PeopleIn shares spike 17% as earnings come in above guidance for FY22

Investors appear interested in the workforce management company's earnings results today.

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Key points

  • PeopleIn posted FY22 earnings today
  • The workforce management company saw strength throughout all segments and growth throughout the income statement
  • In the past 12 months, the PeopleIn share price has slipped 11% into the red, but shares have lifted since July 2022. 

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:

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.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Peoplein. The Motley Fool Australia has recommended Peoplein. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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