INTERIM: AWF: Media Release 04:38p.m. 
24/10/2019 16:38  
REL: 1638 HRS AWF Madison Group Limited  
INTERIM: AWF: Media Release  
24 October 2019  
Solid white collar performance underpins Half Year result  
o Revenue down 2% to $139 million  
o EBITDA increase of 20% to $6.2 million (noting impact of IFRS 16)  
o Net profit before tax down from $2.9 to $1.9 million  
o White collar segment earnings steady at $3.8 million  
o AWF segment earnings turn corner and increase on prior 6 months  
o Earnings guidance (EBITDA) $12.7 million to $14 million for FY March 2020  
o Interim Dividend steady at 8.0 cents per share  
AWF Madison completed the acquisition of JacksonStone & Partners on 1 June  
2019. This is an excellent acquisition and a great fit for the Group.  
JacksonStone was earnings-accretive for four months after acquisition costs  
and will make a strong contribution in the next 6 months. The ease of  
integration and cultural fit is extremely encouraging, as is the pipeline of  
work as we head in to the second half of the year.  
Slight softening of the economy has had an impact on our existing white  
collar businesses, Madison and Absolute IT. Industrial Relations activity  
specific to Madison has had an impact on the first six months, which  
prevented a growth in earnings in this segment.  
AWF has continued to experience immigration-related employment issues which  
are nearing resolution. This outcome has taken longer than anticipated and  
has not delivered us the earnings lift we were seeking but has improved on  
the prior six months markedly and will see us deliver to our expectations for  
the final six months.  
From a market perspective we expect a softening in the economy to reduce  
demand for permanent recruitment services, offset by an upswing in demand for  
temporary and contract resources.  
Strong cashflows and shareholder support for the Dividend Reinvestment Plan  
allowed us to fund the acquisition of JacksonStone & Partners, with an  
initial payment of $6.7 million. During the period, net debt rose $1.8  
A fully-imputed Interim Dividend of 8.0 cents per share (unchanged from 2018)  
will be paid on 29 November 2019, to shareholders on the register at close of  
business on 18 November 2019 (the Record Date).  
The Dividend Reinvestment Plan (DRP), will apply to the Interim Dividend; and  
in this regard the Board has determined that up to 50% of this Interim  
Dividend will be allowed to participate in the forthcoming distribution.  
Shareholding Directors have, again, committed to participate to the full  
extent of their respective entitlements under the DRP, as they have since its  
Simon Bennett: CEO  
Contact: (09) 917 1010  
Ross Keenan: Chairman  
For the Board  
Note 1 Reconciliation - EBITDA to Profit after tax  
EBITDA is a non-generally accepted accounting principle term and reconciles  
to reported Profit after tax as follows:  
6 months 6 months  
30-Sep-19 30-Sep-18  
EBITDA to NPAT Reconciliation $000's  
EBITDA 6,231 5,152  
IFRS 16 - Leases; Depreciation on ROU assets (1,371)  
IFRS 16 - Leases; Finance (276)  
Depreciation and Amortisation Expense (1,813) (1,642)  
Finance Costs (737) (637)  
Acquisition-related expenses (101)  
Net Profit before tax 1,933 2,873  
Income tax expense (612) (821)  
Net Profit after tax 1,321 2,052  
End CA:00343202 For:AWF Type:INTERIM Time:2019-10-24 16:38:44  

Click here to view related attachments.