GO2 People, a provider of vertically integrated recruitment and building services throughout Australia and New Zealand provided a quarterly update for the three-month period ended 31 March 2021.

The company delivered EBITDA of AUD 55,000 (USD 42,795) for the Q3 March quarter, which brings yearto-date EBITDA to AUD 240,000 (USD 186,744).

The group recorded a gross margin of 12% for the quarter, vs 11.3% in the December quarter, which increases the group’s full year margin to 11.25%.

Cashflow from operations was a positive AUD 750,000 for the quarter, an increase on previous quarters following additional collections from debtors during the period to 31 March 2021. GO2 People clarified that, as revenues and results for both the March and December quarters were similar, the

reason for the additional receipts is largely timing related.

Operational costs and outflows for the quarter were consistent with the prior period.

During the quarter GO2 People announced the acquisition of Perth-based recruitment company, Hunter Executive Search Consultants.

The cashflows of Hunter Executive Search Consultants have been included in the quarterly results. Given the acquisition occurred in March, the impact on cashflow from operations was not significant. The group said Hunter had a strong March quarter, culminating in a record for the most current job orders it has had since its inception. During Q3 2021, Hunter maintained a consistent contractor book throughout the quarter within the mining exploration space and have multiple open job orders.

Within GO2 Recruitment, positive results for the March quarter have positioned the Recruitment Division to finish FY 2021 well. The group said that, with strong tailwinds heading into the new financial year, GO2 are well placed to take advantage of an uplift in job orders and projects throughout the country. A new Victorian Labour Hire licence was granted and received, indicating the high quality operational standards held by the Company, and allowing it to operate its labour hire business in Victoria for the next three years at which time the Company will seek renewal.

In the GO2 Skills and Training division, the group said it continued to deliver steady revenue throughout Q3 2021.

Post March quarter, the company announced the acquisition of Western Australia-based Employment Services provider, Skill Hire Australia.

Managing Director, Billy Ferreira said, “We’re pleased with the progress of the company as whole in the March quarter. Operationally, we continue to make inroads despite challenges on the back of Covid-19 and the completion of the Hunter deal has added another string to our bow. Our improved financial performance remains stable and the recent acquisition of Skill Hire, which we expect to be transformational in nature, provides us with an excellent platform to drive renewed growth and shareholder value. We’re very excited and optimistic about what lies ahead.”