Workforce agrees to buy business college

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Labour group’s diversification strategy ups focus on training and financial services

Labour-services group Workforce says it has agreed to buy Chartall Business College for as much as R34.88m, as it increases its focus on training amid a slowdown in demand for staffing services.

Chartall Business College was established in 2012 and services mainly the corporate market, with a focus on the financial services industry. The group has been seeking to diversify its revenue in the wake of slowing demand for outsourcing, due to weak economic conditions and regulatory changes in the industry.

“The acquisition allows the company to further grow and diversify by bringing a niche training business with both a market leading brand and an experienced, entrepreneurial management team into Workforce’s training cluster,” Workforce said in a statement on Tuesday The company, which has been hit by regulatory changes such as those affecting labour broking, and has said previously that a slowdown in government spending on infrastructure projects in SA was weighing on its recruitment business.

In its half-year to end June, it had said its training cluster contributed 25% to total earnings before interest, taxation, depreciation and amortisation , compared to 17% in the prior period. This had been partially due to its acquisition of specialist training company Dyna in June 2018.

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