- Even as the coronavirus pandemic resulted in job losses and also hit businesses of recruitment companies, there are a few firms that managed to do well despite the challenging times.
- There were ASX companies and sectors that hired in response to the pandemic.
- SEEK, People Infrastructure and Hiremii are a few firms that performed on a strong note amid the coronavirus pandemic.
Even as the coronavirus pandemic resulted in job losses and also hit businesses of recruitment companies, there are a few firms that managed to do well despite the challenging times. There were some ASX companies and sectors that hired in response to the pandemic.
For firms in the technology and telecommunication sector, the pandemic presented an opportunity to boost their capacities and meet increased demand from company employees working from home for long hours.
Even the retail sector, which saw layoffs earlier, returned on track as the time elapsed as many companies shifted to online selling.
Here are a few ASX-listed recruitment shares to look at before the COVID-19 lockdown uplift.
The stocks have been selected based on recent positive announcements by their respective companies.
SEEK Ltd (ASX:SEK)
SEEK provides online employment services, advertises jobs, banners, and candidate’s Curriculum Vitae services. Shares of SEEK have given a year-to-date (YTD) return of 16%. The past year return stands at 71%.
In Its full-year results for the period ended 31 December 2021 (FY21), SEEK announced a 1% revenue rise to AU$1,591 million from the corresponding period last year. Net profit after tax (NPAT) was up 58% to AU$141 million. The company reported record ad volumes in the second half of the year amid easing COVID-19 restrictions, with Australia and New Zealand as its strongest market during the year.
In FY22, EBITDA may stand between AU$425 million and AU$450 million and NPAT between AU$190 million and AU$200 million.
People Infrastructure Ltd (ASX:PPE)
Australia-based workforce management and staffing company provides solutions to cater to workforce challenges faced by businesses. Shares of People Infrastructure have given a year-to-date (YTD) return of nearly 15%. The past year return stands at 51%.
The company reported strong growth in FY21. While the revenue rose 19% to AU$444 million, the EBITDA climbed 33% to AU$38 million. Underlying NPAT and amortisation rose 37% to AU$25 million.
The company acquired Ecareer & Illuminate (IT), Swingshift (Healthcare) and Techforce (Industrial) and Vision Surveys (Op services) in FY21.The company has plans to tap more acquisition opportunities in staffing and managed services to boost geographic spread and further expand its service offering.
Hiremii Ltd (ASX:HMI)
Hiremii is a technology-driven recruitment and full-service labour hire company. Shares of Hiremii have given a negative year-to-date (YTD) return of nearly 15%. The past year return is also down 51%.
In its preliminary final report for the year ended 30 June 2021, revenue stood at AU$6,95 million compared to AU$6.2 million for the year ended 30 June 2020.
At the year end, the company had AU$4.2 million in cash reserves compared to AU$1.98 million on 30 June 2020. The company would use the cash reserves to boost its growth strategy as it works to bring advanced AI to the recruitment space.
The Go2 People Ltd (ASX:GO2)
The GO2 People delivers tailored employment solutions to businesses, government, and individuals. Shares of the company have given a negative year-to-date (YTD) return of nearly 22%. The past year return is also down 38%.
In its June FY21 quarter activities report, the company reported positive net cash from operating activities.
The company had AU$6.4 million cash and cash equivalents at the end of the June quarter compared to AU$1.3 million in the previous quarter.
The GO2 People also reported an increase in job orders across all operating state and strong tailwinds in key operating sectors.
It also saw a jump in receipts from customers from AU$6.9 million in the March quarter to AU$10.8 million in the final quarter of FY21 due to the inclusion of Hunter Executive into the Group for the full quarter.
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