Revenue at Australia-based labour hire and training services firm Ashley Services (ASH: ASX) increased by 22.1% in its fiscal year ended 30 June 2023, when compared to the same period last year. Revenue totalled AUD 549.2 million (USD 355.2 million).

Full year revenue includes AUD 14.5 million (USD 9.3 million) and AUD 25.2 million (USD 16.3 million) respectively from acquisitions of Linc Personnel Pty Limited and Owen Pacific Workforce Pty Ltd (OPW). Excluding acquisitions, revenue was AUD 509.5 million, up 13% from the previous year.

Ross Shrimpton, Managing Director, said, “The financial year ended 2023 saw the Ashley Services Group continue its strong growth in revenues, driven partly by the Linc and OPW acquisitions, but largely through increased hours worked with existing customers and new business wins.”

Revenue grew in both the Labour Hire division and the Training division.

Revenue by division

Revenue in the Labour Hire division includes AUD 14.5 million (USD 9.3 million) and AUD 25.2 million (USD 16.3 million) respectively from the Linc and OPW acquisitions. Excluding acquisitions, revenue at AUD 493.5 million (USD 319.1 million)  was up AUD 55.2 million (USD 35.7 million) or 13%. Growth was particularly strong in construction and traffic management in Victoria (CCL brand) and with existing and new supply chain and logistics customers in New South Wales and Queensland (Action Workforce brand).

Training revenue rose by 38.7% with the comparative period negatively impacted by Covid-19 restrictions, but also with growth achieved across both the Ashley and The Instruction Company training businesses, as new courses were added to scope and both businesses increased geographic coverage.

On 14 July 2023, the group acquired the remaining 20% of the CCL Group.

“We remain focused on continuing improvement in our core areas of strength; namely safety, customer satisfaction, systems and internal staff development as well as enhancing our marketing capability and improving labour retention,” Shrimpton said. “We expect organic growth in FY24 from our existing customer base and through effective integration of the FY23 acquisitions.”

Ashley Services Group shares closed today at AUD 0.66 (USD 0.43), down 2.94% on the day and 4.76% above its 52-week low of AUD 0.63 (USD 0.41), set on 7 September 2022. The company has a market cap of AUD 97.90 million (USD 63.3 million).