Here’s why the People Infrastructure (ASX:PPE) share price is one to watch today

The People Infrastructure Ltd (ASX:PPE) share price will be in focus today after announcing its half year results and the exit of its CEO…
The post Here’s why the People Infrastructure (ASX:PPE) share price is one to watch today appeared first on The Motley Fool Australia. –

ASX share price on watch represented by surprised man with binoculars

The People Infrastructure Ltd (ASX: PPE) share price certainly will be one to watch on Friday.

After the market close on Thursday, the workforce solutions company released its half year results and announced the surprise exit of its CEO.

How did People Infrastructure perform in the first half?

For the six months ended 31 December, the company posted a 3.1% increase in revenue to $201 million. However, it is worth noting that $13.8 million of its revenue came from JobKeeper payments. Excluding this, revenue would have been down almost 4% to $187.1 million.

This ultimately led to the company reporting a 51.5% increase in normalised net profit after tax (before amortisation) to $14.8 million.

The People Infrastructure board has elected to continue paying dividends despite relying on government support during the half. It declared a 4.5 cents per share fully franked interim dividend, which is up 12.5% on the prior corresponding period.

At the end of the period, People Infrastructure had a net cash balance of $7.2 million.

CEO exit

Possibly weighing on the People Infrastructure share price today is news that the company has accepted the resignation of David Cuda as CEO.

Mr Cuda has resigned for personal reasons and will be leaving the company next month. He was only appointed permanent CEO in September 2020 after taking on the role in an interim capacity in January.

Former Managing Director, Declan Sherman, will be stepping into the role of CEO in an interim capacity while recruitment is conducted for a replacement.


People Infrastructure remains cautiously optimistic on the outlook for the remainder of the financial year. It expects to achieve normalised EBITDA between $14 million and $16 million for the second half.

This will bring its full year normalised EBITDA to between $35 million and $37 million, which represents annual growth of 36% to 40%.

Incoming interim CEO, Declan Sherman, commented: “Looking forward into the second half of FY21, whilst we are aware that the economic and operational uncertainty relating to Covid-19 may still have implications for our clients, we note the general stability that is returning to the sectors which we serve and we continue to focus on driving growth in niches where we can demonstrate a clear point of difference in our product and services offering.”

“We continue to look at both the opportunity to grow organically into new sectors as well as use our strong balance sheet for acquisition opportunities that would expedite that growth.”

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of People Infrastructure Ltd. The Motley Fool Australia has recommended People Infrastructure Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the People Infrastructure (ASX:PPE) share price is one to watch today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!