The PeopleIn Ltd (ASX: PPE) share price is surging this morning following the release of the company's FY22 earnings results.
At the time of writing, the PeopleIn share price is up 11.6% at $3.74 after spiking 17.6% off yesterday's close to a high of $3.94 in earlier trading.
Revenue and profit growth in FY22
Key takeouts from the workforce management company's year include:
- Revenue of $682.4 million, up 53.6% on FY21's result
- Organic revenue growth contribution of 15.9% for the year
- Normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) of $47.2 million, a gain of 23.9% year on year
- Normalised net profit after tax and before amortisation (NPATA) of $31.9 million, a gain of 27.7%
- Normalised NPATA per share of 32.3 cents, up 19.8%
- Dividends per share for the full year FY22 of 13 cents
What else happened?
PeopleIn recognised growth throughout its FY22 income statement, with a particularly strong gain in revenue, up nearly 54% year on year.
The company said that its business growth in FY22 stemmed from higher demand for
staffing services, as business operating levels shifted higher than before COVID-19.
In addition, acquisitions of Vision Surveys QLD Pty Ltd and GMT Group in 2021, alongside Perigon Group and FIP Group in 2022, were also accretive to both revenue and earnings.
PeopleIn also declared a fully-franked final dividend of 6.5 cents per share, representing an 8% increase on the final dividend in FY21.
Management commentary
Speaking on the announcement, CEO Ross Thompson said:
Operating conditions continue to be positive for PeopleIN given the strength of the employment market and unprecedented demand from clients for employees. Based on the operating results for the financial year and current economic conditions continuing, PeopleIN expects strong organic growth performance to continue in FY23.
The number and diversity of our clients, and critical demand for their services, mean that our core business is resilient even in the event of economic uncertainty. Our strategy has always been to focus on growing in sectors that are defensive and have long term demand for talent.
PeopleIn share price snapshot
In the past 12 months, the PeopleIn share price has slipped 11% into the red. Despite this, it has surged more than 17% in the last month of trade and lifted a further 10% this week.
