Talent2 technology results come in on budget

Stan Beer
Thursday, 09 February 2006 08:52

IT Industry - Listed Tech

HR and software group Talent2 International Limited (ASX:TWO) has posted strong half year results with robust revenue and profit growth and a good performance from the company's technology arm.

Revenues increased by 63.5% to $45.2 million for the December half year, up from $27.6 million for the corresponding six months in 2004. This growth curve sets Talent2 as one of the fastest-growing companies in the services sector. Earnings before interest, tax, depreciation and amortisation (EBITDA) were $4.4 million, an increase of 63.1% over the (IFRS adjusted) $2.7 million for the December 2004 half year.

Andrew Banks, Talent2’s Managing Director, said: “More and more companies are appreciating that the Talent2 integrated offer is about competitive advantage for their respective businesses. This is evident in the strong growth in Talent2’s revenues and EBITDA."

Among the highlights for the half-year

• Revenue for the technology arm of the business, Talent2 Works, came in at $7.8 million, in line with budget.

• Talent2 People, the recruitment business which was a “start up” in late 2003, has increased its revenue by 63% to $27.4 million for the half with the addition of new offices in Hong Kong, Singapore, New Zealand and an expansion of the business into Dubai.

• The Managed Services business has expanded revenue nearly fourfold to $9.8 million for the half year, with good strategic wins with major national and international companies, including a major win in China. While this growth is strong, the best is yet to come and the pipeline for Managed Services remains strong.

“We are only two years old with our new integrated human resources offer, and many parts of our business yet to reach maturity in revenue or margin, demonstrates we have a great deal of upside,” Mr Banks said. “This is especially so given the broader geographic and service offering spread achieved with key acquisitions during the past two years.”

“Our vision is clear: to help our customers leverage their scarce resources to acquire, optimise and administer talent to drive their shareholder value.”