Our opinion on the current state of WKF

Workforce (WKF) operates as a diversified labor broker, providing services in recruitment, specialist staffing, training, consulting, employee health management, and the sale of financial and insurance products. The company faced a significant legal challenge with the "Assign" case, which clarified the status of temporary employees and legitimized the labor broking industry.

Despite the legal clarity, Workforce has encountered challenges, including the need to reduce staff by 10% to 15%. However, the company has diversified its offerings away from labor broking into insurance and other products, which has helped mitigate some risks.

In its financial results for the year ending December 31, 2023, Workforce reported a 4% increase in revenue. However, the company experienced a headline loss of 13.3 cents per share, a stark contrast to the profit of 46.8 cents per share in the previous period. Workforce attributed this performance to a harsh operating environment, where increased overheads outpaced revenue growth.

One challenge for private investors considering investing in Workforce is the liquidity of its shares. Only 8% of its issued shares are available to the public, and trading occurs sporadically. Given this illiquidity, it may not be practical for private investors to invest in the company's shares.

In conclusion, while Workforce has diversified its services and faced legal challenges, its financial performance and illiquid shares pose challenges for private investors. Therefore, investing in Workforce may not be advisable due to these factors.