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View All NewsPeopleIn H1 profits tumble amid tough environment
Australia-based workforce management company PeopleIn reported revenue yesterday of AUD 602.7 million (USD 394.8 million), up 1.0% over the previous corresponding period.
According to PeopleIn, growth was attributed to the group’s strong sales culture and ability to take market share, especially in resilient, operational sectors like food services and infrastructure construction.
The company cited a challenging economic environment during the period driven by high inflation and interest rates.
| (AUD millions) | H1 2024 | H1 2023 | Change | H1 2024 |
| Revenue | 602.7 | 596.6 | 1.0% | 394.8 |
| Underlying EBITDA | 20.2 | 32.5 | -37.7% | 13.2 |
| Underlying EBIT | 11.8 | 24.3 | -51.3% | 7.7 |
| Underlying Net Profit before Tax | 8.0 | 21.5 | -62.8% | 5.2 |
| Underlying Net Profit after Tax | 9.0 | 16.2 | -44.2% | 5.9 |
The underlying EBITDA decline was primarily due to a shift towards resilient, but lower margin work and a reduction in permanent recruitment (down from historic highs in H1 2023).
Statutory Profit before Tax stood at AUD 4.7 million, down 76.2% over the prior year period. EBITDA before adjustments stood at AUD 16.9 million (USD 11.0 million), down 44.9% over the prior year.
| (AUD millions) | H1 2024 | H1 2023 | Change | H1 2024 |
| Industrial and Specialist Services | 459.9 | 434.1 | 5.9% | 301.2 |
| Health and Community | 72.3 | 77.1 | -6.3% | 47.3 |
| Professional Services | 70.5 | 85.4 | -17.4% | 46.2 |
| Total Revenue | 602.7 | 596.6 | 1.0% | 394.8 |
In November 2023, PeopleIn announced the appointment of Adam Leake as its new CFO.
Looking ahead, the group said challenging economic conditions, driven by high inflation and interest rates, will continue to impact PeopleIn, along with most businesses in Australia and globally in the short term.
“However, as interest rates start to decline and in turn business confidence improves, PeopleIn is well positioned to return to a growth footing due to the long-term demand for PeopleIn workers, its diversity and size, commitment to efficiency, as well as its dedicated staff and their pursuit of sales opportunities,” the company stated.
PeopleIn shares closed yesterday at AUD 1.13 (USD 0.74), down 8.8% on the day. The company has a market cap of AUD 117.21 million (USD 76.8 million).