Workforce scores on youth wage subsidy

Workforce CEO Lawrence Diamond. (Supplied)
Workforce CEO Lawrence Diamond. (Supplied)

Johannesburg - Workforce Holdings is benefiting from the employment tax incentive as it recorded a revenue increase of 12% to R872m for the six months ending June 2014.

The employment tax incentive was introduced by the government in January 2014 to incentivise companies that employ young job seekers.

"Our results ending June 2014 for the six months are pleasing," Workforce CEO Lawrence Diamond told Fin24.

"Consolidated revenue has increased by 12% to R872m. Gross margins have remained pretty consistent at 22% and operating expenses increased marginally by 4.1%."

Headline earnings per share (Heps) and earnings per share (EPS) increased by 231% to 9.6 cents per share from 2.9c in the same period last year.

Ebitda as adjusted to reflect continuing operations closed at R38.4m, an increase of 51% on the same period last year.

"Our business is growing," said Diamond. "We believe in the next six months we will follow this trend."

He said the group's core business in South Africa is growing and it has also made substantial inroads into Sub-Saharan Africa where the market, specifically in the area of projects, is considerable.

Watch: Workforce shines as tax incentive pays off



"Our training business is also gaining a lot of leverage, feeding into the government requirements around skills development. We continue to take advantage of this and we continue to expand on that capability."

Diamond said Workforce is playing a major facilitative role in policies put in place by the government to stimulate youth employment.

"We see ourselves continuing to play a bigger role in this process and we believe that the benefits accruing from this will become more and more material as we role these projects out further on into our client base," he concluded.

 - Fin24

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