Ashley increase profits alongside acquisition of CCL Group.

Positive moves.

Australian training and labour hire firm Ashley Services has filed its results including revenue for the six-month period ended 30 December 2019 of AUD 183.4 million (USD 119.3 million). The figure is an increase of 23.8 per cent compared to the previous year. The group reported strong growth in its Labour Hire and Training divisions and recently completed the acquisition of contract labour supplier CCL Group. CCL Group reported an increase in revenue during the period, which contributed to overall group revenue growth.

“The first six months of financial year 2020 have been very eventful for Ashley Services as we made our first significant acquisition since listing, bringing on board the CCL Group,” commented Ross Shrimpton, managing director. “We are very happy to move forward with the CCL as part of the greater Group, along with a share being retained by the founder and existing management of CCL. Results from CCL which are included from 1 July 2019 have been particularly pleasing, with both revenue and profitability exhibiting the solid growth which gave us the confidence to go ahead with the transaction.”

Revenue by division

(AUD millions) H1 2020 H1 2019 Change H1 2020 (USD millions)
Labour Hire 154.1 144.2 6.9 per cent 100.3
Training 4.4 4.0 14.2 per cent 2.8
CCL Group 24.9 16.2

 

Both Action Workforce and Concept Engineering delivered the vast majority of the profit in the Labour Hire division, with Blackadder also contributing, while Concept Recruitment Specialists produced a loss for the first half broadly in line with expectations for the start-up business.

The group’s Training division continues to operate across three states; Victoria, Queensland and Western Australia. Victoria and Western Australia both performed well throughout the half, while the improvement in the Queensland operation continues with this state moving into a positive contribution in Q2.

“We look forward to continued improving profitability from our Training division, as we add complementary qualifications, always operating under a strong culture of compliance,” the group said in a statement. “We look forward to further strength across the second half as project activity again ramps up following the Dec-Jan slow down period. We also anticipate working closer with CCL Group management in the second half following the finalisation of the acquisition in late December 2019.”

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