Australian recruitment technology provider AD1 Holdings (ASX: AD1) has recorded a 65% year-on-year growth in revenue for ordinary activities carried out during the 12 months to 30 June.
The results were achieved through a combination of organic growth and strategic acquisitions, notably the purchase of the Art of Mentoring business in October which has so far contributed $1 million in revenue and expanded AD1’s footprint in what has become a lucrative market.
Since joining the group, Art of Mentoring has continued to perform well, adding over 20 new customers to its portfolio and ending the period with 35% revenue growth and a strong pipeline of activity moving into the new fiscal year.
AD1 reported a 60% increase in metres under management by acquired retail energy sector business Utility Software Services Pty Ltd (USS); a 37% jump in users of its ApplyDirect platform; and a 27% boost in inbound traffic.
Strong momentum was observed within the USS sector following the August 2020 signing of a managed services agreement with 3P Energy and the completion of a master services agreement in September with member-owned energy retailer Power Club.
Earlier this year, USS also collared a $10 million contract with energy retailer Locality Planning Energy to provide SaaS solutions including energy sales intelligence and customer portal opportunities over five years.
AD1 achieved customer retention of 100% across the ApplyDirect and USS customer base during the year and 83% within Art of Mentoring.
In April, the company secured $2 million in debt funding to support the delivery of further revenue-generating initiatives.
Managing director and chief executive officer Brendan Kavenagh said the 2021 financial year had been a successful period for AD1, underpinned by a keen knowledge of its customer base.
“Understanding our customers and providing them with ongoing support to be successful will be a key requirement for us in 2022 [and] will be achieved on the back of continued investment in product innovation and refinement across each business to ensure we continue to deliver value,” he said.
“Strong emphasis on leveraging our existing customer base and a targeted [group] approach to new customers will also be important to realising cross-selling opportunities, leveraging networks and internal [intellectual property] across the AD1 companies as we build momentum.”
Acquiring or aligning with new businesses will be a focus moving forward.
“We are looking to partner with companies who have complementary offerings and can strengthen their go-to-market [strategies] with customers using our product as a white label offering where required,” Mr Kavenagh said.
“Our aim is to speed up the sales cycle and grow our customer numbers across each business … we will continue to focus on product refinement, a customer-first approach and delivering to customer needs.”