PeopleIn Limited (ASX:PPE) Reports Half-Year Financial Results
Financial Performance
PeopleIn Limited reported a 5% decrease in revenue for the first half of FY25, totaling $572.6 million compared to $602.7 million in H1 FY24. Profit after tax from ordinary activities dropped by 173.79% to ($3.928) million from $5.323 million in the same period last year.
Cost Efficiency
The company achieved continued cost efficiencies, reducing operating costs by $4 million since last year and over $15 million over the past two years. Improvements in client billing rates and operational efficiencies helped maintain cash earnings despite lower revenues.
Debt Reduction and Cash Collection
PeopleIn Limited maintained strong cash collection, exceeding 117% of normalised EBITDA. The net debt to EBITDA ratio was reduced from 2.11x to 1.68x, demonstrating improved financial stability.
Dividend Announcement
The Directors have not recommended the payment of an interim dividend for the period ending 31 December 2024, continuing the dividend policy of not providing interim dividends at this time.
Future Outlook
The company expects challenging economic conditions to persist for the next six months but remains optimistic about future growth opportunities, particularly in the Defence sector and through major multi-discipline contracts. PeopleIn Limited is well-positioned to capitalize on a recovery in business confidence and organic growth moving forward.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Peoplein. The Motley Fool Australia has recommended Peoplein. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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