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.
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.
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.
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.
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.”
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.