Highlights

• Ashley Services Group shares rose 8.16% to AUD 0.26 during the afternoon session on 25 June 2026.

• The company announced an agreement to acquire labour hire customer relationships and an associated workforce linked to a major logistics company.

• The acquired customer base generated AUD 162 million in revenue during the year ended 31 March 2026.

• Management expects the acquisition to be earnings per share accretive in FY27.

• Following completion, Ashley Services Group expects to engage more than 10,000 workers each week during peak seasonal periods.

Ashley Services Group Limited (ASX:ASH) attracted investor attention on Thursday after announcing an expansion of its labour hire operations through a new acquisition agreement. The company's shares climbed 8.16% to AUD 0.26 during the afternoon session on 25 June 2026, extending their gain over the past 12 months to 55.88%.

The positive market reaction followed the company's announcement that its wholly owned subsidiary, Action Workforce Pty Limited, had entered into an agreement to acquire external labour hire customer contracts, customer relationships and the associated workforce of a major logistics company. According to Ashley Services Group, the customers included in the transaction generated AUD 162 million in revenue during the year ended 31 March 2026.

About Ashley Services Group

Ashley Services Group is an Australian provider of labour hire, recruitment and vocational training services. Established more than five decades ago as a labour hire business in Sydney, the company listed on the Australian Securities Exchange in 2014 and has expanded its operations across multiple industries.

Its Labour Hire division provides workforce solutions to sectors including transport and logistics, supply chain and warehousing, e-commerce, manufacturing, construction, rail, defence, merchandising and horticulture. Through its recruitment operations, the company also offers permanent, temporary and contract staffing services.

Alongside labour hire, Ashley Services Group operates a Training segment that delivers accredited training across industries such as civil construction, supply chain operations, telecommunications, disability support, business services and rail qualifications. The business combines workforce supply with skills development, allowing it to support clients across different stages of employment requirements.

The latest acquisition aligns with the company's strategy of expanding its workforce solutions business within Australia's logistics sector.

Acquisition Expands Logistics Labour Hire Footprint

The announced transaction centres on Action Workforce Pty Limited acquiring the external labour hire customer contracts, customer relationships and associated workforce connected with a major logistics company.

Rather than purchasing physical assets, the agreement focuses on transferring customer relationships and workforce arrangements that have already been established. Ashley Services Group stated that the customer portfolio generated AUD 162 million in revenue during the financial year ended 31 March 2026, providing a sizeable operating base once the transaction is completed.

The agreement also includes customary provisions that allow both parties to pursue the novation and assignment of customer contracts following execution of the agreement. These steps are intended to facilitate the transfer of customer arrangements as part of the acquisition process.

Management expects the required conditions precedent to be satisfied within a reasonable timeframe, with completion currently anticipated during July 2026.

Acquisition Structure Links Payment to Customer Transition

Instead of paying a fixed upfront purchase price, Ashley Services Group has structured the consideration around future customer revenue.

Under the agreement, the purchase price will equal 1% of sales received from the transferring customers during the first two years following completion, subject to customary adjustments relating to employee entitlements.

The company noted that the consideration will be paid entirely in cash through two annual instalments made in arrears. This structure links the purchase price to the level of customer revenue generated after the business transfer rather than relying on a predetermined lump-sum payment.

Ashley Services Group also confirmed that funding for the acquisition will come from its ongoing operating cash flows together with existing banking facilities supported by its banking partner, Westpac.

Expected Contribution to Future Earnings

While the transaction is yet to be completed, Ashley Services Group has already provided an indication of its expected financial impact.

The company said the acquisition is expected to be earnings per share accretive during the financial year ending 30 June 2027. Although management did not disclose earnings forecasts or profit estimates associated with the transaction, the expected earnings accretion indicates that the acquisition is anticipated to contribute positively once integrated into the business.

Because the consideration is tied to customer revenue generated after completion, the structure also aligns acquisition payments with the ongoing performance of the transferred customer base.

Experienced Workforce Supports Expansion

In addition to customer relationships, Ashley Services Group said the acquisition includes experienced operational personnel who currently support the transferred business.

The company noted that the expansion of its transport, warehousing and logistics labour hire activities comes together with experienced staff and established operational capability, which is expected to assist with business continuity following completion.

Including both customer relationships and workforce resources within the transaction enables Ashley Services Group to broaden its presence in one of its existing operating sectors while building upon its current service offering.

Peak Workforce Expected to Exceed 10,000 Workers

Ashley Services Group also highlighted the scale of its operations following completion of the transaction.

The company expects that, once the acquisition has been completed, the Group will engage more than 10,000 workers each week during peak seasonal periods.

That milestone reflects the increased scale of its labour hire operations across Australia and further expands its exposure to transport, logistics, warehousing and supply chain workforce services.

Funding Remains Internally Supported

Management confirmed that the acquisition will not require separate equity funding.

Instead, Ashley Services Group plans to finance the transaction through ongoing business cash flows together with available banking facilities provided by Westpac.

Using existing funding sources enables the company to complete the acquisition while maintaining its established financing arrangements.

What This Means for Investors

The share price response suggests investors viewed the announcement favourably, with Ashley Services Group adding 8.16% during Thursday's afternoon trading following the release.

The announced transaction expands the company's logistics labour hire customer base through contracts that generated AUD 162 million in annual revenue prior to the acquisition. Management has also indicated that the acquisition is expected to be earnings per share accretive in FY27, while funding will be sourced from operating cash flows and existing banking facilities.

Completion remains subject to customary conditions and the successful transfer of customer contracts, with the company currently expecting the acquisition to complete during July 2026.