AD1 Holdings extends recruitment platform deal with Victorian government

AD1 Holdings ASX recruitment deal Victorian government New South Wales
The contract extension, along with other managed services contracts, secures almost 97% of AD1’s employment platform subscription revenue in multi-year deals.

Recruitment technology platform provider AD1 Holdings (ASX: AD1) has announced it has extended an existing managed services agreement with the Victorian government for up to a further three years.

The Melbourne-based company provides customer-branded recruitment technology platforms, utilities software billing services, management platforms and related services.

The contract extension has been structured as three one-year terms added to the current contract for hosting and maintenance services and extends the completion date to the end of June 2023.

This latest news follows AD1’s announcement two weeks ago that it has renewed its managed services agreement with the New South Wales government for a further two years.

AD1 chief executive officer Prashant Chandra said this latest contract extension, along with other major managed services contracts, bolsters and locks in almost 97% of the company’s employment platform subscription business revenue in multi-year contracts.

He added that it “demonstrates the sustainability of that revenue base” and revealed the company is in late-stage discussions to secure new contracts across both its career platform and utilities software products.

Victorian government contract

AD1 said its partnership with the state government also provides a pipeline of projects to enhance the platform in line with the “agreed joint development roadmap”.

In addition to the managed services deal, the company has been engaged to support the integration of the Careers.Vic platform with the VIC Jobs API Gateway that is currently being developed in partnership with the Victorian Department of Premier and Cabinet’s API Gateway team.

Mr Chandra said the strength of the company’s partnership with both the NSW and Victorian governments is based on AD1’s ability to “continuously innovate, ultimately providing a more cost-efficient and effective way for the country’s two largest employers to connect with jobseekers”.

“Enhancing employer-jobseeker connectivity has been our goal with the careers platform and it is very pleasing to see it successfully manifest through our contracts with the NSW and Victoria governments,” he said.

NSW government contracts

In late June, AD1 announced it had extended its managed services contract with the NSW government for a further two-year term.

The services under the deal include the ongoing hosting and maintenance of the iworkforNSW careers platform, which was designed for the state government five years ago.

AD1 will also provide related digital services under the contract.

Along with this extension, the company also signed two new contracts with the NSW government to integrate a new cluster called ‘Regional NSW’ into the existing iworkforNSW platform, and to enhance functionality of the platform to allow a “more consistent presentation of state government jobs online to better direct jobseekers to their preferred channels”.

Additional state jobs related to COVID-19

In its March quarterly report, AD1 mentioned it was working closely with both state governments to assist in their efforts to promote government jobs, and in particular, additional jobs for NSW related to the COVID-19 pandemic.

The company had also revealed it was assisting its existing utilities retailer customer base to better support their end consumers during the virus outbreak.

“This is also resulting in a pipeline of works for the June 2020 quarter,” AD1 stated.

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