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PPE - PEOPLE INFRASTRUCTURE LTD


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Spotlight on People Infrastructure

 

People Infrastructure (ASX: PPE) is a workforce management company specialising in providing contracted labour to its clients. This week, PPE acquired two Queensland-based healthcare staffing agencies for $16.8 million. This acquisition will allow PPE to expand its health and community care business, permitting the increased provision of nursing staff to hospitals and aged care facilities in Queensland. The sunshine state is a popular retirement location for many Australians, providing solid growth potential.

 

The acquisitions were funded by a $20 million capital raising completed last week. We participated in the raising as an existing shareholder at the discounted price of $2.70 per share. We first invested in PPE at its initial public offering in November 2017, due to its strong management team, solid organic growth record and the fragmented nature of its industry, which has significant acquisition opportunities.

 

We continue to hold PPE as its recent successful capital raising has put its balance sheet in a healthy position to continue its growth strategy.

- Wilson Asset Management

 

PPE is currently trading at $3.27 per share.

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  • 1 year later...

as a people facing employer, the Covid selldown was dramatic, with shares trading at $1.00 late March 2020, but then there has been a strong recovery; closed at $4.70 this week, only 15 months later. Acquisitions have helped

 

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 to $37m. This guidance may change in the event of an unforeseen macroeconomic shock domestically, or the imposition of further Covid19 related restrictions
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