Australian training and labour hire firm Ashley Services (ASH: ASX) reported revenue today for the six-month period ended 30 December 2021 of AUD 219.8 million (USD 158.1 million), an increase of 18.2% compared to the previous year.

The group noted revenue growth was seen across most areas of the business.

Ross Shrimpton, Managing Director, said, “The first half of financial year 2022 has seen the Ashley Services Groupcdeliver another excellent result, with strong growth of both revenue and bottom line profitability. Whilst Covid-19impacts are decreasing, they are still present and the ability of our teams to excel in what are demanding conditions, places us in a sound position, with a greatly enhanced capability across the entire organisation.

“These strong first half results are a continuing tribute to the excellent efforts of our dedicated team members who continue to put our customers first in everything they do,” Shrimpton said.

In the Labour Hire division, the group saw positive EBITDA contributions from all Labour Hire brands with Action Workforce leading the way on both revenue and profit growth.

At the same time, the Training division reported a lift in revenue despite ongoing Covid-19 challenges.

Revenue by division

Labour Hire revenue was up by AUD 32.2 million (USD 23.15 million) or 17.7% on the prior year, with Action Workforce growth particularly strong. The half did continue to be negatively impacted by continuing Covid-19 related restrictions and lockdowns, which mostly impacted the labour hire brands exposed to the construction sector.

All Labour Hire brands produced positive EBITDA contributions for the half, with Action Workforce the dominant contributor.

The Training division delivered pleasing revenue growth of 38.7% even with some continuing Covid-19 related restrictions and lockdown impact across the half. Profitability was down AUD 0.4 million largely due to the positive contribution made to profit in the prior corresponding period by JobKeeper (COvid-19 economic stimulus package), with no such benefits present in the latest half.

Ashley Services Group shares closed at AUD 0.695 (USD 0.50), -10.90% below its 52-week high of 0.78 (USD 0.56), set on 21 February 2022. The company has a market cap of AUD 100.06 million (USD 71.94 million).