DURBAN – Recently legislated minimum wage requirement in South Africa dented JSE-listed Workforce Holdings results, which saw it report an 8.4 percent slide in profits for the six months to end June.
The group's profits declined to R41.22 million, down from R45m compared to last year.
The minimum wage legislation hurt Workforce’s staffing and outsourcing business, with the unit reporting a 15 percent decline in earnings before interest, tax, depreciation and amortisation (Ebitda) to R65m. Workforce Holdings is a holding company which has four core business segments that include staffing and outsourcing, training, financial services and healthcare.
South Africa’s subdued economic climate, the election effect and a general contraction in government spend on infrastructure also affected the group’s overall performance, it said.
The group reported a decline of 6.1 percent decline in earnings per share to 18.5 cents a share, however, Ebitda rose 5.2 percent to R80m.