Business Description:
Skilled Group Limited (SKE) is Australia and New Zealand’s provider of labour and workforce services. The Company provides total workforce management, flexible labour solutions and project-based workforce solutions. SKE has four operating segments, being Workforce Services, Other Staffing Services, Engineering and Marine Services and Business Services. It has a network of over 170 offices across Australia, New Zealand, United Kingdom, Malta and United Arab Emirates.

Strategy Analysis:
As a result of its poor performance, SKE initiated a strategic review of its business in FY10. The company also decided on a board renewal program and CEO Greg Hargrave announced his resignation. The key outcome of the strategic review was a decision to sell the Swan Contract Personnel business to reduce debt levels, but this decision was reversed due to inadequate offer prices for the business. New CEO Mick McMahon is undertaking a new strategic review of the business and is focusing improving efficiency and financial strength. SKE´s core focus continues to revolve around maintaining its position of scale within the labour hire industry. It aims to maintain leadership in the provision of blue collar workers and build strong brands across its business. It also aims to have strong positions in growth areas such as resources and areas where there are skill or labour shortages. The company believes it can capitalise on a trend to outsourcing and workforce flexibility. Skilled reported NPAT down 75.3% to $3.14m for the year ended 30 June 2011. Revenue from ordinary activities were $1.88bn, up 10.5% from last year. Basic and Diluted EPS were 1.6 cents compared to 7.3 cents last year. Net operating cash flow was $75.74m compared to $29.06m last year. The final dividend declared was 3 cents, taking the full year dividend to 3 cents compared with nil cents last year.