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

[minimoke]

Hope they haven’t been supplying labour to Ebert Construction

That Auckland Manager they sacked was pretty good Ar drumming up business up Auckland way

And I suspect may not have been great at managing margins or risk given his prior history.

[Snoopy]

Hope they haven’t been supplying labour to Ebert Construction

That Auckland Manager they sacked was pretty good Ar drumming up business up Auckland way

The share price took a hit at the end of the week and I wondered the same! However, it is all historical now. A 'non cash adjustment' as some would say?

SNOOPY

[percy]

Some of us may go so far as to say "ANOTHER" 'non cash adjustment'.

[winner69]

Apparently Naven Interiors who also went broke had about 20 contracted workers .....hope they didn’t use the market leaders to get staff

[winner69]

Talking of Allied bad debts are they still hoping to get paid that $1.4m unpaid bill from a few years ago?

That would be a bonus for them

[Brain]

Hope they haven’t been supplying labour to Ebert Construction

That Auckland Manager they sacked was pretty good Ar drumming up business up Auckland way

Really good that they sacked him as anybody writing illegal contracts is a total dickhead and should be sacked. My worries is that they took too long to discover that fact which really reflects badly on the CEO. I sold all my shares a while ago at a loss. You have to take your losses and admit your mistakes. Hopefully mistakes on companies like this are made up many times over on your successes with other companies.

[Snoopy]

Its one of the simplest businesses around. You simply hire out worker labour to hiring employers at a rate higher than your all up costs.

Two common reasons for business failure, aligned with cashflow:
- not enough worker labour to meet employer demand
- not enough employers demanding available working labour.

Warren Buffett is famous for not investing in businesses that he does not understand, no matter how trendy or good the outlook seems to be. One thing I like about AWF is that it is relatively simple, as minimoke has outlined above. However, I have read Simon Bennett's CEO report in AR2018 twice now, and I have to admit a new cloud of confusion has descended as a result to baffle me.

Bennett gives a backhanded serve to the new labour lead government. He mentions something about employing triangles. Then goes into a long diatribe on the latest buzz-phrase 'Managed Service'. Please feel free to correct me if I have this wrong.....

'Managed Service' is about managing a long term temporary workforce. (it is always worrying when I open a paragraph with a tautology). Put simply, AWF lends workers to an organization, then takes the worker back to redeploy elsewhere. However the place to which the worker was originally deployed is 'kept in the loop'. They are told where the worker has been sent to, what new training they are getting and how their skills are developing. The idea is that later that same worker can go back to where they were originally deployed, as an upskilled higher paid more desirable 'work unit'. And that previous employer deployments are kept salivating as they embrace the career development of their former charge.

"For the candidates or workers , it allows certainty for periods of work with the client and future opportunities as they cycle out of the assignment."

How does cycling in and out of an assignment create certainty for the worker again? And what does

"dashboarding and automation of the process for clients and candidates" mean? The worker allocation will be done by computers from now on?

Reading the CEO report for the third time has increased my confusion further! Back to Bennet's triangle reference, the only thing it does prove is that there are at least three sides to every story.

SNOOPY

[winner69]

Snoops - that's all good stuff, the stuff that gives them a competitive advantage = higher share holder returns

You need to trust Mr Bennet

[minimoke]

Warren Buffett is famous for not investing in businesses that he does not understand, no matter how trendy or good the outlook seems to be. One thing I like about AWF is that it is relatively simple, as minimoke has outlined above. However, I have read Simon Bennett's CEO report in AR2018 twice now, and I have to admit a new cloud of confusion has descended as a result to baffle me.

Bennett gives a backhanded serve to the new labour lead government. He mentions something about employing triangles. Then goes into a long diatribe on the latest buzz-phrase 'Managed Service'. Please feel free to correct me if I have this wrong.....

'Managed Service' is about managing a long term temporary workforce. (it is always worrying when I open a paragraph with a tautology). Put simply, AWF lends workers to an organization, then takes the worker back to redeploy elsewhere. However the place to which the worker was originally deployed is 'kept in the loop'. They are told where the worker has been sent to, what new training they are getting and how their skills are developing. The idea is that later that same worker can go back to where they were originally deployed, as an upskilled higher paid more desirable 'work unit'. And that previous employer deployments are kept salivating as they embrace the career development of their former charge.

"For the candidates or workers , it allows certainty for periods of work with the client and future opportunities as they cycle out of the assignment."

How does cycling in and out of an assignment create certainty for the worker again? And what does

"dashboarding and automation of the process for clients and candidates" mean? The worker allocation will be done by computers from now on?

Reading the CEO report for the third time has increased my confusion further! Back to Bennet's triangle reference, the only thing it does prove is that there are at least three sides to every story.

SNOOPY

I'l have to read the report - its not high on my Must Read list though. The triangle bit is simple enough. There is even a bill in front of parliament to cover it: The Triangular Employment relations Bill (or something like that).

A big risk for AWF is new new Domestic Violence Act where a worker can claim 10 days paid leave if they have been affected (but nor necessarily a victim) of domestic violence. Add the other it 20 day annual leave (if there more than 12 months - other wise 8% of gross), 5 days sick and unlimited bereavement leave being an employer Is tough. Especially in Allied space.

Bennet also needs to get with th programme. Its no longer a "temporary" workforce. Its teh "On-hire' workforce. Big black mark against him there as Labour, Greens hate "temporary"

[minimoke]

Bennett gives a backhanded serve to the new labour lead government. He mentions something about employing triangles. Then goes into a long diatribe on the latest buzz-phrase 'Managed Service'. Please feel free to correct me if I have this wrong.....

'Managed Service' is about managing a long term temporary workforce. (it is always worrying when I open a paragraph with a tautology). Put simply, AWF lends workers to an organization, then takes the worker back to redeploy elsewhere. However the place to which the worker was originally deployed is 'kept in the loop'. They are told where the worker has been sent to, what new training they are getting and how their skills are developing. The idea is that later that same worker can go back to where they were originally deployed, as an upskilled higher paid more desirable 'work unit'. And that previous employer deployments are kept salivating as they embrace the career development of their former charge.

"For the candidates or workers , it allows certainty for periods of work with the client and future opportunities as they cycle out of the assignment."

OK, I've had a read of his report. I am left in the dark over this managed Service business. I have no idea what he is on about. I have no clue what a person on a "statement of work" is.

If I was him I wouldn't be shining a spotlight on his temporary workforce getting permanent work with the host employer. That is potentially illegal.

If he is talking about triangles then going down the "Candidate centricity" route make no sense. = hes ignoring the other points on the triangle.

"Digital roadmapping" and "dashboarding" are excellent words to help fill an Annual report.

I think what he might be saying or ought to be saying is: If we upskill lour contingent workforce we can get them into higher paying jobs and we get a higher margin on those jobs."