The Go2 People Ltd. (GO2:ASX), the Australia-based provider of vertically integrated recruitment and training services, reported revenue totalled AUD 43.02 million (USD 28.22 million) for the six months ended 31 December 2022, up 19.7% over the prior year period.

Revenue growth was achieved despite the loss of certain workforce development contracts with the Department of Education, Skills and Employment (DESE Contracts), and predominantly as a result of a strong growth in the group’s labour hire and apprenticeships divisions. Gross profit for the half-year ended 31 December 2022 reduced from AUD 11.09 million (USD 7.44 million) to AUD 6.51 million (USD 4.37 million), primarily as a result of the loss of the aforementioned DESE Contracts.

EBITDA went from a loss of AUD 1.39 million (USD 0.9 million) to a loss of AUD 545,000 (USD 365,891).

The group said it saw an ‘encouraging EBITDA trend’ as the business continues to grow revenue and client margins and has implemented significant ‘right-sizing’ cost reductions

Go2 People said it saw continued growth in the group’s higher-margin activities such as training, executive recruitment, apprenticeships and government contracts.

Revenue in the recruitment business was up 41.1% over the previous year. Revenue in the apprentice business rose by 25.6%. Revenue at Job Ready division fell by 67.4% while revenue in the training division decreased by 25.4%. Meanwhile revenue decreased in the ‘other’ division to AUD 28,000 (USD 18,798) from AUD 42,000 (USD 28,198) the year prior.

The group said it saw an ‘encouraging EBITDA trend’ as the business continues to grow revenue and client margins and has implemented significant ‘right-sizing’ cost reductions

It also reported continued growth in the group’s higher-margin activities such as training, executive recruitment, apprenticeships and government contracts.

Earlier this month, Go2 People reported that its Hunter Executive Search Consultants Pty. Ltd. business acquired the business assets of Mechtech Australia.

While Go2 People reported revenue today, Go2 People last traded on Thursday when shares closed at AUD 0.011 (USD 0.0074), no change on the day and 22.22% above the 52 week low of AUD 0.009 (USD 0.006) set on 3 January 2023. The company has a market cap of AUD 4.61 million (USD 3.1 million).