Proactiveinvestors Australia The GO2 People Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia The GO2 People Ltd RSS feed en Mon, 22 Jul 2019 03:07:58 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - The GO2 People opens capital raising to investors ]]> https://www.proactiveinvestors.com.au/companies/news/223697/the-go2-people-opens-capital-raising-to-investors-223697.html The GO2 People Ltd (ASX:GO2) last night lodged its prospectus officially opening its capital raising offer, which seeks to raise up to $4.0 million through the issue of shares priced at 7.5 cents.

Each share that is subscribed for in the capital raising will come with an attaching free option exercisable at 10 cents expiring 12 months from the date of issue.

The capital raising is to fund the cash component of the consideration payable for the acquisition of training organisation Industry Pathways Pty Ltd (IPW).

READ: The GO2 People outlines capital raising for acquisition of training organisation

IPW was founded in 2011 and is a fast growing registered training organisation (RTO) offering fee for service training and education up to Diploma level in the mining and health sectors.

Notably, it does not rely on any government funding.

GO2 considers the acquisition of IPW to be a complementary expansion of its existing business.

Over the past 3 years, IPW has seen consistent growth in revenue and profitability, and is expected to generate EBITDA of $2 million in FY2019.

Meeting date set for 9 August

The offer opened yesterday and will close in about one month on 12 August 2019.

Importantly, on 9 August 2019, a general meeting has been called at which shareholders will vote on approving the capital raising underway to facilitate the acquisition of IPW.

Shareholder approval is a normal requirement in a circumstance such as this.

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Thu, 11 Jul 2019 08:45:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223697/the-go2-people-opens-capital-raising-to-investors-223697.html
<![CDATA[News - The GO2 People to lodge capital raising prospectus this week ahead of acquisition ]]> https://www.proactiveinvestors.com.au/companies/news/223457/the-go2-people-to-lodge-capital-raising-prospectus-this-week-ahead-of-acquisition-223457.html The GO2 People Ltd’s (ASX:GO2) managing director Billy Ferreira has detailed an indicative timetable for the capital raising to fund the acquisition of IPW.

A prospectus will be lodged on Wednesday 10 July 2019 detailing a capital raising of up to $4.0 million through the issue of shares priced at 7.5 cents each with an attaching 10 cent option expiring in 12 months.

The capital raising will fund the earnings accretive acquisition of training organisation IPW for $5 million in cash and shares.

IPW generated $1.56 million in EBITDA in FY18 and is projected to grow these earnings by 28.2% to $2.00 million in FY19.

The purchase price represents a competitive 3.75x EBITDA multiple using the average of FY19, FY20 and FY21.

READ: The GO2 People outlines capital raising for acquisition of training organisation

In the letter to shareholders, managing director Billy Ferreira said: “We remain committed to completing this transaction as we see significant synergies through the merger of The GO2 People labour hire business and the IPW online training and education business.

“Combined, we intend to further evolve as a leading national, vertically integrated labour hire and training business with improved overall margins, significant cross-sell opportunities and continued growth.”

Recent restructure expects first EBITDA positive month in July

He added: “On 30 April 2019, we announced a restructure of the stand-alone GO2 business.

“I am pleased to reiterate that the financial results of our restructure saw the Company achieve an EBITDA neutral position for the month of June 2019.

“Furthermore, we expect our first EBITDA positive month in July 2019, creating the foundations from which we will build in FY20.”

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Mon, 08 Jul 2019 11:42:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223457/the-go2-people-to-lodge-capital-raising-prospectus-this-week-ahead-of-acquisition-223457.html
<![CDATA[News - The GO2 People outlines capital raising for acquisition of training organisation ]]> https://www.proactiveinvestors.com.au/companies/news/223389/the-go2-people-outlines-capital-raising-for-acquisition-of-training-organisation-223389.html The GO2 People Ltd (ASX:GO2) intends to acquire one of Australia’s fastest growing training organisations, Industry Pathways Pty Ltd (IPW), for $5 million in cash and shares.

IPW generated $1.56 million in EBITDA in FY18 and is projected to grow these earnings by 28.2% to $2.00 million in FY19.

The purchase price represents a competitive 3.75x EBITDA multiple using the average of FY19, FY20 and FY21.

The acquisition is conditional to GO2 completing a capital raising and GO2 is seeking to raise up to $4.0 million through the issue of shares priced at 7.5 cents with an attaching option exercisable at 10 cents.

IPW generates revenue from training services

Established in 2011, IPW is one of Australia’s fastest growing Registered Training Organisation’s (RTOs) delivering high-quality fee for service training.

Notably, it does not rely on government funding.

IPW specialises in providing training and education in the mining and medical sectors, ranging from Certificate III’s through to Diploma level qualifications.

The Gold Coast based company has 25 staff and delivers 80% of its courses online with the remaining 20% being classroom based.

High-margin business to increase overall margin

IPW is a high-margin business compared to its peers with its FY19 EBITDA margin expected to be 33%.

To put this in context, $100 million labour hire businesses typically generate EBITDA margins of around 5%.

Notably, IPW’s high-margin business is expected to increase the blended margin in the combined GO2 Group in FY20 and beyond.

Over time, GO2 believes it can increase IPW revenue and maintain margin through the benefits of scale and technology leverage.

Acquisition to provide revenue synergies

IPW complements GO2’s recruitment business, with potential to cross-sell IPW training programs to GO2’s 175,000 job applicant database.

Cross-selling is not the only potential revenue synergy the acquisition proposes with other opportunities including increased customer, industry and geographic diversification.

READ: GO2 People increases size of business by 38% in first half of 2019 financial year

The GO2 People is a leading Australian provider of vertically integrated recruitment, training and building services.

Its estimated group revenues for FY19 total $48 million across three divisions - recruitment, training, and building.

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Fri, 05 Jul 2019 14:38:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223389/the-go2-people-outlines-capital-raising-for-acquisition-of-training-organisation-223389.html
<![CDATA[News - GO2 People in trading halt with acquisition and capital raising news pending ]]> https://www.proactiveinvestors.com.au/companies/news/218104/go2-people-in-trading-halt-with-acquisition-and-capital-raising-news-pending-218104.html GO2 People Limited (ASX:GO2) is in a trading halt with an announcement pending of a business acquisition and a capital raising to fund the cash component of the acquisition.

The halt will apply until the announcement is made or until the start of trading on the ASX on Wednesday, April 10, 2019, whichever occurs earliest.

READ: GO2 increases size of business by 38% in first half of 2019 financial year

In the first half of the 2019 financial year, GO2 has increased the size of its business by 38% compared to the corresponding period in 2018.

Key activities that were completed included the purchase agreement for GO2 Skills and Training as well as further expanding the recruitment service offering with an office opening in Victoria.

GO2 managing director Abilio Ferreira said at the time that the company also continued to pursue recruitment and building tasks, delivering a 37% increase in revenues.

Gross profit for the half year ending December 31, 2018, was $2.6 million up from $2.4 million at December 31, 2017.

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Mon, 08 Apr 2019 13:25:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218104/go2-people-in-trading-halt-with-acquisition-and-capital-raising-news-pending-218104.html
<![CDATA[News - GO2 People increases size of business by 38% in first half of 2019 financial year ]]> https://www.proactiveinvestors.com.au/companies/news/215478/go2-people-increases-size-of-business-by-38-in-first-half-of-2019-financial-year-215478.html GO2 People Ltd (ASX:GO2) has increased the size of its business by 38% in the first half of the 2019 financial year compared to the corresponding period in 2018.

During this period GO2 completed the purchase agreement for GO2 Skills and Training (GO S&T) and further expanded the recruitment service offering with the opening of an office in Victoria.

GO S&T provides relevant workplace training and education on the mining and construction sectors and is expected to assist with overall margin growth as it begins to scale up.

READ: GO2 People remains on track to triple business operation with group revenue increasing 37%

GO2 managing director Abilio Ferreira said the company continued to pursue recruitment and building activities during the half year, delivering a 37% increase in revenues.

“The recruitment division recorded strong revenue growth to December 31, 2018, up 46% on the corresponding period last financial year, which has been on the back end of consistency in workforce personnel numbers since the beginning of the 2019 financial year.

“The building division has experienced a slower than expected first half since multiple contracts it has competitively tendered during this period are yet to be awarded, however, the company remains confident in securing some of these works.

“GO2 People have also completed the strategic acquisition of GO2 Skills and Training late in the 2019 financial year.

“Upskilling of labour in a period where there is an impending skills shortage provides the company with a competitive advantage by increasing the capability of its labour pool.”

READ: GO2 People’s building division secures government pre-qualification

Gross profit for the half year ending December 31, 2018, was at $2,668,913, up from $2,444,270 at December 31, 2017.

The revenue from operations for the half year is shown below:

 

 

Cash flows including receipts from customers also increased from $18,592,090 on December 31, 2017, to $30,291,207 on December 31, 2018.

READ: GO2 People sets ‘solid’ growth foundation for remainder of 2019 financial year

During the first half of 2019, the building division of the company was awarded its first Western Australian State Government contract as well as its first local government contract for the Shire of East Pilbara.

The company also received its ISO accreditation for Health, Safety, Environment and Quality.

After listing in late 2017 as a business with $37 million in annual revenue, the company finished 2018 with more than $52 million for the calendar year January to December 2018.

The company finished 2018 with seven offices in four states.

- Jessica Cummins

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Thu, 28 Feb 2019 00:56:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215478/go2-people-increases-size-of-business-by-38-in-first-half-of-2019-financial-year-215478.html
<![CDATA[News - GO2 People’s building division secures government pre-qualification ]]> https://www.proactiveinvestors.com.au/companies/news/214503/go2-peoples-building-division-secures-government-pre-qualification-214503.html GO2 People Ltd (ASX:GO2) has received the Building, Management and Works (BMW) pre-qualification from the Western Australian government.

The BMW pre-qualification allows GO2’s building division to tender for local and state government projects to the value and complexity as per the company’s qualification.

Achieving pre-qualification is an important milestone in GO2’s overall strategic plan and provides a platform to increase its presence in the government sector.

READ: GO2 People sets ‘solid’ growth foundation for remainder of 2019 financial year

It is worth noting that GO2 Building completed its first Western Australian state government contract in the December 2018 half.

GO2 is waiting on a number of tendered contracts to be awarded this quarter after the company increased group revenue 37% in the December 2018 half-year compared to the previous corresponding period.

The addition of large national and multi-national construction and mining contractors to its client list in the December 2018 half-year underpinned the growth of the company located near the fly-in, fly-out hub of Perth Airport.

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Wed, 13 Feb 2019 13:35:00 +1100 https://www.proactiveinvestors.com.au/companies/news/214503/go2-peoples-building-division-secures-government-pre-qualification-214503.html
<![CDATA[News - GO2 People sets ‘solid’ growth foundation for remainder of 2019 financial year ]]> https://www.proactiveinvestors.com.au/companies/news/213860/go2-people-sets-solid-growth-foundation-for-remainder-of-2019-financial-year-213860.html GO2 People Ltd (ASX:GO2) is waiting on a number of tendered contracts to be awarded this quarter after the company increased group revenue 37% in the December half-year compared to the previous corresponding period.

The Western Australian company said last week its December half-year growth had set a “solid foundation” for continued growth in the June half-year of 2019.

READ: G02 People remains on track to triple business operations with group revenue increasing 37%

The addition of large national and multi-national construction and mining contractors to its client list in the December 2018 half-year underpinned the growth of the company located near the fly-in, fly-out hub of Perth Airport.

Speaking on the company’s corporate goal to triple its business operations from the time of its October 2017 listing on the Australian Securities Exchange, G02 managing director Billy Ferreira said: “We are very confident that we will achieve our target of tripling the business from its listing date.

“As a group, we continue to achieve important internal milestones in line with our strategic plan, which are important metrics we use to hold ourselves accountable.”

The company’s recruitment division had strong revenue growth “on the back of consistency in workforce personnel numbers since the beginning of financial year 2019”.

GO2 Building completed its first Western Australian state government contract in the December half while being awarded its first Western Australian local government contract for the Shire of East Pilbara.

Shire of East Pilbara is the largest local government area in Australia, covering more ground than Victoria, and includes the towns of Newman, Marble Bar and Nullagine

The building arm also achieved ISO Accreditation for Health, Safety, Environment and Quality in November, a milestone for its team.

GO2 Building’s full-year revenue will depend on new contract wins as it holds “meaningful discussions with tier-one miners” in WA.

The business unit was named the preferred tender provider for a number of contracts during the December quarter, with these to be awarded this quarter.

GO2 launched its Dream Now indigenous traineeship last quarter to increase its capability to meet demand for indigenous workers from existing and potential new clients and major projects nationwide.

The company also maintained its consistent safety performance in the December quarter, maintaining zero lost-time injuries since listing in October 2017.

GO2 ties the result to its bottom line, saying “improvement in this area is expected to result in reduced workers compensation premiums — and therefore improved labour hire margins — year to year.”

READ: GO2 People looks to profits after tripling revenues

The company previously released its 2017-18 annual report last September and shared that it expected to achieve a net profit after tax in the 2019-20 financial year.

Ferreira said at the time: “We anticipate a continuation of the trend towards positive EBITDA in FY19 and net profit after tax (NPAT) in financial year 2020.”

The company leader told the Proactive Investors Stocktube video channel: “The next couple of years as we continue on that path we’ll be able to show that positive return for shareholders, with a stable overhead structure, no compromising on margin and increased revenue.”

 

Quarterly results

GO2 had receipts of $15.6 million from customers in the December quarter and $30.5 million in the December half, to end up with $632,000 net cash from operating activities in the quarter and $210,000 in the half-year.

The company used $24,000 on investing activities in the December quarter, while it netted $3,000 in the December half.

The sum used in financing activities came in at $1.2 million from the quarter while its half-year sum was $1.3 million.

Among the line items was a $30,000 partial loan repayment to one of its directors’ companies, GO2 Skills and Training Pty Ltd, a Queensland-incorporated training and leadership courses business which was acquired during the period for $465,000 via the assumption of loan balances.

The company had $104,000 in standby arrangements at the end of the quarter, with the full amount of the debtors and finance lease funding facilities drawn down.

GO2’s cash reserves were $1.5 million on December 31, a decline of $557,000 on the quarter ended September 30.

The company tipped estimated cash outflows of $13.3 million for March quarter 2019, with $11.6 million of the estimate being for product manufacturing and operating costs.

GO2 full-year revenue performance for the past two financial years

Major shareholders

Tightly-held GO2 had 117,964,583 shares on issue on September 19, with its top 20 shareholders holding 73.01% of the company.

Substantial shareholders Everglades Investment Pty Ltd <Everglades Discretionary A/C> and Goldfinch Discretionary Pty Ltd <Goldfinch Discretionary A/C> held equal top stakes with 23.31% of fully-paid ordinary shares on issue.

JP Morgan Nominees Australia Limited came next with 7.33 and HSBC Custody Nominees (Australia) Limited with 4.32%.

— with Jessica Cummins

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Sun, 03 Feb 2019 23:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213860/go2-people-sets-solid-growth-foundation-for-remainder-of-2019-financial-year-213860.html
<![CDATA[News - G02 People remains on track to triple business operations with group revenue increasing 37% ]]> https://www.proactiveinvestors.com.au/companies/news/213683/g02-people-remains-on-track-to-triple-business-operations-with-group-revenue-increasing-37-213683.html GO2 People Ltd (ASX:GO2) has posted a 37% increase in group revenue for the December 2018 quarter, as part of its strategy to triple the business within three years from its ASX listing.

A number of milestones have also been achieved for the six-month period to December 31, 2018, including revenue growth for the recruitment division.

The recent addition of professional recruitment services and existing recruitment clients such as large national and multi-national construction and mining contractors facilitated the growth.

READ: GO2 People positioned well in the recruitment and building services sectors

G02 managing director Billy Ferreira said: “As a group, we continue to achieve important internal milestones in line with our strategic plan, which are important metrics we use to hold ourselves accountable.

“Combined with revenue growth and responsible capital management we are very confident that we will achieve our target of tripling the business from its listing date.”

First Western Australian Government contract

GO2 Building successfully completed its first Western Australian state government contract while being awarded its first Western Australian local government contract for the shire of East Pilbara.

Building revenue for the full year will depend on new contract wins with a number of government and mining projects currently tendered and awaiting client award during quarter four in financial year 2019.

Traineeship launch

GO2 also acquired GO2 Skills & Training and launched the company’s Dream Now indigenous traineeship.

The Dream Now program will increase the company’s capability to meet the demand for the provision of Indigenous workers to existing and potential new clients as well as major projects throughout the country.

READ: GO2 People continues growth trajectory with strong first quarter FY19 revenue

- Jessica Cummins

 

 

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Fri, 01 Feb 2019 05:35:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213683/g02-people-remains-on-track-to-triple-business-operations-with-group-revenue-increasing-37-213683.html
<![CDATA[News - GO2 People positioned well in the recruitment and building services sectors ]]> https://www.proactiveinvestors.com.au/companies/news/210258/go2-people-positioned-well-in-the-recruitment-and-building-services-sectors-210258.html GO2 People Ltd (ASX:GO2) had its annual general meeting (AGM) for shareholders yesterday where it reviewed its growth since its October 2017 initial public offering (IPO).

The company provides vertically integrated recruitment and building services in Australia through two divisions – Recruitment and Building.

The GO2 Recruitment division provides a full suite of tailored workforce solutions to a range of industries including construction, mining, energy, telco and major infrastructure.

The Building Division is a multi-disciplinary construction company specialising in the delivery of projects in remote and regional areas.  

READ: GO2 People continues growth trajectory with strong first quarter FY19 revenue

GO2 People’s last business update was its September quarter result which showed group revenue increasing by 50% on the prior corresponding quarter.

This follows on from the strong FY18 financial result which featured revenue growth of 30% to $45 million and total gross profit growth of 47.2% to $5.4 million.

Since raising $10 million in its ASX-listing via IPO in October 2017, clients have grown 67% and its workforce has grown by 55%.

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Fri, 30 Nov 2018 08:57:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210258/go2-people-positioned-well-in-the-recruitment-and-building-services-sectors-210258.html
<![CDATA[News - GO2 People continues growth trajectory with strong first quarter FY19 revenue ]]> https://www.proactiveinvestors.com.au/companies/news/208192/go2-people-continues-growth-trajectory-with-strong-first-quarter-fy19-revenue-208192.html GO2 People Ltd (ASX:GO2) has increased group revenue by 50% on last year’s corresponding quarter, on the back of a weekly average revenue of $1 million.

Recruitment revenue was up by 30% on the quarter ending June 2018 and workforce personnel numbers have consistently grown to above 400 week-to-week.

The vertically-integrated recruitment and building services provider has also opened a Victorian office, which is now contributing revenue, as it aims to triple its business operations three years from its public listing.

 

GO2 managing director Billy Ferreira said the company was pleased with the continued growth and the execution of its strategic plan.

He said: “The growth profile remains solid across the sectors we are operating in and we continue to make inroads and secure market share based on the quality of our service delivery.

“Our pipeline of current and tendered works provides for an optimistic outlook in FY19 and provided we win work as expected in the building division, we remain on track to achieve our target of tripling the business from its listing date.”

READ: GO2 People to acquire registered training organisation

GO2’s building division was awarded its first government contract in WA during the quarter and several government and mining projects are currently tendered and awaiting client award.

The company has identified multiple opportunities in this sector and is pursuing them in line with its strategic plan.

GO2 also improved its safety performance in the quarter, recording zero lost-time injuries.

Improvement in safety performance is a major focus for GO2 as it is expected to result in reduced workers compensation premiums – and therefore improved labour hire margins – year-to-year.

READ: GO2 People looks to profits after tripling revenues

A debtor finance facility with Scottish Pacific Pty Ltd was renewed during the quarter, which secured a reduced interest rate and an increase in the advance rate to provide GO2 with additional working capital.

Shareholder approval will be sought at the company’s annual general meeting on November 29 to approve the previously announced acquisition of GO2 Skills & Training Pty Ltd.

The acquisition is considered to be in line with GO2’s strategic plan, offering value-added services to both clients and candidates and a competitive advantage through increased capability and revenue diversification.

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Wed, 31 Oct 2018 02:35:00 +1100 https://www.proactiveinvestors.com.au/companies/news/208192/go2-people-continues-growth-trajectory-with-strong-first-quarter-fy19-revenue-208192.html
<![CDATA[News - GO2 People to acquire registered training organisation ]]> https://www.proactiveinvestors.com.au/companies/news/206527/go2-people-to-acquire-registered-training-organisation-206527.html GO2 People Ltd (ASX:GO2) has entered a binding term sheet to acquire GO2 Skills & Training Pty Ltd, a registered training organisation (RTO).

The acquisition follows the alliance agreement entered into between the two companies during July 2018.

The RTO delivers industry-specific training and education to the construction and resources sectors.

No cash to be paid by GO2 People for acquisition

GO2 will not outlay any additional capital for the acquisition as it will be offset against the loan balance owing by GO2 S&T to the company at the time of acquisition, being $465,000.

READ: GO2 People looks to profits after tripling revenues

GO2 People listed on the ASX in October 2017 after a successful initial public offering that raised $10 million.

The company is a leading provider of vertically integrated recruitment and building services to industry throughout Australia.

GO2 achieved its FY18 group revenue target of $45 million, an increase of 30% on FY17.

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Mon, 08 Oct 2018 09:43:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206527/go2-people-to-acquire-registered-training-organisation-206527.html
<![CDATA[News - GO2 People looks to profits after tripling revenues ]]> https://www.proactiveinvestors.com.au/companies/news/205966/go2-people-looks-to-profits-after-tripling-revenues-205966.html GO2 People Ltd (ASX:GO2) has tipped it will achieve a net profit after tax in the 2019-20 financial year after tripling revenue to $45 million in three years.

The debutante listed on the Australian Securities Exchange eight months ago and released its first annual report as a listed entity to the market earlier today.

 

GO2 non-executive chairman Darren Cooper told investors in a foreword the company had a “clear pathway to profitability”.

Cooper acknowledged changes to the company structure had affected overhead costs but flagged GO2 was experiencing a sea change and was now achieving positive EBITA results each month.

READ: GO2 people posts FY18 revenue growth across all divisions

GO2 managing director Abilio “Billy” Ferreira highlighted the transformation the company had undergone by floating their company.

Ferreira wrote: “As co-founders and ASX novices, (growth and investor relations head) Paul Goldfinch and I have learnt a lot about the world of listed life but one thing we brought to the table is an unwavering dedication to prove ourselves and ‘walk the walk’.

“Listing has allowed GO2 to execute contracts which has seen (the company’s building) division grown tenfold since listing, generating $7.2 million in revenue and contributing to an improved overall group margin in financial year 2018.”

GO2 wrote $700,000 in revenues in financial year 2017, increased its gross margin from 10% to 12% in the 2018 financial year.

The Western-Australia registered company raised $10 million for its October 31 stock market float, debuting with 62.5 million fully paid ordinary shares.

GO2 achieved year-on-year revenue growth.

Profits expected

Ferreira pointed to the vision outlined in the company’s strategic plan, noting it set a path for achieving both short and long-term goals.

The MD reported the company expects its business will grow to twice the size it was before listing on the Australian market.

Ferreira said: “We anticipate a continuation of the trend towards positive EBITDA in FY19 and net profit after tax (NPAT) in financial year 2020.”

The company leader told Proactive Investors’ Stocktube channel last week: “The next couple of years as we continue on that path we’ll be able to show that positive return for shareholders, with a stable overhead structure, no compromising on margin and increased revenue.”

Ferreira reported today that GO2’s overhead expenditure had been in line with the plan to prepare the company for coming growth and said it expected the cost would be stable in future years.

He said: “Our quarter 4, financial year 2018 performance points to continued growth in FY19, and momentum gained during this period is expected to contribute to the company achieving its targets.”

Ferreira pointed to an infrastructure boom on the east coast of Australia as opportunity for the company which it was positioned to meet, especially in New South Wales and Victoria.

The company is hoping to triple its recruitment service business while achieving sustained growth.

GO2 client Altura brought in business as it worked to commission its Pilgangoora Lithium Mine in WA's Pilbara region.

Subsidary structure

GO2 has four wholly owned subsidiaries, reflecting the variety of its business interests.

The human resources focus for its business is evident in two subsidiaries — GO2 Recruitment Pty Ltd as trustee for the GO2 Recruitment Trust and The GO2 People Australia Pty Ltd.

GO2’s building and construction specialism: Terra Firma Constructions Pty Ltd and GO2 Building Pty Ltd.

GO2 People Australia provides vertically integrated recruitment and building services across the country and is home to the parent company’s building and recruitment divisions.

Building division achievements

GO2 People Australia’s building division provides a full suite of building, civil, construction and project management services to regional areas across the nation.

Staffers with the division provide non-process infrastructure (NPI), accommodation facilities, civil works, cyclical maintenance, and remote-and-regional commercial and residential services.

Ferreira put building division growth down to the company completing non-process infrastructure works for tri-listed client Altura Mining Ltd (ASX:AJM) (FRA:HDG) (OTCMKTS:ALTAF).

An Altura contract extension awarded in November year allowed it completed the infrastructure works for the world-class hard-rock open-pit Pilgangoora Lithium Mine 123 kilometres from Port Hedland in Western Australia’s Pilbara region.

Earlier this year, on January 16, GO2 established the LEGO2 JV with Western Australian-owned construction products company Lomwest Enterprises, with the joint venture partners committing to developing an indigenous housing solution.

The company was made exclusive builder for a leisure development on Dirk Hartog Island in WA, securing the job on February 27.

Ferreira said: “GO2 was a $34 million turnover business in financial year 2017 and grew over 30% to $45 million in financial year 2018.”

The revenue result met the company’s target, as GO2 increased the proportion its building business made to revenues and introduced recruitment revenue from Western Australia and New South Wales to the company’s Queensland-dominant revenue mix.

During the period, GO2 opened an NSW office and inked service provider agreements in WA and Queensland in the core sectors that make up its business — the construction, mining and industrial industries.

A Dirk Hartog Island contract was another win for GO2 last financial year.

Recruitment division achievements

The recruitment division provides tailored staffing solutions to multinational and blue-chip companies in the major infrastructure, construction, mining and resources, electricity and energy, waste management, and warehousing and logistics business.

GO2’s recruitment division rolled out its professional services in every state by March 19 this year, with plans in play for a step-up to its service offering.

Ferreira said: “As we head into financial year 2019, we will begin operations in Victoria to announce ourselves as a genuine national company.”

Capital structure

When the company listed last October with 62.5 million fully paid shares, its top shareholders included: Everglades Investment Pty Ltd with 23.31%; Goldfinch Discretionary Pty Ltd (23.31%); and JP Morgan Nominees Australia (9.16%).

A sum of 833,333 shares were released from escrow on June 30 this year, with another 3.1 million escrowed options voluntarily put back on escrow for 16 months.

GO2 currently has 117,964,583 shares on issue and 15 million options on issue.

The company’s market capitalisation is sitting at $11 million, with its shares closing 0.2 cents, or 2.15%, up to 9.5 cents today.

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Fri, 28 Sep 2018 04:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205966/go2-people-looks-to-profits-after-tripling-revenues-205966.html
<![CDATA[Media files - GO2 People aims to triple recruitment services business with sustained growth ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10538/go2-people-aims-to-triple-recruitment-services-business-with-sustained-growth-10538.html Thu, 20 Sep 2018 00:00:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/10538/go2-people-aims-to-triple-recruitment-services-business-with-sustained-growth-10538.html <![CDATA[News - GO2 People posts FY18 revenue growth across all divisions ]]> https://www.proactiveinvestors.com.au/companies/news/203934/go2-people-posts-fy18-revenue-growth-across-all-divisions-203934.html 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.

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Thu, 30 Aug 2018 23:11:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203934/go2-people-posts-fy18-revenue-growth-across-all-divisions-203934.html