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View All NewsAustralia – Ignite full year revenue ticks up 1.4%, growth from specialist recruitment offset by decline in On Demand IT services business
Australian recruitment firm Ignite (IGN:ASX) published its preliminary final report today reporting revenue increased by 1.4% for the year ended 30 June 2022 to AUD 115.5 million (USD 80.6 million).
Gross profit increased by 4.5% increased to AUD 14.1 million (USD 9.8 million) while gross margin increased slightly from 11.8% to 12.2%. The greater increase in gross profit relative to the revenue increase was due to higher gross profit contribution from permanent recruitment revenue.
| (AUD millions) | FY 2022 | FY 2021 | Change | FY 2022 (USD millions) |
| Revenue | 115.5 | 113.8 | 1.4% | 80.6 |
| Gross Profit | 14.1 | 13.5 | 4.5% | 9.8 |
| Gross Margin | 12.2% | 11.8% | ||
| Net profit/loss for the period attributable to members | -0.3 | 2.4 | -111.8% | -0.2 |
Revenue from the Australian and New Zealand Specialist Recruitment division increased by 2.3% to AUD 107.0 million (USD 74.6 million) with the increase primarily due to increased permanent recruitment revenue. Permanent recruitment increased by 70.3% against the previous year period. The group said there was increased demand from customers to engage candidates on a permanent, rather than contingent labour basis as they looked to address their resourcing requirements in a tight labour market.
Revenue from contingent labour increased by 1.7% with the Federal Government business reporting a strong performance. The number of active contractors fell over the year.
Revenue from Australian and New Zealand On Demand IT services division declined by 10.7% over the year to AUD 7.1 million (USD 4.9 million) due to delays in the commencement of new projects and work at customer sites being impacted by Covid-19 related lockdowns during the financial year, particularly in New South Wales and Victoria.
In June 2022, the Talent Solutions division underwent a rebrand to ‘Technology and Talent Solutions’. Under new leadership, the division reported an increase of 12.7% in revenue to AUD 1.3 million (USD 0.9 million).
Meanwhile, net corporate overheads increased by 3.1% to AUD 175,000 (USD 122,100).
Ignite set a new 52-week low during today's trading session when it reached AUD 0.067 (USD 0.047). Over this period, the share price is down -16.25%. Shares last traded at AUD 0.067 (USD 0.047), down 5.63% on the day. The company has a market cap of AUD 6.36 million (USD 4.4 million).