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.
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.”
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.
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