Peoplein Limited · ASX:PPE
Peoplein — H1 FY2024 Earnings Presentation
24 slides from Peoplein's earnings presentation, Feb 26, 2024
Slide 1: First Half Results Financial Year 2024
First Half Results Financial Year 2024
Slide 2: Agenda / Our Purpose
• AGENDA Our Purpose To INspire excellence in our people 2 INSPIRE EXCELLENCE
Slide 3: H1 FY24 Results
H1 FY24 RESULTS Continued to grow revenue, but lower earnings in H1 FY24 with changes in contract mix and lower permanent recruitment revenue. Normalised Net Debt to Revenue EBITDA Normalised EBITDA 2 $602.7m $20.3m +1.0% PCP -37.7% PCP 1.86x Normalised EPS Fully Franked Interim Return on Equity1 10
Slide 4: Highlights
Highlights ▶ As flagged, a challenging economic environment, continued through H1 FY24, driven by high inflation and interest rates. ▶ Continued to grow revenue delivering $602.7m, up 1% compared to H1 FY23, attributed to our strong sales culture and ability to take market share, especially in resil
Slide 5: Historic performance
His toric performance Revenue ($m) EBITDA ($m) 32.5 596.7 602.7 21.6 20.3 315.9 H1 FY22 Normalised H1 FY23 Normalised H1 FY24 Normalised H1 FY22 Normalised H1 FY23 Normalised H1 FY24 Normalised NPATA ($m) Earnings Per Share (cents) 20.8 20.6 13.9 13.7 14.6 13.2 H1 FY22 Normalised H1 FY23 Normalised
Slide 6: Growing resilient baseload
Growing resilient baseload ▶ Dependable baseload of hours maintained across all business verticals. ▶ Continue to expand our services with many of our key clients across all three verticals including introducing other brands/st affing disciplines e.g. Edmen now placing permanent candidates for its c
Slide 7: Financial performance
Financial performance $’000 H1 FY24 H1 FY23 Mvmt % ▶ Record revenue for the period to $602.7m. Revenue 602,747 596,626 1.0% ▶ Lower margin from change in contract mix. Underlying EBITDA 20,254 32,505 (37.7%) ▶ Normalised EBITDA of $20.3m down 37.7% on H1 FY23. Depreciation (3,775) (3,555) ▶ Statutor
Slide 8: Market driven impacts mitigated through cost efficiencies
Market driven impacts mitigated through cost efficiencies ▶ Billed hours down 1.2% to 10.9m hours. Growth in Industrial Services offsetting reductions in higher margin Health and Professional Services. ▶ Decline in business unit margins driven by shift to lower margin operational roles by clients. ▶
Slide 9: Strong cash flow
Strong cash flow Cash flow remains in line with our 90% cash collection guidance. Cash Conversion Full Year 150% H1 FY24 FY23 Cash Flows from Operating Activities 120% Receipts from customers 649.9 1,301.4 90% Payments to suppliers and employees (655.9) (1,221.9) Operating cashflow pre interest and
Slide 10: Sustainable capital management
Sustainable capital management Net Debt ▶ Total Net Debt increased to $80.3m with additional borrowing to fund deferred payments for acquisitions. Level of debt is consistent with 90 prior periods. 80 ▶ Capital expenditure reduced to $4.6m with lower requirement in Vision Surveys and lower software
Slide 11: Well positioned for growth
Well positioned for growth When business conditions and in turn confidence rallies, we’re primed for robust organic growth, fuelled by sustained demand for our workforce, diverse operations, a strong sales culture, and cost- efficient practices. Business Conditions2 Job Vacancies1 Proportion of busi
Slide 12: Highlights
Highlights ▶ As flagged, a challenging economic environment, continued through H1 FY24, driven by high inflation and interest rates. ▶ Continued to grow revenue delivering $602.7m, up 1% compared to H1 FY23, attributed to our strong sales culture and ability to take market share, especially in resil
Slide 13: Thank you
Thank you Q&A 13 INSPIRE EXCELLENCE
Slide 14: Appendices
Appendices 14 INSPIRE EXCELLENCE
Slide 15: Reconciliation of statutory to normalised EBITDA
Reconciliation of statutory to normalised EBITDA H1 FY24 H1 FY23 $ $ Statutory Profit Before Tax 4,716 19,867 Depreciation and amortisation 8,394 8,144 Finance costs 3,834 2,790 EBITDA 16,944 30,801 Normalisation adjustments: Performance rights costs 61 31 Transaction/Restructure costs 1,057 404 FIP
Slide 16: Business Performance by Vertical
Business Performance by Vertical 16 INSPIRE EXCELLENCE
Slide 17: Healthcare & Community
Healthcare & Community Overview: The largest workforce of supplementary nurses and personal carers on the Eastern Seaboard of Billed Hours Australia, providing staffing into hospitals and aged care facilities. Also provides talent solutions 2,500,000 and supplementary staffing within the Disability
Slide 18: Professional Services
Professional Services Overview: Billed Hours The leader in Professional Services recruitment focusing on technology, accounting, finance, 1,400,000 business services support and IT advisory. 1,200,000 1,000,000 Performance: 800,000 ▪ Decreased general business confidence has impacted permanent techn
Slide 19: Industrial & Specialist Services
Industrial & Specialist Services Overview: The leader in providing general staffing services to small and medium-sized businesses across Australia in a wide range of sectors including industrial, food services, childcare and hospitality. Also Billed Hours provides specialist services such as asset m
Slide 20: Business Overview
Business Overview 20 INSPIRE EXCELLENCE
Slide 21: Australia's largest listed talent solutions company
A u s t r a l i a ’s Business Snapshot largest 25 brands, 65,000+ listed 900+ internal staff candidate pool talent 40+ locations 13,000 – 15,000 solutions across Australia, Candidates NZ and Singapore payrolled every week c o mp a n y 4,200+ businesses 300+ Apprentices and trainees employed ▶ Geogra
Slide 22: Our shared value framework
Our shared value framework Shared value for our people, clients, investors and community Pillar 1: First Nations Pillar 2: Sustainability Pillar 3: Equity & Inclusion UN Sustainability Goals Key Key Partnership Key 62% 4.8+ million Highlights with Partners on Trees planted via Partnerships Female Co
Slide 23: Disclaimer
Disclaimer This presentation has been prepared by PeopleIn Limited (Company) together with its related bodies corporate (PeopleIN). The material contained in this presentation is for information purposes only and is intended to be general background information on PeopleIN and its activities. This p
Slide 24: INSPIRE EXCELLENCE
24 INSPIRE EXCELLENCE