PPE - Peoplein Limited

[System]

People Infrastructure provides contracted staffing and human resources (HR) outsourcing services to enhance the HR function of its clients. Services provided by People Infrastructure include recruiting, on-boarding, rostering, timesheet management, payrolling, and workplace health and safety management.

People Infrastructure first began operating in 1996 and over 20 years has grown to approximately $200m in revenue with 17 locations around Australia and New Zealand.

It is anticipated that PPE will list on the ASX during November 2017.

https://www.peopleinfrastructure.com

 

[Dona Ferentes]

PPE's principal activities are provision of workforce management, contracted staffing, recruitment and human resources outsourcing services. Services provided by the Group include recruiting, on-boarding, contracting, rostering, timesheet management, payroll, and workplace health and safety management.

People Infrastructure operates under three main industry sectors being Health and Community Care, Information Technology and General Staffing and Specialist Services.

- Was pottering along, but probably suffering a bit through the Covid pullback, although they claim to be doing OK. Now seeking more capital, at $1.10 a share. A $12million placement and $5.5million SPP

Trading Update
• Record revenue up 44% Feb-YTD v pcp
• Record normalised EBITDA up 53% Feb-YTD v pcp
• Strong cashflow generation in the 3 months to 31 March 2020 with net debt decreasing by $4m

Impact of COVID-19
• Minimal impact on community services staffing business, general staffing business, facilities maintenance business, IT contracting business and contract planting business; Increased general staffing work for food processing clients
• Hospitality payrolling business and child-care staffing business experiencing short term downturn
• Some unpredictability with respect to nursing and permanent IT businesses

Acquisition and Investment Opportunities
• A number of attractive investment and acquisition opportunities expected to emerge in a subdued market
• Expected to be one of the few companies in the staffing market seeking acquisition opportunities over the next 12 months

I'd call that smashed. Debt a bit high.

 

[Dona Ferentes]

• Produced an EBITDA result close to pre-COVID consensus.
• Their largest verticals within Healthcare and IT showed strong resilience.
• Average relationship length with their top-20 customers is 8.5 years.
• Net cash balance sheet provides opportunity to capitalise on a highly fragmented industry

as articulated by Naos (NEC) as one of their LT holds

MC under $200mill, steady as she goes (buy in weakness, as PE close to 20?)

 

[Dona Ferentes]

well, amazing the difference a year makes. At $1.00 and a cap raise at $1.10, shares in PPE could have been seen as a bargain thrown out by Covid bathwater.

There have been management changes (Leadership Transition), and acquisitions

Dec 2020: acquired eCareer Employment Services Pty Ltd and Illuminate Search and Consulting Pty Ltd. (which was established in 1999 and is a leading technology staffing firm focused on the NSW market, with Victorian operations.... primarily a provider of on-hire technology contracting personnel to NSW Government and blue-chip corporates in the banking, finance and insurance sectors. The business has 16 internal staff and on-hires approximately 200 technology professionals to its customers. The acquisition price for the Business is approximately $5,150,000)
March 2021: acquired Swingshift Nurses Pty Ltd for $3.1million ( established in 2000 and is a leading nursing agency focused on the mental health market. It is a contracted preferred supplier to most public sector hospitals in Victoria. )
June 2021: acquires Techforce Personnel Pty Limited (for $13.4 M); Techforce Personnel is a leading provider of casual workers in Western Australia and South Australia. It provides staff to a range of industries, with a large focus on the industrial services and mining sectors.
June 2021: acquires Vision Surveys (Qld) Pty Ltd (for $6.7 million); Vision Surveys (Qld) is a multi-discipline surveying business servicing metropolitan and regional Queensland, with a focus on large infrastructure projects, construction and residential development and buildings.
Organic Business Units continuing to grow: Homecare (Healthcare) and Facilities Maintenance

Opportunity for Acquisitions : a further $50M (?) ... Funding through debt and free cash flow whilst keeping a conservatively geared balance sheet

As markets emerge from the impacts of COVID-19 pandemic including Technology (particularly in VIC), Healthcare, Childcare and Hospitality, we expect to see positive flow-on impacts in H2 results.

• We do not anticipate any further JobKeeper payments during H2
• We shall continue to focus on complimentary acquisitions across all solutions lines – Staffing, Business Services and Operations Services.
• Continuing investment into scaling our new internally generated business units – Homecare and facilities maintenance and developing a rural and remote nursing business unit (initially in QLD) during 2H FY 21.
• Expect total normalised EBITDA (calculated as per the results) to be in the range of $35m-$37m. This guidance may change in the event of an unforeseen macroeconomic shock domestically, or the imposition of further Covid-19 related restrictions

 

[System]

On December 16th, 2021, People Infrastructure Ltd changed its name to Peoplein Limited.