- Forum
- Markets
- NZX
- AGL - Accordant Group. was previously AWF Madison, Allied...
-
10-01-2007, 03:07 PM
#111
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?
-
10-01-2007, 10:10 PM
#112
Member
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
-
11-01-2007, 06:38 AM
#113
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
Death will be reality, Life is just an illusion.
-
12-01-2007, 05:50 PM
#114
Member
Correct Steve , AWF shares should be suspended pending clarification of financial and Director exposure.
Misc
-
14-01-2007, 10:49 AM
#115
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
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.
Death will be reality, Life is just an illusion.
-
13-02-2007, 12:23 PM
#116
Member
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
-
13-02-2007, 12:45 PM
#117
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!
-
13-02-2007, 03:10 PM
#118
Member
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
-
13-02-2007, 09:39 PM
#119
Member
Remember that this is the NZX. All annoucements are automaically assumed to include the rider "E&OE".
Good spotting by minimoke & misc last december.
-
14-02-2007, 09:06 AM
#120
Member
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.
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts
-
Forum Rules
|
|
Bookmarks