The People Infrastructure Ltd (ASX: PPE) share price is now up from $1.59 this time last year to $3.88 today which will leave many investors asking what's driving this workforce services business higher and has it got further to run?
People Infrastructure describes itself as "a technology enabled workforce management company delivering innovative solutions to workforce challenges faced by Australia's leading businesses. People Infrastructure is a diversified provider of workforce management across four main sectors including healthcare, information technology, specialist services and labour hire."
For the six-months ending December 31 2018 it reported a net profit after tax of $5.75 million on revenue of $133 million, which translated into a dividend of 4 cents per share.
The group is pursuing an aggressive acquisition strategy to generate growth and in June 2018 raised $20 million at $2.70 per share to fund more acquisitions in its health and community care business.
Based on 72.4 million shares on issue the company has a market value of $281 million versus its half year profit of $5.7 million, so it's possible to see that investors are pricing in more growth to its valuation.
The company recently told investors that trading for the first 5 months of calendar year 2019 was ahead of the first 5 months of calendar year 2018. It will hand in its full year results late August 2019.
Other services business on the ASX include legal eagles IMF Bentham Limited (ASX: IMF), or until its recent takeover and de-listing Programmed Group.
