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Workforce solutions provider People Infrastructure (ASX: PPE) expects recent acquisitions to bring further upside to the company after it recorded positive organic growth for FY19.
The Brisbane-based group recorded a 43.6 per cent rise in normalised net profit after tax and amortisation (NPATA) to reach $12 million, with revenue growing by more than a quarter and profit margins rising by half a percentage point.
This financial performance is largely independent of the company's acquisitions of IT recruitment leader Halycon Knights for $13.5 million in June and two nursing recruitment firms for $16.8 million in July.
Within FY19 PPE also bought the remaining stake it hadn't held in Recon Solutions and Project Partners, founded by Brisbane Young Entrepreneur of the Year 2017 winner Steve Scanlan.
"The Company continues to deliver on its long term strategy of being a leading provider of workforce solutions to clients across Australia and New Zealand," says People Infrastructure managing director Declan Sherman.
"By continuing to deliver efficient, innovative and cost-effective workforce management services, we have been able to grow both our current and new client base. Strong industry tailwinds are also providing further support to the growth trajectory of the business.
"In particular, People Infrastructure not only delivered on organic growth in 2019, but also expanded its platform in the Health and Community Services division providing an expanded base for anticipated growth. Likewise significant investment throughout the year in the IT sector provides a larger base for growth in that sector."
Sherman emphasises a "relentless focus" on customer and candidate services and the processes that underpin them, which he believes will continue to generate further success across the business.
"The outlook for People Infrastructure is positive with continued organic growth anticipated across the business," he says.
"People Infrastructure is also enthusiastic about the recent acquisitions that have been completed and further upside this will generate for the Company."
The company is also chaired by Greencross Vets founding managing director Glen Richards,
PPE shares were up 10 per cent at $3.49 at 2pm AEST.
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