Australian vertically-integrated recruitment and building services company The GO2 People (ASX: GO2) has posted positive results for the March quarter, citing a continued focus on cost stabilisation during COVID-19.
Operational cashflow of $728,000 for the period increased the company’s year-to-date figure to $2.48 million, while operating and staff costs were reduced.
During the quarter, GO2 closed a shortfall offer associated with a shareholder entitlement issue in the December period, to raise an additional $104,000.
A decrease in receivables balance amounts recorded by its recruitment division contributed to a reduction in the balance of funding provided by Scottish Pacific Business Finance during the quarter, resulting in a debt repayment of $787,000.
Receipts from GO2’s customers for the March quarter totalled $7.9 million, with January in particular being an “expected slow month” following the Christmas break and the impact of various public holidays.
The company said it has remained focused on the consolidation of its core recruitment and training operations through an improvement in earnings before interest, tax, depreciation and amortisation, positive cashflow and responsible capital management.
GO2 said its businesses have adapted well to the challenges presented by COVID-19 and it has been able to maintain full operational delivery capacity.
“We have continued a proactive approach to communicating with our clients and are in contact with them on a daily basis,” it said.
“A lack of available flights from Perth to regional areas of WA has created a bottleneck scenario for companies in the WA mining sector attempting to mobilise personnel to mine sites [so] while we continue to fill job orders from our WA mining clients, a slower than expected deployment is likely to impact revenue in April,” the company noted.
GO2’s training division developed its first online training course during the period; it has started to generate revenue and will be followed by additional courses currently in development.
GO2 said its employment and training model has it “well positioned” to convert opportunities arising from the government’s commitment to re-deploy and re-train workers left unemployed during the pandemic.
At midday, shares in The GO2 People were 135.29% higher at $0.04.