Australia-based workforce management company PeopleIn, formerly People Infrastructure, reported revenue on Friday of AUD 315.82 million (USD 229.4 million) for the six months ended 31 December 2021, an increase of 57.1% over the previous year.

The increase in revenue for the half year period is reflective of an increased organic demand for staffing services in the sectors and locations in which the group operates. Acquisitions during the second half of the previous financial year and early in the first half period also contributed to the increase. However, the group noted that this growth was offset by the decrease in government subsidies compared to the prior half year in relation to the Covid-19 pandemic.

According to the group, the most significant reason for the decrease in profit is as a result of the increase in the fair value of deferred consideration by AUD 4.89 million (USD 3.55 million). This represents a non-cash expense relating to an increase in the contingent consideration that will be settled via the issue of PeopleIn shares with respect to the acquisition of Halcyon Knights Pty Ltd, Halcyon Knights Commercial and Contracting Pty Ltd and Halcyon Knights New Zealand Limited.

The significant increase is due to an increase in the likelihood of earn-out targets being achieved. Additionally, there has been an increase in the share-based payments expense as a result of an increase in the number of performance rights being granted to employees.

Among the acquisitions that contributed to revenue growth during the period include eCareer and Illuminate on 29 January 2021, Swingshift on 31 March 2021 and Techforce Personnel Pty Ltd on 2 June 2021 and Vision Surveys QLD Pty Ltd on the 30 July 2021. A further acquisition of the GMT Group occurred on the 30 November 2021 and has therefore contributed a lesser extent in this half. The profit or loss for these entities are consolidated into the group results from these dates.

Earlier this month PeopleIn announced that it has entered into an agreement to acquire 100% of the shares in accounting recruitment firm Perigon Group Pty Ltd.

After extensive planning, the group’s Systems Consolidation Project was launched in late 2021, to centralise resources and business support functions, leveraging PeopleIn’s scale nationally, the group stated.

CEO Ross Thompson said, “Looking towards the next six months, we will continue to focus on leveraging our existing client goodwill to cross sell other services as well as continue to drive our international recruitment initiative. We’re well positioned to invest in further opportunities, and are currently actively pursuing a number of highly complementary potential acquisitions”.

The group said that FY22 earnings are expected to be within analyst consensus forecast (Normalised EBITDA range of AUD 45 million – AUD 47 million) (USD 32.6 million to USD 34.1 million).

Shares in PeopleIn closed on Friday at AUD 4.03 (USD 2.93), down 1.2% on the day. The company has a market cap of AUD 390.39 million (USD 283.63 million).