AGL - Accordant Group. was previously AWF Madison, Allied...

[winner69]

Had not really read that last announcement (except for the profit bit)

This bit The demand for recruitment talent has had some impact on the Madison business with pressure of competition for current and future talent by growing internal recruitment teams. This has softened the Madison result.

Not exactly clear what it means but it sound ominous, especially mentioning competition for future talent . Probably high employment / low unemployment not helping

Percy hinted that they have lost their way and weren’t changing with the times (or something like that). I think he is right

Could also be code that F19 not going to be that good either ...just a subtle warning

[minimoke]

Another bit ...Another factor has been the continuing increased cost of legislative compliance, into the second half of the year.


Red herring .....need plenty of excuses so this is a good one to come up with

Only suggests that they weren't complying previously.

[Snoopy]

Had not really read that last announcement (except for the profit bit)

This bit The demand for recruitment talent has had some impact on the Madison business with pressure of competition for current and future talent by growing internal recruitment teams. This has softened the Madison result.

Not exactly clear what it means but it sound ominous, especially mentioning competition for future talent . Probably high employment / low unemployment not helping.

I don't think this is a revelation Winner. Low unemployment means the economy is doing well. That means employees doing well and so less likely to be looking around to change jobs. It also means that employers will fight to retain good employees. If the employer succeeds in keeping their good employee then this is one less person changing jobs and no commission for Madison. Or perhaps more correctly from a placement perspective, Madison will have to work extra hard to find an employee willing to change jobs: (more time spent means less profits) to gain their placement payment.

Perversely I quite like this feature of the industry. Job placement firms are fundamentally negatively correlated with how well the economy is doing. That means less volatility in earnings through the business cycle and more steady dividends. Great news for a dividend hound such as myself.

Percy hinted that they have lost their way and weren’t changing with the times (or something like that). I think he is right

Could also be code that F19 not going to be that good either ...just a subtle warning

Percy did say that and when pressed thought AWF might be losing out to the pure on line space. Websites such as 'Seek' and web networks such as 'Linked In' were mentioned. Then I pointed out that half the listings on Seek seemed to be agency's anyway (including Madison). IOW Seek was a tool to be used by agencies, not the competition.

LinkedIn is more of a self promotional tool, which I am not sure is really good for job seeking. Has anyone ever got a job just through joining LinkedIn? I would think it might qualify you for getting an appointment with Madison, rather than acting as a 'bypass lane'.

Furthermore on looking at the past three annual reports, it looked like Madiosn was quite proactive via Facebook by plugging into prospective prospects, before they even knew they were looking for another job. I am not saying that Percy is wrong. But I don't see enough evidence yet that Madison is going down the 'wrong path' or has been 'left behind'. I would be pleased to hear more ways in which I might be wrong so that I can investigate further. Thus far, I remain unconvinced there is any inherent weakness in what Madison in particular is doing.

Meanwhile the AWF share price is going like a rocket. Up to $1.82 as I write this on 3,400 shares. I am thinking here in terms of a boutique Rocket Lab launch from Mahia, rather than something mega blasting out of Cape Canaveral.

SNOOPY

[minimoke]

I don't think this is a revelation Winner. Low unemployment means the economy is doing well. That means employees doing well and so less likely to be looking around to change jobs..

Conversely it means demand for labour is higher meaning more opportunity for people to change jobs with less risk since if a new job doesn't work out they can high tail it to the next job. Also means, given high demand for labour, margins don't have to be squeezed - a premium can be charged for the good employee.

[minimoke]

Hmm - on the news. AWF under a Labour Inspector investigation for having foreign workers not working. $20 an hour to go fishing on the wharf even though they are construction workers. Also allegedly illegal anti - union membership clauses in the Employment Agreement. Obviously pay with no revenue is going to be a drain on their cashflow. Just what is needed as the Triangular Employment Bill goes through parliament - not great publicity either.

[winner69]

Hmm - on the news. AWF under a Labour Inspector investigation for having foreign workers not working. $20 an hour to go fishing on the wharf even though they are construction workers. Also allegedly illegal anti - union membership clauses in the Employment Agreement. Obviously pay with no revenue is going to be a drain on their cashflow. Just what is needed as the Triangular Employment Bill goes through parliament - not great publicity either.

All sounds a bit messy eh .....and claiming those agreements aren’t AWF ones even though on AWF letterhead and signed by AWF employees ..hmm

http://www.newshub.co.nz/home/new-ze...contracts.html

[winner69]

That linked article seems to be in conflict with what AWF told us a few weeks ago -


The demand for Trades, particularly in the Auckland construction sector, is strong; however, the mobilisation of AWF’s migrant workforce channel, which largely supports this function, has been hampered by delays in arrivals to take advantage of this opportunity

[winner69]

Makes you wonder if the Allied part of the business is out of a control ....a real mess

[minimoke]

All sounds a bit messy eh .....and claiming those agreements aren’t AWF ones even though on AWF letterhead and signed by AWF employees ..hmm

http://www.newshub.co.nz/home/new-ze...contracts.html

"A bit messy" would be an understatenemt. All sorts of red flags not fluttering in a breeze but standing horizontal in a gale. Snoopy needs to put his numbers aside and go talk to the tea lady.

[winner69]

They even said (almost word for word) last September that the migrant workforce has been slow to mobilise etc etc

I think they are treating shareholders (mininority ones) as fools and treating them with contempt as there seems little substances in their updates.