The GO2 People Ltd

Decent FY18 Performance: The GO2 People Ltd (ASX: GO2) is a micro-cap company with the market capitalization of circa $10.73 Mn as of October 19, 2018. It is in the operation of providing integrated recruitment and building services to the various industries throughout Australia and New Zealand. There are two main business verticals, i.e., labour hire division and building division which contributed around 83.9% and 16.1%, respectively, of the total revenue during FY18. In labour hire division, the group provides a full suite of tailored workforce solutions to a range of industries like Infrastructure, Construction, Mining/Resources Operations, Energy sector, Telecommunications, Utilities/Maintenance, Transport/Logistics industry. While the building division is a multi-disciplinary construction division specializing in the delivery of projects in remote and regional areas.

The company posted its FY18 earnings report for the period ended 30 June 2018 wherein revenue grew by 29.4 percent and amounted to $45.1 Mn against the prior year. It was mainly driven by strong performance across the division.  As a result, loss after tax came in at $1.3 Mn in FY18 as compared to the prior year, exhibiting 54.7% degrowth on a Y-o-Y basis. It was mainly supported by topline growth and lower operating cost. Basic loss per share stood at 0.014 cents in FY18. Moreover, cash and cash equivalent at the end of the year was $2.61 Mn against $ 0.46 Mn of the previous corresponding year.


Operational Achievements Since Listing (Source: Company Reports)

Furthermore, the company has recently entered into a binding term sheet to acquire all the issued share capital of GO2 Skills & Training Pty Ltd to develop and enhance their respective services. As per the agreement, the Company will not disburse any extra capital to effect the Acquisition. Moreover, the loan balance owing by GO2 S&T to the Company at the time of acquisition, being $465,000, will be offset against the value of the Acquisition for the same amount. Although, the acquisition is conditional and subject to shareholder approval.

Meanwhile, the performance of the company remains negative throughout its entire journey. The performance throughout its journey remains -52.11%. The 6-months and 3-months year performances of the company are -27.2% and -9.0%, respectively as on October 18, 2018. By looking at the trading level since past one year and decent topline growth in FY18, we have a wait and watch view on the stock that trades at the current price of $ 0.091.
 

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