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Snow Leopard
04-06-2005, 03:23 PM
According to this little NZHerald article (http://www.nzherald.co.nz/index.cfm?c_id=3&ObjectID=10329017) propectus will be issued Thursday.
I presume that this company does well in most phases of the economic cycle.
Boom times companies need all the hands they can get.
Bust times casual labour is easier to get rid off.
etc etc.

May have some merit

duncan macgregor
04-06-2005, 03:50 PM
PAPERTIGER, I have used this company over a period of a few years so will let you know from a business perspective warts and all how i was treated. I have hired labourers and carpenters in various building projects as required when required. I found the company honest punctual and easy to deal with. The quality of labour when treated right give me good service. If i require labour to suppliment i have no hesitation in calling them. That is a very honest opinion i have no doubt that they employ the occasional rat bag. As far as listing and buying shares well its up to you. macdunk

duncan macgregor
06-06-2005, 02:09 PM
BONGO, I would not be interested, even although as i stated i found it to be an honest company, easy to deal with that supplied a good service. They have nothing of substance to sell if it goes bad. Why list?. Why not expand without listing?. It costs very little to open a new office, and hire out casual labour. What is to stop you or me renting an office and doing the same. It looks like someone wants to take my money, and bugger off leaving me with all the risk.
The labourers and other trade workers mostly have their own transport, the only expence being an office, and a van to take the others that dont have transport to the workplace. To me that risk is definately not on. macdunk

Bling_Bling
06-06-2005, 04:31 PM
The economy is slowing.

Snow Leopard
09-06-2005, 11:13 AM
For those that are interested

[quote]quote:
NZXR
09/06/2005
GENERAL

REL: 1130 HRS New Zealand Exchange Limited

GENERAL: NZXR: Allied Work Force IPO to raise $11.4 million

Allied Work Force IPO to raise $11.4 million

Specialist labour hire firm Allied Work Force Group Limited today announced
that it plans to list on the NZSX and raise $11.4 million in an initial
public offering of ordinary shares.

The share offer opens on June 13 and the company expects that its shares will
be listed on July 6. ABN AMRO Craigs are lead managers of the offer.

Founded 17 years ago by its managing director and major shareholder Simon
Hull, Allied operates nationally and is New Zealand's largest specialist blue
collar labour hire company. It provides on-demand labour across an industrial
spectrum that includes firms operating in the distribution, manufacturing,
processing, infrastructure and construction industries.

Simon Hull says the company has a 'crew' of around 8000 skilled and
semi-skilled workers who are available to be placed in some 6000 client
businesses.

In the year to March 31, 2006, the company is projecting a net profit after
tax (pre goodwill amortisation) of $3.1 million on revenue of $74.2m. Based
on the offer price of $1.50 per share the company will list with a market
capitalisation of $39.2 million.

"The business has grown on the back of demand for more flexible labour
arrangements," says Simon Hull.

"We believe we are now one of the largest employers in the country in terms
of the number of IRD returns we file each year. This year we expect to supply
4.4 million hours of work to our crew and our customers."

"We make it easy for businesses to use casual labour, which means that they
can get the necessary work done without incurring the long-term costs
associated with having a permanent labour force.

"For many companies we open the door to a more cost-effective business model
that allows them to cope with seasonal trends, special projects and overflow
work."

He says the on-hire business model also provides benefits to members of the
Allied crew, in that as well as enjoying attractive wage rates and
conditions, they get to handle a variety of work and to develop a range of
different skills.

ACC information suggests that, based on the wages paid to on-hire workers,
the New Zealand market has grown by 56% in the four years to 2004.

The company's board is made up Simon Hull, Allied's chief executive, Greg
Webster, and the independent directors Ted van Arkel and chairman Ross
Keenan.

Mr Keenan says Allied is a hands-on, can-do sort of business that has
expanded rapidly in the past few years through organic growth and more
recently by acquisition.

"We believe that growth is far from over yet and part of the reason for
listing is to position the company for further acquisitions."

Mr Keenan says that after the IPO Simon Hull will retain a 66.8% stake in the
company, and will continue to lead the business through its next phase of
development.

"At this stage he is only selling down to the extent required to meet the
spread requirements of the NZX and to provide some liquidity in the market,"
he says.

Allied Work Force is projecting an annualised gross dividend yield of 9.48%
based on a fully imputed net dividend of 9.5c per share for the financial
year ending 31 March, 2006. The company expects to pay dividends of 70% to
80% of net profit after tax, subject to prudent future investment
requirements.

Allied has 90 full time staff and operates from 21 locations around New
Zealand in addition to the 'crew' in its 8000 strong labour pool.

The company uses its own software and proprietary systems for managing
on-hire labour and its rate of successfully placing 'crew' into available
roles is approximately 98%.

Allied estimates that the New Zealand on-hire labour market is made up of
around 15,000 workers, or some 0.7%

duncan macgregor
09-06-2005, 01:17 PM
From a straight practical point of view i would not buy in. The only thing that this company supplies is a service. They rent an office hire casual labour and take the cut off the top. All the workers supply their own tools of trade work boots etc. It sounds like someone wants to sell the business to the punters. Seem to remember things like this that went on in the past i will definately not be in. macdunk

Snow Leopard
09-06-2005, 01:26 PM
Given that I started this thread spose I ought to come "out" and admit that I almost certainly will not be "in". I do not even intend to acquire a prospectus.

saintjohn
09-06-2005, 02:15 PM
I've not heard of them, 21 locations they say but not in the Wellington phone book. Perhaps trading under another name?
Doubt if it will get off the ground. At best another MPM.

Placebo
09-06-2005, 02:18 PM
This is a growth industry. If you want proof just look at the number of copycats who have cropped up around the place. We have 3 or 4 in Wellington (Quinn Workforce is another). It is a successful business model.

Yes it will be subject to economic conditions but as they don't actually "employ" the workers is this really a big risk? A downturn will merely cut into their overall revenue, same as any other volume-based business.

I will not be purchasing, but I am impressed at the size and turnover of the company. Had no idea it was so big!

Placebo
09-06-2005, 02:19 PM
SaintJohn there is a trick to reading phone books. You have to look under "Allied Work Force". Look on page 76, it's highlighted in red (3rd column, about an inch from the top).:)

I think their catchphrase is "it's not just actors who have agents". Lately they have been appealing to students to sign up for extra money.

duncan macgregor
09-06-2005, 02:25 PM
Dont get me wrong guys i think its a good company with nothing to show for it if it goes bad. You are buying what?. Start one up yourselves with limited capital. macdunk

Mick Jagger
09-06-2005, 04:22 PM
i disagree... this one will be successful...

anyone can buy a van and get a gang of 10 dudes to start their own... but its all based around the relationship customers have with the leader/organiser... and these guys are trusted...

plus all the one man bands dont have the ability to deliver the people 98 times out of 100... the small outfits have no ability to bring in people from other cities within hours if necessary etc..

they do well when the eceonomy is cranking (no spare people and low enemployment)... and when the economy is slowing (businesses hesitant to commit to permanent contracts etc as not confident of prospects)...

Halebop
09-06-2005, 04:52 PM
I'd prefer to make judgement after I've read the prospectus than before. Albeit the timing does seem interesting with the economy indicating signs of coming off the boil.

While a company may have defensive or counter cyclical qualities, lean times hit everyone, even if only to shave some growth off a company lower down the S curve. A bit hard to make a call on Allied's defensive qualities without access to historical data.

The issue of hard assets is a non event. If hard assets measured the value of a business then media companies and Microsoft would be worth very little and Carter Holt Harvey would be worth a lot more than it is. A company earning high returns on few assets is a flag for investment rather than against.

Snow Leopard
10-06-2005, 06:19 AM
quote:from the Herald (http://www.nzherald.co.nz/index.cfm?c_id=3&ObjectID=10329919)

Allied working up an appetite for float


10.06.05


By Georgina Bond


One of the country's biggest employers, Allied Work Force, will raise $11.4 million when it lists on the stock exchange next week.

Offering $1.50 a share, the labour hire company will list with a market capitalisation of $39.2 million.

The offer opens on Monday and the company expects its shares will be listed on July 6.

Allied Work Force started 17 years ago when its managing director and main shareholder, Simon Hull, set up a casual workforce business from a rented office in Penrose, Auckland.

It now has 21 branches, employing 90 staff, and from a pool of 8000 daily places workers across a range of industries including construction, factories, transport and food processing. Based on the number of IRD returns it filed each year, Hull believed it was one of the largest employers in the country.

In the year to March 31, it is projecting a net profit after tax of $3.1 million on revenue of $74.2 million.

Hull said the business had grown rapidly through demand for more flexible labour arrangements.

And with the unemployment rate below 4 per cent, his crews were in heavy demand.

This year, it expected to supply 4.4 million hours of work to its 6000 client businesses.

Early this year, the company boosted its manpower by buying Wellington-based Quin Workforce, following up its acquisition of Far North Labour Hire last year.

Chairman Ross Keenan said the company believed its growth was far from over and part of the reason for the listing was to position it for more acquisitions.

Also on the board is Hull, Allied's chief executive, Greg Webster, and independent director Ted van Arkel.

Keenan said Hull would retain a 66.8 per cent stake in the company after the IPO and would continue to lead the business through its next phase of development.

"At this stage. he is only selling down to the extent required to meet the spread requirements of the NZX and to provide some liquidity in the market."

The company expected to pay dividends of 70 per cent to 80 per cent of net profit after tax, subject to prudent future investment requirements.

ABN Amro Craigs is the lead broker.

Time and a half

* Allied Work Force started 17 years ago from a rented office in Penrose, Auckland.
* It now has 21 branches nationally, employing 90 staff, with a pool of 8000 workers.
* It has 6000 clients.
* The crews work in a range of industries including construction, factories, transport and food processing

Snow Leopard
10-06-2005, 06:25 AM
quote:and from Stuff (http://www.stuff.co.nz/stuff/0,2106,3308435a13,00.html)

Allied share float to drive expansion
10 June 2005
By ADRIAN BATHGATE

Labour hire firm Allied Workforce is looking to a sharemarket float to drive further expansion and make it the only provider of a national casual labour force.


It will be the first big float of 2005 when it puts one-third of its shares on the market early next month to raise $11.4 million.

None of the 7.6 million shares in the float are being offered publicly. Seven million will be available to organising broker ABN Amro Craigs' clients, with the other 600,000 going to Allied Workforce management and staff.

They are new shares on issue, with Allied Workforce founder and managing director Simon Hull retaining his existing holding of 18.5 million shares, giving him 70 per cent control of the company.

Mr Hull said the float was primarily to finance further expansion, both through extending its branch network and by snapping up small regional-based companies.

These include recently acquired Wellington company Quin Workforce, which generated $10 million in revenue for the year ended March 31.

"It's a fantastic company, and these are the sorts of opportunities that we're looking for."

Mr Hull said Allied Workforce would not look to diversify into other fields, or expand overseas. "We'll just stick to our knitting."

The company has enjoyed strong growth over the past few years, with revenue rising from $38 million in the March 2003 year to a projected total of $74.2 million in the March 2006 year.

Mr Hull is confident the company will have a strong dividend payout policy.

"This is a cash business: We make real money, not paper money. The board has said if there's nothing within the company to invest it in, we'll pay it out and that's what we intend to do."

Allied Workforce has workers in a range of industries broadly classed as "blue collar". It specialises in short notice and contract work, and has 8000 workers on the books. Of these, Mr Hull said, there was a core of about 2000 workers who were almost exclusively full time. Workers are employees of Allied Workforce, which contracts them out to its clients.

Allied Workforce has also expanded to 21 branch offices, with another four planned. "Some of our clients are now using us nationwide."

Mr Hull attributes this to more businesses employing a casual labour force, with ACC figures showing the casual workforce has grown by 56 per cent in the four years to 2004.

Up to one-third of the workforce is now employed in casual or part-time positions.

Because of this, Mr Hull said, it was strong enough to absorb any downturn, with the main issue being getting skilled workers.

rmbbrave
26-06-2005, 04:12 PM
Another Article from Georgina Bond appearing in the Herald. She must have got some through ABN Amro.

Hands-on boss knows what job's about



Simon Hull is selling more than one-third of his company to raise cash for its expansion.


26.06.05


By Georgina Bond


In a company specialising in providing workers who roll up their sleeves, the managing director does a lot of it himself.

Although the labour hire firm he started 17 years ago is going public, Simon Hull still enjoys the practical aspects of the job - driving the company vans and firing up the barbecue at the end of each week, when Allied Work Force puts on sausages and beer for its workers.

The past few weeks have seen him in new territory, however, presenting the company's prospectus to brokers' analysts around the country.

Now the roadshow is over, he's looking forward to getting back around the sites and working with "the guys" on his management team.

Which is in keeping with his history of hard work and good leadership.

Hull is selling more than one-third of the company he calls "my baby", selling down to raise cash for its expansion. He will be worth $26 million when it lists on the stock exchange next month.

The move is by no means an exit strategy for the 45-year-old, who reckons there's still a lot of horsepower left in him yet. Listing is the realisation of a pipe dream he had at 28, but it's hardly finished business.

"We have an ambition to take this company to the point where it's first choice for employment, to industry and workers alike."

Hull, who has three school-aged sons, grew up on a farm on Auckland's North Shore. After finishing his school days at King's College, he started an engineering degree at the University of Auckland but quit after one year to milk cows on the family farm.

An interest in horticulture led him to develop a kiwifruit orchard in Kaukapakapa and, in the early 1980s, he took those skills to the Bay of Plenty, where he developed several orchards.

Returning to Auckland in 1987 to "make some money", he tripped over the concept of labour hire and thought it would fly.

Renting a small office in Penrose - now the urinal block at its head office - and a few vans, he started knocking on doors offering casual labour to the construction industry, somewhat incognito.

Those were the days after the sharemarket crash and the only substantial labour hire business at the time, VH Farnsworth, was close to receivership.

It wasn't a raid, but he took some of Farnsworth's construction workers and was gaining about 60 clients a month by the end of the first year.

Spotting the potential early on, Hull took the on-hire labour concept beyond the construction industry to all areas of blue-collar work.

With 6000 customers on its books today, construction is now only 31 per cent of Allied's business.

The company's footprint has also grown geographically.

After bedding in its first branch in Hamilton in 2000, it has rolled them out quickly from Kaitaia to Dunedin, boosting its manpower by 300 workers a day when it bought Wellington-based Quin Workforce for $3.63 million this year.

Hull says it's not a sexy business but it's practical and productive, supplying people to do anything from factory work to driving trucks, food processing or painting.

"Anywhere we see someone rolling up their sleeves, they could or should be one of our workers," he says.

In the hours before dawn, Allied Work Force buses take Hull's crews to the various branches where staff match them to the needs of their clients.

Times of economic uncertainty have proved good for the on-hire industry and Hull says Allied wins at both ends of the economic cycle.

"In boom times, companies need to hire more staff and, in down times, they look to casual workers to reduce their costs."

Allied is forecasting revenue of $74.2 million in the year to March 2006, which is almost twice its 2003 earnings of $38 million.

Revenue growth slowed in 2003-2004 when the company inve

Contrarian
26-06-2005, 06:16 PM
Gidday

This will all end in tears..
Don't buy for long term
oppourtunist vendor may have his left his run too late
Why go for 9% with a one man band vs 6.45% ASB fast saver every month no feltex type downgrades.
CASH & PRESERVATION IS KING

warthog
26-06-2005, 06:30 PM
quote:Originally posted by duncan macgregor

Dont get me wrong guys i think its a good company with nothing to show for it if it goes bad. You are buying what?. Start one up yourselves with limited capital. macdunk


Agreed. Low barriers to entry in their market. Personally I would wait and see.

winner69
26-06-2005, 06:58 PM
quote:Originally posted by warthog


quote:Originally posted by duncan macgregor

Dont get me wrong guys i think its a good company with nothing to show for it if it goes bad. You are buying what?. Start one up yourselves with limited capital. macdunk


Agreed. Low barriers to entry in their market. Personally I would wait and see.


Low barriers to entry I agree but processes, contacts, customers and a history of reliability go a long way

However in saying that not really my cup of tea either.

saintjohn
26-06-2005, 07:14 PM
quote:Originally posted by Contrarian

Gidday

This will all end in tears..
Don't buy for long term
oppourtunist vendor may have his left his run too late
Why go for 9% with a one man band vs 6.45% ASB fast saver every month no feltex type downgrades.
CASH & PRESERVATION IS KING


My sentiments exactly,with storm clouds gathering this type of operation is on notice.

(but they are in the phone book......sorry private joke)

Steve
27-06-2005, 11:34 AM
Ditto - have walked passed this one...

rmbbrave
07-07-2005, 10:02 AM
Despite doing her best to talk up the SP before the IPO poor Georgina didn't make much of a profit did she?


Labour firm makes NZX debut

07.07.05


By Georgina Bond and NZPA


Labour hire company Allied Work Force made its sharemarket debut yesterday - the main board's first listing for the year.

Shares in the company traded at $1.52 in the opening minutes but ended the day back at its initial public offer price of $1.50.

Celebrating at the company's Penrose headquarters as the market opened, managing director Simon Hull said the listing was the start of a new phase for the company which had raised cash to help it expand.

The firm has a market capitalisation of just under $40 million.

Its initial public offer of 7.6 million shares closed fully subscribed on Friday.

Hull, who started the company 17 years ago, has retained a 68 per cent stake, selling down to raise cash for its expansion.

The remaining shares went to company directors, select NZX participants and staff, so yesterday was the first chance for retail investors to get their hands on the stock.

Allied Work Force has 90 full-time staff and a "crew" of around 8000 skilled and semi-skilled workers which it employs to hire to businesses in all areas of blue-collar work, including construction, distribution, manufacturing, processing and infrastructure.

It has 21 regional branches, and is planning four more.

The company previously forecast a March 2006 year net profit of $3.1 million, on revenue of $74.2 million.

minimoke
06-04-2006, 01:08 PM
SP still down on listing but today’s announcement shows a bit of creativity towards solving a labour shortage problem and diversifying into land and property.

donnie
08-04-2006, 01:21 PM
Allied Workforce buys Blenheim holiday park
06 April 2006

Blue collar labour hire firm Allied Workforce (AWF) said today it has bought a Blenheim-based holiday park to house seasonal workers in the region.


AWF spinoff Contract Labour Services (CLS) bought the Spring Creek Holiday park, 6km from Blenheim, for $1.8 million.

AWF chief executive Simon Hull said Marlborough – with its dozens of vineyards – was a key growth area for the company, but that had been hampered by a lack of suitable accommodation.

The Spring Creek purchase meant CLS could provide accommodation for several hundred workers at the peak of the pruning season.

The park could accommodate up to 280 visitors and was a popular stopover for tourists en route to the Cook Straight ferry.

"We intend establishing the Spring Creek Holiday Park as the first point of contact for all travellers and tourists who either simply need reasonably priced accommodation or who are looking for help and assistance in finding casual and seasonal work in the area," Mr Hull said.

The purchase would be settled next month.

Shares in AWF last traded yesterday at $1.33.

[V][V]:(:( Thats where im staying while i'm working in blenheim.

BRICKS
09-04-2006, 10:22 AM
SOUNDS pretty COOL at first idea but wait for the PROFITS.. [8D]

Happy Camper
09-04-2006, 11:37 AM
Happy Camper remembers sharing the camping ground at Tokomaru Bay with a gang of Northland forestry workers back in 2005. They were well set up for this sort of caper.

Happy Camper

BRICKS
09-04-2006, 01:16 PM
quote:Originally posted by Happy Camper

Happy Camper remembers sharing the camping ground at Tokomaru Bay with a gang of Northland forestry workers back in 2005. They were well set up for this sort of caper.

Happy Camper



AS your been there and seen were or is there money to be MADE..[8D]

Happy Camper
03-05-2006, 06:46 PM
I won't be passing through Blenheim again until October of this year, so will be sure to check it out then. I may even park up there for the night. Having just recently finished a wee trip in the van I can assure you, camping grounds seem to be getting their fair share of business at the moment. It has just about got to the point where you need to book ahead!

By my reckoning full-year result for AWF is due to be announced soon. Even with hints of a softening labour market, I am picking that it will be respectable. It had better be, or my recent investment in AWF will not be looking so flash.

Cheers

Happy Camper
17-08-2006, 07:42 PM
By crikey, todays announcement (http://www.nzx.com/market/market_announcements/by_company?id=135544) certainly gave the shareprice a fair old beating today.

I got out at $1.75 around 20th of July. Around one month later and it is looking like re-entry opportunities under $1.50 will be showing their face tomorrow.

The rational half of me thinks I will stay on the sidelines with this one for a while yet. The irrational half is tempted to "re-pitch my AWF tent" before I go camping with the family late September/early October.

Cheers

BRICKS
17-08-2006, 08:56 PM
quote:Originally posted by Happy Camper

By crikey, todays announcement (http://www.nzx.com/market/market_announcements/by_company?id=135544) certainly gave the shareprice a fair old beating today.

I got out at $1.75 around 20th of July. Around one month later and it is looking like re-entry opportunities under $1.50 will be showing their face tomorrow.

The rational half of me thinks I will stay on the sidelines with this one for a while yet. The irrational half is tempted to "re-pitch my AWF tent" before I go camping with the family late September/early October.

Cheers


THESE things happen but you know the stock which is Good so stick with it and BUY after the drop the mob is wrong all the TIME.. [8D]

minimoke
18-08-2006, 06:46 AM
The signs aren’t good. A blow out of operating costs in a low capital business isn’t a great look. Real reasons are probably a drop in demand due to the weather. Or is there another big expense in there that isn't being mentioned. Sure vehicles costs, mainly fuel, will have gone up but if they can’t pass on, say a $0.25c an hour per worker cost now then what makes them think they can do so in the future.

BRICKS
18-08-2006, 07:50 AM
quote:Originally posted by minimoke

The signs aren’t good. A blow out of operating costs in a low capital business isn’t a great look. Real reasons are probably a drop in demand due to the weather. Or is there another big expense in there that isn't being mentioned. Sure vehicles costs, mainly fuel, will have gone up but if they can’t pass on, say a $0.25c an hour per worker cost now then what makes them think they can do so in the future.


DEPENDS what you want to read into the statement they are telling you the worst and then the best but the div seems SAFE.. [8D]

donnie
19-08-2006, 10:58 AM
The blenheim motorcamp, im staying at which allieds subsidary brought, seem to be spending money at will, they've just put down 2 large slabs of cement for campervans, so they wont get bogged on the grass, also they brought a big shed for storing stuff in, and they still have a number of cabins laying around not being used which must be wasting some money. Also the motorcamp cant support more then 50 people for long periods because the water pressure is so low. also alot of the workers leave the motorcamp on the 1st of sept which will reduce cost over the summer season.

there is one good thing though they put our rent up by $20 per week. bar steds

Happy Camper
31-10-2006, 04:37 AM
This Happy Camper has twice purchased shares in AWF for $1-50 or less, and has twice sold them for $1-70. Two respectable trades, both completed inside 90 days.

I await with interest the release of financials confirming just how badly impacted the company was by the June storms. It may just present another buying opportunity. Then again, I may have jumped off the bus a couple of stops too early.

If I do buy into AWF for a third time this year, I expect it will be for the long-haul.

Cheers

Happy Camper
07-11-2006, 08:52 PM
Once again, an AWF announcement (http://www.nzx.com/market/market_announcements/by_company?id=139508) has given the shareprice a fair old shake-up.

Re-entry opportunities around/under $1.50 keep showing their face with this stock. And as long as they do, this Happy Camper continues to get out there and "re-pitch the AWF tent".

As per my comments of a week ago, my third foray into AWF will most likely be for the long-haul. Definitely longer than the average number of days (75) that I have held this stock for on past occasions.

Cheers

BRICKS
08-11-2006, 08:25 AM
WELL Happy keep up the good work and buy a water tight tent but your letting your win tactics go public and could get some followers not a good idea also have now put AWF on the radar SET.. [8D]

Happy Camper
08-11-2006, 08:12 PM
BRICKS, this Happy Camper thinks that if you picked up a few AWF at $1.40 today, you will have set a solid foundation for the future.

Of course, I could be proved 100% wrong tomorrow.

Cheers

Misc
07-12-2006, 12:20 PM
HB firm in NZ's 'biggest' illegal-worker scam

07.12.2006
KELLY BURNS
The country's biggest operation to uncover illegal-worker scams burst into life at dawn yesterday as police and immigration officers swooped on a Hawke's Bay company and its associated "facilities".

The raids were the culmination of a two-day operation that saw 12 search warrants issued in both Hawke's Bay and Marlborough.

The Labour Department's national manager for investigations, Carl Manning, said the sting uncovered the largest illegal-worker scam in New Zealand.

It focused on one Hawke's Bay firm in the viticulture and horticulture industries, with ties to Marlborough.





The company, which cannot be named, and associated facilities were searched yesterday from 6am, to ensure workers were present.
Mr Manning said the rogue company appeared to employ illegal immigrants, whom they recruited by "word of mouth".

Most were Southeast Asian overstayers, though as the investigation expands, the nationalities of workers look set to widen.

The workers were paid less than the minimum wage of $10.25 per hour and the department was looking into whether some were on the pay-roll at all.

The company also appeared to dismiss holiday-pay and Act requirements.

Mr Manning stressed they were targeting employers, and not workers at this stage - though two overstayers were being held at the Hastings police station, awaiting deportation as a result of the investigation. He hoped companies would take heed of the operation, and the likely charges.

"This sends a clear message that we will not tolerate employers who assist people to remain in New Zealand unlawfully, or deny workers minimum employment entitlements. When we find out about such occurrences, we take action," he said.

The department had been aware of the company for some time, with two investigators working full-time, gathering evidence. The company had a "substantial number of workers on their books".

The department would not comment on the number of people likely to be charged, or how many workers were affected. Mr Manning did say however, that it was a large operation and the likely charges would be serious.

As the investigation continued, charges linked to the exploitation of workers would likely follow charges of aiding a worker to breach conditions of their work or visitor's visa.

Police in Marlborough were investigating similar offences. The swoop came less than a week after a labour shortage was declared in Central Hawke's Bay. But Mr Manning said that was no excuse for employers to exploit vulnerable foreign workers.

"Shortages are a real issue but this does not mean people can break the law. When they do, it's at the expense of employers who do follow the rules. It's also at the expense of workers who end up being exploited," he said. A supervisor of the targeted company was arrested, with more arrests likely by the new year.

Ut Danh, 41, a Vietnamese national, appeared in the Hastings District Court yesterday on eight charges relating to the investigations. Danh is accused of aiding and abetting seven Vietnamese who breached work-permit conditions between April 2005 and February this year. Danh entered no plea, and was freed on bail until his next court appearance on December 14.

BRICKS
07-12-2006, 01:32 PM
ARE we saying Misc, Wink , Wink we cant say but you Know whats going On, over stayers are a prob in any country only this time police and others are doing the job that they are payed to do other than sitting in the office reading the paper waiting for someone to turn themselves IN.. [8D]

Misc
07-12-2006, 01:59 PM
Im not sure what your meaning is 'BRICKS' , but if I held this stock I would be ringing the company and enquiring about the above article.
At very least the company should make an NZX announcement , um , dont you think?
Misc

BRICKS
07-12-2006, 04:21 PM
quote:Originally posted by Misc

Im not sure what your meaning is 'BRICKS' , but if I held this stock I would be ringing the company and enquiring about the above article.
At very least the company should make an NZX announcement , um , dont you think?
Misc


answer.. NO.. [8D]

minimoke
08-12-2006, 09:50 AM
Looks like DOL can move as fast on this problems as the police did with the Kahui's.

From last year:

Labour scarcity hits vineyards (July 2005)

06 July 2005
By DAN HUTCHINSON

A chronic labour shortage and repeated immigration scandals are starting to have a serious impact on Marlborough's wine industry, growers say.

Marlborough Grape Growers' Association president Stuart Smith said there was an extreme shortage of labour in the region at a critical time for growers.

"There seems to be an awful lot of unpruned vines out there, and certainly some growers are very nervous about getting finished," he said.

Labour contractors have differing views about the cause of the problem, with Marlborough Horticulture owner Bob Lee saying those contractors employing illegal immigrants were forcing prices to unsustainable levels and making money by swindling their workers.

Lee had dropped his rates below cost to remain competitive, but said he was aware of four experienced labour contractors who had folded in the face of "ridiculously low prices" from other contractors.

"I am pretty hot on it really. I have seen some good people go to the wall just recently. If this continues, we will have no option but to fold."

He said he had heard of 130 illegal workers brought down in two shipments from Hawkes Bay to staff Marlborough vineyards recently.

Lee, who also owns Jacks Backpackers in Blenheim, said he had come across plenty of stories from vineyard workers who had been ripped off by previous contractors.
There were many overseas workers who could be brought into the country legally if the rates were there to attract them.

However, Mike Porter, managing director of Contract Labour Services New Zealand, said the current labour shortages in New Zealand meant those who had briefly overstayed should be encouraged to stay rather than be deported.

"It has become very obvious in recent months that the amount of people here now with legitimate work permits is not nearly enough to fulfil the labour requirements for the horticulture and viticulture needs of New Zealand," he said.

The Immigration Department estimates there were more than 20,000 illegal overstayers in New Zealand in November last year.

Porter said workers, particularly from South-east Asia, had exceptional skills in the horticulture and viticulture industries.

"There needs to be put in place urgently a mechanism with new criteria specifications for their work permit extensions," Porter said.

"People currently eligible to work in New Zealand should have their permits extended to cover shortfalls in other regions."

He said it was becoming increasingly difficult for him to find New Zealand workers to staff vineyards and orchards and he estimated Marlborough grape growers were short by 1500 workers this season.

Smith said he and others were in the process of looking at the extent of the problem and the impact on the current pruning season. "I have been saying for a long time it is going to be bad this year and I am still going to have to say that for next year as well."

He said the bad publicity surrounding illegal workers was also scaring away legal workers, particularly people from countries where they mistrusted police and government officials.

He said any use of cheap, illegal labour was not being reflected in pruning costs for growers as they had risen by 14 per cent on last year.

"And I don't know of any grower who is not asking the question, `Are your workers legal?'

"None of this would be an issue if we didn't have a labour shortage, and there is an extreme shortage," Smith said.

Marlborough has fewer than 200 unemployed people listed with Work and Income.

Smith said the region simply did not have a large enough population base to draw workers from.

minimoke
08-12-2006, 10:14 AM
And spot the similarities between this note in AWF's 2006 Annual report and yesterdays newspaper article.

"Contract Labour Services is a leading supplier of temporary labour to Horticultural, Agriculture, and Viticulture. The directors of CLS all carry lifetime experience in primary growing and have built a reputation for the supply and management of staff to carry out the seasonal requirements. It has established a presence in all the major growing districts and is well set to supply the needs of a burgeoning viticulture industry.

For AWF Group it is a welcome addition in that it extends both the numbers of crew required and offers the opportunity to utilise crew more evenly throughout the year. The business model for this company requires flexibility in moving large numbers into and out of seasonal “hotspots” and the arrangement of accommodation for large numbers of people as they move from one location to the next. The CLS understanding and experience in making this happen makes it a welcome addition to the AWF Group."

BRICKS
08-12-2006, 10:14 AM
minimoke are you saying your story is connected with AWF if not you should infer SAME.. [8D]

minimoke
08-12-2006, 10:36 AM
The trouble with suppression orders and the likes of Immigration not naming the companies is that one is left to speculate on who it might be and unfortunately that speculation can tarnish the good reputation of others. Can we and indeed should we read anything into AWF’s silence. The Hort industry (HortNZ) is now distancing itself from this matter

I should also suggest that investors are reliant on companies providing information to the market to guide their investment decisions. We know with the likes of FTX and SMS that Directors can be a little niggardly with fully and correctly informing the market which means the market must look for other sources of information and make the best decisions on all available information.

There are loads of companies working in this area but how many do both horticulture and viticulture AND have accommodation AND can work out of Hastings and Marlborough AND can manage a large number of workers?

BRICKS
08-12-2006, 12:26 PM
minimoke,, you are whistling in the wind and spreading rumor with inference make sure your facts are right first and a firm would never in public discuss these MATTERS.. [8D]

minimoke
08-12-2006, 12:53 PM
quote:Originally posted by BRICKS
a firm would never in public discuss these MATTERS.. [8D]


If it materially affects their share price perhaps they should: down 3.4% today on a couple of trades with only a couple of interested buyers starting at $1.37

BRICKS
08-12-2006, 01:10 PM
quote:Originally posted by minimoke


quote:Originally posted by BRICKS
a firm would never in public discuss these MATTERS.. [8D]


If it materially affects their share price perhaps they should: down 3.4% today on a couple of trades with only a couple of interested buyers starting at $1.37


minimoke,,you have shown your hand a non holder so stuff the exciting holders with infer statements your a CAD , SIR.. [8D]

Misc
08-12-2006, 03:54 PM
Bricks , you seem a touch nervous and ignorantly defensive , the question here is simply whether the company is in breach of NZX Listing rules regarding disclosure of price sensitive information.
Misc

BRICKS
09-12-2006, 08:08 AM
quote:Originally posted by Misc

Bricks , you seem a touch nervous and ignorantly defensive , the question here is simply whether the company is in breach of NZX Listing rules regarding disclosure of price sensitive information.
Misc


Misc your question is in your head only the company is in NO breach of any rules,, therefore Sir you are fishing for an untrue BITE.. [8D]

Misc
09-12-2006, 08:49 AM
Bricks , are you saying that AWF (or subsidiary) were not the subject of the DOL raids earlier this week , refered to in the news article above?
Misc

Happy Camper
09-12-2006, 08:53 PM
This Happy Camper thinks that this is one of those situations whereby they are damned if they do, and they are damned if they don't.

I keenly hope that they aren't at the centre of the investigation. Assuming they are innocent, they are unlikely to make friends or encourage investment in their company by drawing additional attention to the slimy under-belly that obviously exists within their industry.

Cheers

BRICKS
10-12-2006, 07:41 AM
quote:Originally posted by Misc

Bricks , are you saying that AWF (or subsidiary) were not the subject of the DOL raids earlier this week , refered to in the news article above?
Misc


Misc you are doing all the saying so prove IT.. [8D]

Misc
10-12-2006, 03:51 PM
Bricks , there is strong 'speculation' that AWF or subsidiary were the target of the raids. If that is the case then the company should inform the market. If it is not the case (as you clearly imply) then the company should also inform the market to quash the speculation.

You can probably find the answer with a couple of phonecalls , thats what I would have done last week if I held the stock.

Misc

BRICKS
10-12-2006, 05:05 PM
quote:Originally posted by Misc

Bricks , there is strong 'speculation' that AWF or subsidiary were the target of the raids. If that is the case then the company should inform the market. If it is not the case (as you clearly imply) then the company should also inform the market to quash the speculation.

You can probably find the answer with a couple of phonecalls , thats what I would have done last week if I held the stock.

Misc


Misc,, you are a proven babies rattle with NO guts so you would have rung up but you could NOT.. [8D] WELL bugger ME..[8D]

Misc
10-12-2006, 09:43 PM
No need for childish name caling Bricks.

I dont need to call anyone , I know exactly what is going down , as do most in the Hort sector in HB and Malborough ..

Good Luck to you anyway.

Misc

BRICKS
11-12-2006, 10:16 AM
quote:Originally posted by Misc

No need for childish name caling Bricks.

I dont need to call anyone , I know exactly what is going down , as do most in the Hort sector in HB and Malborough ..

Good Luck to you anyway.

Misc


HERE is the CALL,, BUGGER OFF.. [8D]

Misc
12-12-2006, 07:52 PM
I see NZO got a 'please explain' over non disclosure today .... and they were only 24hrs late with their price sensitive info regarding a subsidiary LOL

"We write with respect to the NZSX Listing Rules on continuous disclosure.

Listing Rule 10.1.1 is set out in the Schedule to this letter. In summary,
this rule requires issuers to immediately disclose any Material Information
to NZX. The rule provides limited exceptions to this obligation. Material
Information does not need to be disclosed where a reasonable person would not
expect the information to be disclosed and where the information is
confidential and its confidentiality is maintained and where one of five safe harbours applies."

minimoke
12-12-2006, 08:47 PM
Immigrations “largest operation” of its type has to mean to the affected business:

- Loss of clients using dodgy labour
- Loss of large numbers of illegal / underpaid workers contributing to income
- Significant increase in Labour costs to meet legal requirements
- Loss of other clients due to dodgy dealings
- Impact on value of goodwill
- Increased legal costs to defend / plead charges and any subsequent fines
- cost to repair reputation

I would have thought these things would have impacted a share value no matter who the company is. A small company would probably go under, a medium sized one might have to retrench a large one might recover – either way it can’t be good for the affected business.

On the flip side the other labour contractors (including AWF?) could do very well as they move in to soak up the hole left in the labour supply – and this too could materially affect the share price

Misc
12-12-2006, 09:53 PM
Good balanced post mini-moke , I have no idea what all this will mean for the AWF shareprice either way. I simply cannot believe the company has not addressed the 'speculation' but should the 'speculation' prove correct Im sure the NZX will be asking more than a few questions of the Directors.
Poor old Bricks though , as it is obvious English is not his first langauge , I wonder if he's tied up in all this LOL
Misc

BRICKS
13-12-2006, 08:26 AM
Misc..BRICKS is far from POOR as for English you don't understand even when some writes to you and the only "speculation" is in your head so why don't other people write about what you don't KNOW .. [8D]

minimoke
13-12-2006, 08:40 AM
No sellers at all at the moment. I wonder why?

BRICKS
13-12-2006, 08:50 AM
quote:Originally posted by minimoke

No sellers at all at the moment. I wonder why?


ANOTHER dumb STATEMENT.. [8D]

minimoke
13-12-2006, 08:58 AM
Check the board again in a few moments Bricks and you’ll see a new seller in at 1.45 – the only one and he wasn’t there a few minutes ago – his order will go through but not the full amount. Not speculation but fact.

BRICKS
13-12-2006, 09:12 AM
quote:Originally posted by minimoke

Check the board again in a few moments Bricks and you’ll see a new seller in at 1.45 – the only one and he wasn’t there a few minutes ago – his order will go through but not the full amount. Not speculation but fact.


THERE has been sales this fine morn what fact of importance are you talking ABOUT.. [8D]

minimoke
13-12-2006, 09:24 AM
Bricks, prior to my post there were no sales this morning and still only one. Indeed if another sale goes through at $1.45 it will probably be the original seller completing his order. At the time I posted there were no sellers in the market. I just think this is a little strange as virtually every other company on the NZ boards have at least someone willing to sell. I don’t know what to read into this nor do I know why someone is prepared to lift the price 3.6% on a couple of $k.

Your statement that there have been sales this fine morning is incorrect and misleading. Check the board before you post.

BRICKS
13-12-2006, 09:33 AM
ALL this heavy talk about nothing ,, FEEL like I`m talking to a pair of M&Ms which colour are YOU.. [8D]

Lawso
13-12-2006, 10:11 AM
I notice Bricks has invented a new rule for punctuation. You don't use capital letters where you should but save them up and bung them all into the last word of your message. very INVENTIVE.

BRICKS
13-12-2006, 10:20 AM
quote:Originally posted by Lawso

I notice Bricks has invented a new rule for punctuation. You don't use capital letters where you should but save them up and bung them all into the last word of your message. very INVENTIVE.


DEAR Lawso Get Stuffed.. [8D]

minimoke
13-12-2006, 10:29 AM
Capitals at the front, capitals at the end. Like his ears probably not much of substance in between.

BRICKS
13-12-2006, 10:39 AM
quote:Originally posted by minimoke

Capitals at the front, capitals at the end. Like his ears probably not much of substance in between.


THE word is BUY AWF if the M&Ms [Lollies if you don't know] had any cash.. [8D]

BRICKS
13-12-2006, 10:51 AM
WHAT happened to all this inside info & speculation rampant immigrants but its come down to CAPITAL LETTERS do the right thing get the FACTS.. [8D]

minimoke
13-12-2006, 11:18 AM
The facts will come out eventually once Immigration has finished its investigations but from the Hawkes Bay Today paper it suggests to me it is a large company:….
“The department would not comment on the number of people likely to be charged, or how many workers were affected. Mr Manning did say however, that it was a large operation and the likely charges would be serious.... As the investigation continued, charges linked to the exploitation of workers would likely follow charges of aiding a worker to breach conditions of their work or visitor's visa.”

but BRICKS if you know who Ut Danh is and what company he works for you can probably shed some light…

“A supervisor of the targeted company was arrested, with more arrests likely by the new year. Ut Danh, 41, a Vietnamese national, appeared in the Hastings District Court yesterday on eight charges relating to the investigations. Danh is accused of aiding and abetting seven Vietnamese who breached work-permit conditions between April 2005 and February this year.”

BRICKS
13-12-2006, 11:26 AM
quote:Originally posted by minimoke

The facts will come out eventually once Immigration has finished its investigations but from the Hawkes Bay Today paper it suggests to me it is a large company:….
“The department would not comment on the number of people likely to be charged, or how many workers were affected. Mr Manning did say however, that it was a large operation and the likely charges would be serious.... As the investigation continued, charges linked to the exploitation of workers would likely follow charges of aiding a worker to breach conditions of their work or visitor's visa.”

but BRICKS if you know who Ut Danh is and what company he works for you can probably shed some light…

“A supervisor of the targeted company was arrested, with more arrests likely by the new year. Ut Danh, 41, a Vietnamese national, appeared in the Hastings District Court yesterday on eight charges relating to the investigations. Danh is accused of aiding and abetting seven Vietnamese who breached work-permit conditions between April 2005 and February this year.”



AS things stand at this very moment all has nothing to do with AWF..[8D]

Lawso
13-12-2006, 12:01 PM
quote:Capitals at the front, capitals at the end. Like his ears probably not much of substance in between.
:D

minimoke
13-12-2006, 12:07 PM
I come back to my original question which was: “There are loads of companies working in this area but how many do both horticulture and viticulture AND have accommodation AND can work out of Hastings and Marlborough AND can manage a large number of workers?”

PICKNZ is another option but it doesn’t look like they actually employ people even though they meet the other criteria. But would the Fruit Growers Association get involved in such practice?

Montana is in both regions but only viticulture – so do you have any other names to throw in the ring? If not we’ll have to wait for news as prosecutions come out in the New Year and only hope that investors in whatever enterprise are being appropriately informed.

Misc
13-12-2006, 12:39 PM
"AS things stand at this very moment all has nothing to do with AWF"

LOL

Misc

minimoke
13-12-2006, 01:03 PM
Given Bricks word confusion should this read:
"AS things stand at this very moment nothing has everything to do with AWF"
and since we know nothing AWF is therfore implicated.

Misc
13-12-2006, 09:10 PM
No word from (****tin)Bricks lately. Im sure this is totally unrelated BUT I believe Ut Danh deported was this afternoon LOL

Misc

minimoke
14-12-2006, 01:16 PM
Bricks probably won't be interstedin this but.....
GENERAL: AWF: CONTRACT LABOUR SERVICES NZ LIMITED

CONTRACT LABOUR SERVICES (NZ) LIMITED (CLS)
As previously reported, Allied Work Force Group Limited ("AWF") is a 64%
shareholder of CLS. CLS supplies seasonal labour to horticulture,
viticulture and agricultural businesses in the Hawkes Bay, Nelson and
Canterbury areas.

It has come to AWF's attention that CLS is under investigation by Police and
Immigration officials in respect of possible offences under the Immigration
Act 1987, including using sub-contractors to provide crew, where such crew do
not have the right to work in New Zealand. Such offences may have occurred
prior to AWF acquiring its shareholdings in CLS and may have continued since
that time, all without AWF's knowledge. AWF has commenced its own
investigation in respect of this matter. It is not known at this time
whether any offences have occurred. AWF received a number of warranties in
the sale and purchase agreement when it acquired its shareholding in CLS.
Simon Hull

minimoke
14-12-2006, 01:22 PM
And this wasn’t price sensitive information!!
All buyers have dried up with none on the board and one willing seller only at $1.45

minimoke
14-12-2006, 01:27 PM
quote:Originally posted by minimoke

And this wasn’t price sensitive information!!
All buyers have dried up with none on the board and one willing seller only at $1.45



Youch - and a buyer now in at $0.90

Steve
14-12-2006, 01:30 PM
I wonder what the warranties actually covered?

minimoke
14-12-2006, 01:50 PM
$8 - $10m in income at risk; 700 workers – how many were underpaid and will stay? Settlement September 2006 – probably paid up. How good are those warranties??

AWF
27/09/2005
ASSET

REL: 1401 HRS Allied Work Force Group Limited

ASSET: AWF: ALLIED WORK FORCE GROUP LTD EXPANDS INTERESTS

Allied Work Force Group Ltd (AWF) today announced its intention to purchase a 64% interest in the agricultural labour hire business of Contract Labour Services (NZ) Ltd (CLS).

AWF managing director, Simon Hull, says the acquisition will provide AWF with a strategic opportunity to supply labour to agricultural and horticultural industries, a sector that, because of its seasonal nature is well suited to labour hire.

The key personnel of CLS have been involved in agricultural labour hire for more than 15 years and, with a total crew in excess of 700 people, supply seasonal labour to apple, wine, horticulture and agricultural businesses in the Gisborne, Hawkes Bay, Nelson, Blenheim and Canterbury areas. CLS meets the seasonal needs of businesses in primary industries, by moving labour resources around the country as required.

AWF will acquire shares in CLS at a price based on the EBITDA CLS achieves in the 12 months from 1st October 2005. Settlement will be payable in cash and completed after the results for the period to 30th September 2006 are produced. While CLS is expected to have revenues of $8 to $10 million annually, it is not expected to make a contribution to AWF FY2006 profit projections due to the intention to invest in growth opportunities through this period.

AWF will provide financial services to CLS and as a consequence of the
introduction of AWF management systems and synergies between the businesses, the profitability of CLS will improve significantly from next year onwards.

Simon Hull says that he expects CLS to grow to be an important part of the AWF Group. "Through CLS and its experienced management team, AWF plans to expand its agricultural offering to other industries and other geographic areas where AWF already has established branches. The partnership between AWF and CLS will provide significantly more capacity and potential to a respected supplier in a sector searching for reliability," he said.

Mr Hull said he expected the agreement to become unconditional by 30th
September.

Misc
14-12-2006, 01:51 PM
Hmmm , what more can one say ....except that this announcement should have been made a week ago and recent buyers will feel justifiably shafted by the Company.

Misc

minimoke
14-12-2006, 02:55 PM
And AWF had no worries and knew nothing??

From Simon Hulls address in the 2006 half year report:

“The competitive horticulture and viticulture sector where CLS operates continues to grow and show strong demand, with sourcing staff a big challenge. We are continuing to work on multiple solutions to add motivated and capable staff to our crews.”............


“At 31 March 2006, the purchase consideration was estimated to be $952,000, based on the first six months earnings and an estimate of earnings for the six month period to September 2006. Actual earnings were however lower than expected and the final purchase consideration was $285,000.”

Misc
14-12-2006, 03:09 PM
And this from Sept last year ....

"AWF will provide financial services to CLS and as a consequence of the
introduction of AWF management systems and synergies between the businesses,
the profitability of CLS will improve significantly from next year onwards"

Is Simon Hull saying that AWF management inside CLS did not notice their computers and other records missing on the 5th December?? LOL

What a disgrace ! NZX investigation coming up ??

Misc

minimoke
14-12-2006, 03:21 PM
Or that the payroll system was showing people getting paid $5 (or whatever) an hour? The following suggests most workers (but probably not all) were on the payroll!

“Most were Southeast Asian overstayers, though as the investigation expands, the nationalities of workers look set to widen.

The workers were paid less than the minimum wage of $10.25 per hour and the department was looking into whether some were on the pay-roll at all.”

Misc
14-12-2006, 06:12 PM
Looks like AWF have adopted the 'Sargeant Schultz' approach and are trying to distance themselves from what is obviously a ticking timebomb ...

My questions would be:

1. What did you look at when you did your Due Diligence prior to purchasing the subsidiary?

2. Have you had AWF staff and management working inside the subsidiary , and if so , for how long?

3. When did you come to know of the 'raid' of early a.m. 5th December 2006? (DOL will have the answer to this)

4. As there have been no charges laid , why have you not vigorously refuted the allegations and sought to defend them?

5. Why does the NZX release of 14th December 2006 contain statements that are probably misleading or at best belated?

6. What profit guidance can you give to shareholders given the likely scenario that the subsidiary may not longer be able to function?

7. Are similar problems likely in other areas of the AWF business?

I guess the NZX will have a much more exhaustive list , I cant believe this kind of thing still goes on , Im sure the Directors will not be having a very Merry Christmas , LOL they may be (or should be) on the end of push-hoes and picking buckets to 'make up numbers'!!

Misc

Happy Camper
14-12-2006, 09:30 PM
Sorry Misc, this Happy Camper thinks that you are being overly down on this company.

IMHO the answer to question 4 is that not all battles are won by fighting. Please bear in mind that the department you are proposing they come out blazing against is one that AWF are likely to schmooze/lobby heavily from time to time. The best long-term answer for AWF could well be to co-operate fully with the investigation, provide "meaningful" input into the process with a view toward encouraging constructive results for the future.

If they have to take the punishment, then so be it. By all accounts warranties exist in the original S&P agreement to mitigate the materiality of any monetary penalty.

Cheers

Misc
15-12-2006, 12:12 AM
HC , its not about being 'down on the company' ... its simply about honesty and continuos disclosure ... do you agree there is a case to answer here? This kind of thing throws not only Directors of the affected Company but the whole of the NZX into disrepute .. as I said , disgraceful , and too many people know the real story to try and 'fudge' an announcement like Mr Hull did today . This kind of thing makes bankers very nervous , not to mention shareholders.
I fear this company has shot its foot off with todays effort .. time will tell.
Misc

Happy Camper
15-12-2006, 06:23 AM
This Happy Camper has a history of buying into small-caps. The thing about small-caps is that they don't have the same depth of resources large-caps do to have all bases covered simultaneously. One of the bases that is often left uncovered is shareholder communication.

Part of the reason for the delay is probably that Simon Hull's response will have been prepared for him by a third party. This third party will more than likely be a clip the ticket type of outfit rather than one intimately involved on a daily basis with AWF, so in terms of priority for preparing the press release, AWF weren't at the top of their list.

I would hope that AWF bankers have a strong enough relationship to know the type of customer they are dealing with. They should know whether Simon Hull is a salt of the earth type, full of ****e, or somewhere in between. In situations like these they will bank the person. It must also be remembered that they will have prepared the credit submission as part of the original acquisition, so they will (should) have a copy of the contract for S&P. Plus it is likely that a solicitor will have had to provide an undertaking that they have overseen the process, which invariably involves dotting all the i's and crossing all the t's.

Have yourself a Merry Christmas. This Happy Camper is hooking up the caravan tomorrow morning and heading off to a "quiet" spot until after Christmas.

Cheers

BRICKS
15-12-2006, 07:22 AM
DEAR Happy don't worry about the M&Ms as they are the largest NONHOLDERS of this stock but they love to cut down trees just to watch them fall over.. at the moment CLS is under investigation and would not like to be in there shoes IF they have been naughty as this will effect AWL relationship who will sue them anyway have a good time camping and all will be soon out in day light and the M&Ms the do goodies will have to find another company to ROAST.. [8D]

Misc
15-12-2006, 07:51 AM
Bricks , AWF own 64% of CLS , are you suggesting they sue themselves?? Can you seriously believe AWF was totally unaware of any of this ?? Im sorry , I cant . An NZX investigation is needed , and will happen in my opinion.
Misc

minimoke
15-12-2006, 08:27 AM
Bricks, I’m not a holder because I’m not interested in investing in a company that appears to have speed wobbles. While there is good news in AWF there has also been bad news which undermines this as a long term investment. It has had profit downgrades, ACC blow outs, unexpected motor vehicle cost increases, devalued investments and now a connection to an enterprise involved in apparently dodgy practices all in the space of a year. This suggests to me a company that does not have a clear eye on their business.

I agree with Happy Camper that the small caps have some challenges however the market needs to be properly informed and if Simon Hull wants an exit or business growth strategy which involves listing on the NZX then he has to take those responsibilities seriously. The market ought to be getting tired of directors such as FTX and PLS and to me the warning flags are waving in the wind for AWF.

And this isn’t just a case of underpaying a few workers – it is in Immigrations word the country’s biggest labour scam. If this isn’t a concern to AWF holders and those looking at putting their hard earned cash into AWF then good luck to them because they are playing the lottery not making a sound investment decision.

minimoke
15-12-2006, 11:58 AM
Throw a stone in the pond and see how far the ripples go. From todays news:

Two charged with helping illegal staff
Wednesday, 13 December 2006
Two Vietnamese men have appeared in the Nelson District Court charged with offences arising from what officials say is the biggest illegal worker scam ever uncovered in New Zealand.
The men, who did not enter pleas, were granted interim name suppression when they appeared before Judge David McKegg on Tuesday.
The pair, a 34-year-old from Stoke and a 38-year-old from Napier, are charged with helping or enticing illegal workers to stay in New Zealand for their own material benefit.
The Napier man faces nine charges, while the Stoke man faces one.
The offences are alleged to have taken place between August 2004 and November 2005, and relate to 10 different workers located in Napier, Hastings, Gisborne, Wellington and Blenheim.
Duty solicitor Michael Vesty, representing the Stoke man, said his client worked extensively with the Vietnamese community and was applying to be a police officer.
The man wanted interim name suppression because publication would affect his young family, he said.
Judge McKegg remanded the man on bail without plea to January 16, but required him to surrender his passport.
The Napier man was remanded in custody until this morning.
Department of Labour prosecutor Shona Carr asked for name suppression for immigration officers who had their names listed in court documents as informants, to protect their security. Judge McKegg suppressed their names until further notice.
The department carried out a two-day operation last week in Hawke's Bay and Marlborough, targeting employers who were allegedly flouting immigration and labour laws.
Another Vietnamese man, Ut Danh, also known as Kha, 41, appeared in the Hastings District Court last week on eight charges relating to seven illegal workers.
Immigration officers and police who raided 12 houses in Hawke's Bay last week allege that the network was the biggest illegal worker scam ever uncovered in New Zealand.
Department of Labour investigations national manager Carl Manning said the two-day operation aimed to collect evidence of unlawful immigration and labour practices in the Hawke's Bay and Marlborough horticulture and viticulture industries.
The department was aware of the significant labour shortages in the industry, he said.
"The department has an ongoing relationship with the industry to help them find workers, and there are a number of measures already in place, including facilitiating overseas recruitment where there are no New Zealanders to fill jobs, and developing training to enhance productivity.
"Shortages are a real issue, but this does not mean people can break the law."

minimoke
15-12-2006, 06:31 PM
And Bricks if you don’t like my views then perhaps you should follow Mr Market which saw someone quitting 20,000 shares at the end of trading driving another 11% off the value.

Misc
15-12-2006, 10:21 PM
Yikes , no buyers on screen. Falling like a tonne of , errr, 'Bricks' ;))

Misc

Misc
18-12-2006, 07:04 PM
Bit of a surprise the press havnt covered last weeks announcement , Im sure all shareholders will be looking for an update and resolution to this matter asap , (especially those that got slotted recently at $1.40) , how long before the NZX issue a 'please explain'??
Misc

Misc
29-12-2006, 09:23 PM
CONTRACT LABOUR SERVICES (NZ) LIMITED ("CLS")

Further to Allied Work Force Group Limited's ("AWF") announcement on 14
December 2006, that they were undertaking an investigation of its subsidiary
CLS, the shareholders of CLS at 5pm on the 22nd December resolved to place
CLS into liquidation. AWF is working with the Liquidator in an attempt to
ensure that all employees of CLS will be paid for the work undertaken prior
to the liquidation.

I assume AWF is still exposed to the criminal investigations regarding illegal aliens , but have chosen to 'kill' CLS to try and distance themselves from what is obviously an industry wide problem?

I wouldnt touch this crowd with cattle prod!

Misc

BRICKS
30-12-2006, 07:32 AM
quote:Originally posted by Misc

CONTRACT LABOUR SERVICES (NZ) LIMITED ("CLS")

Further to Allied Work Force Group Limited's ("AWF") announcement on 14
December 2006, that they were undertaking an investigation of its subsidiary
CLS, the shareholders of CLS at 5pm on the 22nd December resolved to place
CLS into liquidation. AWF is working with the Liquidator in an attempt to
ensure that all employees of CLS will be paid for the work undertaken prior
to the liquidation.

I assume AWF is still exposed to the criminal investigations regarding illegal aliens , but have chosen to 'kill' CLS to try and distance themselves from what is obviously an industry wide problem?

I wouldnt touch this crowd with cattle prod!

Misc



Misc, as if anybody would ask you.. [8D]

Misc
30-12-2006, 02:10 PM
Voluntary liquidation: Allied Work Force closes Contract Labour Services (NZ) following allegations

Company: Contract Labour Services (NZ) Ltd

Directors: Miles Elliott & Michael Porter, Hastings; Simon Hull, Warkworth & Parnell; Alan Roberts, Browns Bay; Dharminder Singh, Flaxmere; & Greg Webster, Takanini

Liquidation: 22 December

Liquidators: Grant Graham & Brendon Gibson (Ferrier Hodgson)

Directors’ other main interests: The company’s 64% owner, listed company Allied Work Force Ltd, told the NZX today that, further to its announcement on 14 December that it was undertaking an investigation of its subsidiary, the shareholders resolved to place Contract Labour Services into liquidation. “Allied Work Force is working with the liquidator in an attempt to ensure that all employees of Contract Labour Services will be paid for the work undertaken prior to the liquidation.” Contract Labour Services supplies seasonal labour to horticulture, viticulture & agricultural businesses in Hawke’s Bay, Nelson & Canterbury. On 14 December Allied Work Force director Mr Hull said it had come to the company’s attention that the police & Immigration officials were investigating Contract Labour Services for possible offences, including using subcontracted crew without work permits, both before & after Allied bought into the company and without Allied’s knowledge. Mr Elliott is also a director of Contract Labour Services (HB) Ltd, Interprop Ltd & Shelf 116 Ltd and is a former director of Longlands Packing Co Ltd & Squash Harvest HB Ltd. Mr Porter is a director of Awamoa Farm Ltd, Contract Labour Services (HB), Interprop & Spring Creek Investments Ltd, and is a former director of Livestock Ventures Ltd, Modular Pacific Corp Ltd and T&S Averill Horticulture Ltd. Mr Hull is a director of various Allied Work Force companies, Bonus Investments Ltd, Cattle Mtn Run Ltd, Employee Investments Ltd, Falls Road Properties Ltd, Hull Properties Ltd, Makiri Lands Ltd, On Hire NZ Ltd, Quin Workforce Ltd, Spring Creek Investments & Wayby Station Ltd. Mr Roberts is a director of Nalar 2005 Ltd. Mr Singh is a director of D&D Agriculture & Contracting (HB) Ltd and Rents & Investments Ltd. Mr Webster is a director of various Allied Work Force companies, Employee Investments, GSLT Ltd, GSW Investments Ltd & Quin Workforce.

Earlier story, 7 April 2006: Contract Labour buys holiday park to accommodate seasonal workers

Steve
31-12-2006, 01:03 PM
Out of interest, does the Immigration Act allow the directors of companies to be personally prosecuted for breaches of the Act by the company?

BRICKS
31-12-2006, 09:50 PM
quote:Originally posted by Steve

Out of interest, does the Immigration Act allow the directors of companies to be personally prosecuted for breaches of the Act by the company?




Steve for the record do you live in a TREE.. [8D]

Steve
01-01-2007, 10:53 AM
It appears that todays SST could answer my question...

Illegal workers linked to farm firm closure (http://www.stuff.co.nz/3915122a13.html)
Hull would not say why liquidation was required -there has been no indication the company was insolvent.

"All the directors decided the company should be liquidated," he told the Star-Times last week. "We found there had been some failure to follow our policies and procedures. That gave us concern and a loss of confidence. We lost confidence in the company and some of the other directors."

It is understood that Immigration Department staff raided the homes of several Contract Labour Services directors, as well as company premises.

Hull said he couldn't comment on whether criminal charges were a likely outcome of the investigation.

Misc
04-01-2007, 04:02 PM
I guess the investigation will now focus on the Directors of CLS , starting at the top with Simon Hull??
It seems CLS was insolvent as unsecured creditors will get less than 20c in the dollar according to the Companies Office , its amazes me this kind of thing can still happen on the NZX , if AWF were listed on the ASX then Hull and the other CLS/AWF Directors would be banned from Directorships of listed entities .
Misc

minimoke
04-01-2007, 05:42 PM
quote:Originally posted by Misc
... AWF is working with the Liquidator in an attempt to
ensure that all employees of CLS will be paid for the work undertaken prior to the liquidation....

The question is now how many workers is AWF going to pay for and how many weeks pay will they pay if CLS don’t. 200 workers at $500 a week = $100,000. Could be a few hundred thousand $’s yet to be shelled out by AWF.

Misc
07-01-2007, 09:21 AM
The shortfall may well be over $1m , depends how much they get in a fire-sale of Spring Creek Holiday Park , its likely AWF gauranteed the loan to buy Spring Creek , then there may be creditor claims on Directors/AWF for trading while insolvent. AWF should clarify its exposure without delay in my opinion.
Misc

Steve
07-01-2007, 01:11 PM
As already mentioned earlier, you really have to wonder about the due-dilligence process given that what has transpired has been known by others in the industry for some time

Misc
10-01-2007, 01:29 PM
With the strong likelihood of a loss to 31/3 and dividend suspension , AWF will probably trade well under $1 until confidence in management is restored , or heads roll .
Not alot on the buyside now. I wonder if/when NZX will ask the necessary questions ?
Misc

minimoke
10-01-2007, 03:07 PM
On 31 Oct 05 AWF announced to the Market that CLS had up to 800 people. I’ll have to revise my wages liability to $400k for each week of outstanding pay. They could well be up for more than 4 weeks arrears giving a liability of at least $1.6m.

Of these 800 people it is likely that many have been underpaid. It looks like AWF will pay out these shortfalls. If it works out to be an average of $1 an hour for 800 people for a year then we have another $1.66m liability.

Holidays and ACC will be payable on these amounts so here is another $260,000 in cash gone.

If CLS is worth 20 cents in the dollar does this mean Spring Creek is now only worth $360,000 – a $1.4m loss.

How much are liquidation costs, I’ve no idea - lets say $50k.

Simon hull has already flagged that for YE 2007 there is going to be “a challenge to achieve year end net growth” and this was before the CLS problems.

AWF could be up for $4m in costs associated with CLS so definitely a challenge on last years $3m NPAT and only $803k by 06/07 half year. This is one sick puppy!

So where is the profit warning to the Market?

Misc
10-01-2007, 10:10 PM
If the 'hit' is $4m or so then AWF cannot survive this , lets not forget the possible litigation costs/penalties from the DOL / Imigration investigation . I am amazed anyone is still buying ..... even the staff that bought 600,000 shares at $1.50 must be sweating (or maybe they sold prior just after the raids??)
If Hull is prepared to 'whack' a subsidiary , then why wouldnt he do the same to AWF and buy the business back from the liquidator and go private?
Misc

Steve
11-01-2007, 06:38 AM
Obviously the liquidation will have an impact so surely there should be an updated earnings outlook under the continuous disclosure rules?

I wonder if AWF has provided any guarantees for CLS debt, as of so it should be disclosed as well if it is going to be called upon

Misc
12-01-2007, 05:50 PM
Correct Steve , AWF shares should be suspended pending clarification of financial and Director exposure.
Misc

Steve
14-01-2007, 10:49 AM
It appears that AWF is not the only higher-profile company currently under investigation by the Immigration Dept. It must be the season for it

Chubb sacks 12 illegal guards (http://www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10419039)
Twelve Chubb security guards have been sacked and the company is under Immigration Department investigation amid revelations it hired bank and Customs guards without work permits and with questionable security authorisation.

Misc
13-02-2007, 12:23 PM
No mention of Director/Shareholder liabilities if Immigration charges stick? Misc

FORECAST: AWF: CLS AND OPERATING PERFORMANCE UPDATE

- Allied Workforce Group (AWF) has advised that further to releases of
22 December and 27 December the company's involvement with Contract Labour
Services NZ Ltd (CLS) in the rural sector has ceased and the investment made
in this business is unlikely to be recovered.

- AWF Group lost confidence in CLS Management's commitment to follow
stated company policies and procedures and were forced to sever the
relationship. For legal reasons we are constrained from commenting on this
matter further at this time.

- Due the significant write-offs which will be necessary by 31/3/07 the
Board believes it appropriate to issue a profit guidance for the year ended
31/3/07 - expected at around 50% of last years NPAT of just on $3m. This
includes full write off of all investment in the Spring Creek and CLS
operations.

- Directors advise that although they expect to be able to announce a
final dividend, it is likely to be at a level consistent with the final
result, and therefore lower than for the year ended 31/3/06.

- Managing Director Simon Hull commented that although the Company
remains convinced that the rural/seasonal sector offers opportunities for the
future, given the CLS experience the Group would handle immediate
opportunities through its existing AWF branch network.

For the Board

Simon Hull
Managing Director
End CA:00143371 For:AWF Type:FORECAST Time:2007-02-13:10:02:03

minimoke
13-02-2007, 12:45 PM
quote:Originally posted by Misc

No mention of Director/Shareholder liabilities if Immigration charges stick? Misc

And what about the expenses associated with bailing out CLS wages liability?

What a useless profit announcement – we had already flagged this on this thread a month ago!

Misc
13-02-2007, 03:10 PM
And what happened to the 'warranties' AWF recieved when purchasing CLS (described in the 14/12 announcement)??

The market may well speculate that AWF had full knowledge of all CLS activities and the CLS owners have struck a deal to remain silent over AWFs 'knowledge' in lieu of not having to repay the purchase price??

Not sure where this leaves AWF amidst the illegal immigration scam though.

Looks like someone is propping up the selling at $1.20 , possibly close associates of the company trying to avoid a total shareprice collapse and breach of banking covenants , I wonder how long they can hold it up?

Misc

hairdresser
13-02-2007, 09:39 PM
Remember that this is the NZX. All annoucements are automaically assumed to include the rider "E&OE".

Good spotting by minimoke & misc last december.

Misc
14-02-2007, 09:06 AM
Hairdresser , sadly you are correct , nothing has really changed since 1987 .... has it? Misc

Allied Workforce signals lower profit after write-off

NZPA | Tuesday, 13 February 2007

AdvertisementAllied Workforce Group (AWF) is signalling a 50 per cent decline in annual profit, blaming an investment in the rural sector that went sour.


The Blue collar labour hire company reported a maiden $3.02 million net profit for the year to March 31 last year, which was slightly below its prospectus forecast.

Today it said the profit in the year to March 31, 2007 was expected to be 50 per cent down on last year after the write-off of investments.

The final dividend was also likely to lower than last year. Managing Director Simon Hull the company's involvement with Contract Labour Services NZ Ltd (CLS) in the rural sector has ceased and the investment made in it was unlikely to be recovered.

"Although the company remains convinced that the rural/seasonal sector offers opportunities for the future, given the CLS experience the Group would handle immediate opportunities through its existing AWF branch network," he said.

AWF had lost confidence in CLS's commitment to company policies and procedures and was forced to sever the relationship.

AWF is New Zealand's largest specialist blue collar labour hire company. It debuted on the stock market in 2005.

Misc
24-02-2007, 10:09 AM
Workers want their wages

23.02.2007
LAWRENCE GULLERY
The Department of Labour has been called in to find out why a group of workers employed through Allied Workforce at Heinz-Wattie's had not been paid last week.

The Service and Food Workers Union had asked the Department of Labour to initiate immediate mediation between Allied Workforce and its employees based at the Hastings plant.

It was understood the mediation session was to be held on site in Hastings on Tuesday but Allied Workforce had refused to agree to the meeting.

Mediation was called for after workers had complained to their union representative that their wages had not been paid into their bank accounts on February 15.





Union organiser Thomas O'Neill said yesterday he was still collecting names of those who had not been paid last week. "There are a lot of others who at one time or another weren't paid by Allied Workforce in the past as well," he said.
He hoped the mediation would reveal why the workers were not paid as Allied Workforce had not responded to his attempts to contact the labour contract firm last week.

Mr O'Neil said the mediation process also marked the first step for possible litigation against Allied Workforce, if a resolution could not be met.

"We understand that they (Allied Workforce) had told staff they wouldn't be paid by that week but they would be paid by cheque, but haven't. It's an employment breach of their rights," he said.

"I think people are pretty upset about it because there are a lot of people in Hastings that are dependent on their jobs," he said.

Allied Workforce chief executive Greg Webster said he was aware of the mediation session but believed it was not necessary.

He was adamant all of the workers had been paid. Mr Webster said 36 new workers had been called in at late notice for the evening shift on Sunday, February 11. The problem occurred because there was not enough time to process their wages before the payroll was normally completed the following Tuesday.

He said those workers were told they would be paid by cheque instead, on Thursday, but there were at least six people who were yet to pick up their cheques from Allied Workforce.

Mr Webster said paying workers by cheque was not normal practice and a "one-off" resolution.

One worker, who did not want to be named, said she had no luck gleaning an explanation as to why she had not been paid for her first week working at Heinz-Wattie's, from February 12 to 16. Mr Webster said he was aware there was one "outstanding issue" involving a worker who had not been paid. "She says she was at work but her swipe card indicates she was not.

"It's a matter of getting her supervisor to verify she was at work that day, but at the moment we can't do that, it's a process we have to work through to clarify she was there," he said.

The worker said she had been told at an induction session three weeks ago at Heinz-Wattie's there would be enough continuous work for everyone to April.

"I've been off work this week because they haven't called me, you have to wait until they ring you to come into work. My last day was last Friday," she said.

Mr Webster said, however, workers were told during induction that the nature of the work available was casual.

"You could be working one day and not the next. The tomato season has been put off four times already. It's very casual work, that is the nature of seasonal work," he said.

hairdresser
24-02-2007, 10:24 AM
There is probably a very simple explanation for this. I'm sure the company will give an explanation to the market asap.

It is almost certainly not that they may had to very quickly set up an account with another bank to pay some off their wages bill.

Im sure all their other creditors are getting paid in a timely fashion...

Cheers

Steve
25-02-2007, 09:23 AM
If the CLS fiasco has caused them to be in breach of their banking covenants, then the bank plays hardball, it could lead to a very tight cash situation...[?]

minimoke
28-02-2007, 10:14 AM
And Department of labour have arrested five employees of CLS on immigration charges including a local Hastings Manager. A few more questions – do Immigration have their eyes on Directors? Are employees personally liable for any fines /costs or will the company come to the party with cash to help them out?

BRICKS
28-02-2007, 10:45 AM
quote:Originally posted by minimoke

And Department of labour have arrested five employees of CLS on immigration charges including a local Hastings Manager. A few more questions – do Immigration have their eyes on Directors? Are employees personally liable for any fines /costs or will the company come to the party with cash to help them out?


AS we KNOW that your the largest NON shareholder its up to you to save there HIDES.. [8D]

minimoke
01-03-2007, 02:28 PM
Frankly, paying your workers is a pretty basic business requirement. Any company that doesn’t do this has to be treated carefully and I won’t be helping them out. They cant get pay sorted, can’t manage their managers, have dodgy directors, an albatross of a motor camp around their necks. Yup a non holder and amazed people continue to buy and hold!

Steve
02-03-2007, 10:12 AM
quote:Originally posted by minimoke

Frankly, paying your workers is a pretty basic business requirement. Any company that doesn’t do this has to be treated carefully and I won’t be helping them out. They cant get pay sorted, can’t manage their managers, have dodgy directors, an albatross of a motor camp around their necks. Yup a non holder and amazed people continue to buy and hold!

It is surprising that the price hasn't dropped more, at least in the short term...

minimoke
01-06-2007, 07:18 AM
Revenue up $8m from $74.5m to $82m. Profit down $1.3m from $3m to $1.7m. As expected the Contract Labour Services problems have certainly created a big hole. Posters picked $4m and probably were too light in their assessments – so where were the announcements from AWF! Simon Hull gains a life style block out of Blenheim but with CLS pretty much sorted could this be the turning point for adding real shareholder value. Lets see if they have learnt the many lessons of the past few years.

I'm thinking this is now a buy, perhaps not at $1.31 but close enough.

Core business seems to be ticking over and improving; operational costs should be steady; more redundancies in the pipeline will add to their crew; only stock of its type on NZX so could be a target in the next few years

hairdresser
01-06-2007, 08:25 AM
I'm sure Mr Hull wouldn't have purchased the block unless in was in his best interests to do so... be interesting to know sale price vs market value.

Misc
01-06-2007, 06:33 PM
I heard he paid $400k less than what CLS paid a year earlier .... nice work if you can get it!!

Misc

hairdresser
02-06-2007, 07:03 AM
What a guy to take if off AWF hands. We all know how much property prices have crashed in Blenheim since the wine thing happened....

An uncontested related party sale with no details announced through liquidators appointed by company. CLS was liquidated by AWF following the police investigation into labour practises at CLS if my memory serves me correct.

Wonder what the market value of the improvements paid for by the company out of the working captial facility repaid by AWF was.

If it was such good deal for the shareholders why didn't they announce the details.

minimoke
11-07-2007, 04:17 PM
Bricks - I was tempted but after hitting an all time low of 117 today I think I'll continue sitting on the sidelines. Somebody is dumping 50,000 so perhaps some bad news on the way.

Happy Camper
11-07-2007, 07:32 PM
This Happy Camper holds and continues to hold.

AWF continue to trade under the stigma of a failed investment strategy and will continue to do so for the next twelve to eighteen months. Their annual report was a straight-forward read, and that always gets a big plus from me.

Kiwisaver is no doubt a biggie for them over the next four or so years, but no doubt they will be able to retrieve this through their pricing.

Cheers

minimoke
12-07-2007, 06:54 AM
quote:Originally posted by Happy Camper


Kiwisaver is no doubt a biggie for them over the next four or so years, but no doubt they will be able to retrieve this through their pricing.
Cheers


They couldn't retrieve their increased vehicle costs so I not sure how they will recoup KiwSaver costs. If they put their prices up then surely every other trader in NZ would do the same - leading to inflationary pressures which the RB isn't going to be keen on.

Happy Camper
26-07-2007, 06:59 PM
Two weeks down the track minimoke and this Happy Camper is picking that we have seen the AWF shareprice bottom out.

Cheers

Phaedrus
26-07-2007, 09:23 PM
Well HC, I don't think I would describe myself as a happy camper if I "held and continued to hold" this stock. After 2 years, AWF is still below its listing price and has dropped over 35% in the last year - a year in which the NZ market went up by over 20%.
AWF is still in a downtrend and the OBV continues to fall. The only good thing is that the support at $1.16 has held. So far.
Your conviction that the shareprice has bottomed out may turn out to be correct, of course - it's just that there is no technical evidence for that as yet. Personally, I'd rather not run the risk.
http://h1.ripway.com/Phaedrus/AWF726.gif

donnie
27-07-2007, 04:51 PM
The spring creek motor camp still keeps spending thousands of dollars on improvements. And the care takers are charging AWF for using the care takers bulldozer and a rented bulldozer for the improvements their doing on the camp.

The directors dont seem to give a stuff.

Steve
29-07-2007, 08:27 AM
The CLS liquidation was expected to be completed mid-2007. I wonder how the loose ends are being tidied up?

minimoke
30-07-2007, 07:14 AM
In their address to Shareholders the Chairman said of CLS “we exited accordingly - at a cost? Yes! But cleanly and completely which is in the interest of all shareholders.” And Simon Hull said: “I offered to purchase the Park at its original purchase price. This would avoid the forced sale situation and transfer the ongoing liability for costs from the company. So ended the significant negative effect of CLS on AWF Group with all its costs”

It appears quite clear that AWF have totally exited from CLS and before their share bottomed out. If they haven’t then the AGM comments are misleading. Despite the good news of increased sales something caused the price to dip which ought to be unrelated to CLS so I am still wary.

Steve
01-08-2007, 06:34 AM
quote:Originally posted by minimoke

In their address to Shareholders the Chairman said of CLS “we exited accordingly - at a cost? Yes! But cleanly and completely which is in the interest of all shareholders.” And Simon Hull said: “I offered to purchase the Park at its original purchase price. This would avoid the forced sale situation and transfer the ongoing liability for costs from the company. So ended the significant negative effect of CLS on AWF Group with all its costs”

It appears quite clear that AWF have totally exited from CLS and before their share bottomed out. If they haven’t then the AGM comments are misleading. Despite the good news of increased sales something caused the price to dip which ought to be unrelated to CLS so I am still wary.

If AWF was managing CLS, could there still be some potential litigation issues over the breach of immigration/labour laws that may come back and bite? Or is that just something that the ex-CLS directors have to worry about?

Misc
02-08-2007, 05:41 PM
Hull was a CLS director .... I believe he may yet be charged if others are convicted Im sure they will 'rat him out' as he knew exactly how the biz was run.
misc

minimoke
16-08-2007, 04:12 PM
I for one offer my condolences to the Webster family and to all the crew at AWF

winner69
15-12-2007, 02:32 PM
Shareprice has never recovered has it ..... and hardly any interest in it anymore

Misc had some good observations early on in this thread ..... another debacle in Diligent and some of his his observations apparently been edited or something

LKSteve
18-02-2008, 08:19 PM
At this price the company represents very good value & a cheap way for an international player to gain instant traction to the NZ market.
The sooner this happens the better for existing shareholders. The current management aren't up to it.

Steve
18-02-2008, 08:38 PM
At this price the company represents very good value & a cheap way for an international player to gain instant traction to the NZ market.
The sooner this happens the better for existing shareholders. The current management aren't up to it.

How have you determined that it's good value? The economy is slowing and therefore the demand for labour will be slowing also...

winner69
19-02-2008, 05:55 AM
How have you determined that it's good value? The economy is slowing and therefore the demand for labour will be slowing also...


..... and then businesses often don't fill permanent positions and use casual labour instead

COLIN
19-02-2008, 07:30 AM
Haven't looked them over but how good is their business model? Any better than The Jones's?

Phaedrus
19-02-2008, 08:36 AM
Note the failure of the previously mentioned long-term support at $1.16.

Observe how that support level, once broken, then became resistance. (This is quite common)

See how there was support (for a time) at precisely $1.00.(Support/resistance is often found at "round figures")

Notice how price action has twice reversed exactly at the trendline drawn many months earlier.
Isn't that spooky, Possums?

http://h1.ripway.com/Phaedrus/AWF219.gif

winner69
19-02-2008, 08:42 AM
Jeez ... hadn't realised it had fallen all the way to 85 cents ..... shows you how interested I really am

Phaedrus -- love the way you use that phrase 'spooky' ........ because there so many examples like this where things are really 'spooky' ..... spooky because surely lines on a chart can't possibly tell a story

minimoke
19-02-2008, 02:07 PM
I’m not sure there is a lot to be read into the price drop over the past few week – most other stocks have dropped as well over this period. Sales and margins were growing and it looks like noone else is being roped in over their immigration problems.

Of more concern is still no announcement of a new CEO – so who is running the ship. If the Board are dabbling at an operational level they won’t have the resource e to look for overseas buyers. It will probably put more pressure on junior managers . Ending up in the ERA is not a good look so if there are problems here are there problems elsewhere?

Misc
24-02-2008, 01:21 PM
How ironic that a Labour Hire Company cant find itself a new CEO , gotta laugh?? Or perhaps cry , potential candidates might shy away whilst the company is embroiled in the CLS debacle. I believe Hull was recently summonsed to appear at the Pre-Dep... hmmm , if that is the case surely the market should have been informed?

Misc

Steve
24-02-2008, 03:30 PM
When is the immigration matter due in court?

Misc
24-02-2008, 08:44 PM
Have heard its not thru Depositions yet .... if it is chucked out at this point CLS management will no doubt sue AWF for destroying their company. If it goes to trial and the prosecution lose , same again.
If it goes to trial and the prosecution win , AWF execs may face action 'after the fact'?
Looks like a lose/lose for AWF if the above is even half correct.

Misc

minimoke
26-02-2008, 10:23 AM
Looks like a lose/lose for AWF if the above is even half correct.

Misc
Assuming of course this stock gets traded. They don’t really have a lot of liquidity now or in the past six months. There has been a slow but long drift down and not a lot of interest in htem. Is this just going to be a long slow death?

Misc
26-02-2008, 07:43 PM
Anyone seen the poster 'Bricks' lately?? AWF Price dropping like his nickname now .....

Misc

Steve
27-02-2008, 04:32 PM
Anyone seen the poster 'Bricks' lately?? AWF Price dropping like his nickname now .....

Misc

Should you really be encouraging BRICKS?! ;)

LKSteve
14-03-2008, 09:21 PM
77 cents & falling.

Misc
28-03-2008, 09:07 AM
Profit downgrade just released to NZX?

BRICKS
28-03-2008, 09:45 AM
Profit downgrade just released to NZX?

NEVER one share but ask Mr P, its one of his BETS..

Misc
28-03-2008, 10:38 AM
LOL Bricks , now you yourself are a 'non-holder' making comment?? Hope no-one here followed your BUY advice at $1.50 last year , even if you didnt (cough cough).

Did you BUY ?? Or is this more a case of BUY-POLAR ?? LOL

Misc

minimoke
28-03-2008, 01:50 PM
Profit downgrade just released to NZX?
Nope - sales anticipated to be up, NPAT expected to be up. 18% gain on SP today back to $0.77

BRICKS
29-03-2008, 01:10 PM
SOUNDS pretty COOL at first idea but wait for the PROFITS.. [8D]

LOOKING back on this thread and this was my first statement cannot find if BRICKS ever recommend this stock EVER...

Misc
29-03-2008, 01:47 PM
"Quote:
quote:Originally posted by minimoke

Capitals at the front, capitals at the end. Like his ears probably not much of substance in between.

THE word is BUY AWF if the M&Ms [Lollies if you don't know] had any cash.. [8D] "

Phaedrus
29-03-2008, 02:31 PM
NEVER....... but ask Mr P, its one of his BETS.

Well done Bricks, you must be the only person frequenting this site to have misinterpreted the chart I posted here. (http://www.sharetrader.co.nz/showthread.php?p=185810#post185810)

Restating the obvious, just for you, AWF is in a downtrend (that's the bad one - uptrends are the good ones) and has been since 2006.

Perhaps you or your PC were upside down when looking at it? Both would have been OK, but the inversion of just one or the other would give you a different perspective to everyone else.........

BRICKS
30-03-2008, 09:43 AM
"Quote:
quote:Originally posted by minimoke

Capitals at the front, capitals at the end. Like his ears probably not much of substance in between.

THE word is BUY AWF if the M&Ms [Lollies if you don't know] had any cash.. [8D] "

AS you M&Ms don't have much money, don't know either if your holders if you are "BAD LUCK" as BRICKS has never held this stock and never WILL..

Misc
01-04-2008, 04:16 PM
So BRICKS you never follow your own BUY recommendations??? Or only in hindsight when your 'picks' actually go up?? LOL , AWF at $1.50 was a doozey ... whats next to tank??

BRICKS
02-04-2008, 10:46 AM
So BRICKS you never follow your own BUY recommendations??? Or only in hindsight when your 'picks' actually go up?? LOL , AWF at $1.50 was a doozey ... whats next to tank??

YOUR TALKING crap TALK AGAIN, as your the largest non holder of the stock, But if you are a holder as "I" said " BAD LUCK "..

minimoke
02-04-2008, 02:57 PM
... as your the largest non holder of the stock

No, I think that might be me - I don’t hold 50,000 shares.

duncan macgregor
02-04-2008, 03:30 PM
From a straight practical point of view i would not buy in. The only thing that this company supplies is a service. They rent an office hire casual labour and take the cut off the top. All the workers supply their own tools of trade work boots etc. It sounds like someone wants to sell the business to the punters. Seem to remember things like this that went on in the past i will definately not be in. macdunk Its good to look back at your thoughts to see if you got it right in hindesight or not. Its gone exactly as expected only now the building slump will worsen its outlook. Macdunk

minimoke
23-05-2008, 10:44 AM
Sales up 4.6%, profit up 10.6% and dividends up yet the market still drives the SP down. Price now back down to $0.65

Bob Marley
23-05-2008, 01:48 PM
Minimoke mon, the profit was actually down mon, not up. It was a crap year and crap result mon.

FY07:
Core AWF net profit = $2.6m
CLS net loss = -$0.9m
Overall AWF net profit = $1.7m

CLS has gone now mon, so you need to split core AWF and CLS to see how poor FY08 was.

FY08 net profit = $1.9m

ie. profit declined by $0.7m or 27% mon for AWF's core business. The outlook from the company "targetting modest growth for the year" doesn't inspire investors either mon.

PE ratio @ 65c is 9x, probably about right for a struggling company mon.

Steve
23-05-2008, 07:31 PM
Any updates on the progress of the various investigations/prosecutions surrounding CLS?

Contrarian
23-05-2008, 08:55 PM
Gidday

This will all end in tears..
Don't buy for long term
oppourtunist vendor may have his left his run too late
Why go for 9% with a one man band vs 6.45% ASB fast saver every month no feltex type downgrades.
CASH & PRESERVATION IS KING I get some right !

minimoke
18-07-2008, 03:29 PM
Are we beginning to see a bit of market manipulation. There’s low liquidity on AWF but one of their directors has been buying three wee parcels (totalling $11,200) after which the price spikes up a bit.

According to their AGM they are going to struggle to get anymore capital from shareholders. Apparently these people are so poor they can’t even afford to drive a little bit more over town to attend an AGM. They’ll be handing out petrol vouchers next year!

LKSteve
11-08-2008, 08:46 PM
I see Roberts is gone now. I wonder what's going on here.

BRICKS
23-05-2009, 08:43 AM
Are we beginning to see a bit of market manipulation. There’s low liquidity on AWF but one of their directors has been buying three wee parcels (totalling $11,200) after which the price spikes up a bit.

According to their AGM they are going to struggle to get anymore capital from shareholders. Apparently these people are so poor they can’t even afford to drive a little bit more over town to attend an AGM. They’ll be handing out petrol vouchers next year!

WHAT a year does $4 million in the bank and up the DIV 12.5% plenty of petrol to go
to the annual in JULY..

minimoke
25-05-2009, 11:28 AM
WHAT a year does $4 million in the bank and up the DIV 12.5% plenty of petrol to go
to the annual in JULY..
They might even break out the BBQ! If they couldn't do well this year then they would really have been in strife. Loads more available crew from the recently redundant and lots more work from those who do'nt want to hire long term. So they are in acquistion mode - I wonder who? Watch out for the warning signs though - the 2nd half profit should have been a stronger result than the first half year - but it wasn't. Cash in bank must have slipped a bit as well. It was 4.6m at half year.

BRICKS
29-05-2009, 09:18 AM
They might even break out the BBQ! If they couldn't do well this year then they would really have been in strife. Loads more available crew from the recently redundant and lots more work from those who don't want to hire long term. So they are in acquisition mode - I wonder who? Watch out for the warning signs though - the 2ND half profit should have been a stronger result than the first half year - but it wasn't. Cash in bank must have slipped a bit as well. It was 4.6m at half year.

Dear Mini what happened to the Picton camp site or did it fold there was a mention of a $460,000 write off any connection,, Thanks..

minimoke
01-06-2010, 01:10 PM
And spot the similarities between this note in AWF's 2006 Annual report and yesterdays newspaper article.

"Contract Labour Services is a leading supplier of temporary labour to Horticultural, Agriculture, and Viticulture. The directors of CLS all carry lifetime experience in primary growing and have built a reputation for the supply and management of staff to carry out the seasonal requirements. It has established a presence in all the major growing districts and is well set to supply the needs of a burgeoning viticulture industry.

For AWF Group it is a welcome addition in that it extends both the numbers of crew required and offers the opportunity to utilise crew more evenly throughout the year. The business model for this company requires flexibility in moving large numbers into and out of seasonal “hotspots” and the arrangement of accommodation for large numbers of people as they move from one location to the next. The CLS understanding and experience in making this happen makes it a welcome addition to the AWF Group."
Back in post #44 (when the SP was around $1.70) we got a whiff of what was happening but now the court case is done we get to see what was really happening.

CLS made $17m off the back of 500 workers - many of them illegal workers including overstayers and ship jumpers. CLS had mules carting $100k in cash in plastic bags around NZ. They had "A" (legal) and "B" (illegal) lists of workers. There were fake invoices and ficticious sub-contractors. Directors Miles Elliott, Michael Porter and Darhminder "Bubbly" Singh all pleaded guilty to various conspiracy charges as did daddy Surjit "Uncle" Singh. And AWF found none of this out during their Due Dilligence. What does that Tui billboard say??

But at least this is behind them and the new CEO is getting shares @$0.75 - not many but some at least.

Misc
24-07-2010, 10:45 AM
Hull dodged a major bullet here , or has he? I cannot understand why he was not 'in the dock' alongside his fellow Directors at CLS. Pressure should be bought to bear and Justice done imo. The jailed 3 would gladly supply evidence I would have thought?

minimoke
24-07-2010, 02:43 PM
Hull dodged a major bullet here , or has he? I cannot understand why he was not 'in the dock' alongside his fellow Directors at CLS. Pressure should be bought to bear and Justice done imo. The jailed 3 would gladly supply evidence I would have thought?
Hull dodged the bullet on the day he was due to give evidence but these three pleaded guilty instead. It is incomprehensible that he did not know of these gruby deals. Greg Webster probably knew to but he is obviously unable to tell now - though I doubt he would have wanted to get his hands dirty on that one. Or alternatively their due diligence of CLS was so shonky that it was best not to ask questions that they didn't want answered. And in the meantime SP has been improving on low volume when the business is trending down. The buy back action may be worth keeping an eye on.

Misc
24-07-2010, 03:04 PM
He must still be kakkin himself MM. I understand he was in Court yesterday looking on but bolted just before the court was adjourned , perhaps to avoid an angry mob scene?. You would have to wonder why he was there at all..
M

Lizard
11-10-2010, 09:37 AM
AWF have announced a couple of good acquisitions of late - one in provision of staff to mining sector and today's being provision of staff in healthcare/aged care.

AWF came to my attention last week when I was looking for stocks with good ROE/yield and relative strength rating on the NZX. Was the best of the bunch and tossing up whether to try and add some to the portfolio, but may have missed the boat - am disappointed I didn't buy last week as was eyeing it up for a few days at 98c-$1.00ps but waiting for a quiet day with a clear head to make decisions. My main doubt was where they would find enough market for growth, but seems they have it covered.

Sellers in short supply, so may have to wait.

minimoke
11-10-2010, 09:54 AM
AWF have announced a couple of good acquisitions of late - one in provision of staff to mining sector and today's being provision of staff in healthcare/aged care.
.
The mining sector acquisition is just for the supply of a few people into the Corromandel - not a huge leap there. As for the healthcare /aged care - its a pretty sad day for the oldies. Share price driven more by manipulation than market demand. Their share buy back may be driving price as much as anything.

Having said that, coming out of a recession should be good for them and the aged / community care is a market just ripe for AWF's labour hire model.

percy
11-10-2010, 11:34 AM
I brought some for the wife today at $1.02.The healthcare/age care should be a good fit for them.I did hold them mysel,f but had to sell for some reason,so pleased to be back in this good small cap company.

Lizard
02-11-2010, 03:11 PM
A very strong half year result reported today for AWF, albeit in comparison to a particularly weak 1H10.

Sales up 28%, NPAT up 204% and dividend increased from 1.5cps to 3.8cps.

Cash on hand of $5.7m (no debt) or about 21cps.

Presuming similar second half to 2H10 of $1.5-$1.6m NPAT (forecast suggests it could be stronger), the current $1.15 bid represents a forward PE of 9.10, rolling 12 month historic EV/EBIT of 5.2, and yield of 7.2% plus franking.

Like percy, I picked up a few at $1.02 in anticipation of a good result - but this exceeds my expectations and I currently value at $1.35 with probability to the upside at FY.

percy
02-11-2010, 03:49 PM
A very strong half year result reported today for AWF, albeit in comparison to a particularly weak 1H10.

Sales up 28%, NPAT up 204% and dividend increased from 1.5cps to 3.8cps.

Cash on hand of $5.7m (no debt) or about 21cps.

Presuming similar second half to 2H10 of $1.5-$1.6m NPAT (forecast suggests it could be stronger), the current $1.15 bid represents a forward PE of 9.10, rolling 12 month historic EV/EBIT of 5.2, and yield of 7.2% plus franking.

Like percy, I picked up a few at $1.02 in anticipation of a good result - but this exceeds my expectations and I currently value at $1.35 with probability to the upside at FY.

Yes I too was surprised that the result was so good.The increase in divie is also very positive.Brought some for myself at $1.05.

minimoke
02-11-2010, 04:21 PM
Looks like a fair bit of teflon has been applied to AWF. Good looking results despite be allied to abuse of immigrant workers, brassing off key clients, employment court costs, death of second largest shareholder and using the AWF model of busing workers to your grannies rest home. The market seem to like what they have on offer

percy
02-11-2010, 04:55 PM
Looks like a fair bit of teflon has been applied to AWF. Good looking results despite be allied to abuse of immigrant workers, brassing off key clients, employment court costs, death of second largest shareholder and using the AWF model of busing workers to your grannies rest home. The market seem to like what they have on offer

Yes the market did like the result.!!!!!!!??????

zigzag
02-11-2010, 10:31 PM
According to the latest annual report, James Urquhart owned over one million shares. What will happen to them. Is this an overhang, or an opportunity for someone with deeper pockets than me.

percy
03-11-2010, 06:10 AM
According to the latest annual report, James Urquhart owned over one million shares. What will happen to them. Is this an overhang, or an opportunity for someone with deeper pockets than me.

I would expect most if not all of Ian's AWF will come onto the market as his estate tries to balance his portfolio.What is interesting,but sad, is since Ian's death his largest holdings SCT and AWF have increased a lot in value.So his unbalance ? portfolio is throwing up some good winners.This should make trustees job easier.
PS James was always known as Ian.

minimoke
03-11-2010, 07:09 AM
I would expect most if not all of Ian's AWF will come onto the market as his estate tries to balance his portfolio.
And no telling when that will be. Greg Webster is still shown on the register.

percy
16-02-2011, 02:18 PM
I have to laugh.Just when I think AWF has gone off the boil,they come out with my favourite "a profit upgrade".

minimoke
03-05-2011, 01:15 PM
A wee milestone reached which we should not let go by without some celebration. Nearly five years after listing at $1.50 AWF is finally back up to listing price. And what a few years that has been. Bit hard to pick out the highlights in a stock that only went downhill for so long. But the low point has to be their purchase of Contract Labour service and becoming part of NZ's biggest ever labour scam. Buyers who picked the $0.50 low will now be happy.

percy
03-05-2011, 02:52 PM
A wee milestone reached which we should not let go by without some celebration. Nearly five years after listing at $1.50 AWF is finally back up to listing price. And what a few years that has been. Bit hard to pick out the highlights in a stock that only went downhill for so long. But the low point has to be their purchase of Contract Labour service and becoming part of NZ's biggest ever labour scam. Buyers who picked the $0.50 low will now be happy.

Fair comment.I wanted to buy at issue.but my broker Derek at Craigs thought they would weaken off.I did buy some at about 72cents ,but sold for some reason,however I am pleased to sayIi brought some before Xmas at $1.05.I thought they would come right after they appointed the present CEO.Their entry into health/age care should see positive growth.

Lizard
24-05-2011, 11:29 AM
Result on target today at underlying $3.8m NPAT for year to 31 March. Revenue at $95.8m, so starting to look like a respectably sized business, though may still some way to go before it gets on the "broker coverage" list.

Op cashflow looked impressive - reinvested in purchases of Panacea and Mourant (healthcare and mining sectors). This should help boost profit for the coming year, as they only contributed for 6 months in this result. Second half produced $2m NPAT, so I'm pencilling in $4.5m NPAT for the 2011/12 year, though looks as though we will have to wait for the 27 July agm to get an update from them on outlook. If they can hit that, then forward P/E remains under 10 and net cash position.

Final div of 6.4cps brings total to 10.2cps for the year and will make it a 6% net yield plus imputation at $1.70 - not too shabby. Will continue holding, as currently think there is more left in this.

percy
24-05-2011, 11:43 AM
Well I thought it was a "cracker' result. forward PE looks very modest compared to growth.Try this ratio.PE/growth +yield and the SP has some way to go yet.{I hope.}

Lizard
04-07-2011, 07:00 PM
Got the Annual Report recently and thought the forward-looking statements were pretty positive:


We are witnessing slow improvement in market confidence and employers continuing to increase staff numbers but perhaps not ready to commit to permanent staff.

Our new businesses will bring extra value in 2011/12 and at the same time we have some exciting new initiatives to introduce in the first half.

We are very confident that we will continue to grow in 2011/12, achieving acceptable margins and profitability.

Although the value-gap has closed a bit, I have added to the income portfolio at below $1.80 on the basis of strong yield and growth. Also think this one avoids the tricky area of forex exposure that is making some other local shares harder to gauge, plus a degree of inflation-proofing from this type of business. Good also to see some pedigree amongst the top 20 shareholders. Ideally, I'd hope for $2.40 in 12 months - being a forward PE of 14 on my guesstimate earnings for current year - but that could be a bridge too far given the lack of liquidity.

percy
04-07-2011, 07:47 PM
I can not see this company staying "under the radar" for too much longer.The company is gaining mommentum.The upturn we were well positioned for is happening now!!
The lack of liquidity will make it hard for any one wanting a good number of shares. I see the company's chairman is the 20th largest holder with 83,000 shares.
Perhaps the largest shareholder,Simon Hull with 66.83% [he founded the company] may have to look at selling down a few a some stage.Whatever, it is pleasing to read such a positive annual report.

percy
07-08-2011, 08:19 AM
Tim Hunter's article on AWF in to-days Sunday Star Times is quiet good.
"Overall,AWF looks a well managed business with a respectable outlook."
Talking of respectable, reminds me that there are some very respectable names in the top 20 shareholders' list.

Lizard
31-10-2011, 08:35 AM
The bottom line from Half Year isn't going to excite too much due to amortisation of intangibles, but the cash generation is impressive - looks to be over 13cps free cashflow this half alone. With 5cps going to the div (up from 3.8cps last year), it looks as though the rest is going in the kitty towards further growth or acquisitions.

percy
31-10-2011, 01:13 PM
The bottom line from Half Year isn't going to excite too much due to amortisation of intangibles, but the cash generation is impressive - looks to be over 13cps free cashflow this half alone. With 5cps going to the div (up from 3.8cps last year), it looks as though the rest is going in the kitty towards further growth or acquisitions.

I thought it was another "cracker" result.I am excited,the market is excited .!!!!!!

Jay
31-10-2011, 02:31 PM
I thought it was another "cracker" result.I am excited,the market is excited .!!!!!!

I'm not! as I have not got any, was/am still doing my research for my long term portfolio but is one on my list

Lizard
31-10-2011, 02:40 PM
I'm not! as I have not got any, was/am still doing my research for my long term portfolio but is one on my list

I don't think you need to panic about that - as I see it, it's not "super-under-valued" any more - I value about $2.11. I'm hoping it will consolidate just above $2 for a bit (could go lower though), but I think they'll be more in my portfolio for divs over the next 6 months than for growth. Maybe another growth spurt in 6-12 months.

percy
31-10-2011, 02:53 PM
I'm not! as I have not got any, was/am still doing my research for my long term portfolio but is one on my list

lol,you made my day.!!!!
See Lizard's post for fair value.

percy
30-11-2011, 12:42 PM
Today's acquisition of Tradeforce NZ will be a nice bolt on fit.Surprised Skilled Group sold them it.

stoploss
28-02-2012, 04:55 PM
Any idea when this company reports next ? Cannot find anything on their website.Had a nice little run up the past few weeks .

percy
28-02-2012, 05:04 PM
Any idea when this company reports next ? Cannot find anything on their website.Had a nice little run up the past few weeks .

The interim was reported 31st October 2011.Full year result due late May 2012.

stoploss
28-02-2012, 05:11 PM
The interim was reported 31st October 2011.Full year result due late May 2012.

thanks, hopefully there will be an update before....

Lizard
09-03-2012, 04:38 PM
http://www.stuff.co.nz/business/6549876/Port-signs-contractors-to-replace-wharfies

...though we may have already guessed that from last weeks rise in the AWF s.p.

stoploss
19-03-2012, 12:04 PM
9:03am, 19 Mar 2012 | GENERALAWF GROUP LIMITED (NZX – AWF) ANNOUNCES FURTHER HEALTH SECTOR GROWTH
AWF's subsidiary Panacea Healthcare Limited, has reached agreement to acquire the significant and respected South Island healthcare provider Nursing New Zealand (NNZ).
NNZ is a major provider of Community Nursing and Serious Injury Care to ACC and also provides Occupational Health Services through the Canterbury, Otago and Southland regions. NNZ has been operating in the health sector since 1993 and brings a wealth of experience to the Group.
The acquisition will be effective from the beginning of April and will see the retention of NNZ’s experienced management team. NNZ is expected to add revenue of $5m for the 2012-13 financial period and will be earnings accretive.
Managing Director Simon Hull says, "We are delighted to bring Nursing NZ into the team, both for their significant position in the provision of healthcare in the area and the geographic expansion to our services it will offer, but most importantly for the high standards achieved in the delivery of their services."
"With the South Island added to our already extensive coverage in the North, we move much closer to our goal of full national coverage of our services in these most important Healthcare areas" Hull says.

percy
19-03-2012, 05:03 PM
Very pleasing.Another good fit.

percy
20-03-2012, 07:06 AM
Impressive, might have to do some reading up on AWF

Hopefully Lizard may update us with a valuation.Lizard has been right on the money with this company.

stoploss
20-03-2012, 09:43 AM
http://www.odt.co.nz/news/business/202049/awf-expands-healthcare-holdings-acquiring-nnz

Not a bad article here, although he did neglect to say they traded and closed at all time highs !!!!

Lizard
20-03-2012, 06:39 PM
Hopefully Lizard may update us with a valuation. Lizard has been right on the money with this company.

Thanks for the compliment, Percy! For once, a thread I wouldn't have cared if Phaedrus had produced one of his legendary "take the piss out of the FA egotist" charts on. :D

Re valuation, I think I'll resist the urge and hold off until we get some fresh data in May. They don't seem to be trading too far off my various valuations now, but will come down a bit to finding the pedal on organic growth rather than paying for it in goodwill. Just one to ride for now (and keep banking the dividends).

h2so4
21-03-2012, 03:26 PM
Still looks good at current price. Definitely a HOLD.

h2so4
16-05-2012, 03:33 PM
Wow! What an excellent result. Gotta love this one percy.

Should hit Lizards valuation out of the park.

percy
16-05-2012, 06:31 PM
Wow! What an excellent result. Gotta love this one percy.

Should hit Lizards valuation out of the park.

Result would have hit everybody's valuation out of the park.!!!!!!! Last sale $2.60
PE over 15, divie yield now 5%,but that growth rate of 26.8% is just incredible.Future growth rate.?
As you noted h2so4 I just love it,and the big increase in divie is the icing on the cake.

percy
28-05-2012, 02:06 PM
Today's announcement "The board of AWF Group intends purchasing up to 500,000 ordinary shares to be held as treasury stock,shall be completed by 31/3/13".
Means if you have not already brought some, you have serious competition.
Not sure how many have traded in the past year,but I doubt it is much more than 500,000,and that has driven the SP from $1.65 to $2.50. Another positive announcement for us shareholders.

4be
28-05-2012, 02:13 PM
Today's announcement "The board of AWF Group intends purchasing up to 500,000 ordinary shares to be held as treasury stock,shall be completed by 31/3/13".
Means if you have not already brought some, you have serious competition.
Not sure how many have traded in the past year,but I doubt it is much more than 500,000,and that has driven the SP from $1.65 to $2.50. Another positive announcement for us shareholders.

I like AWF and have for some time now, but this is not doing much to promote liquidity in a stock that is already very illiquid is it? Surely issuing options would be a better way to incentives the execs.

percy
28-05-2012, 02:44 PM
I like AWF and have for some time now, but this is not doing much to promote liquidity in a stock that is already very illiquid is it? Surely issuing options would be a better way to incentives the execs.

Liquidity has/is a problem.The shares are very tightly held,with some top twenty holders adding to their holdings over the past year.
I do not know what they are going to do with the treasury stock,so can't comment.
ABA,and SCT also have market caps of approx $70mil,and I note their shares are also illiquid.PHB before the sudden rise were also around the $70mil market cap.Their shares are/were also illiquid.

4be
28-05-2012, 02:52 PM
Liquidity has/is a problem.The shares are very tightly held,with some top twenty holders adding to their holdings over the past year.
I do not know what they are going to do with the treasury stock,so can't comment.
ABA,and SCT also have market caps of approx $70mil,and I note their shares are also illiquid.PHB before the sudden rise were also around the $70mil market cap.Their shares are/were also illiquid.

Yeah good points, I guess it comes back to the NZX been an illiquid market overall and the general buy and hold mentality of a lot of retail investors.

percy
28-05-2012, 03:11 PM
Yeah good points, I guess it comes back to the NZX been an illiquid market overall and the general buy and hold mentality of a lot of retail investors.

From memory there are some very astute shareholders on both PHB and AWF's top 20 holders.Although I hold and like ABA I can't remember if there are many astute holders I recognize. AWF's ROE is very high,so the company can expand without coming back to shareholders for more funds.They certainly are performing very well,and I would expect with earnings coming on stream from new acquisitions,we will see another year of positive growth in the coming year.

stoploss
01-06-2012, 09:17 AM
looks like they got 321,000 @ 250 this morning.



Today's announcement "The board of AWF Group intends purchasing up to 500,000 ordinary shares to be held as treasury stock,shall be completed by 31/3/13".
Means if you have not already brought some, you have serious competition.
Not sure how many have traded in the past year,but I doubt it is much more than 500,000,and that has driven the SP from $1.65 to $2.50. Another positive announcement for us shareholders.

stoploss
03-07-2012, 03:57 AM
just had a read of this years annual report,very positive ,much the same as last year.Loved the bit" the first two months of this year have seen new record levels " Maybe some good comments to come at the AGM later in the month.I won't be able to make it.Hope someone here can go along and report back.


Got the Annual Report recently and thought the forward-looking statements were pretty positive:



Although the value-gap has closed a bit, I have added to the income portfolio at below $1.80 on the basis of strong yield and growth. Also think this one avoids the tricky area of forex exposure that is making some other local shares harder to gauge, plus a degree of inflation-proofing from this type of business. Good also to see some pedigree amongst the top 20 shareholders. Ideally, I'd hope for $2.40 in 12 months - being a forward PE of 14 on my guesstimate earnings for current year - but that could be a bridge too far given the lack of liquidity.

percy
11-07-2012, 05:38 PM
just had a read of this years annual report,very positive ,much the same as last year.Loved the bit" the first two months of this year have seen new record levels " Maybe some good comments to come at the AGM later in the month.I won't be able to make it.Hope someone here can go along and report back.

Wife says thank you,for getting me to have a big clean out.Been hunting for the 2112 AWF annual report.Found last years,but not this year's.
Pleased to report this year's arrived in yesterday's post. lol.
Report reads very well.Top 20 largest holding very interesting.I notice the fifth largest shareholder has increased his holding from 82,600 to 449,100.Astute investor, so we are in good company.I really do have problems with actual profits and "underlying earnings",get me very confused.At least cash flow statement is clear.I recently added to wifes holding,as I feel they can grow the business by aquisition and organic growth,without coming back to shareholders for more funds.I rang Michael Huddleston a couple of months ago and found he was easy to speak to.Answered my questions well, with straight answers you get from a competent CEO who enjoys his job.

Lizard
25-07-2012, 10:57 AM
AGM presentations read well. Good to read that they have budgeted for continued high levels of growth and are achieving them. :)

stoploss
25-07-2012, 01:23 PM
Have to agree, I have purchased some more today on the back of this.Pity they didn't put any numbers on the forecasts though.I suppose in this day and age not so easy to do this.

percy
25-07-2012, 03:26 PM
Good presentations.The continued high levels of growth and room for expansion confirms to me that this is an excellent business,well run,with very good prospects.Like you Stoploss I have recently brought more at these levels.Looks to me as they are looking at 15 to 20% growth this year.May surprise on the high side.

stoploss
26-07-2012, 12:58 PM
Gee bit of a turnaround from yesterday...they have sold Panacea...must be something good on the horizon they want the money for .......


AGM presentations read well. Good to read that they have budgeted for continued high levels of growth and are achieving them. :)

Lizard
26-07-2012, 01:04 PM
It says "on favourable terms"... guess we can hope for an indication on settlement, as would hope they were able to achieve a profit as well as wipe a bit of the goodwill back off the accounts... but, as you say, something of a tactical surprise that doesn't seem to gel with previous commentary.

percy
26-07-2012, 01:31 PM
It says "on favourable terms"... guess we can hope for an indication on settlement, as would hope they were able to achieve a profit as well as wipe a bit of the goodwill back off the accounts... but, as you say, something of a tactical surprise that doesn't seem to gel with previous commentary.

Certainly something of a tactical surprise.As Stoploss pointed out must be someting good on the horizon." on favourable terms" to whom? A hole in earnings?

stoploss
31-08-2012, 11:18 AM
It says "on favourable terms"... guess we can hope for an indication on settlement, as would hope they were able to achieve a profit as well as wipe a bit of the goodwill back off the accounts... but, as you say, something of a tactical surprise that doesn't seem to gel with previous commentary.



GENERAL: AWF: AWF Group confirms settlement of sale of subsidiary





The Directors of AWF Group Limited (AWF) have today confirmed that full


settlement has been received to complete the sale of Panacea Healthcare


Limited to Healthcare of New Zealand Limited.





Chairman Ross Keenan noted that the decision to exit this Health Sector


investment had come after a full review of the lack of business mix achieved


since acquisition, and the over dependence on a largely single income stream


from Accident Compensation Commission.





Mr Keenan said that whilst AWF understood the growth expected through


specialist provision of Labour Service, AWF had failed to identify sufficient


synergies with its core business to warrant further investment at this time.





Directors noted that the consideration in the region of $7.2 million, subject


to completion of final accounts, would result in a positive impact on the AWF


results.





For the Board





Ross B Keenan


CHAIRMAN

Lizard
31-08-2012, 11:46 AM
Looks like around a $2m profit on 2011 purchase price and costs? Though depends a bit if they invested further in it during intervening period.

stoploss
31-08-2012, 12:00 PM
Looks like around a $2m profit on 2011 purchase price and costs? Though depends a bit if they invested further in it during intervening period.
I lost count as I think they backed this into it as well.......


9:03am, 19 Mar 2012 | GENERALAWF GROUP LIMITED (NZX – AWF) ANNOUNCES FURTHER HEALTH SECTOR GROWTH
AWF's subsidiary Panacea Healthcare Limited, has reached agreement to acquire the significant and respected South Island healthcare provider Nursing New Zealand (NNZ).
NNZ is a major provider of Community Nursing and Serious Injury Care to ACC and also provides Occupational Health Services through the Canterbury, Otago and Southland regions. NNZ has been operating in the health sector since 1993 and brings a wealth of experience to the Group.
The acquisition will be effective from the beginning of April and will see the retention of NNZ’s experienced management team. NNZ is expected to add revenue of $5m for the 2012-13 financial period and will be earnings accretive.
Managing Director Simon Hull says, "We are delighted to bring Nursing NZ into the team, both for their significant position in the provision of healthcare in the area and the geographic expansion to our services it will offer, but most importantly for the high standards achieved in the delivery of their services."
"With the South Island added to our already extensive coverage in the North, we move much closer to our goal of full national coverage of our services in these most important Healthcare areas" Hull says.

Lizard
31-08-2012, 12:19 PM
You are right, stoploss... that cost them another $1.845m. On that basis, there isn't much left in it on sale.

Stranger_Danger
31-08-2012, 12:32 PM
My guess is they've decided it is either a dud company, dud sector, or both.

This is the upside of the debacle AWF suffered a few years ago with a dodgy acquisition - chances are that episode is embedded into the psyche of management meaning they're more likely to be careful with acquisitions and able to admit when they're wrong. Which is a good thing.

stoploss
31-08-2012, 01:03 PM
Also , Chairman of the board has increased his shareholding ( + 5453 @$ 2.56)to 110,000 and the MD sold 161,000 @ 250 cps

percy
31-08-2012, 02:21 PM
My guess is they've decided it is either a dud company, dud sector, or both.

This is the upside of the debacle AWF suffered a few years ago with a dodgy acquisition - chances are that episode is embedded into the psyche of management meaning they're more likely to be careful with acquisitions and able to admit when they're wrong. Which is a good thing.

I agree it is a good thing that they admitted it is wrong.Only surprised that it is so.I thought at the time it was a good sector to get into.
With CEO Mike Huddlestone there appears to be more discipline,which is good for us shareholders.
The MD selling down looks to me as though it is to facilitate Chairman and staff purchases.

percy
31-10-2012, 09:11 AM
Pleasing to see the buyers are back.Looks as though strong seller has finished their selling.

percy
31-10-2012, 02:31 PM
And so it came to pass that AWF posted a cracker first half result,with increased divie.
No surprises there,although I was surprised .Yeah right.!!! Well done AWF.

Lizard
31-10-2012, 08:01 PM
Yes, I was pleasantly surprised too, Percy! I wasn't quite sure how the sale of Panacea would pan out, but all looks good with a profit booked etc and continuing ops still ahead as well. Plus increased div.

All in all, a cracker :) - and pleased to see the market didn't particularly anticipate this one either. Suggests management integrity.

percy
31-10-2012, 09:27 PM
[QUOTE=Lizard;384364]Yes, I was pleasantly surprised too, Percy! I wasn't quite sure how the sale of Panacea would pan out, but all looks good with a profit booked etc and continuing ops still ahead as well. Plus increased div.

I too did not know how the sale of Panacea would affect the result.I had been hoping they would have given guidance.
No update or guidance,then strong selling caused me to be concerned.

stoploss
26-11-2012, 04:33 PM
Interim report out today. All reads well like the past few years .
I'm not too good with the numbers , was wondering anyone got a take on the P/L for the year with the Healthcare ( panacea ) out of the picture ?

percy
26-11-2012, 05:13 PM
Interim report out today. All reads well like the past few years .
I'm not too good with the numbers , was wondering anyone got a take on the P/L for the year with the Healthcare ( panacea ) out of the picture ?

Best to go back to the announcement 31/10/2012;AWF Group posts strong half year result.
"After removing the one off impact of the Panacea Healthcare,net profit after tax from continuing operations was $2.4 million [$1.8 million 2011] an increase of 33% for the period."
The dividend has also been increased.

zigzag
07-02-2013, 12:09 PM
I wonder if these guys have any exposure to the collapse of Mainzeal. I would think it more than likely. But no comment as yet.

stoploss
07-02-2013, 12:52 PM
I wonder if these guys have any exposure to the collapse of Mainzeal. I would think it more than likely. But no comment as yet.
From the 2012 interim report " no customer makes up more than 10 % of revenue"

stoploss
23-04-2013, 05:35 PM
This stock has been pretty quiet for the past year.Has come pretty well bid the last few days, about a month away from the full year result. Fingers crossed for a good one .......

percy
23-04-2013, 06:20 PM
This stock has been pretty quiet for the past year.Has come pretty well bid the last few days, about a month away from the full year result. Fingers crossed for a good one .......

Yes,someone has started to take an interest.

percy
24-04-2013, 12:28 PM
We appear to have run out of sellers.!