Ashley Services (ASX:ASH) Drives Growth with Expanding Customer Base and Higher Earnings

Highlights

• Ashley Services Group expanded its labour hire business through a strategic acquisition expected to enhance earnings in FY27.
• The acquired customer portfolio generated AUD 162 million in revenue during the year ended 31 March 2026, broadening Ashley's customer base.
• 1HFY26 revenue rose 15.8% to AUD 308.2 million, while NPAT increased 88.3% to AUD 3.4 million.
• Labour Hire and Training businesses delivered higher revenue and improved profitability during the first half of FY26.
• The stock remained up 28.57% year to date, as of 8 July 2026.

Ashley Services Group Limited (ASX:ASH) continues to strengthen its position across Australia's labour hire and training sectors as it builds on improving operational performance and disciplined business expansion. Growth across its core divisions, better profitability, improved cash flow and a healthier balance sheet have supported the company's latest strategic initiatives. Among these is a new acquisition that is expected to broaden Ashley's customer base, expand its labour hire operations and contribute to earnings growth in FY27.

Strategic acquisition expands labour hire operations

On 25 June 2026, Ashley Services Group announced that its subsidiary, Action Workforce Pty Limited, had entered into an agreement to acquire the external labour hire customer contracts, relationships and associated workforce of a major logistics company.

The acquired customer portfolio generated AUD 162 million in revenue during the year ended 31 March 2026, significantly expanding Ashley's customer reach within the labour hire market.

Under the agreement, the purchase price will equal 1% of sales received from transferring customers during the first two years after completion, subject to customary adjustments relating to employee entitlements. The consideration will be paid entirely in cash through two annual instalments in arrears.

The agreement also includes customary provisions for the novation and assignment of customer contracts. Subject to satisfying the required conditions, completion is expected during July 2026, with the acquisition anticipated to be earnings per share accretive in FY27.

Improving financial performance supports expansion

The acquisition follows a record first-half FY26 performance for Ashley Services Group, highlighting continued growth across the business.

Revenue increased to AUD 308.2 million in 1HFY26, up 15.8% from the prior corresponding period. EBITDA rose 40.7% to AUD 7.6 million, while EBIT increased 62.9% to AUD 5.7 million. Net profit after tax climbed 88.3% to AUD 3.4 million.

Group EBITDA margin improved from 2.0% to 2.5%, reflecting healthier operating performance across the business. Supported by improved earnings and cash flow, the board declared an interim dividend of 1.4 cents per share.

Labour Hire division maintains growth momentum

Ashley continued to record solid momentum across its Labour Hire division in 1HFY26, with revenue increasing by AUD 41.7 million, or 16%, compared with the prior corresponding period.

Growth was driven by new contract wins across the supply chain, manufacturing and retail sectors, where overall hours worked increased by 5%. Horticulture revenue also rose 10%, reflecting initiatives to provide labour during winter harvesting periods.

The company also secured new project work within its construction and traffic management businesses in Victoria, contributing to a 58% increase in construction revenue during the half.

Labour Hire EBITDA increased 25% to AUD 8.4 million, while margins improved to 2.8%. Renewed customer contracts, together with operational, system and process improvements, supported higher profitability across the division. Construction operations in Victoria also recorded significant profitability gains.

Training business delivers higher earnings

Ashley Services Group's Training division also contributed to the group's performance, reporting a 4% increase in revenue compared with the prior corresponding period.

Growth was supported by expanding traditional training operations across Victoria and Queensland, together with increasing participation in public rail-related courses.

Training EBITDA increased 90% to AUD 1.9 million, benefiting from cost controls, operational efficiencies and continued growth in rail-related training.

Balance sheet continues to strengthen

Working capital increased during the period alongside higher revenue. Ashley also completed final payments totalling AUD 3.3 million relating to the OPW and CCL acquisitions completed in FY25.

Net debt declined to AUD 11.9 million at 31 December 2025, representing an improvement of AUD 7.8 million compared with the previous year.

Operationally, Ashley maintained 25 offices across Australia and reached a peak weekly workforce of 7,777 workers, an increase of 654 workers from the previous peak period. The company employed 287 internal staff, while continuing to support customers across multiple industry sectors.

With customer expansion, improving profitability and operational momentum across its core businesses, Ashley Services Group continues executing its growth strategy while positioning the business for additional earnings contributions during FY27.

Shares of ASH last traded at AUD 0.27on 08 July 2027. The year-to-date gains stood at 28.57%.