GO2 People, a provider of vertically integrated recruitment and building services throughout Australia and New Zealand, published its half year financial report for the period ended 31 December 2021. The group reported revenue growth of 192.5% to AUD 35.93 million (USD 25.87 million).

The revenue increase is a result of including the full six months of trading performance Skill Hire into the GO2 group. GO2 announced the acquisition of GO2 People of Skill Hire Australia, a Western Australia-based Employment Services provider, on April 2021.

Gross profit stood at AUD 11.08 million (USD 7.97 million) compared to 1.33 million (USD 0.9 million) the year prior.

The loss for the group after providing for income tax amounted to AUD 2.74 million (USD 1.97 million) (31 December 2020: loss of AUD 99,000 (USD 71,300).

The focus during the first half of financial year 2022 has been the integration of the GO2 People, Skill Hire and Hunter Executive businesses, addressing past legacy issues and establishing the foundations across the group for future sustainable growth.

The group completed its review and reconciliation of past superannuation (retirement pension payments) payments, and lodged superannuation guarantee charge statements with the Australian Taxation Office covering the period from 1 July 2018 to 30 June 2021.

As a result of the review and reconciliation, the group identified further instances during this period of late superannuation payments. The review gave rise to a self-reported potential further liability in various GO2 Group entities of AUD 2.65 million (USD 1.90 million). This amount has been included as a current liability in the 31 December 2021 financial statements.

The legislation applies an automatic penalty of 200% where late payments are made and a corresponding SGC (super guarantee charge) statement is not lodged in a timely manner. However, the ATO's draft Practice Statement PSLA2021/D1 provides that 90% of this penalty will be automatically remitted where the taxpayer self-reports.

As the total liability could be up to AUD 5.3 million (USD 3.8 million), it is possible that a further AUD 0.5 million (USD 0.3 million) in penalties, in addition to the AUD 2.7 million (USD 1.9 million) SGC could be levied by the ATO.

The group said it intends to make a submission to the ATO to seek a further reduction to the amount with the possibility of no further liability being levied against the group. Due to the uncertain nature of this additional penalty amount, the value has not been included in the 31 December 2021 results and has instead been disclosed as a contingent liability.

GO2 People emphasised that all employee superannuation was paid.

Excluding the recognition of historical Superannuation Guarantee Contribution liabilities of AUD 2.26 million (USD 1.62 million) and a AUD 200,000 (USD 144.0 million) increase in amortisation arising from the finalisation of the purchase price allocation determination and resulting allocation of goodwill into intangible assets from the acquisition of the Skill Hire business which concluded in the prior year, normalised profit amounted to AUD 99,000 (USD 71,300) for the six months to 31 December 2021.

Shares in GO2 People closed today at AUD 0.033 (USD 0.024), down 2.94% on the day and 26.92% above the 52 week low of AUD 0.026 (USD 0.019) set on 16 March 2021. The company has a market cap of AUD 13.83 million (USD 9.95 million).