BusinessLive reports that labour-services group Workforce Holdings said on Monday its diversification strategy was paying off, even as it took a profit hit in the six months to end-June, partly as a result of the implementation of the national minimum wage (NMW).
Workforce reported an 8.4% fall in after-tax profit to R41.2m for the period despite an increase in revenue. Cash generated by operations jumped 28.5% as it focused more on training and financial services in addition to its recruitment operations. The company, which has been hit by regulatory changes such as those affecting labour broking, said on Monday that while the NMW did not affect turnover during the period, it had affected profitability. The group’s staffing business constituted 79% of revenue during the period, down from 81% in the period of the year earlier. The staffing and outsourcing cluster reported a 15% fall to R65m in earnings.
- Read the original of the above report by Karl Gernetzky at BusinessLive
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