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The GO2 People focused on positive EBITDA and cash flow

GO2 is returning its focus to its core business where it sees a number of growth opportunities.

The GO2 People Ltd - The GO2 People focused on positive EBITDA and cash flow
GO2 shares last traded at 2.9 cents giving the company a market cap of around $5 million

The GO2 People Ltd (ASX:GO2) provides labour hire, training, and building services to clients mainly in Western Australia and Queensland.

In FY2019 it generated $46.6 million in revenue with $43.6 million from labour services, $2.3 million from building services, and $0.6 million from training services.

The company’s client base includes national and multinational blue-chip organisations across the construction, resources and industrial sectors.

The recruitment division delivers two specialist services, labour hire and professional recruitment.

Chairman’s address from annual report

GO2’s chairman Darren Cooper wrote in a letter to shareholders: “The first half of the financial year was characterised by business expansion, with the continued expansion of our labour hire footprint, particularly in Queensland and New South Wales, the roll-in of GO2 Skills & Training and the pursuit of further work in our Building Division.

“Late in 2018 we commenced work on the acquisition of Industry Pathways (“IPW”), which we announced to the market on 23 April 2019.

Whilst the termination of the IPW acquisition and the abandonment of the capital raise in early

September was clearly disappointing, we had nevertheless taken the opportunity to streamline and simplify the underlying business in early 2019 with a de-emphasis on the pursuit of building work, and a rationalisation of the cost structure in the main Labour Hire business.

Rationalisation results in lowering costs

“This rationalisation also extended to the Board, with Peter McMorrow resigning in June and the board reducing to three (being the Managing Director, Independent Non-Executive Chair, and an Independent Non-Executive Director).

“The board wishes to extend its thanks to Mr McMorrow for his wisdom and insight during the period of his Directorship.

“These changes have brought the business much closer to positive EBITDA and cash flow, and have returned the focus to our core business, where we see an exciting range of opportunities – both in organic and acquisitive growth.”

Quick facts: The GO2 People Ltd

Price: 0.019 AUD

ASX:GO2
Market: ASX
Market Cap: $2.24 m
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The GO2 People intends acquiring online education and training provider...

The GO2 People Ltd (ASX:GO2) managing director Billy Ferreira updates Proactive Investors on its move to acquire Industry Pathways, which is one of Australia’s fastest growing training organisations. GO2, a labour hire business, specialises in the construction, mining and infrastructure...

on 29/7/19

2 min read