketing and digital
design to further enhance and leverage our
business capabilities. The business goals
remain aligned to the same Group aspiration
and the following four strategic imperatives:
1
Our
People.
We will be driven
forward by resilient
and capable people
who are engaged
with our purpose and
strategic direction, and
who have the flexibility
and determination to
do better in the fast-
changing environment.
We will be additive
to the lives of our
workforce and present
them with opportunity.
432
We will choose and
partner with our
clients wisely. We will
add value through our
reputation for quality,
efficiency, relationships
and customised
solutions.
Our
Finances.
Our
Country.
Our
Customers.
We are uniquely
positioned and have a
responsibility to provide
proactive solutions
to address structural
challenges in the
employment market.
We will make an impact
in growing and shaping
our workforce for the
current and future
needs of the country.
We will drive strong
cashflow for dividend
growth. We seek
NPBT growth through
continued execution
and improvement
initiatives impacting
cost and revenue, to
create sustainable
value for our
shareholders.

131AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209ILCEDSOFO1 LILCEDSOFO1 L
As we continue to deliver on our vision
of growing our impact as New Zealand’s
leading recruitment and resourcing
company, the Group’s strategy,
ambition and operating activities are
underpinned by the fact that we are a
values-based organisation.
BUSINESS PLAN
AWF Madison originated as a blue-
collar labour hire business over 30
years ago. Through acquisition and
repositioning we have grown to become
New Zealand’s largest recruitment
company, spanning blue and white collar,
permanent and temporary recruitment.
Our focus continues to be on growing
the reach and impact of each entity in
their respective sectors, while at the
same time leveraging our shared
service function to enhance and grow
our offering to key clients and prospects.
We are continually seeking to provide
proactive solutions and deliver better
outcomes, ensuring our business
activities remain focused for our
clients, our candidates and our country.
Our priorities vary across each
business. What is consistent is
our commitment to delivering a
quality, best-in-class customer
experience. This is complemented
by our focus on simplification over
complexity, which drives operational
performance, and the investment we
continue to make in our people, in
innovation, and in the development
of a cohesive Group framework that
is scalable and enables growth.
There are numerous areas of focus
that will drive the Group’s performance
throughout the year ahead. These include:
• Leveraging the Group’s growing
technology capability and
methodologies across our current
businesses and acquisitions
• Simplifying our three business
models to better monitor lead
indicators and drivers of outcomes
• Continuing to invest in marketing
and technology, to ensure ongoing
product differentiation and the
creation of new solutions
• Driving safety discipline across
all three businesses
• Continuing to invest in engagement
with Government and regulators,
and developing a stronger framework
for management of industrial
and employment relations
• Focusing on quality, measurable
goals and insights across the Group
• Developing standardised measures
for client and candidate feedback
AWF MADISON GROUP ANNUAL REPORT 201912

15141AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209BUSINESS PLANBUSINESS PLAN
AWF has a 31-year history
of supplying entry level,
semi-skilled and skilled
workers to the infrastructure,
transport and logistics,
manufacturing, technical and
construction sectors.
Every day thousands of our
employees are deployed to
client sites. Through its network
of branches, AWF provides
hundreds of enterprises
throughout New Zealand with
the human capital necessary to
complete major projects, meet
increased demand in goods
and services, and fill the skills
gap in permanent workforces.
We were pleased with the way we
handled the challenges we faced this
year. We suffered significant losses to
client failures in the construction sector
in the first half of the year. We took the
decision to pay our workers beyond their
entitlements when we had to redistribute
the workforce upon site closures due to
company liquidations. At the same time,
we were targeted by a media organisation
with claims of worker exploitation. It has
taken us eleven months to prove this to be
untrue as we worked with the legislators
through their investigation process.
We also decided not to chase low
margin, high cost-to-serve business,
and as a result ceased supply to a
large manufacturing client. We were
unable to agree a suitable margin or
pay rates for our candidates and did
not have confidence in the relationship
to ensure we could partner in our
crucial safety programmes.
As a result, AWF is a lower turnover
business today than it has been in the
past. We have reduced our cost base as a
result and geared the business to return
4-6% EBITDA on turnover approaching
$120 million. From our lower base
we are cautiously seeking single digit
top line growth where it makes sense,
without undue credit risk and without
compromising the safety of our people.
The year ahead will see us continue to
improve operational effectiveness and
quality whilst seeking efficiencies. We
will look to increase our speed to market
with our clients in a talent short market,
and establish key reporting metrics
internally and for our clients to support
the strategic gains we are making.
We will drive candidate outcomes by
leveraging our market leader position
and deliver training and pathways to
increase the pool of quality work-ready
candidates. At the same time, we will
leverage our Group sourcing capabilities
to improve delivery and add services
for our clients. We have the opportunity
to drive thought leadership, promoting
contingent workforce to a sector
struggling for answers to fill the talent
gap, particularly given the uncertainty of
political appetite for migrant workers.
We have made good gains with our
employment brand, which has resulted
in better attraction and retention of our
candidates. We continue to evolve from a
just-in-time labour supplier to a longer-
term employer of multi-assignment
personnel. Our candidates rated us on
average 4.6 out of 5 for caring about their
safety in a recent survey. We surveyed our
current workforce, who gave us a very
high satisfaction rating, and new reporting
has given us a view on the opportunity
we have with prospect candidates.
Our drive to build a permanent
recruitment channel has come to fruition
and we now have teams in all of the
metropolitan centres, which complements
the permanent recruitment in Select
Recruitment, which we acquired during
the year. Select is a great regional
business of a good size with an excellent
reputation. We are very pleased to
have Select join the AWF stable.
Despite a hard year we were happy with
our repositioning of the business, and we
are confident that the prospects for the
year ahead are good. We have excellent
leaders in the business in Donna Lynch
and Fleur Board, whose commitment is
unparalleled. We are grateful for their
vision, passion, care and dedication.
AWF
BUSINESS PLAN

17161AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209
BUSINESS PLANBUSINESS PLAN
Founded in 2000, Absolute IT
caters to the specific
recruitment needs of the
technology and digital sectors.
Absolute IT’s specialist
recruiters provide permanent
and contractor staffing services
New Zealand-wide from their
offices in Wellington, Auckland,
Hamilton and Christchurch.
From resourcing large
transformation programmes in
the public sector, to sourcing the
right fit for large corporates and
attracting world class talent
for New Zealand start-ups,
Absolute IT is relied upon for its
expertise and extensive network.
Absolute IT’s strong financial performance
was evident throughout the year, which
saw the completion of our second full
year of contribution to the Group, and we
achieved a year-on-year increase in both
GP and NPBT. This is testament to our
strong leadership and the commitment
of our people, and is evidence of the
Group’s ability to scale to enable growth.
With IT being one of the major business
disruptors, our market has remained
buoyant throughout FY19. Many
organisations continue to push ahead
with major transformation, often in the
digital space. Over the past year we
have realised growth in our number
of permanent placements, however
contracting placements remain
the backbone of our business.
In the year ahead we will continue to
focus on the factors we know are the key
ingredients of our success. Our General
Manager, Tracey Johnson, continues
to drive the business to build a team of
high-performing consultants. Developing
their skills and capability, she supports
her team of seasoned recruiters to
strive towards excellence in their field.
The relocation of our Auckland office,
which took place at the beginning of the
year, means that all of our offices are now
either co-located with, or in the same
building as, our Madison colleagues. This
has helped forge stronger collaborative
relationships, sharing of knowledge, and
partnerships on several client accounts.
We have already seen a great deal of value
in our sponsorship of the Technology
Investment Network (TIN100), which has
given us the opportunity to build even
closer ties with industry, and ensures
we are fully engaged in the issues that
matter to New Zealand’s Tech Sector. One
such event included a CEO brainstorming
session, which focused on the skills gap
in the technology sector and featured a
panel discussion moderated by our CEO,
Simon Bennett. We will continue to pursue
future opportunities through the network.
We were also a supporter and sponsor
of the 2019 Digital Skills Hui, held in
March. The event brought industry,
government and organisations such
as NGOs together to discuss how to
bridge the gap between education and
employment in the digital age – including
preparing graduates for employment,
bringing diversity to senior leadership,
advocating for ‘lifelong learning’ and
the opportunity for people to retrain.
Our priorities for the year ahead
encompass three principal areas;
retaining and developing our people,
contractors and clients; demonstrating
our agility to drive sustained growth;
and maintaining relevance to ensure
ongoing alignment to the needs of our
market. Our team are enthusiastic about
the year ahead, and intend to capitalise
on the momentum we have built.
ABSOLUTE IT
The year has seen some notable
achievements for Madison. With increased
competition and continued low levels
of unemployment, our established
brand, experienced people and depth
of market knowledge have proven
once again to be valuable assets.
This was highlighted in November
when we were awarded the accolade of
New Zealand’s “Most Innovative Agency”
at Seek’s Annual Recruitment Awards.
The award is undoubtedly testament
to the ethos and enthusiasm of our
team. For us, innovation isn’t simply
about implementing a shiny new piece
technology, but is rather about what that
technology enables. This award represents
our ongoing commitment to providing
our clients with relevant insights to solve
their challenges, and fuel innovation.
Christian Brown’s new leadership,
early in the year, continues to have a
positive impact that is felt across the
business. Madison’s priorities for the
year ahead centre on three key areas;
driving NPBT performance through
growing the capability and commercial
awareness of our people; realising
success with large projects by utilising
our national reach and commitment to
innovation; and a continued emphasis
on seeking out operational efficiencies.
Our largest workforce project, which
came to completion earlier in the year,
was both complicated and logistically
challenging. It was a great example of
our national reach and as the project
wound down, we actively worked to
re-deploy talent to other revenue
generating opportunities. Our Contingent
Workforce Managed Service solution,
for a government agency undergoing
significant business transformation,
has completed a successful first year
of a four-year contract. This project
continues to demonstrate our ability
to scale quickly, and provide relevant,
tailored solutions to our clients.
The foundations are in place, and we
feel well positioned for continued
success in FY20. Using key reporting
metrics and new benchmark standards,
Madison’s focus will be on enabling a
high-performance culture through the
development and retention of our people.
This will be supported by our network
of specialist teams who are aligned
to channels of work, and our ability to
leverage the sourcing capabilities and
technology resources of the Group.
Quality remains a driving force.
With a focus on strengthening client
relationships and growing our national
reach through improved collaboration,
we aim to translate the success of
the previous year’s major projects
into new opportunities for the year
ahead. Our extensive candidate
network and commitment to a best-
in-class customer experience sees
us ready to take on the year ahead
with purpose and determination.
Madison was established in
1998, and over the years has
become the recruitment partner
to a wide variety of organisations
within the private and public
sectors. Madison’s service
spans entry level and support
recruitment to that of professional
roles and managerial positions.
Each year, hundreds of permanent
positions are filled by candidates
who have been sourced and
matched to specific business
requirements and organisational
culture fit. Every day, up to 1,200
employees work on assignment
in New Zealand’s major cities.
MADISON
BUSINESS PLANBUSINESS PLAN

181AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209SOCIAL ENTERPRISE
AWF LOCATION
MADISON LOCATION
ABSOLUTE IT LOCATION
SELECT LOCATION
KEY
Kaitaia
Kerikeri
Whangarei
Auckland
Waihi
Tauranga
Rotorua
Hawkes Bay
Palmerston North
Kapiti
Petone
Wellington
Christchurch
Invercargill
Dunedin
New Plymouth
Hawera
Whanganui
Nelson
Blenheim
Hamilton
We often reflect on the importance work
has for the thousands of people who are
employed with us. The part we play in
ensuring their safety at work is significant,
and we recognise that their wellbeing at
work and at home is also a fundamental
aspect of their overall health and safety.
Taking a ‘whole of life’ view on wellness is
vital. No longer can employers simply ‘tick
the box’ on a series of wellbeing initiatives.
We know that a holistic approach
to wellness will continue to grow in
importance as the world of work evolves.
Within AWF in particular, we know we
can make an impact that is life changing.
For those at the start of their career
right through to highly experienced
employees – we take our responsibility
for our people’s safety seriously.
The Government’s Health and Safety
at Work strategy takes a view through
to 2028, providing a roadmap that
will “drive ambitious, sustained and
system-wide improvements in our health
and safety performance, to significantly
lift the wellbeing and living standards
of all New Zealand workers and their
families”. We support their ongoing
focus on reducing all types of harm at
work, and we will continue to ensure
we proactively manage the health and
safety, and wellbeing, of our people.
Support for social enterprise is becoming
a growing priority for both public and
private sector clients in New Zealand.
Although there is no formal definition of
a “social enterprise”, it can be broadly
described as an initiative to improve
social, cultural, environmental and
economic wellbeing in our country.
Essentially, social enterprises are
organisations that trade to deliver
social and environmental good.
AWF Madison has partnered with the
Akina Foundation in order to build
a channel in this area. The Akina
Foundation is a charitable trust that
has been named as the Government’s
strategic partner in the development of
the social enterprise sector. They not
only raise awareness; they also enable
the sector through a new procurement
platform (fwd.org.nz) where businesses
can buy from social enterprises.
Akina recognises social enterprise
by three key areas: that the primary
purpose of the organisation is to
provide a public or community benefit;
that the majority of income is from
trading a good or service; and that
the majority of expenditure or profit is
spent in the fulfilment of the purpose.
AWF Madison is well-positioned to
effect positive social change through
employment. There are a multitude
of reasons that people may find
themselves marginalised from finding
employment. These may be circumstantial
or systemic, but could include life
events, refugees, new migrants,
disability, drug or alcohol dependency
and prior criminal convictions.
Whilst there are a growing number
of initiatives working with people to
overcome the barriers they face, for
example the provision of training,
work experience and support services,
they can struggle to find meaningful
employment opportunities. We believe
AWF Madison has the opportunity to
develop and advance an Employment
Social Enterprise initiative.
As we embark on the new financial year,
we see this to be a mutually beneficial
opportunity that leverages our networks
and experience for the good of New
Zealand. We will provide our partner
organisations with a conduit to meaningful
job opportunities across a broad range
of industries, and we will provide our
clients with a service that contributes to
social procurement targets that deliver
impact through their supply chain.
For AWF Madison, there is potential
for this to provide an increased pool of
talent that is work-ready and supported
by specialist organisations; and a
high-impact employment initiative
that will be a point-of-difference in
the employment market. We intend
for the initiative to function as a social
enterprise with the primary purpose
of growing employment opportunities
for marginalised people, with the
majority of profits being reinvested into
support services for these groups.
TŌ TĀTOU WHENUA
OUR COUNTRY
TŌ TĀTOU TĀNGATA
OUR PEOPLE
The Rise of Social Enterprise
Wellbeing, Health & Safety
AWF MADISON GROUP ANNUAL REPORT 201919OUR LOCATIONS

201AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209
Revenue
Group Revenue at $268m was down on the
prior year Revenue of $279m.
Revenue sourced from provision of services
to Commerce (Madison Recruitment &
Absolute IT) of $152m was up on the prior
revenue of $149m.
Revenue sourced from provision of services
to Industry (AWF) was down on the prior
year, due to a strategy of minimising
financial exposure to certain industry
segments.
Net Profit After Tax
After-tax profit of $2.0m was down on that
of the prior year’s $5.0m.
Dividend
An interim dividend of 8.0 cents per share
was paid on 3 December 2018.
A final dividend of 8.2 cents will be paid
on 9 July 2019, resulting in total dividends
paid for the year of 16.2 cents per share,
consistent with the prior year dividend
payments of 16.2 cents per share.
Funding Costs
Finance cost for the year at $1.38m
was consistent with that of the prior
year’s $1.30m.
Cash Flow
Continuing strong Cash Flow from operating
activities of $9.5m, was achieved due to a
reduction in Working Capital (Trade Debtors).
Borrowings
The $36.0m million term debt facility with
the ASB Bank Limited has been retained and
extended out to October 2021. At 31 March
2019 the facility is drawn to $33.0m following
a $3.0m repayment in July 2018, in part
funded by the introduction of the Dividend
Reinvestment Plan (DRP).
Working Capital
Working Capital reduced from $12.1m
at 31 March 2018 to $7.7m as at 31 March
2019, due, principally, to a reduction in
Trade Debtors.
Acquisition
In September 2018 the business of Select
Recruitment, of Dunedin, was brought
into the business portfolio. This was funded
by the DRP.
International Financial
Reporting Standards (IFRS)
New standards, amendments and
interpretations to existing standards
came into effect during the financial year.
The impact of these standards is disclosed
within the Financial Statements.
FINANCIAL COMMENTARY
Board of Directors
Wynnis ArmourJulia Hoare
Ross Keenan
Nick Simcock
Simon Hull
Wynnis joined the Board in January 2015
as a non-executive (“non-independent”)
Director. After holding senior
management positions in both the public
and private sectors, (including Adecco –
one of the largest global recruitment
firms) Wynnis co-founded the Madison
Group which was sold to AWF in
2013. She contributes a wealth of
business experience and commercial
acumen and a particular understanding
of the AWF, Madison and Absolute IT
businesses. Wynnis is a member
of Global Women and the Institute of
Directors and is a Director of
angel investor ArcAngels and of
Armour Consulting.
Julia joined the Board as an
independent Director in 2013
after 20 years as a partner with PwC.
Julia is Deputy Chairperson of The A2
Milk Company Ltd and of Watercare
Services Ltd, and is an independent
Director of Auckland International
Airport Ltd, Port of Tauranga Ltd and
New Zealand Post Ltd. She is on the
National Council of The Institute of
Directors, chairs the Auckland branch
of the Institute of Directors and is
on the Advisory Panel for the
External Reporting Board.
Ross joined the Board in 2004 in the
build-up to AWF’s listing and is the
group’s Chairman and an independent
Director. He brings to the Board a
wealth of corporate experience gained
as Managing Director of Ansett
New Zealand and later Newmans
Group. Ross held executive
management positions with Air
New Zealand, Air Pacific and Qantas
from 1968 to 2000 in Fiji, Australia,
Los Angeles and London. He is also a
Director of Touchdown Ltd.
Nick joined the Board as an
independent Director in January 2018
after 15 years in Managing Director
roles in New Zealand, Australia,
and Asia/Pacific with Korn Ferry/
Futurestep. Nick brings deep industry
expertise in recruiting, outsourcing,
and talent management. Nick was the
CEO and Director of a start-up SaaS
payments business Wrap It Up, which
was sold in 2017. He is a Trustee on
the Wellington Creative Capital Arts
Trust, and was formerly on the Otago
University Business School Board of
Advisors. Nick is a Chartered Member
of the Institute of Directors.
Simon founded the Allied Work
Force business in 1988. He was AWF
Managing Director for 27 years and is
its largest shareholder. He has been
instrumental in growing what is now the
AWF Madison business from a single
office in Penrose to its current market
leading position. Before founding
Allied Work Force, Simon was involved
in farming, horticulture and small
business management. He continues
to be involved in marine-focussed
businesses as well as pursuing his
onshore and offshore yacht racing
passion. Simon is a non-executive
(“non-independent”) Director.
FINANCIAL COMMENTARY
BOARD OF DIRECTORSAWF MADISON GROUP ANNUAL REPORT 201921

23221AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209CORPORATE GOVERNANCECORPORATE GOVERNANCE
The Board of Directors of AWF
Madison Group Limited (NZX:AWF)
is responsible for the corporate
governance of the Company. The Board
has established a culture that ensures
commitment to and compliance with
good corporate governance principles,
and ethical conduct is at the heart of
the Company’s business practices.
The Company will continue to monitor
developments in corporate governance
practices and update its policies
to ensure AWF Madison maintains
appropriate standards of governance.
Corporate Governance Statement
This statement sets out the corporate governance policies,
practices and processes followed by the Board throughout
the year. AWF Madison complies with the revised NZX Listing
Rules, which came into effect on 1 January 2019, and the
corporate governance principles set out in the NZX Code of
Corporate Governance. The Company also complies with the
principles in the Financial Markets Authority’s Corporate
Governance Principles and Guidelines.
The Board
The Board is responsible for the affairs and activities
of the Company. It establishes the Group’s objectives,
strategies for achieving these objectives, the overall policy
framework within which the business of the Group is
conducted, and monitors Management’s performance with
respect to these matters. The Board has delegated the
day-to-day management of the Group to the Chief Executive
Officer. Other delegations are covered in a Delegations Policy.
The Company’s Constitution and the Board Charter set out
the policies and guidelines for the operation of the Board.
Board Composition and Operations
As at 31 March 2019, the Board comprised five Directors.
Ross Keenan (Chairman), Julia Hoare and Nick Simcock
have been determined as independent Directors as defined
by the NZX Listing Rules. Simon Hull, and Wynnis Armour
are non-independent Directors.
The Board is elected by the shareholders of the Company.
In accordance with the Company’s constitution and the NZX
Listing Rules, a director must not hold office (without
re-election) past the third annual meeting following the
director’s appointment or three years, whichever is longer.
The Board holds regularly scheduled meetings and
other meetings on an as required basis. Board papers are
circulated ahead of each meeting. The Board has access
to senior executives and external advisers to provide
further information.
Board Remuneration
Directors’ fees for the year ended 31 March 2019
totalled $375,000. A fee of $115,000 per annum is paid
to the Chairman, $60,000 per annum to Julia Hoare,
Nick Simcock, Simon Hull and Wynnis Armour. Further
information is provided in the Statutory Information
section of the annual report.
The terms of any Directors’ retirement payments are as
prescribed in the Constitution and require prior approval
of shareholders in general meeting. No retirement
payments have been made to any Director.
Board Committees
The Board has five formally constituted committees of
Directors. Each Committee has a Charter or terms of
reference that establishes its purpose, structure and
responsibilities. The Committees make recommendations
to the Board and may only make decisions on matters
for which they have been given specific authority.
1. Audit, Finance and Risk Committee
The Audit, Finance and Risk Committee provides
independent assurance and assistance to the Board
and Chief Executive on the Company’s risk, control
and compliance framework, and its external financial
reporting and accountability responsibilities.
The Committee is comprised of a majority of independent
Directors. The members of the Committee are Julia Hoare
(Chairperson), Ross Keenan, Wynnis Armour, Simon Hull
and Nick Simcock.
The Committee meets at least twice per year, with the
external auditors of the Company and the AWF Madison
executives responsible for internal audit management
from within the Company in attendance. The Committee
also meets with the external auditors with AWF Madison
executives absent.

25241AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209
Diversity
The Company has a diversity policy in place (refer to the
website), consistent with the Directors’ belief that a diverse
workforce contributes to improved business performance,
enables innovation and enhances the Company’s relationship
with its customers.
In accordance with NZX’s Listing Rule requirements, the
gender breakdown of AWF Madison Group Limited’s Board
of Directors and Officers as at 31 March 2019 is:
Directors’ and Officers’ Indemnity and Insurance
The Company has insured all its Directors and Officers and
the Directors of its subsidiaries against liabilities to other
parties (except the Company or a related party of the
Company) that may arise from their position as Directors.
The insurance does not cover liabilities arising from
criminal actions.
The Company and Officers have executed Deeds of Indemnity
with Directors, indemnifying them to the extent permitted
by section 162 of the Companies Act 1993.
Risk Management
The Board is responsible for ensuring that key business
and financial risks are identified and appropriate controls
and procedures are in place to effectively manage those
risks. In managing the Company’s business risks, the Board
approves and monitors policy and process in such areas as
internal audit, treasury management, financial performance
and capital expenditure. The Board also monitors expenditure
against approved projects and approves the capital plan.
A Risk Framework is in place (refer to the website).
Principles:
• creates and protects value;
• is an integral part of all AWF Madison’s processes;
• is part of the decision-making process;
• explicitly addresses uncertainty;
• is systematic, structured and timely;
• is based on the best available information; and encourages
open communication;
• is tailored to AWF Madison;
• takes human, cultural factors and diversity into account;
• is transparent and inclusive;
• is dynamic, iterative and responsive to change; and
• facilitates continual improvement.
The Company has insurance policies in place covering most
areas of risk to its assets and business. Policies are reviewed
and renewed annually with reputable insurers.
Directors may seek their own independent professional
advice to assist with their responsibilities. During the 2019
financial year no Director sought their own independent
professional advice.
Interests Register
The Board maintains an Interests Register. In considering
matters affecting the Company, Directors are required to
disclose any actual or potential conflicts. Where a conflict
or potential conflict has been disclosed, the Director takes
no further part in receipt of information or participation in
discussions on that matter.
Disclosure/Shareholder Relations
The Company has a Continuous Disclosure Policy and
procedures in place to ensure key financial and material
information is communicated to the market in a clear and
timely manner.
Consistent with best practice and a policy of continuous
disclosure, external communications that may contain
market sensitive data are released through NZX in the first
instance. Further communication is encouraged with press
releases through mainstream media.
The Company’s website is actively used as a portal
for shareholder reports, news releases and other
communications released to shareholders and media.
The Board formally reviews its proceedings at the
conclusion of each meeting to determine whether there
may be a requirement for a disclosure announcement.
2. Remuneration Committee
The Remuneration Committee’s purpose is to establish
sound remuneration policies and practices that attract
and retain high performing Directors and senior
executives. The Committee ensures that executives and
Directors are rewarded having regard to the Company’s
long-term performance. The policies adopted are
intended to align shareholder interests and employee
interests by demonstrating a clear relationship between
shareholder value and executive performance.
The members of the Committee are Wynnis Armour
(Chairperson), Simon Hull, Julia Hoare, Ross Keenan and
Nick Simcock. The Committee meets at least annually to
review senior executive remuneration and incentives.
3. Nominations Committee
The Nominations Committee assists the Chairman
with an annual evaluation of the Board and Director
performance; to determine Director Independence and
to identify and recommend to the Board individuals for
nomination as members of the Board and its Committees.
All of the Board are members of this Committee.
The Committee meets at least annually.
4. Health & Safety Committee
The role of this Committee is to assist the Board to
fulfil its responsibilities and to ensure compliance with
all legislative and regulatory requirements in relation
to the health and safety practices of the Company as those
activities affect employees and contractors. It ensures
that the Board members themselves are aware of their
own responsibilities and duties under legislation, and are
fully informed on all Health and Safety issues and targets.
The members of this Committee are Simon Hull
(Chairman), Wynnis Armour, Julia Hoare, Ross Keenan
and Nick Simcock.
The Committee members participate in monthly
meetings, and review reports presented by the Group
Operations Health and Safety Committee.
5. Organisation Committee
The Organisation Committee acts as a reference point
for the Chief Executive in matters around organisational
change as required from time to time. The Committee is
also responsible for assisting the Board in the application
of remuneration policies and best practice for the Board,
Chief Executive and Senior Management.
The members of the Committee are Wynnis Armour
(Chairperson), Ross Keenan, Simon Hull, Julia Hoare
and Nick Simcock.
Remuneration of Auditors
Details of remuneration paid to Auditors are set out in
A4 of the Financial Statements.
Non-Audit Services
The External Financial Auditors Independence Policy sets
out the Company’s position in regard to non-audit services.
Deloitte Limited are the auditors of AWF Madison Group
Limited and whilst its main role is to provide audit services
to the Company, the Company does employ their specialist
advice where appropriate. In each instance, the Board has
considered the nature of the advice sought in context of the
audit relationship. In accordance with the advice received
from the Audit, Finance and Risk Committee, the Board does
not consider these services have compromised the auditor
independence for the following reasons:
All non-audit services have been reviewed by the Audit,
Finance and Risk Committee to ensure they do not impact
the impartiality and objectivity of the auditor;
None of the services undermined the general principles
relating to auditor independence, including not reviewing
or auditing the auditor’s own work, not acting in a
management or decision-making capacity for the Company,
not acting as advocate for the Company or not jointly
sharing economic risk or rewards.
Share Trading
The Company has adopted a Share Trading policy that sets
out the formal procedures Directors and employees are
required to follow to ensure compliance with the Financial
Markets Conduct Act 2013 (refer to the website).
2019 2018
MALE FEMALE MALE FEMALE
NUMBER OF DIRECTORS 3 2 - 4* 2 -
PERCENTAGE OF DIRECTORS 60% 40% - 67% 33% -
NUMBER OF OFFICERS 4 4 - 5 4 -
PERCENTAGE OF OFFICERS 50% 50% - 56% 44% -
*NICK SIMCOCK WAS APPOINTED ON 1 JANUARY 2018.
EDUARD VAN ARKEL RETIRED ON 25 JULY 2018.
CORPORATE GOVERNANCECORPORATE GOVERNANCE
GENDER
DIVERSE
GENDER
DIVERSE

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Other information
The directors are responsible on behalf of the Group for
the other information. The other information comprises
the information in the Annual Report that accompanies the
consolidated financial statements and the audit report.
Our opinion on the consolidated financial statements does not
cover the other information and we do not express any form of
assurance conclusion thereon.
Our responsibility is to read the other information and
consider whether it is materially inconsistent with the
consolidated financial statements or our knowledge obtained
in the audit or otherwise appears to be materially misstated.
If so, we are required to report that fact. We have nothing to
report in this regard.
Directors’ responsibilities for the consolidated
financial statements
The directors are responsible on behalf of the Group for the
preparation and fair presentation of the consolidated financial
statements in accordance with NZ IFRS and IFRS, and for such
internal control as the directors determine is necessary to
enable the preparation of consolidated financial statements
that are free from material misstatement, whether due to
fraud or error.
In preparing the consolidated financial statements, the
directors are responsible on behalf of the Group for assessing
the Group’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either
intend to liquidate the Group or to cease operations, or have
no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated
financial statements
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance
with ISAs and ISAs (NZ) will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis
of these consolidated financial statements.
A further description of our responsibilities for the audit of the
consolidated financial statements is located on the External
Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for-assurance-
practitioners/auditors-responsibilities/audit-report-1
This description forms part of our auditor’s report.
Restriction on use
This report is made solely to the Company’s shareholders,
as a body. Our audit has been undertaken so that we might
state to the Company’s shareholders those matters we are
required to state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other
than the Company’s shareholders as a body, for our audit
work, for this report, or for the opinions we have formed.
Andrew Dick, Partner
For Deloitte Limited
Auckland, New Zealand
29 May 2019
Opinion
We have audited the consolidated financial statements of
AWF Madison Group Limited and its subsidiaries (the ‘Group’),
which comprise the statement of financial position as at
31 March 2019, and the statement of comprehensive income,
statement of changes in equity, and statement of cashflows for
the year then ended, and notes to the consolidated financial
statements, including a summary of other accounting policies.
In our opinion, the accompanying consolidated financial
statements, on pages 28 to 74, present fairly, in all material
respects, the consolidated financial position of the Group as
at 31 March 2019, and its consolidated financial performance
and cash flows for the year then ended in accordance with
New Zealand Equivalents to International Financial Reporting
Standards (‘NZ IFRS’) and International Financial Reporting
Standards (‘IFRS’).
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (‘ISAs’) and International Standards
on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities
under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated Financial
Statements section of our report.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
We are independent of the Group in accordance with
Professional and Ethical Standard 1 (Revised) Code of Ethics
for Assurance Practitioners issued by the New Zealand
Auditing and Assurance Standards Board and the International
Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
Other than in our capacity as auditor, we have no relationship
with or interests in the Company or any of its subsidiaries.
Audit materiality
We consider materiality primarily in terms of the magnitude
of misstatement in the financial statements of the Group that
in our judgement would make it probable that the economic
decisions of a reasonably knowledgeable person would be
changed or influenced (the ‘quantitative’ materiality). In
addition, we also assess whether other matters that come to
our attention during the audit would in our judgement change
or influence the decisions of such a person (the ‘qualitative’
materiality). We use materiality both in planning the scope of
our audit work and in evaluating the results of our work.
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
consolidated financial statements of the current period.
These matters were addressed in the context of our audit
of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Key Audit MatterHow our audit addressed the key audit matter
Impairment testing of goodwill and other indefinite life
intangible assets
Goodwill of $39.3m and other indefinite life intangible assets
(brand names) of $9.4m are recorded in the consolidated financial
statements at 31 March 2019, as detailed in notes B3 and B2
respectively.
Goodwill and other indefinite life intangible assets are tested for
impairment annually or whenever there are indicators that these
assets may be impaired.
For the purpose of impairment testing, the goodwill and other
indefinite life intangible assets are allocated to cash generating
units (CGU) as set out in notes B3 and B2. The recoverable amount
of each CGU is determined through a value in use calculation, which
reflects significant unobservable inputs, including the forecast
performance, discount rate and growth rate.
We identified this as a key audit matter because of the significance
of the goodwill and other indefinite life intangible assets to the
Group’s consolidated financial statements and the judgement
involved in determining the value in use of each CGU.
We have audited the Group’s value in use calculations for
each cash-generating unit (CGU). Our procedures included,
amongst others:
• Testing the value in use calculations for arithmetic accuracy;
• Comparing the forecast performance with the approved 2020
financial year budget;
• Involving our internal specialists in assessing the growth rates
and the discount rates for reasonableness in comparison to
market data;
• Assessing the historical accuracy of the Group’s previous forecasts
by comparing prior period budgets to actual performance; and
• Performing a sensitivity analysis on the discount rates and
growth rates to determine the extent to which any changes in
these inputs would result in impairment to the CGUs.

To the Shareholders of AWF Madison Group Limited
Password = @nnualR3port!
Independent Auditor’s Report

29281AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209WDO1OCD1PFIE1EL LOEIWDO1OCD1PFIE1EL LOEI
AWF Madison Group Limited
Statement of comprehensive income
For the year ended 31 March 2019
AWF Madison Group Limited
Statement of financial position
As at 31 March 2019
GROUP
20192018
Note$’000$’000
Revenue from contracts with customersA2267,805279,303
Investment revenueA32632
Fair value gain on settlement of Absolute IT Limited earn-out payment–170
Direct costs(2,687)(2,187)
Employee benefits expenseF1(245,683)(253,182)
Depreciation and amortisation expenseA4, B1, B2(3,445)(3,344)
Other operating expenses(11,782)(12,385)
Finance costsA4(1,380)(1,297)
Profit before tax2,8547,110
Income tax expenseA5(841)(2,062)
Profit for the year2,0135,048
Other comprehensive income for the year––
Total comprehensive income for the year2,0135,048
Earnings per share
Total basic earnings per share (cents/share)C46.115.5
Total diluted earnings per share (cents/share)C46.115.5
The notes to the Group financial statements form an integral part of these financial statements
GROUP
20192018
Note$’000$’000
Assets
Non-current assets
Property, plant and equipmentB13,0382,498
Intangible assets – goodwillB339,27138,620
Intangible assets – otherB213,92916,079
Total non-current assets56,23857,197
Current assets
Cash and cash equivalentsC66,3576,269
Trade and other receivablesC732,62941,101
Contract assetsA2295729
Total current assets39,28148,099
Total assets95,519105,296
Equity and liabilities
Non-current liabilities
Deferred tax liabilitiesA52,4622,748
BorrowingsC833,00036,000
Total non-current liabilities35,46238,748
Current liabilities
Trade and other payablesC924,18628,527
Contract liabilitiesA2530340
Taxation payableA5280622
ProvisionsF2241200
Total current liabilities25,23729,689
Total liabilities60,69968,437
Net assets34,82036,859
Capital and reserves
Share capitalC229,16527,598
Group share scheme reserve544383
Retained earningsC15,1118,878
Total equity34,82036,859
For and on behalf of the Board who authorise the issue of the financial statements on 29 May 2019:
ROSS KEENAN, Chair JULIA HOARE, Chair, Audit and Risk Committee
The notes to the Group financial statements form an integral part of these financial statements

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AWF Madison Group Limited
Statement of cashflows
For the year ended 31 March 2019
AWF Madison Group Limited
Statement of changes in equity
For the year ended 31 March 2019
GROUP
Share
capital
Treasury
shares
Group share
scheme
reserve
Retained
earnings
Total
equity
Note$’000$’000$’000$’000$’000
2018
Balance at 1 April 201727,624(319)4509,18036,935
Comprehensive income
Profit for the year–––5,0485,048
Other comprehensive income–––––
Total comprehensive income–––5,0485,048
Transactions with shareholders
Dividends paidC1, C5–––(5,350)(5,350)
Treasury Shares cancelledC3(90)90–––
Treasury Shares convertedC266229(66)–229
Treasury Share conversion and
cancellation costsC2(2)–––(2)
Share based paymentsF1––(1)–(1)
Total transactions with shareholders(26)319(67)(5,350)(5,124)
Balance at 31 March 201827,598–3838,87836,859
2019
Balance at 31 March 201827,598–3838,87836,859
Effect of changes in accounting policies
resulting from the adoption of
NZ IFRS 9 & 15G2–––(374)(374)
Balance at 1 April 2018 (Restated)27,598–3838,50436,485
Comprehensive income
Profit for the year–––2,0132,013
Other comprehensive income–––––
Total comprehensive income–––2,0132,013
Transactions with shareholders
Issue of share capitalC21,569–––1,569
Share issue costsC2(2)–––(2)
Dividends paidC1, C5–––(5,406)(5,406)
Share based paymentsF1––161–161
Total transactions with shareholders1,567–161(5,406)(3,678)
Balance at 31 March 201929,165–5445,11134,820
The notes to the Group financial statements form an integral part of these financial statements
GROUP
20192018
Note$’000$’000
Cashflows from operating activities
Receipts from customers275,022282,554
Payments to suppliers and employees(262,813)(266,336)
Net cash generated from operations12,20916,218
Interest received2632
Interest paid(1,380)(1,296)
Income taxes paid(1,378)(3,445)
Net cash from operating activitiesC69,47711,509
Cashflows from investing activities
Proceeds from disposal of property, plant and equipment81155
Purchase of property, plant and equipmentB1(1,606)(482)
Purchase of intangible assetsB2, G1(1,025)(157)
Net cash (used in)/from investing activities(2,550)(484)
Cashflows from financing activities
Proceeds from the issue of share capitalC2, C31,569229
Share issue costs(2)(2)
Dividends paid to share holders of the parentC5(5,406)(5,350)
Proceeds from borrowings/(Repayments)C8(3,000)2,500
Repayment of vendor on settlement of Absolute IT Limited earn-out payment–(3,250)
Net cash from/(used in) financing activities(6,839)(5,873)
Net increase/(decrease) in cash held885,152
Cash and cash equivalents at start of the year6,2691,117
Net cash and cash equivalents at end of the yearC66,3576,269
The notes to the Group financial statements form an integral part of these financial statements

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Notes to the Financial Statements
IN THIS SECTION
The notes to the financial statements include information
that is considered relevant and material to assist the reader
in understanding changes in AWF Madison Group Limited
and its controlled entities (“the Group”) financial position
or performance.
Information is considered relevant and material if:
• the amount is significant because of its size and nature;
• it is important for understanding the results of the Group;
• it helps explain changes in the Group’s business; or
• it relates to an aspect of the Group’s operations that is
important to future performance.
AWF Madison Group Limited is a listed company incorporated
and domiciled in New Zealand. The address of its registered
office and principal place of business is disclosed in the
directory to the annual report. The principal services of the
Group are the supply of temporary staff, contractor resource
and recruitment of permanent staff.
BASIS OF PREPARATION
These financial statements have been prepared:
• in accordance with New Zealand Generally Accepted
Accounting Practices in New Zealand (‘GAAP’).
They comply with New Zealand equivalents to
International Financial Reporting Standards (‘NZ IFRS’),
International Financial Reporting Standards (‘IFRS’)
and other applicable Financial Reporting Standards as
appropriate for profit-orientated entities;
• in accordance with the requirements of the Financial
Market Conduct Act 2013, the Companies Act 1993,
and the NZX listing rules;
• on the basis of historical cost, modified by revaluation of
certain assets and liabilities; and
• in New Zealand dollars (which is the Group’s functional and
presentation currency), with values rounded to thousands
($000) unless otherwise stated.
The financial statements were authorised for issue by the
directors on 29 May 2019.
Adoption of new and revised Standards and Interpretations
New standards and amendments and interpretations to
existing standards that came into effect during the current
accounting period
The Group has adopted the NZ IFRS 9
Financial Instruments
and NZ IFRS 15
Revenue from Contracts with Customers
which became effective for the year beginning 1 April 2018.
Disclosures relating to the impact of the adoption of
NZ IFRS 9 and NZ IFRS 15 on the Group’s financial statements
are outlined in note G2.
New standards and amendments and interpretations to
existing standards that are not yet effective for the current
accounting period beginning on 1 April 2018
The Group has not early adopted any new standards,
amendments and interpretations that have been issued
but are not yet effective.
The new standards, amendments and interpretations that
will have an impact on the Group are discussed below and
the Group intends to adopt these new standards, amendments
and interpretations when they become mandatory.
• NZ IFRS 16 Leases
NZ IFRS 16
Leases’ will replace NZ IAS 17 Leases’.
NZ IFRS 16 eliminates the distinction between operating
and finance leases for lessees and will result in
lessees bringing most leases onto their Statements
of Financial Position.
Lessor accounting is largely mostly unchanged from
NZ IAS 17.
NZ IFRS 16 introduces the following:
• Use of a control model for the identification of leases.
This model distinguishes between leases and service
contracts on the basis of whether there is an identified
asset controlled by the customer;
• Assets (a right-of-use asset) and liabilities (a lease
liability reflecting future lease payments) will now be
recognised in respect of all leases, with the exception
of certain short-term and low value assets.
The effective date is annual reporting periods beginning
on or after 1 January 2019. Earlier application is permitted,
if NZ IFRS 15
Revenue from Contracts with Customers has
also been adopted.
The indicative impacts of implementing NZ IFRS 16 are
as follows for all leases that the Group is a party to:
Initial recognition and measurement:
• Recognition of a right of use (‘ROU’) asset. Initial
measurement of the ROU asset would include the initial
present value of the lease liability, the initial direct costs,
prepayments made to lessor, less any lease incentives
received from the lessor and restoration, removal and
dismantling costs; and
• Recognition of a lease liability, which would reflect
the initial measurement of the present value of lease
payments, including reasonably certain renewals.
Subsequent measurement:
• ROU asset: Depreciate the ROU asset based on NZ IAS
16
Property, plant and equipment.
• Lease liability: Accrete liability based on the effective
interest method, using a discount rate determined at
lease commencement (as long as a reassessment and
a change in the discount rate have not occurred) and
reduce the liability by payments made.
NZ IFRS 16 will have a material impact on the Group’s
financial statements and will be dependent on the leases
that the Group is a party to as at the beginning of the
comparative accounting period presented in the Group’s
financial statements for the year ended 31 March 2020.
The Group’s operating lease commitments as at 31 March
2019 are set out in note F4.
The Group will adopt NZ IFRS 16 for the accounting period
beginning 1 April 2019.
The Group has elected to adopt the Cumulative effect
approach under which the Group will not restate
comparative information. The carrying value of the right-
of-use asset and the lease liability shall be the carrying
amount of the lease asset and lease liability as at
1 April 2019.
Based on existing lease arrangements, the preliminary
assessment of the adoption of IFRS 16 is expected to
result in the recognition of the following:
As at 1 April 2019, the recognition of the following
on the Group’s Statement of Financial Position:
• a ROU asset of $15.4m;
• a lease liability of $15.4m; and
• a net movement in deferred tax of $Nil (comprised
as a increase in deferred tax assets and deferred tax
liabilities of $4.3m).
For the year ended 31 March 2020, the recognition
of the following on the Group’s Statement of
Comprehensive Income:
• a decrease in rental expense (included within other
operating expenses) of $2.7m;
• an increase in depreciation expense of $2.4m;
• an increase in finance costs of $0.6m; and
• an decrease in tax expense of $0.1m.
For the year ended 31 March 2020, overall there would
be no impact on the Group’s Statement of Cashflows,
however there would be a increase in net cash from
operating activities of $0.6m and corresponding decrease
in net cash from/(used in) financing activities $0.6m.
OTHER ACCOUNTING POLICIES
Accounting policies that are relevant to an understanding
of the financial statements (other than those provided
throughout the notes to the financial statements) are set
out below:
Impairment of tangible and intangible assets
excluding goodwill
At the end of each reporting period, the Group reviews the
carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets
have suffered an impairment loss. If any such indication
exists (and at least annually for indefinite life intangible
assets) the recoverable amount of the asset is estimated in
order to determine the extent of the impairment loss (if any).
The recoverable amount is the higher of an asset’s fair value
less costs to sell and value in use. In assessing value in use,
the estimated cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset for which the estimates of future cash
flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less
than its carrying amount, the carrying amount of the asset
is reduced to its recoverable amount. An impairment loss is
recognised immediately in profit or loss.
Where an impairment loss subsequently reverses, the
carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but the increased carrying
amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognised for
the asset in prior periods.
A reversal of an impairment loss is recognised immediately
in profit or loss.
Financial instruments
Financial assets and financial liabilities are recognised
on the Group’s Statement of financial position when the
Group becomes a party to the contractual provisions of the
instrument. All of the financial assets of the Group, which
include trade and other receivables, other current assets
(deposits), are classified as financial assets at amortised
cost. The Group’s trade and other payables are classified
as financial liabilities at amortised cost.
Financial liabilities and equity instruments issued by the
Group are classified according to the substance of the
contractual arrangements entered into and the definitions
of a financial liability and an equity instrument. An equity
instrument is any contract that evidences a residual interest
in the assets of the Group after deducting all of its liabilities.
Goods and services tax (GST)
All revenue and expense transactions and cashflows are
recorded exclusive of GST and other value added taxes.
Assets and liabilities are similarly stated exclusive of GST,
with the exception of receivables and payables, which are
stated with GST included.
Employee benefits
Liabilities for employee entitlements are carried at the
present value of the estimated future cash flows.
Wages, salaries and annual leave
Liabilities for wages and salaries, including non-monetary
benefits, statutory days in lieu, annual leave and sick leave
expected to be settled within 12 months of the reporting date
are recognised in respect of employees’ services up to the
reporting date. They are measured at the amounts expected
to be paid when the liabilities are settled.
Superannuation plans
The Group pays contributions to superannuation plans,
such as Kiwisaver. The Group has no further payment
obligations once the contributions have been paid.
The contributions are recognised as an employee benefit
expense when they are due. Prepaid contributions are
recognised as an asset to the extent that a cash refund
or a reduction in the future payments is available.

35341AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209OSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEIOSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEI
This section explains the financial performance of the Group,
providing additional information about individual items in the
Statement of Comprehensive Income, including:
(a) accounting policies, judgments and estimates that are
relevant for understanding items recognised in revenue.
(b) analysis of the Group’s performance for the year by
reference to key areas including: performance by
segment, revenue, expenses and taxation.
A1 SEGMENT PERFORMANCE
Operating segments are reported in a manner consistent
with the internal reporting provided to the Group’s Directors,
who are the chief operating decision maker.
The Group’s reportable segments under NZ IFRS 8
Operating Segments have been identified as follows:
• AWF
• Madison and Absolute IT
These segments have been determined on the basis,
of the trading brands that operate under each; that discrete
financial information is available for these segments; and
that their operating results are regularly reviewed by the
Group’s chief operating decision maker.
AWF
The ‘AWF’ segment operates branches under the brand names
AWF Labour, AWF Manufacturing and Logistics, AWF Trades,
Tradeforce Recruitment and Select in major towns and cities
throughout New Zealand. These brands primarily derive their
revenues from temporary staffing services to industry.
Madison and Absolute IT
The ‘Madison and Absolute IT’ segment operates branches
under the brand names Madison Recruitment, Madison Force,
Interim Taskforce and Absolute IT (from November 2016) in
major cities throughout New Zealand. These brands derive
their revenues from temporary, contract and permanent staff
services to commerce.
All revenues from external customers, and non-current
assets other than financial instruments, deferred tax assets,
post-employment benefit assets, and rights arising under
insurance contracts are attributed to the Group’s country
of domicile.
A. Financial Performance
IN THIS SECTION
Segment revenueSegment profit
2019201820192018
SEGMENT REVENUE AND RESULTS$’000$’000$’000$’000
Continuing operations
AWF115,859129,8481,2604,858
Madison and Absolute IT151,946149,4555,5975,963
Total for continuing operations267,805279,3036,85710,821
Other income2632
Central administration costs and directors fees(2,649)(2,446)
Finance costs(1,380)(1,297)
Profit/(loss) before tax2,8547,110
Income tax expense(841)(2,062)
Profit for the year2,0135,048
Revenue reported above represents revenue generated from external customers. Inter-segment sales in the year were $360,642
(2018: $568,139) and have been eliminated from the above table. Inter-segment sales were eliminated from the originating
segment. One customer accounts for 11.0% of the Group’s revenue, relating to the Madison and Absolute IT segment, no other
customers individually account for more than 10% of the Group’s revenue (2018: No one customer accounted for more than
10% of the Group’s revenue).
The accounting policies of the reportable segments are the same as the Group’s accounting policies described in this report.
Segment profit represents the profit earned by each segment without allocation of central administration costs and directors’
fees, investment revenue, finance costs, and income tax expense. This is the same measure reported to the chief operating
decision maker for the purpose of resource allocation and assessment of segment performance.
Equity instruments
Ordinary share capital is classified as equity when there
is no obligation to transfer cash or other assets. Incremental
costs directly attributable to the issue of new shares are
shown in equity as a deduction, net of tax, from the proceeds.
Costs which are not directly attributable to the issue of
new shares are shown as an expense and included in
other operating expenses expenses in the Statement of
Comprehensive Income.
Where the Group purchases the Group’s equity share
capital (treasury shares), the consideration paid, including
any directly attributable incremental costs (net of income
taxes) is deducted from equity attributable to the Group’s
equity holders until the shares are cancelled or reissued.
Where such ordinary shares are subsequently reissued,
any consideration received, net of any directly attributable
incremental transaction costs and the related income tax
effects, is included in equity attributable to the Group’s
equity holders.
KEY JUDGMENTS AND SOURCES OF
ESTIMATION UNCERTAINTY
In the process of applying the Group’s accounting policies
and the application of accounting standards, the directors
are required to make a number of judgments, estimates
and assumptions about the carrying amounts of assets and
liabilities that are not readily available from other sources.
These estimates and associated assumptions are based on
historical experience and various other matters that are
considered to be appropriate under the circumstances.
Actual results may differ from these estimates.
Judgments and sources of estimation uncertainty that are
considered material to understand the performance of the
Group are found in the following notes:
Note – B2
Estimating the remaining useful lives of identifiable
customer relationship and restraint of trade assets and
testing the carrying value of brand assets
Note – B3
Testing the carrying value of goodwill
Note – A2 & C7
Expected credit losses from trade and other receivables
and contract assets
Note – A2
Measurement of contract liabilities
Note – F2
Rehabilitation under the ACC Partnership programme
Note – G1
Identification of intangible assets arising from a
business combination

37361AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209OSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEIOSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEI
20192018
SEGMENT ASSETS$’000$’000
AWF30,85633,865
Madison and Absolute IT61,65270,464
Total segment assets92,508104,329
Unallocated assets3,011967
Total assets95,519105,296
For the purposes of monitoring segment performance and allocating resources between segments, the chief operating decision
maker monitors the tangible, intangible and financial assets attributable to each segment. All assets are allocated to reportable
segments other than cash, cash equivalents and tax assets of the parent.
KEY JUDGMENTS AND ESTIMATES – OPERATING SEGMENTS
Goodwill has been allocated to reportable segments as described in note B3. Assets used jointly by reportable segments are
allocated on the basis of the revenues earned by individual reportable segments.
20192018
SEGMENT LIABILITIES$’000$’000
AWF10,29510,618
Madison and Absolute IT13,32919,455
Total segment liabilities23,62430,073
Unallocated liabilities37,07538,364
Total liabilities60,69968,437
For the purposes of monitoring segment performance and allocating resources between segments, the chief operating decision
maker monitors the liabilities attributable to each segment. All liabilities are allocated to reportable segments other than bank
loans and tax liabilities of the parent.
Depreciation
and amortisation
Employee
benefits
Net additions to
non-current assets
201920182019201820192018
OTHER SEGMENT INFORMATION$’000$’000$’000$’000$’000$’000
AWF720683105,828116,738835(661)
Madison and Absolute IT2,7252,661138,160135,397(1,794)(2,424)
Unallocated––1,6951,047––
Total3,4453,344245,683253,182(959)(3,085)
A2 REVENUE FROM CONTRACTS WITH CUSTOMERS
Accounting Policy
Revenue recognition from contacts with customers
Revenue is measured at the fair value of the consideration
received or receivable. Revenue is recognised once value
has been received by the customer, when the performance
obligations have been satisfied and control has transferred.
This is typically on successful placement of a candidate.
The transaction price is allocated to performance obligations
based on their relative standalone selling prices.
Revenue earned on temporary placement – over time
Revenue from temporary placements, represents amounts
billed from the supply of semi-skilled and skilled temporary
staff, including the wage cost of these staff is recognised
when the service has been provided. Revenue is recognised
over time as services are provided. Performance completed
to date is based on the number of hours worked.
The factors considered by Management on a contract by
contract basis when concluding the Group is acting as
principal rather than agent are as follows:
• Whether the customer has a direct relationship with
the Group;
• Whether the Group has the primary responsibility for
providing the services to the client, and engages and
contracts directly with the temporary worker or other
recruitment companies;
• Whether the Group has latitude in establishing the
rates directly or indirectly with all parties.
Revenue earned on permanent placement – point in time
Revenue from permanent placements, represents amounts
billed from the placement of permanent candidates.
Revenue is typically based on a percentage of the candidate’s
remuneration package, this income being recognised at the
date an offer is accepted by a candidate and where a start
date has been determined.
If a candidate failed to remain in the position for greater than
twelve weeks a guarantee is provided to replace the candidate.
Revenue earned on a retained basis – point in time
Where the Group is engaged on a retainer basis, revenue
recognised is typically based on a percentage of candidate’s
remuneration package, this income being recognised on the
completion of defined stages of work. The defined stages
are: on confirmation of vacancy and after job briefing;
on presentation of shortlist; and candidate placement.
Revenue is recognised when the underlying performance
obligation is satisfied – the successful placement of
the candidate.
Revenue earned as other services are provided – point in time
Where the Group is engaged to provide payroll related services
to manage the administration of contractors sourced by its
customers directly, revenue is recognised when the underlying
performance obligation is satisfied – upon the provision of
services, charged at hourly or daily rates.
Where the Group is engaged to provide contractors,
they are covered by the Group’s indemnity insurance cover.
A fee for this indemnity insurance cover is recognised when
the underlying performance obligation is satisfied – upon
the provision of cover, charged at hourly rates.
Where the Group is engaged to provide other employee related
services, such as psychometric assessments, advertising and
candidate background checks, revenue is recognised when
the underlying performance obligation is satisfied – upon the
provision of services, charge at agreed rates.
Variable consideration
The Group pays customer rebates (for revenue from
temporary and permanent placement), provides credit
notes and warranties over the contract period for certain
recruitment services (for revenue on a retained basis).
Revenue is constrained to the extent that recognition
would result in a significant reversal of revenue. When the
uncertainty is resolved, the consideration is recognised.
Significant financing component
Payment is typically due within 30–60 days from the
invoicing of a contract. There is no significant financing
component in any of the Group’s contracts with customers.
The Group previous accounting policy for the recognition
of revenue from the rendering of services for the year
ended 31 March 2018
Revenue from the provision of services was recognised
when the services were provided. Permanent placement
fees were recognised in the accounting period when a
candidate accepted an offer of employment. Temporary
and contractors’ placements fees were recognised when
services were provided.

39381AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209OSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEIOSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEI
GROUP
20192018
REVENUE FROM CONTRACTS WITH CUSTOMERS$’000$’000
Revenue earned on temporary placements
– AWF114,684129,004
– Madison and Absolute IT113,122111,539
Total revenue earned on temporary placements227,806240,543
Revenue earned on permanent placements
– AWF963713
– Madison and Absolute IT10,97910,063
Total revenue earned on permanent placements11,94210,776
Revenue earned on a retained basis
– Madison and Absolute IT80107
Total revenue earned on a retained basis80 107
Other service revenue––
– AWF212132
– Madison and Absolute IT27,76527,745
Total other service revenue27,97727,877
Total revenue267,805279,303
KEY JUDGMENTS AND ESTIMATES – DETERMINING THE
TRANSACTION PRICE FOR REVENUE FROM CONTRACTS
WITH CUSTOMERS
Refund guarantees
For revenue on a retained basis, Management estimates the
expected refund guarantees to customers based on historical
experience of candidates leaving within the guarantee period.
The estimate is updated for key reporting periods. Refund
guarantees relate to the placement of individual candidates.
Rebate
Management estimates the expected rebates to customers
on inception of the contract based on past precedent and
future expected sales. The estimate is updated for key
reporting periods. Rebates relate to the placement of a
portfolio of candidates and the discount is applied to all
qualifying placements.
GROUP
20192018
CONTRACT ASSETS$’000$’000
Customers yet to be invoiced for services rendered295729
Less provision for impairment––
Total contract assets295729
Classified as:
Current295729
Non-current––
Total contract assets295729

CONTRACT ASSETS
Services rendered, invoice yet to send
Payment for services rendered (which includes revenue
from all three streams identified above) are not due from the
customer until the Group has invoiced the customer. Contract
assets are balances due to be recovered from customers
for work performed, that have yet to be invoiced. When the
customer is invoiced, any amounts previously recognised as
a contract asset are reclassified to trade receivables. Contract
assets amounts are invoiced within 30 days, with payment
typically due within 30 to 37 days from the invoice being
issued. There is no significant financing component in any
of the Group’s contracts with customers.
Appropriate allowances for expected irrecoverable amounts
are recognised in profit and loss which are measured using
the simplified approach permitted by NZ IFRS 9
Financial
Instruments, which requires lifetime expected losses for
contract assets to be recognised from initial recognition of
the assets. The Group determines the expected credit losses
from contact assets in a manner consistent with the approach
described for trade and other receivables in note C7.

41401AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209OSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEIOSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEI
GROUP
EXPECTED LOSS RATES
FOR CONTRACT ASSETSCurrent1 – 30 days30 – 60 days60 – 90 days90+ daysTotal
1 April 2018
Expected loss rate (%)–%–%–%–%–%–%
Gross contract assets ($’000)729––––729
Provision for impairment of
contract assets ($’000)––––––
Net contract assets729––––729
31 March 2019
Expected loss rate (%)–%–%–%–%–%–%
Gross contract assets ($’000)295––––295
Provision for impairment of
contract assets ($’000)––––––
Net contract assets295––––295
GROUP
20192018
CONTRACT LIABILITIES$’000$’000
Guarantee refund liabilities175116
Rebate liabilities355224
Total contract liabilities530340
Classified as:
Current530340
Non-current––
Total contract liabilities530340
KEY JUDGEMENTS AND ESTIMATES – EXPECTED CREDIT
LOSSES FROM CONTRACT ASSETS
Management has reviewed and assessed contracts and
the provision for impairment represents the best estimate
of the expected credit losses based on historical credit
loss experience adjusted to reflect current conditions and
estimates of future economic conditions.
In making this assessment, Management takes into account
qualitative and quantitative information about current and
prospective macroeconomic factors affecting the ability of the
debtors (associated to the contracts) to repay the receivables.
The impairment provision is based on assumptions about
the risk of default and expected loss rates. The Group
uses judgement in making these estimates and developing
inputs to the calculation. The inputs are based on the
Group’s past history, external market conditions as well
as prospective information.
CONTRACT LIABILITIES
Contract guarantees
For revenue on a retained basis, the Group’s standard
contract terms for under permanent placement revenue
contracts, includes a guarantee that the candidate placed will
remain in the role for more than 12 weeks. If the candidate
does not remain in the role for more than 12 weeks, the Group
will endeavour to replace the candidate with another individual
at no further cost to the customer. If the Group is unable to
replace the candidate then the customer is entitled to a credit
against the customers account.
Upon placement, a refund liability is recognised with a
corresponding adjustment to revenue. This refund liability is
measured using a rate derived utilising the Group’s historical
experience of candidates who have left before 12 weeks.
This historical experience rate is measured using the portfolio
approach permitted by NZ IFRS 15
Revenue from Contract
with Customers
. This estimate is updated regularly at each
reporting period.
Contract rebates
For revenue from temporary and permanent placements,
under the Group’s contract terms with certain customers,
a rebate is payable/applied to customers based on agreed
percentages of amounts billed over a specified period.
These agreed percentages can either be a single fixed rate
or incremental based on thresholds.
At the beginning of the specified period, a rebate liability
is recognised with a corresponding adjustment to revenue.
This rebate liability is measured using a rate derived utilising
the Group’s expectation of the amounts to be billed to the
customer over the specified period. This expectation is
based on historical experience with the customer adjusted
to reflect forecast estimates of the placements required
by the customer over the specified period.
This estimate is updated regularly at each reporting period.
KEY JUDGEMENTS AND ESTIMATES – GUARANTEE
AND REBATE LIABILITIES
Guarantee refund liabilities
Management has reviewed and assessed the historical
experience rate and the contract liabilities for refund
guarantees represents on a portfolio basis, the best estimate
of expected candidates leaving within the guarantee period.
Rebate liabilities
Management has reviewed and assessed the past precedent
and future expected sales for individual customers and the
contract liabilities for rebates that represent the best estimate
of expected rebates to customers. The estimate is updated
for key reporting periods.
GROUP
REVENUE RECOGNISED THAT WAS INCLUDED IN THE CONTRACT
LIABILITY BALANCE AT THE BEGINNING OF THE PERIOD
20192018
$’000$’000
Guarantee refund liabilities11623
Rebate liabilities224429
Revenue recognised that was included in the contract liability
balance at the beginning of the period340452
GROUP
REVENUE RECOGNISED FROM PERFORMANCE OBLIGATIONS
SATISFIED IN PREVIOUS PERIODS
20192018
$’000$’000
Guarantee refund liabilities11623
Rebate liabilities224429
Revenue recognised from performance obligations satisfied in previous periods340452

43421AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209OSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEIOSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEI
A5 TAXATION
Accounting Policy – current tax
1 Income tax expense represents the sum of the tax currently
payable and deferred tax.
2 Taxable profit differs from profit before tax reported in
the income statement as it excludes items of income and
expense that are taxable or deductible in other years and
also excludes items that will never be taxable or deductible.
3 Current and deferred tax are recognised as an expense
or income in profit or loss, except when they relate to
items recognised in other comprehensive income or
directly in equity, in which case the tax is also recognised
in other comprehensive income or directly in equity, or
where they arise from the initial accounting for a business
combination. In the case of a business combination,
the tax effect is taken into account in calculating goodwill
or in determining the excess of the acquirer’s interest
in the net fair value of the acquiree’s identifiable assets,
liabilities and contingent liabilities over the cost of the
business combination.
4 Income tax expense is the income assessed on taxable
profit for the year.
5 AWF Madison Group Limited’s liability for current tax
is calculated using tax rates that have been enacted at
balance date, being 28% (2018: 28%) for New Zealand.
GROUP
20192018
INCOME TAX EXPENSE$’000$’000
Current tax
In respect of current year1,2352,212
In respect of prior year(199)219
1,0362,431
Deferred tax
In respect of current year(351)(150)
In respect of prior year156(219)
(195)(369)
Total tax expense8412,062
Reconciliation to profit before tax
Profit before income tax2,8547,110
Income tax at 28%7991,991
Tax effect of expenses that are not deductible in determining taxable profit4271
Income tax expense8412,062
Effective tax rate for the year29.5%29.0%
GROUP
20192018
CURRENT TAX ASSETS AND LIABILITIES$’000$’000
Current tax liabilities
Income tax payable280622
Total current tax liabilities280622
A3 INVESTMENT REVENUE
Accounting Policy
Dividend and interest revenue is presented as investment
revenue in the statement of comprehensive income.
Dividend revenue
Dividend revenue from investments is recognised when the
shareholder’s right to receive payment has been established.
Interest revenue
Interest revenue is accrued on a time basis using the effective
interest method.
GROUP
20192018
INVESTMENT REVENUE$’000$’000
Investment revenue2632
Other revenue––
Total investment revenue2632
A4 EXPENSES
GROUP
20192018
BAD AND DOUBTFUL DEBTS EXPENSE$’000$’000
Bad debts1,109815
Impairment losses reversed(445)(594)
Total bad and doubtful debts expense664221
GROUP
20192018
DEPRECIATION AND AMORTISATION EXPENSENote$’000$’000
Depreciation of property, plant and equipmentB1921952
Amortisation of intangible assetsB22,5242,392
Total depreciation and amortisation expense3,4453,344
GROUP
20192018
FINANCE COSTS$’000$’000
Interest on bank overdrafts and loans1,0881,030
Other interest expense292267
Total finance costs1,3801,297
GROUP
20192018
AUDITOR’S REMUNERATION TO DELOITTE FOR:$’000$’000
Audit of the financial statements
Audit of the financial statements162162
Total auditor’s remuneration to Deloitte162162

45441AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209OSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEIOSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEI
Accounting Policy – deferred tax
1 Deferred tax is recognised on differences between the
carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the
computation of taxable profit, and is accounted for using the
balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent
that it is probable that taxable profits will be available
against which deductible temporary differences can be
utilised. Such assets and liabilities are not recognised if
the temporary difference arises from goodwill or from the
initial recognition (other than in a business combination)
of other assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
2 Deferred tax liabilities are recognised for taxable temporary
differences arising on investments in subsidiaries, except
where the Group is able to control the reversal of the
temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
3 The carrying amount of deferred tax assets is reviewed at
each balance sheet date and reduced to the extent that it
is no longer probable that sufficient taxable profits will be
available to allow all or part of the assets to be recovered.
4 Deferred tax is calculated at the tax rates that are expected
to apply in the period when the liability is settled or the
asset realised based on tax rates that have been enacted
or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the
manner in which the Group expects, at the reporting date,
to recover or settle the carrying amounts of its assets
and liabilities.
5 Deferred tax assets and liabilities are offset when there
is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to
income taxes levied by the same taxation authority and the
Group intends to settle its current tax assets and liabilities
on a net basis.
DEFERRED TAX BALANCES
The following are the major deferred tax assets/(liabilities) recognised by the Group, and the movements thereon, during the
current reporting period:
GROUP
Contract
assets and
liabilities
Employee
benefits
Bad debt
provision
Other
provisions
Identifiable
intangible
assets
Total
$’000$’000$’000$’000$’000$’000
At 1 April 2017–1,339326169(4,951)(3,117)
Prior period adjustment–206(75)(3)91219
Charge (credit to profit or loss for the year)–(140)(166)(73)529150
As at 31 March 2018–1,4058593(4,331)(2,748)
Effect of changes in accounting policies
resulting from the adoption of
NZ IFRS 9 & 15 (note G2)41–104––145
As at 31 March 2018 (Restated)411,40518993(4,331)(2,603)
Prior period adjustment–(157)––1(156)
Business combination––––(54)(54)
Charge (credit to profit or loss for the year)(41)(132)(125)17632351
As at 31 March 2019–1,11664110(3,752)(2,462)
GROUP
20192018
IMPUTATION BALANCES$’000$’000
Imputation credits available for subsequent reporting periods at 28% 9,5397,666
The above amounts represent the balance of the imputation account as at the end of the reporting period at 28%, adjusted for:
• Imputation credits that will arise from the payment of the amount of the provision for income tax; and
• Imputation debits that will arise from the payment of dividends recognised as a liability at the reporting date.
The consolidated amounts include imputation credits that would be available to the parent entity if subsidiaries paid dividends.
The imputed portions of the final dividends recommended after reporting date will be imputed out of existing imputation credits
or out of imputation credits arising from the payment of income tax in the next reporting period.
The following diminishing value rates are used for the depreciation of property, plant and equipment
Motor vehicles 25 to 36%
Fixtures and equipment 10 to 60%
Leasehold improvements 4 to 14%
GROUP
Motor VehiclesFixtures and
equipment
Leasehold
Improvements
Total
Note$’000$’000$’000$’000
Cost1,0105,2781,6557,943
Less accumulated depreciation(630)(3,290)(675)(4,595)
Net book value at 1 April 20173801,9889803,348
Additions51305126482
Business combinations––––
Disposals – cost(318)(416)(493)(1,227)
Depreciation expenseA4(114)(742)(96)(952)
Eliminations on disposal – depreciation260336251847
Net book value at 31 March 20182591,4717682,498
Additions369795911,606
Business combinations––––
Disposals – cost(251)(1,202)(49)(1,502)
Depreciation expenseA4(78)(721)(122)(921)
Eliminations on disposal – depreciation1841,150231,357
Net book value at 31 March 20191501,6771,2113,038
Cost5284,9441,8307,302
Less accumulated depreciation(378)(3,267)(619)(4,264)
Net book value at 31 March 20191501,6771,2113,038
B. Assets used to generate income
This section shows the assets the Group uses to
generate operating income. In this section of the notes
there is information about:
(a) property, plant and equipment
(b) intangible assets
(c) goodwill
B1 PROPERTY, PLANT AND EQUIPMENT
Accounting policy
1 Fixtures and equipment, motor vehicles and leasehold
improvements are stated at cost less accumulated
depreciation and any accumulated impairment losses.
2 Depreciation is charged so as to write off the cost of assets,
over their estimated useful lives using the diminishing
value method.
3 The gain or loss arising on the disposal or retirement of
an item of property, plant and equipment is determined as
the difference between the sales proceeds and the carrying
amount of the asset and is recognised in Statement of
comprehensive income.
IN THIS SECTION

47461AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209OSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEIOSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEI
B2 INTANGIBLE ASSETS
Accounting policy
1 Intangible assets acquired in a business combination are
identified and recognised separately from goodwill where
they satisfy the definition of an intangible asset and their
fair values can be measured reliably. The cost of such
intangible assets is their fair value at the acquisition date.
2 Intangible assets acquired separately with finite useful
lives are carried at cost less accumulated amortisation
and accumulated impairment losses. Amortisation is
recognised on a straight-line basis over their estimated
useful lives (72 months). The estimated useful life and
amortisation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate
being accounted for on a prospective basis.
3 Intangible assets acquired separately with indefinite useful
lives are not amortised and are reviewed for impairment
on an annual basis and whenever there is an indication that
the asset may be impaired as per NZ IAS 36 Impairment
of Assets (refer also B3).
Other intangible assets (excluding goodwill) represent the value of client relationships, brand names and restraints of trade
acquired through business combinations (where the economic value can reliably be assessed) and computer software.
GROUP
Computer
Software
Customer
Relationships
Brand
Name
Restraint
of Trade
Total
Note$’000$’000$’000$’000$’000
Cost2,24013,3719,4451,30426,360
Less accumulated amortisation(802)(6,933)–(311)(8,046)
Net book value at 1 April 20171,4386,4389,44599318,314
Additions157–––157
Amortisation expenseA4(238)(1,937)–(217)(2,392)
Impairment–––––
Net book value at 31 March 20181,3574,5019,44577616,079
Additions180194––374
Amortisation expenseA4(349)(1,957)–(218)(2,524)
Impairment–––––
Net book value at 31 March 20191,1882,7389,44555813,929
Cost2,57713,5659,4451,30426,891
Less accumulated amortisation(1,389)(10,827)–(746)(12,962)
Net book value at 31 March 20191,1882,7389,44555813,929
The amortisation expense has been included in the line
item “depreciation and amortisation expense” in the
Statement of Comprehensive Income.
Brand names of:
• $7.465 million identified and recognised from the
Madison acquisition are allocated to the Madison Group
cash generating unit; and
• $1.980 million identified and recognised from the
Absolute IT acquisition are allocated to the Absolute IT
cash generating unit.
KEY JUDGMENTS AND SOURCES OF ESTIMATION
UNCERTAINTY
Brand assets are indefinite life non-financial assets.
Determining whether brand assets are impaired requires
an estimation of the value in use of the cash generating unit
to which brand relates to. The impairment testing of brand
is undertaken in conjunction with the impairment testing of
goodwill related to the cash generating unit (refer to note
B3 for further information).
The impairment assessment of customer relationships and
restraint of trade assets requires a judgment and estimation
of the expected remaining useful life of these assets.
B3 GOODWILL
Accounting policy
Goodwill arising on the acquisition of a subsidiary is recognised
as an asset at the date that control is acquired (the acquisition
date). Goodwill is measured as the excess of the sum of the
consideration transferred, the amount of any non-controlling
interest in the acquiree and the fair value of the acquirer’s
previously held equity interest (if any) in the acquiree over the
fair value of the identified net assets recognised.
Goodwill is not amortised, but is reviewed for impairment
at least annually. For the purpose of impairment testing,
goodwill is allocated to each of the Group’s cash generating
units (‘CGUs’) expected to benefit from the synergies of
the combination.
Cash generating units to which goodwill and indefinite
life intangible assets have been allocated are tested for
impairment annually, or more frequently when there is an
indication that the unit may be impaired. The recoverable
amount is the higher of fair value less cost to sell and the value
in use. If the recoverable amount of the cash generating unit is
less than the carrying amount of the unit, the impairment loss
is allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets of the unit
pro-rata on the basis of the carrying amount of each asset
in the unit. Any impairment loss on goodwill is recognised
immediately in profit or loss and is not subsequently reversed.
GROUP
20192018
Note$’000$’000
Balance at 1 April38,62038,620
Business combinations - Select (allocated to the AWF CGU)G1651–
Net book value as at 31 March39,27138,620
Allocation to cash generating units
• AWF11,21210,561
• Madison Recruitment20,22320,223
• Absolute IT7,8367,836
Total goodwill39,27138,620
Annual test for impairment
The Group tests goodwill annually for impairment or
more frequently if there are indications that goodwill
might be impaired.
The recoverable amount of each cash-generating unit
is determined from value in use calculations which use
a discounted cash flow analysis. The key assumptions
for the value in use calculations are those regarding
the discount rates, growth rates and forecast financial
performance. Management estimates discount rates using
rates that reflect current market assumptions of the time
value of money and risk specific to the cash generating units.
The growth rates are based on management’s best estimate.
Changes in selling price and direct costs are based on past
practices and expectations of future changes in the market.
The Group prepares cash flow forecasts derived from the
most recent financial budgets approved by the Board for
the subsequent year and estimates of future cash flows
based on an estimated growth rate of 1.5% (2018: 2.0%).
This rate does not exceed the average long-term growth
rate for the relevant markets.
The discount rate used to discount the forecast cash flows
is 9.14% (2018: 9.85%). The discount and growth rates have
been consistently applied to all cash generating units.
In assessing the goodwill for impairment, a sensitivity
analysis for reasonably possible changes in key assumptions
was performed.
This included:
– reducing the estimated growth rate of growth rates by 0.5%;
– reducing the terminal growth rate by 1%.
These reasonably possible changes in rates did not result
in any impairment of goodwill.
KEY JUDGEMENTS AND SOURCES OF
ESTIMATION UNCERTAINTY
(a) Determining whether goodwill is impaired requires
an estimation of the value in use of the group of cash
generating units to which goodwill has been allocated.
The value in use calculation requires the directors to
estimate the future cash flows expected to arise from
those cash-generating units and a suitable discount rate
in order to calculate present value.
(b) Determining whether goodwill is impaired requires an
appropriate discount rate to be applied to future
cashflows. An independent assessment of Group’s weighted
average cost of capital was obtained in January 2019.
The discount rate has moved to 9.14% under the Classical
model (2018: 9.85%). The key inputs into the Classical
model included a risk-free rate based on 10 year
New Zealand government bonds, a market risk premium
and an equity beta based on share prices of a selection of
listed recruitment companies in the USA and Europe.

49481AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209OSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEIOSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEI
This section explains the Group’s reserves and working
capital. In this section there is information about:
(a) equity and dividends
(b) net debt; and
(c) receivables and payables
C. Managing funding
IN THIS SECTION
C1 RETAINED EARNINGS
GROUP
20192018
RETAINED EARNINGS AND DIVIDENDSNote$’000$’000
Opening balance at 1 April 20188,8789,180
Effect of changes in accounting policies resulting from the adoption
of NZ IFRS 9 & 15G2(374)–
Opening balance at 1 April 2018 (Restated)8,5049,180
Total comprehensive income for the year2,0135,048
Dividends paidC5(5,406)(5,350)
Closing balance at 31 March5,1118,878
C2 SHARE CAPITAL
GROUP
2019201820192018
ORDINARY SHARE CAPITALNoteNo of SharesNo of Shares$’000$’000
Issued and fully paid:
Balance at 1 April32,555,19332,463,39327,59827,624
Issue of sharesC5868,206–1,569–
Cancellation of Treasury Shares–––(90)
Conversion of Treasury Shares to Ordinary SharesC3, F1–91,800–66
Conversion and cancellation costs––(2)(2)
Total33,423,39932,555,19329,16527,598
The share capital reflected in the following note represents the ordinary share capital of AWF Madison Group Limited.
All ordinary shares carry rights to dividends and distribution on wind-up.
C3 TREASURY SHARES
GROUP
2019201820192018
TREASURY SHARESNoteNo of SharesNo of Shares$’000$’000
Issued and fully paid:
Balance at 1 April–127,800–319
Cancellation of Treasury SharesC2–(36,000)–(90)
Conversion of Treasury Shares to Ordinary SharesC2, F1–(91,800)–(229)
Total––––
Treasury shares are those ordinary shares purchased by the Group in the course of establishing an Executive Share Scheme
and converted to restricted shares.
C4 EARNINGS PER SHARE
GROUP
20192018
EARNINGS PER SHARENote$’000$’000
Comprehensive income for the year net of tax2,0135,048
Number of ordinary shares:
As at 31 MarchC233,423,39932,555,193
Weighted average number of shares for basic earnings per share32,993,55432,543,956
Total basic earnings per share (cents per share)6.115.5
Weighted average number of shares for diluted earnings per share32,993,55432,543,956
Total diluted earnings per share (cents per share)6.115.5
In 2015, the Group set up a long term incentive scheme, offering the Group’s Chief Executive Officer stock appreciation
rights (SAR’s) with a reference price of $2.28 per SAR (refer Note F1).
At 31 March the SAR’s vesting criteria was not achieved (2018: not achieved) therefore they are anti-dilutive.
The SAR’s could potentially dilute earnings per share in the future.
The restricted shares detailed in Note F1 could also potentially dilute earnings per share in the future, but currently
are anti-dilutive (2018 were anti-dilutive).

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C5 DIVIDENDS
Accounting policy
Dividend distributions to the Group’s shareholders is
recognised as a liability in the Group’s financial statements
in the period in which the dividends are approved.
C6 CASH AND CASH EQUIVALENTS
Accounting policy
Cash and cash equivalents comprise of cash held by the
Group and short-term bank deposits with an original maturity
of less than three months. The carrying amount of these
assets approximates their fair value.
For the purpose of the statement of cash flows, cash and
cash equivalents include cash on hand and in banks and
investments in money market instruments, net of outstanding
bank overdrafts.
The following terms are used in the consolidated cash
flow statement:
• Operating activities are the principal revenue producing
activities of the Group and other activities that are not
investing or financing activities;
• Investing activities are the acquisition and disposal of
long term assets and other investments not included in
cash equivalents; and
• Financing activities are activities that result in changes
in the size and composition of the contributed equity
and borrowings of the entity.
GROUP
20192018
CASH AND CASH EQUIVALENTS$’000$’000
Cash at bank6,3576,269
Total cash and cash equivalents6,3576,269
Cash at bank and bank overdraft are financial instruments that are subject to offset. The Group has a legally enforceable right
to offset and an intention to settle on a net basis. Cash at bank and bank overdraft have not been offset in the presentation
of the Group’s statement of financial position, however have been offset in the presentation of total cash and cash equivalents
in the Group’s statement of cashflows and above.
GROUP
RECONCILIATION OF NET PROFIT AFTER TAX
TO CASH FLOWS FROM OPERATING ACTIVITIES
20192018
$’000$’000
Net profit after income tax2,0135,048
Adjustments for operating activities non-cash items:
Depreciation and amortisation3,4453,344
Loss on disposal of property, plant and equipment64224
Movement in doubtful debts provision plus bad debt write off in current year664221
Movement in deferred tax(195)(369)
Equity-settled share-based payments161(2)
Fair value gain on settlement of Absolute IT Limited earn-out payment–(170)
Total non-cash items4,1393,248
Movements in working capital excluding movements relating to purchase of subsidiaries:
(Increase)/ decrease in trade and other receivables, and contract assets7,8713,277
Increase/(decrease) in trade and other payables, and contract liabilities(4,299)966
Increase/(decrease) in provisions41(17)
Increase/(decrease) in taxation payable(288)(1,013)
Total movement in working capital3,3253,213
Cash flow from operating activities9,47711,509
GROUP
20192018
Cents
per share
Total
$’000
Cents
per share
Total
$’000
Recognised amounts:
Prior year final dividend8.202,7048.202,705
Interim dividend8.002,7028.002,645
5,4065,350
Final dividend declared8.202,7418.202,699
Dividend Reinvestment Plan (DRP)
During the year, the Board implemented a DRP which enabled shareholders to reinvest up to 50% of their dividend in
newly issued ordinary shares in AWF Madison Group Limited.
In conjunction with the final dividend declared for the financial year ended 31 March 2018 a total of 402,415 ordinary
shares at $1.92 per share for a total of $773,000 were issued.
In conjunction with the interim dividend declared for the financial year ended 31 March 2019 a total of 465,791 ordinary
shares at $1.71 per share for a total of $796,000 were issued.
Subsequent event
On 29 May 2019 the directors approved the payment of a fully imputed final dividend of 8.2 cents per share (total dividend
$2,802,957) to be paid on 9 July 2019 to all shareholders registered on 24 June 2019 (2018: On 28 May 2018 the directors
approved the payment of a fully imputed final dividend of 8.2 cents per share (total dividend $2,698,718) to be paid on
10 July 2018 to all shareholders registered on 29 June 2018).

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GROUP
20192018
TRADE AND OTHER RECEIVABLESNote$’000$’000
Trade receivables32,16437,984
Provision for impairment of trade receivables(229)(143)
Total trade receivables31,93537,841
Other receivables6943,420
Provision for impairment of other receivables–(160)
Total other receivables6943,260
Total trade and other receivables32,62941,101
GROUP
20192018
PROVISION FOR IMPAIRMENTNote$’000$’000
PROVISION FOR IMPAIRMENT OF TRADE RECEIVABLES
Closing balance at previous 31 March143897
Effect of changes in accounting policies resulting from
the adoption of NZ IFRS 9G2371–
Balance at 1 April514897
Impairment losses recognised1,109655
Write-offs to bad debts during the yearA4(1,034)(815)
Impairment losses reversedA4(360)(594)
Balance at 31 March229143
PROVISION FOR IMPAIRMENT OF OTHER RECEIVABLES
Closing balance at previous 31 March160–
Effect of changes in accounting policies resulting from
the adoption of NZ IFRS 9––
Balance at 1 April160–
Impairment losses recognised–160
Write-offs to bad debts during the yearA4(75)–
Impairment losses reversedA4(85)–
Balance at 31 March–160
Total provision for impairment of trade and other receivables at 31 March229303
C7 TRADE AND OTHER RECEIVABLES
Accounting policy
Trade and other receivables are measured on initial
recognition at fair value and subsequently at amortised
cost using the effective interest method.
Appropriate allowances for expected irrecoverable amounts
are recognised in profit and loss which are measured using
the simplified approach permitted by NZ IFRS 9 Financial
Instruments, which requires lifetime expected losses for
trade and other receivables to be recognised from initial
recognition of the receivable.
There are no trade and other receivables with a significant
financing component.
The Group determines the expected credit losses
by calculating:
• a probability weighted amount that is determined by
evaluating a range of possible outcomes;
• time value of money;
• reasonable and supportable information that is available
at the reporting date about past events, current conditions
and forecasts of future economic conditions.
When reassessing expected credit losses the Group also
considers any change in the credit risk and quality of the
receivable from the date credit was initially granted up to
the end of the reporting period, referring to past default
experience of the counterparty and an analysis of the
counterparty’s current financial position.
The Group previous accounting policy for the year ended
31 March 2018
Trade and other receivables are measured on initial
recognition at fair value and subsequently at amortised cost
using the effective interest method. Appropriate allowances
for estimated irrecoverable amounts are recognised in profit
and loss when there is objective evidence that the assets
impaired. The allowance recognised is measured as the
difference between the asset’s carrying amount and the
present value of estimated future cash flows discounted
at the effective interest rate computed at initial recognition.
In determining the recoverability of a trade or other
receivables, the Group considers any change in the credit
quality of the receivable from the date credit was initially
granted up to the end of the reporting period, reference
to past default experience of the counterparty and an
analysis of the counterparty’s current financial position.
The Group determines the expected credit losses for all
trade receivables and other receivables (including those
that are past due and neither past due) by using a provision
matrix, estimated based on historical credit loss experience
based on shared credit risk characteristics and the days past
due status of the debtors. The expected loss rates are based
on the payment profiles of sales over a period of 60 months.
The historical loss rates are adjusted to reflect current
conditions and estimates of future economic conditions
affecting the ability of the debtors to repay the receivables.
The Group has identified the unemployment rate and
industry-specific variables to be the most relevant factors,
and accordingly adjusts the historical loss rates based on
expected changes in these factors.
An allowance of $229,000 (2018: $303,000) has been
made for expected credit losses arising from trade and
other receivables.
Before accepting a new customer, the Group conducts
reference checks using external sources. Customer checks
and approval of credit limits are performed independently
of the sales function, and are reviewed on an ongoing basis.
The credit period on sale of services is between 7 and 30
days, unless otherwise agreed. No interest is charged on
trade receivables for the first 30 days from the date of invoice.
Thereafter, interest can be charged at 1.5 per cent per month
on the outstanding balance.
Included in trade receivables are debtors with a carrying value
of $4.95 million (2018: $6.17 million) which are overdue at
the reporting date. Included in other receivables are debtors
with a carrying value of $Nil (2018: $0.16 million) which are
overdue at the reporting date.
The Group does not hold any collateral over these balances.
The Group writes off a receivable when there is information
indicating that the debt is in severe financial difficulty and
there is no realistic prospect of recovery, e.g. when the
debtors has been placed under receivership or liquidation,
or has entered into bankruptcy proceedings. NZ IFRS 9
includes a rebuttal presumption that a loss event has
occurred if debtors are aged greater than 90 days.
Impairment losses on trade and other receivables are
presented as ‘direct expenses’ in the Statement of
Comprehensive Income. Any revisions to this amount are
credited to the same line item.

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GROUP
EXPECTED LOSS RATES FOR TRADE RECEIVABLES
Current1 – 30
days
30 – 60
days
60 – 90
days
90+
days
Total
1 April 2018
Expected loss rate (%)-%-%-%-%35.6%0.4%
Gross trade receivables ($’000)31,8104,50686839840237,984
Provision for impairment of trade receivables ($’000)––––(143)(143)
Net trade receivables31,8104,50686839825937,841
31 March 2019
Expected loss rate (%)–%1.4%2.2%3.9%42.7%0.7%
Gross trade receivables ($’000)27,2103,33488938734432,164
Provision for impairment of trade receivables ($’000)–(47)(20)(15)(147)(229)
Net trade receivables27,2103,28786937219731,935
GROUP
EXPECTED LOSS RATES FOR OTHER RECEIVABLES
Current30 – 60
days
60 – 90
days
90+ daysTotal
1 April 2018
Expected loss rate (%)–%–%–%–%–%4.68%
Gross other receivables ($’000)3,260–––1603,420
Provision for impairment of other receivables ($’000)––––(160)(160)
Net other receivables3,260––––3,260
31 March 2019
Expected loss rate (%)–%–%–%–%–%–%
Gross other receivables ($’000)694––––694
Provision for impairment of other receivables ($’000)––––––
Net other receivables694––––694
Other information about customers
One customer accounts for 11% of the 2019 Group revenue, no other customers individually accounts for more than 10% of the
2019 Group revenue (2018: none).
The concentration of credit risk is limited due to the size of the customer base.
C8 BORROWINGS – AT AMORTISED COST
GROUP
20192018
BORROWINGS$’000$’000
Bank loans33,00036,000
Total borrowings33,00036,000
Classified as:
Current––
Non-current33,00036,000
Total bank loans33,00036,000
Summary of borrowing arrangements
The Group has a term loan facility of $36.0 million with ASB Bank Limited of which $33.0 million was drawn as at 31 March 2019
(2018: $36 million).
The loan facilities are secured by first ranking General Security Deed with cross guarantees and indemnities executed by all
Group entities (refer note E1).
The banking facilities require the Group to operate within defined financial undertakings. The Group has complied with all
covenant requirements during the year.
Interest is calculated on a floating rate and the annual weighted average rate is 3.90% (2018: 3.44%). The rate is reset every
three months. The loan is an interest only loan and is repayable on 1 October 2021 (2018: 2 September 2019).
The Group has an overdraft facility of $12.0 million with ASB Bank Limited. The balance of the overdraft was $Nil as at
31 March 2019 (2018: $Nil) and cash at bank was $6.357 million at 31 March 2019 (2018: $6.269 million).
The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash
changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be,
classified in the Group’s statement of cash flows as cash flows from financing activities:
Reconciliation of liabilities arising from financing activities
GROUP
Opening balance
1 April
Financing
cash flows
(i)
Non-cash
changes
Closing balance
31 March
Note$’000$’000$’000$’000
For the year ended 31 March 2018
Borrowings
Bank loans – ASB Bank Limited:
– Term facilityC833,5002,500–36,000
Other financial liabilities from
financing activities
Absolute IT Limited earn-out payment3,420(3,250)(170)–
Total36,920(750)(170)36,000
For the year ended 31 March 2019
Borrowings
Bank loans – ASB Bank Limited:
– Term facilityC836,000(3,000)–33,000
Total36,000(3,000)–33,000
(i) The cash flows make up the net amount of proceeds from borrowings, repayments of borrowings and repayment of other financial liabilities in
the statement of cash flows.
KEY JUDGEMENTS AND ESTIMATES – EXPECTED CREDIT
LOSSES FROM RECEIVABLES
Management has reviewed and assessed debtors on a
branch-by-branch basis and the provision for impairment
represents the best estimate of the expected credit
losses based on historical credit loss experience adjusted
to reflect current conditions and estimates of future
economic conditions.
In making this assessment, Management takes into account
qualitative and quantitative information about current and
prospective macroeconomic factors affecting the ability
of the debtors to repay the receivables.
The impairment provision is based on assumptions about
the risk of default and expected loss rates. The Group
uses judgement in making these estimates and developing
inputs to the calculation. The inputs are based on the
Group’s past history, external market conditions as well
as prospective information.

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This section explains the financial risks the Group faces,
how these risks affect the Group’s financial position and
performance and how the Group manages these risks.
D1 FINANCIAL RISK MANAGEMENT
The Group is exposed to a variety of financial risks comprising:
– credit risk;
– liquidity risk;
– market risk – interest rate risk;
– capital risk.
Credit risk
Credit risk is the risk that one party to a financial instrument
will cause a financial loss to the other party by failing to
discharge an obligation.
The Group’s principal financial assets are cash and cash
equivalents, and trade and other receivables.
The credit risk on cash and cash equivalents is limited
because the counterparty is a bank with a high credit-rating
assigned by international credit-rating agencies. The
maximum credit risk on other balances is limited to their
carrying values without taking into account any collateral held.
The Group’s credit risk is primarily attributable to its trade
and other receivables. The amounts presented in the
Statement of financial position are net of allowances for
doubtful receivables.
The Group has no significant concentration of credit risk as
its exposure is spread over a large number of customers
other than outlined in note C7.
Liquidity risk
Liquidity risk is the risk that an Group will encounter difficulty
in meeting obligations associated with financial liabilities.
The Group manages liquidity risk by maintaining adequate
reserves, banking facilities and reserve borrowing facilities
by continuously monitoring forecast and actual cash flows
and matching the maturity profiles of financial assets and
financial liabilities.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash
flows of a financial instrument will fluctuate as a result of
changes in market interest rates.
The Group’s exposure to interest rate risk arises mainly
from its interest earning cash deposits and its interest bank
borrowings. The Group is exposed to interest rate risk to the
extent that it invests for a fixed term at fixed rates or borrows
for a fixed term at fixed rates. The Group’s policy is to obtain
the most favourable term and interest rate available.
The Group’s exposure to interest rate risk is to the extent that
it invests for a fixed term at fixed rates. The Group’s interest
rate risk policy is to obtain the most favourable term and
interest rate available.
Capital risk management
The Group manages its capital to ensure that the entities
in the Group will be able to continue as a going concern
while maximising the return to stakeholders through the
optimisation of the debt and equity balance. The Group’s
overall strategy remains unchanged from the prior year.
The capital structure of the Group consists of debt, which
includes the borrowings disclosed in note C8, cash and cash
equivalents (note C6) and equity attributable to equity holders
of the Group, comprising retained earnings, issued share
capital and treasury account as disclosed in notes C1, C2
and C3 respectively.
The directors review the capital structure on a periodic basis.
As part of this review the directors consider the cost of capital
and the risks associated with each class of capital. The
directors will balance the overall capital structure through
payment of dividends, new share issues, and share buy
backs as well as the issue of new debt or the redemption of
existing debt.
Fair value of financial instruments
The carrying amounts of financial instruments at balance
date approximate the fair value at that date.
D. Financial instruments used to manage risk
IN THIS SECTION
C9 TRADE AND OTHER PAYABLES
Accounting policy
Trade and other payables are initially measured at fair value,
and subsequently measured at amortised cost, using the
effective interest rate method.
Income, expenses, assets and liabilities are recognised net of
goods and services tax (“GST”), except:
• where the amount of GST incurred is not recoverable from
the taxation authority, it is recognised as part of the cost of
acquisition of an asset or as part of an item of expense; or
• for receivables and payables which are recognised inclusive
of GST where invoiced.
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs.
GROUP
20192018
TRADE AND OTHER PAYABLES$’000$’000
Trade payables7,0296,708
Goods and services tax (GST) payable3,9925,011
PAYE3,2783,993
Other payables and accruals9,88712,815
Total trade and other payables24,18628,527

59581AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209OSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEIOSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEI
Liquidity and interest rate risk management
The following tables detail the Group’s remaining contractual maturity for its assets and liabilities excluding cash and cash
equivalents. The tables have been drawn up based on the undiscounted cash flows of financial assets and liabilities based on the
earliest date on which the Group can be required to receive or pay. The tables include both interest and principal cash flows. To
the extent that interest cash flows are at floating rates, the undiscounted cash flows are derived from interest rates at 31 March.
Weighted
average
effective
interest rate
Less than
1 month
1 – 3
months
3 – 12
months
1 – 5
years
5+
years
TOTAL
%$’000$’000$’000$’000$’000$’000
2019
Financial assets
Non-interest bearing-%32,924––––32,924
Floating interest0.75%6,357––––6,357
Financial liabilities
Non-interest bearing-%15,4115,7853,521––24,717
Floating interest3.90%10721596533,536–34,823
54,7996,0004,48633,536–98,821
2018
Financial assets
Non-interest bearing-%41,830––––41,830
Floating interest0.75%6,269––––6,269
Financial liabilities
Non-interest bearing-%17,8217,0184,028––28,867
Floating interest3.44%10320692936,516–37,754
66,0237,2244,95736,516–114,720
Sensitivity analysis
The sensitivity analysis has been based on the exposure to interest rates for borrowings and cash and cash equivalents at
31 March. The weighted average interest of cash and cash equivalents at balance date was 0.75% (2018: 0.75%).
A 50 point increase or decrease is used when reporting interest rate risk internally to key management personnel and
represents management’s assessment of the reasonably possible change in interest rates.
INTEREST RATE
+/ – 50 bps
20192018
$’000$’000
Impact on profit and equity165180
This section provides information to help readers understand
the Group’s structure and how it affects the financial position
and performance of the Group.
E1 SUBSIDIARIES
Accounting policies
Basis of consolidation
The Group financial statements comprise the financial
statements of the company and entities (including structured
entities) controlled by the company and its subsidiaries.
Control is achieved when the Group:
• has powers over the investee;
• is exposed, or has rights, to variable returns from its
involvement with the investee; and
• has the ability to use its powers to affect its returns
The Company reassesses whether or not it controls an
investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control
listed above.
The results of subsidiaries acquired or disposed of during
the year are included in profit or loss from the effective
date of acquisition or up to the effective date of disposal,
as appropriate. Where necessary, adjustments are made
to the financial statements of subsidiaries to bring the
accounting policies used into line with those used by other
members of the Group.
All intra-group transactions, balances, income and expenses
are eliminated in full on consolidation.
E. Group structure
IN THIS SECTION
The consolidated financial statements include the financial statements of AWF Madison Group Limited and the subsidiaries
listed below. Subsidiaries are entities controlled, directly or indirectly, by AWF Madison Group Limited.
NAME OF SUBSIDIARY
Place of
incorporation
and operation
Proportion
of ownership
interest
Proportion
of voting
power held
Principal
activity
2019
AWF LimitedNew Zealand100%100%Labour hire
Madison Recruitment LimitedNew Zealand100%100%Recruitment
Madison Force LimitedNew Zealand100%100%Recruitment
Absolute IT LimitedNew Zealand100%100%Recruitment and Payroll Services
Probity NZ LimitedNew Zealand100%100%Priority checks
NZ Employed LimitedNew Zealand100%100%Dormant
2018
AWF LimitedNew Zealand100%100%Labour hire
Force Christchurch Limited*New Zealand100%100%Labour hire
Madison Recruitment LimitedNew Zealand100%100%Recruitment
Madison Force LimitedNew Zealand100%100%Recruitment
Absolute IT LimitedNew Zealand100%100%Recruitment and Payroll Services
* Force Christchurch Limited (formerly AWF Christchurch Limited) until 7 June 2018, was removed from the New Zealand Companies Office
Register on 31 January 2019.

61601AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT2091AWF 1MDISOFNGSRUF1OOR1PFGLUSGEFT209OSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEIOSELIFESFECLFNGSRUFWDO1OHD1PFIE1EL LOEI
F. Other
IN THIS SECTION
This section includes the remaining information relating to the
Group’s financial statements that is required to comply with
financial reporting standards.
F1 EMPLOYEE BENEFITS AND SHARE BASED PAYMENTS
Accounting policies
1 Provision is made for benefits accruing to employees in
respect of wages and salaries, annual leave, long service
leave, and sick leave when it is probable that settlement
will be required and they are capable of being measured
reliably.
2 Provisions made in respect of employee benefits expected
to be settled within 12 months are measured at their
nominal values using the remuneration rate expected to
apply at the time of settlement.
3 Provisions made in respect of employee benefits which are
not expected to be settled within 12 months are measured
as the present value of the estimated future cash outflows
to be made by the Group in respect of services provided by
employees up to reporting date.
4 The Group operates an equity-settled share based incentive
scheme for senior staff and directors that is settled in
ordinary shares. The fair value of these share-based
payments is calculated on the grant date using an
appropriate valuation model. The fair value is included in
employee benefits expense on a straight line basis over
the vesting period, based on the Group’s estimate of the
number of equity instruments that will eventually vest.
The same amount is credited to shareholders equity.
At each balance date, the Group re-assesses its estimates
of the number of equity instruments expected to vest.
The impact of the revision of original estimates, if any,
is recognised in employee benefits expense immediately,
with a corresponding adjustment to shareholders equity.
5 The Group operates an equity-settled stock appreciation
right scheme for its chief executive that is settled in
ordinary shares. The fair value of the stock appreciation
rights are treated as share based payments as per the
requirements of NZ IFRS 2 Share Based Payments.
The fair value of the SAR’s are calculated on grant date
using an appropriate valuation model. The fair value is
included in employee benefits expense on a straight line
basis over the vesting period. The same amount is
credited to shareholders equity.
GROUP
20192018
EMPLOYEE BENEFITS$’000$’000
Employee benefits242,334250,096
Employer contribution to Kiwisaver3,1883,087
Equity-settled share-based payments161(1)
Total employee benefits expense245,683253,182
GROUP
20192018
COMPENSATION OF KEY MANAGEMENT PERSONNEL$’000$’000
The remuneration of key management during the year was as follows:
Salaries and short-term benefits3,102 2,774
Employer contribution to Kiwisaver 71 92
Equity-settled share-based payments 75 82
Total key management personnel compensation 3,248 2,948
The remuneration of directors and key executives is determined by the remuneration committee having regard to the
performance of individuals and market trends.
Employee share schemes
The Group has an ownership-based compensation scheme for
senior employees and directors of the Group. In accordance
with the provisions of the restricted share scheme, as
approved by shareholders, senior employees and directors
may, at the discretion of the Board, be granted the opportunity
of purchasing restricted shares at a price determined by the
Board under the rules of the scheme.
Invited participants purchase the shares by way of an interest
free loan from the Group. Participants may convert their
shares from the vesting date and only when they have repaid
the loan from the Group. The shares issued to participants
are held as security for the loan until such time the loan has
been repaid. Restricted shares are entitled to all the rights as
ordinary shares, including dividends and full voting rights,
but are not tradable until they are converted to ordinary
shares based on the terms of the scheme.
A total of 463,000 restricted shares were issued to senior
staff during the year under the terms of the Group share
scheme. At the same time an interest free loan was provided
to staff to purchase these shares pursuant to the terms of
the scheme.
No restricted shares were exercised during the year
(2018: A total of 91,800 shares (91,800 Restricted A shares)
were exercised during the year).
60,000 restricted shares expired during the year
(2018: 182,000 shares). The corresponding interest free loan
provided to staff was also cancelled.
At 31 March 2019, there were 759,000 (2018: 356,000) shares
held by staff members and corresponding loans to the value
of $1,647,270 (2018: $914,820).
The following share-based payment arrangements were in existence at 31 March 2019:
Number
Grant
date
Vesting
date
Expiry
date
Issue
price
Fair value
of option at
grant date
RESTRICTED SHARE SERIES$$
D Shares156,00030/07/20141/07/20191/07/20202.570.87
E Shares 2017 Grant28,00023/11/20161/07/20191/07/20202.570.59
F Shares 2017 Grant42,00023/11/20161/01/20221/01/20232.570.79
E Shares 2018 Grant28,0002/08/20171/07/20191/07/20202.640.53
F Shares 2018 Grant42,0002/08/20171/01/20221/01/20232.640.82
E Shares 2019 Grant26,0006/06/20181/07/20191/07/20201.930.33
F Shares 2019 Grant39,0006/06/20181/01/20221/01/20231.930.51
G Shares 2019 Grant151,2001/11/20181/07/20211/07/20221.900.38
H Shares 2019 Grant246,8001/11/20181/01/20241/01/20251.900.55
Total759,000
The rules of the restricted share scheme (which for accounting purposes are treated as share options) allow participants to
hand back to the Group restricted shares issued to them at the grant date (or during the exercise period) should the market
price of the shares be below the exercise price. If the restricted shares are handed back to the Group, the loan from the Group
is cancelled. Due to the nature of the restricted share scheme, the scheme has been treated as a share option scheme under
NZ IFRS 2
Share-based Payment and a value placed on each restricted share in accordance with the standard.
Restricted shares are valued using Black-Scholes pricing model. Where relevant, the expected life used in the model has been
adjusted based on management’s best estimate for the effects of non-transferability, exercise, and behavioural considerations.
Expected volatility is based on the historical share price volatility over the expected term of the option. The valuation assumes
that senior employees and directors will exercise the options at the end of the allowed one-year loan repayment period.