Half Year 2025 PeopleIn Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ben Wilson - Wilsons Advisory - Analyst : Well done on a resilient result there. Just my first question relates to FIP or IWM. Just two parts there. Was the change in client mix relating to the entry into aged care? Or was it also relating to, I guess, a bit of a mix with clients within the food sector?

Question: Ben Wilson - Wilsons Advisory - Analyst : And then secondly, just on the earnout with FIP. So just confirming that -- is it sort of about a $6 million payment in total, $3 million in shares and $3 million cash. And I had thought that they had just missed the hurdle. So has something changed there, which means you are paying that earn-out?

Question: Ben Wilson - Wilsons Advisory - Analyst : Maybe just in terms of permanent volumes overall, I think you mentioned just then they softened a little bit late in the second quarter. But Ross, I think you said you've got confidence volumes will improve sort of starting in FY26. Just wondering if you can kind of talk to the softening and then what gives you confidence that they'll pick up?

Question: Ben Wilson - Wilsons Advisory - Analyst : Maybe just the last one for me. Firstly, I appreciate the slide running through all the brands. That's very helpful. And look, obviously, it's hard to crystal ball case. It's always mixed, I guess, across the brands. But if you look at an overall portfolio level, do you have confidence at this point that you can maintain your second quarter EBITDA run rate through the second half? Or is it too hard to say?

Question: Liam Schofield - Morgans Financial Limited - Analyst : Just I suppose two quick questions. Just on that strategic client adjustment that you referred to. Can you just sort of talk us through what happened in prior years? And did that contribute to the margin degradation? So as you then start to do this strategic adjustment, can we expect margins to improve? And then also just on billing rates, obviously, that was a big step-up. How much of that is just mix shift? You did touch on it, but if you could just sort of clarify those two points, that would be great.

Question: Liam Schofield - Morgans Financial Limited - Analyst : And does that mean that the cost out is mostly done now? Can we sort of -- is there much more incremental benefit to come through?

Question: Liam Schofield - Morgans Financial Limited - Analyst : Yes. Good one. And just -- sorry, finally, if I may. It looks like in the presentation, you've shifted away from that NPATA sort of discussion to just sort of straight NPAT. You talked about more of a focus on EPS going forward. Can we read anything into that and just the way that you're going to approach, I suppose what you're going to focus on?

Question: Liam Cummins - Petra Capital Pty Ltd - Analyst : On the multi-disciplined contracts, could you give us a feel for who might the other service providers be that are sort of vending in services to some of these hospital groups in particular? And then sort of your views around how you would sort of hold the margin. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 23, 2025 / 10:15PM, PPE.AX - Half Year 2025 PeopleIn Ltd Earnings Call So I mean, typically, I would have thought a hospital operator, you're getting a few bites at the cherry on a range of different contracts, I probably want a little bit back on the other side. So how you think about the margin differences there and then yes, just some of those smaller groups that you might be able to displace along the way?

Question: Liam Cummins - Petra Capital Pty Ltd - Analyst : Fantastic. Looking forward to hearing about that. I think it's pretty exciting. And then sorry, I jumped on the call a little bit late. So sorry if I missed this. But the cash conversion in the first half, another really strong result. Just thinking back to the last half, I don't think it was too far at a whack. So I'm just trying to get a sense of how much was sort of catch-up on the last half versus pull forward -- potential pull forward or maybe what the second half might look like just on that number?

Question: Liam Cummins - Petra Capital Pty Ltd - Analyst : Yes. Perfect. And then maybe finally, just on the cost out. I mean, another really strong result from you guys. It was a huge number. Just thinking to sort of better times ahead when things start to rebound, how much of that you think you can hold versus how much you think might need to creep back just to expand things out. So I suppose the structural element to the cost out that we've seen in recent halves. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 23, 2025 / 10:15PM, PPE.AX - Half Year 2025 PeopleIn Ltd Earnings Call

Question: Ollie Burston - Ord Minnett - Analyst : Just filling in for Ian Munro here. Well done on the results given the tough industry conditions. Just regarding the PALM scheme, it looks like the total number of workers has leveled off recently. Just wondering how PPE's market share is tracking on the scheme? And I guess sort of following on what the sort of broader margin profile looks for the FIP business? And then just secondly, how are you seeing the broader conditions for permanent recruitment into the second half? And do you think there's any level of risk in regard to tightening of demand around that federal election?

Question: Ollie Burston - Ord Minnett - Analyst : And then how things will change post election?

Question: Ollie Burston - Ord Minnett - Analyst : And then maybe just finally, just regarding seasonality. I know you don't give any quantitative guidance, but looking at the second half, do you think the first half is sort of repeatable with the EBITDA line, obviously subject to the usual business risk? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 23, 2025 / 10:15PM, PPE.AX - Half Year 2025 PeopleIn Ltd Earnings Call