Go2 People, a provider of vertically integrated recruitment and building services throughout Australia and New Zealand, published an operations update for the third quarter ended 31 March 2022.

Go2’s apprenticeship business was impacted in January and February 2022 by seasonal holidays, Covid-19 vaccination mandates and apprentices leaving the industry. Overall, apprentices have maintained a positive headcount, with renewal growth in this area, which will provide a positive impact to the Q4 2022 results.

Total labour hire revenue was impacted by the flood events in Queensland with a number of mining employees unable to work for several weeks.

The group highlighted that on 9 February 2022, it announced an exclusive services agreement to service the human resources and training requirements of the Advanced Traffic Management (ATM) group of companies.

GO2 estimates that the labour hire component of the Services Contract with ATM could represent approximately AUD 22 million (USD 15.7 million) in new revenue in the first year alone based on ATM’s projected labour requirements through to 30 June 2023. It is also expected that additional revenue will be generated from recruitment, traineeship and training services over the course of the contract term.

The company launched its first payroll of traffic controllers on 10 March 2022 and within four weeks said it had achieved a run rate of approximately 70% of the estimated monthly contract value, and the company is on track to report the full value by the end of this financial year.

During Q3 Go2 and its subsidiary Skill Hire WA Pty Ltd received tender award results for contracts with the Department of Education, Skills and Employment. While the company was successful in several tender wins for long-term government contracts, it was not successful in securing growth into other states outside of Western Australia.

The group added that it has a plan to grow the JobReady Services business with innovative product design to service Workplace Australia contract holders. It added that partnership conversations are progressing and the company will be in a position to update on the outcome of these in early FY 2023.

“Broadly the business is operating in a buoyant market with many exciting opportunities,” the company stated.

The Boosting Apprenticeship Commencement (BAC) government grants for new apprentices and trainees has been extended until 30 June 2022.

High demand for recruitment services exists in all serviced markets, and the company is experiencing high demand from its existing client base for its value proposition of helping to “build their workforces” with Go2’s vertically integrated service offering.

On 30 March 2022, the company announced the appointment of Steven Richards as its new Chief Financial Officer (CFO) effective immediately.

Go2 Board Chair Darren Cooper said, “GO2 Group has been through significant changes over the past nine months following the acquisition of Skill Hire. Elements of the current quarter’s operating result indicate we have made significant operational improvements and are on a sustainable growth path.”

“We continue to work through legacy issues, and investors will note that we have now completed our superannuation reconciliation and self-reporting to the Australian Tax Office. As a company, we have strengthened our board and executive team to ensure we are well-positioned for future growth,” Cooper said.