Site Group executing on post-COVID recovery with ‘rapid growth’ of trainee uptake in the Saudi Arabia
Trainee numbers at Site Group’s training centre in Saudi Arabia continue to increase, which Site says validates the demand and quality of its programs.
Education and training provider Site Group International (ASX: SIT) has revealed “rapid growth” in its trainee numbers for apprenticeship programs at its Maharat Construction Training Centre (MCTC) in the Kingdom of Saudi Arabia.
The company was hit hard by COVID-19, but is returning to form with circa $31 million revenue projected in FY2025.
This will most notably come through developing and upskilling the workforce in Saudi Arabia in partnership with the world’s most profitable company, oil giant Saudi Aramco.
Last week, the company announced training agreements had been secured between MCTC and seven contracting companies.
The agreements will see 200 trainees sent to complete an associate diploma of construction safety at the King Abdulaziz Center for World Culture in Saudi Arabia.
On Monday, Site announced a further 100 trainees had signed up for apprenticeship programs at MCTC.
The intake is sponsored by Saudi Aramao partner LTS.
This equates to a 150% rise in total trainee numbers for the company compared to the same period last year.
It also positions Site ahead of its Q4 FY2023 scheduled intake.
The extra 100 trainees will begin their apprenticeship programs in May and Site noted the Saudi Aramco sponsorship has the potential to increase further.
According to Site, LTS has expressed satisfaction in the quality of its training programs, which led to this latest batch of trainees.
“In response to the growing demand for high-quality training, LTS has also enquired about the possibility of extending the length of the company’s training programs and delivering a full diploma over a two-year period,” Site stated.
The company is now investigating this option to better accommodate the needs of its partners and trainees.
Construction safety
Site developed and accredited its construction safety program to address growing demand for specialised safety officers in the industry.
The program was developed to attract and train Saudi youth in the latest technologies, and safety requirements, which would then qualify them as safety supervisors at construction sites.
Further growth is expected with MCTC revealing its scaffolding program is ready for delivery.
According to Site, one of the main companies expressing an interest in the new offering has indicated a need for 3,000 trained scaffolders.
Site expects demand for qualified construction personnel will continue increasing as infrastructure projects in Saudi Arabia grow.
To meet this demand, Site plans to deliver the construction safety program in other locations across Saudi Arabia.
Higher demand underpins training centre expansion
Infrastructure projects in Saudi Arabia are continuing to increase as the country looks to diversify the economy beyond oil.
As part of this, Saudi Arabia aims to position itself as a global hub for investment and logistics in line with its ‘Vision 2030’ initiative.
Site noted the “rapid growth” in trainee numbers, along with growing infrastructure projects, underpin the company’s plans to expand capacity of MCTC.
The centre currently trains students in electrical, instrumentation, welding, pipe fitting and most recently construction safety, and scaffolding.
Site plans to expand its offering to include courses in heavy equipment, crane, rigging, foreman roles, steel fixing, carpentry and masonry, among others.
In addition to construction, Site’s programs train people in mining, hospitality, industrial and oil and gas sectors.
Shaking off COVID
Prior to the pandemic, the company’s operations in Saudi Arabia grew more 50% from FY2018-2019.
This pace of growth has picked up again, with Site’s revenue from the region 100% higher on FY2021-2022 levels.
Site says it is now on track to exceed previous milestones.
The company is forecasting circa $25 million in revenue from its Saudi Arabian operations alone in FY2025 when current facilities hit capacity.
Outside of the kingdom
Site has a current entitlement offer open to raise up to $3.9 million, with funds to be used in part for the development of its interest in acreage at Clark in the Philippines.
Site owns a 38.4% stake in a 30-hectare leasehold in the Clark Freeport Zone, which is co-funded by the Philippine Government and the Asian Development Bank with the goal of creating a prosperous region that decentralises the country’s economic activity away from Manila.
The land was independently valued at around $26 million in 2022, based on its current low-use zoning; however, Site is working on increasing this value through a rezoning for commercial development or sale.
The company has operations in developing nations where local populations often lack the appropriate skill sets and customers include ExxonMobil, GE, Shell and OceanaGold.