Key Highlights

  • Ashley Services Group (ASX:ASH) will trade ex-dividend on 3 September 2026 for a fully franked final Dividend of 1.15 cents per share, payable 22 September 2026
  • Full-year Revenue increased 16.7% to $602.2 million, with EBITDA rising 70% to $14.7 million from $8.65 million in FY25
  • Net profit after tax climbed 189.5% to $6.29 million and Earnings Per Share increased 186.1% to 4.32 cents
  • The Labour Hire division delivered EBITDA growth of 53.1% while the Training division posted an 87.5% increase in divisional earnings

Ashley Services Group Limited (ASX:ASH) is scheduled to trade ex-dividend on Thursday, 3 September 2026, as holders of the stock position themselves ahead of the company's fully franked final dividend of 1.15 cents per share. The dividend carries 100% franking and will be paid to eligible shareholders on 22 September 2026. Combined with the 1.4 cents per share Interim Dividend paid earlier in the year, the total fully Franked Dividend for FY26 comes to 2.55 cents per share, compared with 0.8 cents per share in FY25, representing a Payout Ratio of 60% of distributable profits.

Full-Year Financial Performance

For the twelve months ended 30 June 2026, Ashley Services Group reported revenue of $602.2 million, an increase of $86.25 million, or 16.7%, from $515.9 million in the prior corresponding period. Earnings before interest, tax, Depreciation and Amortisation reached $14.7 million, up $6 million, or 70%, from $8.65 million in FY25. Earnings before interest and tax rose 124.2% to $10.8 million from $4.8 million a year earlier.

Statutory net profit after tax for the year came in at $6.3 million, an increase of $4.1 million, or 189.5%, from $2.17 million in FY25. Basic Earnings Per Share attributable to shareholders rose 186.1% to 4.32 cents, up from 1.51 cents in the prior year.

Segment Performance

The Labour Hire division generated revenue of $587.0 million for the year, up 17.2% from $500.7 million in FY25, driven by contract wins in the Supply chain and retail sectors, geographic and product category expansion in horticulture, and new construction sector projects secured in Victoria. Divisional EBITDA, excluding corporate cost allocations, increased 53.1% to $17.3 million from $11.3 million in the prior year, with the EBITDA Margin improving to 2.95% from 2.26%.

The Training division reported revenue of $15.2 million, broadly in line with the $15.3 million recorded in FY25. Training EBITDA rose 87.5% to $3.0 million from $1.6 million, attributed to cost controls and improved trainer efficiencies in Victoria and Queensland along with improved profits from the rail sector. The division's EBITDA margin expanded to 19.7% from 10.4%.

Corporate costs increased to $5.6 million from $4.2 million in FY25, an increase of $1.4 million. Of this, $0.9 million reflected the transfer of certain employee costs from labour hire to corporate to better represent staff duties, while the remaining $0.5 million increase comprised a $0.4 million rise in Bonus expense linked to improved results and $0.15 million in inflationary cost increases.

Cash Flow and Balance Sheet

Operating Cash Flow for FY26 was $7.2 million, compared with $8.9 million in FY25. The company noted that while EBITDA increased by $6 million during the year, Working Capital requirements rose by $4.3 million in line with the 17% increase in group revenues. Tax payments increased $0.9 million in line with improved profitability.

Net cash used in investing activities was $1 million, compared with $4.7 million used in the prior year, with underlying capital spending maintained at $0.8 million. Net debt, defined as cash less borrowings, decreased by $1.8 million during the period to $9.4 million, down from $11.2 million at 30 June 2025. Net Assets increased $4.4 million to $35.5 million from $31.1 million a year earlier.

Acquisition and Banking Facility

On 3 August 2026, the group's Subsidiary Action Workforce Pty Limited acquired the external labour hire customer contracts, relationships and associated workforce of a major logistics company. Revenue generated from these customers by the previous owner for the year ended 31 March 2026 was $162 million. The purchase price is structured as 1% of sales received from transferring customers during the first two years of operations, payable in two annual instalments in arrears, expected in August 2027 and August 2028.

To support the working capital needs associated with the acquisition, the group increased its Invoice Financing Facility limit from $35 million to $50 million on 17 July 2026. The company also noted that banking covenants were amended, with the financial Debt to EBITDA ratio replaced by an Interest Coverage ratio.

Management Commentary

Managing Director Ross Shrimpton said the group had responded to the external headwinds that had affected FY25 results, attributing the improved FY26 performance to organisational restructuring and initiatives implemented over the preceding two years. He noted that in August 2026, the company integrated approximately 213 new customer sites, 1,850 active workers and 35 staff from the recently completed acquisition, with incremental revenue from the Acquisition totalling $5.1 million in the first two weeks of August 2026.

Conclusion

Ashley Services Group's FY26 results reflect a year of expanded revenue across its core labour hire operations alongside improved training division margins, with net profit and earnings per share both increasing at a faster rate than revenue growth. The company enters FY27 having completed a customer contract acquisition and secured additional financing capacity, with working capital requirements rising in step with the growth in revenue during the year under review.