Workforce: A stock to lock away — for the moment
While it seems likely the company will carefully bolt on new offerings, obvious larger opportunities could be snared or enticing smaller rival Primeserv into a takeover/merger
It’s unusual for a company, even for one of the oft-overlooked small-cap variety, to trade at a trailing earnings multiple of less than five times after notching up four consecutive years of bottom-line growth. Workforce, a specialist services company with a sizeable human temporary staffing element, "enjoys" such a desultory market rating. Of course, a stifling operating environment created by labour regulation and ongoing efforts to vilify temporary employment services do weigh on investment sentiment. Workforce is acutely aware of this, and its investment presentation dedicates a page to outlining the positive spin-offs from its craft, most notably meaningful job creation, youth employment, a strong focus on training, equivalent benefits to permanent workers and a significant conversion of temporary to permanent workers. In isolation, Workforce’s interim numbers hardly justify the share trundling along at a 12-month low. Revenue was up 14.5% to R1.37bn, with gross profit coming i...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.