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GO2 People posts FY18 revenue growth across all divisions

The growth comes on the back of business expansion and a pipeline of secured contracts.

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GO2 is a provider of vertically integrated recruitment and building services

GO2 People Ltd (ASX:GO2) has achieved its targeted revenue growth for financial year 2018, reporting growth across all divisions.

Revenue grew by 30% to hit the target of $45 million and total gross profit grew 47.2% to reach $5.4 million.

‘Responsible capital management’

GO2 managing director Billy Ferreira said the company was pleased with its progress in the short period since listing in late October 2017.

He said: “On the back of responsible capital management, incremental improvements have been made month to month as we have implemented our strategic plan across the country.

“With a stable overhead structure in place and an established presence in buoyant sectors and geographies, we carry momentum into FY19 and expect to see continued improvements in our financial performance.”

Expansion boosts recruitment growth

GO2 expanded its recruitment division during the year, opening an office in NSW to take advantage of the largest recruitment market in Australia.

Multiple new service provider agreements were secured in WA and QLD, in the core focus sectors of construction, mining/resources and industrial.

Overall recruitment revenue increased 10% to nearly $38 million, with a pipeline of current and tendered works expected to provide continued growth in the recruitment division.

Revenue in the building division was over $7.2 million, up from $770,548 recorded for financial year 2017.

This was underpinned by the delivery of Altura Mining works contracts, the ongoing Meadowbrooke Lifestyle Estate contract, and multiple residential dwellings delivered across the financial year.

Seeking new finance arrangement

The company continues to seek a more cost-effective and flexible alternative to its current debtor finance facility.

Discussions have been held with a number of major financial institutions and a new arrangement is expected to be in place by the end of the first quarter of financial year 2019.

An alternative finance facility should reduce the interest costs and narrow the gap between EBITDA and net profit after tax.

Quick facts: The GO2 People Ltd

Price: 0.017 AUD

ASX:GO2
Market: ASX
Market Cap: $2.01 m
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