A strong second half helped Allied Work Force Group achieve a slightly smaller than expected fall in annual after tax profit, which dropped 43.4 per cent to $1.7 million.
Director Simon Hull said it had been a difficult year for the company, "characterised by difficult trading conditions forthe first six months plus the consequences of the investment in Contract Labour Services NZ Ltd (CLS), and its subsequent liquidation."
In February Allied signalled it expected a 50 per cent decline in annual profit for the year to March 31, from the previous year's $3 million.
Today chairman Ross Keenan said particularly strong growth had been achieved in the regions outside Auckland during the second half, enabling the group to claw back considerable momentum compared with the first half.
Indications were that core business continued to grow satisfactorily into the current financial year, he said.
Mr Hull said revenue growth continued at satisfactory levels, as the group focused clearly on preserving margins, managing costs and accordingly delivering a stronger operating performance.
In today's result, Allied also set out the details of the sale by CLS's liquidators of Spring Creek Holiday Park, bought for $1.8 million to house CLS's seasonal workers in Blenheim.
Spring Creek was sold by the liquidators of CLS to a company associated with Mr Hull, Allied said.
The buyer had bought the release of Allied from its guarantee of the sum borrowed to buy Spring Creek and Spring Creek's ongoing funding requirements.
The assets of Spring Creek had been valued at less than the sum, which had still been outstanding, borrowed by Spring Creek to buy the holiday park.
Spring Creek had also not been trading profitably and needed to borrow from its lender to continue to operate, with Allied guaranteeing the debt.
The report said Mr Hull confirmed that all known costs associated with the CLS/Spring Creek rural sector investment had been written off with the results reported today.
A final, fully imputed dividend of 3 cents per share is to be paid, taking the total for the year of 5.5c.
Today's report showed revenue for the year rose 16.3 per cent to $82 million.
Allied shares were up 7c to $1.25 soon after the sharemarket opened today.
