The APM Human Services International Ltd (ASX: APM) share price is up 2.8%.
Shares in the S&P/ASX 300 Index (ASX: XKO) international health and human services provider closed on Friday trading for $1.76. In morning trade on Monday, shares are changing hands for $1.81 apiece.
For some context, the ASX 300 is up 0.4% at this same time.
This comes following the release of APM's full financial year results for the twelve months ending 30 June.
Here are the highlights:
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APM share price gains on soaring revenue
- Revenue increased 43% year on year to $1.90 billion
- Statutory net profit after tax and before amortisation of customer contracts (NPATA) of $159 million, up 72% from FY22
- Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $365 million, up 19% year on year
- Final dividend of 5.0 cents per share fully franked, in line with the FY22 final dividend
- Full-year dividend of 10.0 cents per share, fully franked, up from 5.0 cents per share in FY22
What else happened during the year?
Other financial metrics that could impact the APM share price include the company's $183 million in organic revenue growth over the 12 months.
Underlying NPATA (net profit after tax and before amortisation of customer contracts adjusted for one-off non-recurring expenses associated with advisory fees and corporate development costs) increased 7% from FY22 to $178 million.
And APM had an operating cash flow of $264 million while achieving a cash conversion of 72.4%. That increased to 83.4% in the second half.
FY23 saw APM complete a series of acquisitions including Equus Workforce Solutions in the United States and Everyday Independence in Australia.
The company also secured contracts in North America and the United Kingdom over the 12 months. Those include the Functional Assessment Services contract in Lot 3 – South East England, London and East Anglia with a total contract value of $720 million over five years. That will commence in FY25.
What did management say?
Commenting on the results that are helping lift the APM share price today, CEO Michael Anghie said:
Delivering on our purpose of enabling better lives we are pleased to have supported over 2 million people this year…
As a result of our strategic initiatives, APM is more diverse and resilient than ever before. We have an incredible team across our global operations delivering on our purpose.
This year we've demonstrated we can win in new markets globally and successfully replicate our proven platform and track record of performance. We cannot underestimate the importance of global diversity and performance in supporting growth in contract wins.
What's next?
Looking at what could impact the APM share price in the months ahead, the company said it is "uniquely positioned to expand its services globally partnering with Stakeholders to deliver programs that create sustainable social and economic impact".
The company is targeting medium-term underlying earnings growth in the mid-teens with strong cash flow conversion.
Management also expects APM's North American business to grow following the recent contract awards and its Equus acquisition.
No key contracts are due for renewal in FY24 or FY25.
And APM expects FY24 cash flow conversion to be greater than 85%.
APM share price snapshot
The APM share price has struggled over the past year, down 46% in 12 months.
