Peoplein Limited · ASX:PPE
Peoplein — FY2024 Earnings Presentation
23 slides from Peoplein's earnings presentation, Aug 27, 2024
Slide 1: Full Year Results Financial Year 2024
People’ FULL YEAR RESULTS FINANCIAL YEAR 2024
Slide 2: Our Purpose: To Inspire Excellence in Our People
OUR PURPOSE TO INSPIRE EXCELLENCE IN OUR PEOPLE 2 INSPIRE EXCELLENCE
Slide 3: Business Resilience in Challenging Conditions
BUSINESS RESILIENCE IN CHALLENGING CONDITIONS After record highs in FY23, PeopleIN responded swiftly to challenging economic conditions by focusing on sales, operational efficiencies and ensuring a client-centric approach to service delivery. ▶ Revenues stable throughout the year. ▶ Reduced overhead
Slide 4: Largest Business Snapshot
LARGEST BUSINESS SNAPSHOT AUSTRALIAN-LED 13+ specialist 13,000 – 15,000 WORKFORCE brands Candidates 800+ internal staff payrolled every week SOLUTIONS 4,200+ businesses 300+ COMPANY Apprentices and trainees employed 1,000,000+ Candidate database ▶ Geographic and sector diversification ▶ Predominantl
Slide 5: Client-Centric Platform for Growth
CLIENT-CENTRIC PLATFORM FOR GROWTH PeopleIN is a family of specialised staffing and recruitment brands deeply embedded in niche industries. These flagship brands are supported by universal solutions across all industries; specialist talent, workforce solutions, corporate health and contracting servi
Slide 6: A Focused Business Response
A F O C U S E D BUSINESS RESPONSE Sustained revenue, market share expansion, and operational efficiency. ▶ Revenue was 1% lower at $1.17bn. Margins, while lower, stabilised across the year. ▶ Normalised EBITDA of $37.0m down 39.5% on FY23, heavily impacted by lower permanent placement revenue. ▶ Eff
Slide 7: Performance
PERFORMANCE Revenue ($m) EBITDA ($m) 1186.4 1174.8 61.1 47.2 38.0 37.0 682.4 28.7 444.4 374.2 17.8 278.2 219.2 13.0 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Normalised Normalised Normalised Normalised Normalised Normalised Normalised NPATA ($m) Earnings Per Share (cents)
Slide 8: Financial Performance
FINANCIAL PERFORMANCE $'M FY24 FY23 Mvmt ▶ Revenue remained steady in challenging economic conditions. Revenue 1,174.8 1,186.4 (1.0%) Net Revenue 156.2 187.3 (16.6%) ▶ On hire margins impacted in H2 FY23 and have improved across FY24. Operating Expenses (119.3) (126.2) (5.5%) ▶ Billed Hours were 2.3
Slide 9: Trading Through Difficult Conditions
TRADING THROUGH DIFFICULT CONDITIONS Normalised EBITDA by Quarter $M ▶ Trading stabilised during the year. ▶ On hire margins have increased 8% since start of 10.0 10.3 9.8 FY24 and continue to move higher into July 25 ▶ Billed hours increased 4% in Q4. 6.9 ▶ Permanent recruitment market remains chal
Slide 10: 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 Billed Hours hospitality. Also provides specialist services such as asset ma
Slide 11: Professional Services
PROFESSIONAL SERVICES OVERVIEW Billed Hours Specialist in Professional Services recruitment focusing on technology, accounting, finance, 1,200,000 business services support and IT advisory. 1,000,000 PERFORMANCE 800,000 600,000 Business conditions continued to impact permanent technology recruitme
Slide 12: Healthcare & Community
HEALTHCARE & COMMUNITY OVERVIEW Billed Hours The largest workforce of supplementary nurses and personal carers on the Eastern Seaboard of 2,500,000 Australia, providing staffing into hospitals and aged care facilities. Also provides talent solutions and supplementary staffing within the Disability a
Slide 13: Program UNITE
PROGRAM UNITE ▶ The group has had a long history of acquisition of complementary brands, including systems, processes and tools. This led to multiple systems of varying age and efficiency across the group. Program UNITE sought to rationalise and upgrade these systems (both internally developed and S
Slide 14: Positive 2nd Half Cash Flow
POSITIVE 2nd HALF CASH FLOW Cash Conversion 180% 150% FY24 FY23 H2 FY24 120% 90% Cash Flows from Operating Activities 60% Receipts from customers 1,277.2 1,301.4 627.3 30% Payments to suppliers and employees (1,266.7) (1,221.9) (610.8) 0% Operating cashflow pre interest and taxes 10.5 79.5 16.5 -30%
Slide 15: Capital Management
CAPITAL MANAGEMENT Net Debt ▶ Total Net Debt remained steady across the half at $79.3m. 90 ▶ Lower LTM earnings increased Net Debt to Normalised EBITDA 80 to 2.15x, well within covenant levels at 3x. 70 ▶ Pausing of full year dividend to maintain strong balance 60 sheet and ensure agility for future
Slide 16: Capitalising on Strategic Momentum
CAPITALISING ON STRATEGIC MOMENTUM The staffing industry in Australia will see increased consolidation, driven by an increase in regulation/compliance (IR reform and harmonised national labour hire license) and long-term skill shortages. PeopleIN is the second largest staffing business with 3% marke
Slide 17: Thank You
THANK YOU Q&A 17 INSPIRE EXCELLENCE
Slide 18: Appendices
APPENDICES 18 INSPIRE EXCELLENCE
Slide 19: Reconciliation of Statutory to Normalised EBITDA
RECONCILIATION OF STATUTORY TO NORMALISED EBITDA FY24 FY23 $ $ Statutory Profit Before Tax 4,585 30,161 Depreci a ti on a nd a morti s a ti on 20,375 16,976 Fi na nce cos ts 7,964 6,244 EBITDA 32,924 53,381 Normalisation adjustments: Performa nce ri ghts cos ts 63 38 Tra ns a cti on/Res tructure cos
Slide 20: PeopleIN's Partnership Value
PEOPLEIN’S PARTNERSHIP BENEFITS FOR CLIENTS PARTNERSHIP VALUE Complete workforce One point of contact for Highly skilled and Cost savings due management and all needs via dedicated dedicated disability & to volume rostering solutions management team early education staff PeopleIN is committed to for
Slide 21: Our Shared Values Framework
OUR SHARED VALUES FRAMEWORK Shared value for our people, clients, investors and community. UN SUSTAINABILITY GOALS & KEY HIGHLIGHTS PILLAR 1 PILLAR 2 PILLAR 3 FIRST NATIONS SUSTAINABILITY EQUITY & INCLUSION PARTNERSHIP PARTNERSHIP 4 MILLION NET ZERO COMMUNITY ECONOMIC WITH PARTNERS ON WITH INDIGENOU
Slide 22: 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 23: People’
People’