Latest News
(Analyst Reports about PBA can be found here)
Peoplebank now Australia’s Largest IT&T Recruitment Powerhouse
Sydney, 4th February 2008… Peoplebank Australia Limited’s (ASX: PBA) General Meeting this morning passed both resolutions presented to its shareholders in order to provide funding for the Ambit acquisition as announced in a press release dated 17th December 2007(attached below for your convenience). Resolutions were passed on a show of hands with voting of proxies at 99.5% in favour of the resolution.
Leon Lau, Peoplebank’s Managing Director, told shareholders that the Board had been working towards the Ambit acquisition for 12 months. The union of the two companies provides a foundation upon which to build a great company. Lau continued that with the integration of the two businesses, Peoplebank has a leadership team unparalleled within the recruitment industry. Peoplebank is also number 1 in all states and territories for IT&T recruitment with over 3500 contractors and a database of over 200,000 candidates.
Lau highlighted the importance of the database in a skills short market in which candidates do not apply as readily to job advertisements. Peoplebank’s finely tuned database is an essential tool to network amongst Australia’s top IT&T professionals. Peoplebank has developed several talent pools of highly sought after IT&T professionals and with the additional Ambit candidates, these talent pools have significantly grown.
Shareholders also stand to benefit from this with Peoplebank’s market capitalisation now over $100M. This may mean a re-rating for Peoplebank’s trading multiple, allowing for a broader category of potential investors to invest in Peoplebank shares.
The meeting concluded with Mr Lau announcing Peoplebank’s integration of the two businesses, “Project Oneteam”, that commenced planning in early January. This plan will now implemented. Project Oneteam covers Peoplebank’s entire business and aims for a smooth transition of both company’s staff, clients, contractors and candidates.
Peoplebank Acquires Ambit to Become Australia’s Largest IT&T Recruiter
PDF versionSydney, 17th December 2007…Peoplebank Australia Limited (ASX: PBA), has announced plans to acquire Ambit for $100 million, which will make it the largest IT&T recruitment company in the country.
The equity raising is expected to be ratified at an extraordinary meeting of Peoplebank shareholders in late January. The combined company will have revenues of circa $500m for FY2008 with an EBITDA of $24 million on a consolidated pro-forma basis.
It’s the latest in a series of acquisitions for Peoplebank, which purchased leading WA IT&T recruitment firm, Gryphon Consultants in May this year.
From early February, the combined company will have Leon Lau as Managing Director and Peter Acheson (CEO of Ambit) as Chief Operating Officer. Peter will be responsible for all of the day to day operations of the business, including all sales, marketing, people and performance. Marcus Emery (Peoplebank’s Director Recruitment Services) will head up the integration and implementation project.
Peoplebank Managing Director, Leon Lau, said this latest investment establishes Peoplebank as the clear leader in IT&T recruiting across Australia, while positioning the company for future growth.
“Peoplebank’s traditional strengths in the government sector are complemented and enhanced by Ambit’s dominance in the corporate market, with very little duplication across their client portfolios,” he said. “The acquisition also offers enormous synergies in terms of geographical expansion, with Ambit enjoying a strong presence in the strategic Victorian market, where Peoplebank is relatively small.”
Mr Lau said the integration of the two firms will swell Peoplebank’s employee ranks from 100 to around 270 with significant operations in every state and a favourable balance of 1/3 government and 2/3 blue chip corporate business.
“With over 250 talented, passionate and experienced recruitment professionals working in a high performance, partnership focused culture, this union will create an unrivalled IT&T recruitment talent powerhouse.
“In a consolidating market, Peoplebank will be uniquely positioned with the broadest array of industry knowledge and experience, and the strongest geographical network to support our clients in acquiring the critical IT&T resources they need during this current skills shortage.
“Not only will Peoplebank be the dominant IT&T recruiter in every Australian region, but the strengthening of our human capital and infrastructure will allow us to diversify into other professional white collar sectors on the back of Ambit’s Engineering and Finance, Banking operations.” he said.
Peoplebank Secures Navis as Equity Partner
Peoplebank will fund the acquisition through an agreement with offshore private equity firm, Navis Capital Partners for a $50 million direct equity subscription and a firm underwriting commitment for a placement of $10 million in shares.
A further $60 million in “club” financing from Westpac Banking Corporation and Commonwealth Bank will cover senior acquisition debt, the replacement of existing facilities and anticipated working capital requirements going forward.
“This innovative capital structure gives Peoplebank rapid access to the funding we need to increase our size and scale while enabling us to benefit from Navis’ experienced leadership and proven operational knowledge through their provision of two new board directors.”
“Navis manages over US$2 billion in funds and has offices in Malaysia, Thailand, Hong Kong and India, which represents a huge benefit to our shareholders as we pursue our aggressive growth strategy.”
Proven Track Record in Integrating Acquisitions
“We already have successful experience in integrating a company twice our size after acquiring iGate in 2004. Although Ambit is that much larger again, I’m confident that the lessons learned through the iGate integration will serve us well in making the most of this opportunity,” said Mr Lau.
Mr Acheson said “It has always been Ambit’s strategic view that scale is an important driver of success in recruitment and ultimately scale translates into greater opportunities for our people, our contractors and our clients.
Mr Lau added “There is enormous cultural synergy in this merger. Both Peoplebank and Ambit have operated as relatively lean organisations and we are looking forward to applying our joint resources and manpower to invest more heavily in strategic business development initiatives that will equip the company to take advantage of future opportunities.”
Peoplebank Announces Solid Performance for FY2007
Highlights Include 14% Growth in Revenues, 6% Profit Increase and Successful Acquisition of WA-based Gryphon Consultants to Complete National Network
Sydney, 30 August 2007…Peoplebank Australia Limited (ASX: PBA), one of Australia’s largest specialist IT&T recruitment companies, today released its end of year results, announcing a 14% increase in revenues to $139 million for the 2007 financial year.
Profits rose by 6% to $4.4 million during the reporting period, which was Peoplebank’s
second year as a publicly listed entity.
2007 also saw an increase in dividend payments from 5.5 cents in FY2006 to 6.5 cents in FY2007. Peoplebank paid a final dividend of 3.5 cents per share fully franked for the 2007 financial year, on top of an interim dividend of 3.0 cents, which represents a 61% payout ratio of net profits attributable to shareholders.
EBIT/gross profit conversion also increased over the period from 36% to 37%, with
Peoplebank outperforming its major competitors in this area. Another pleasing development
was a 33% rise in operating profit (EBIT) in the second half of the financial year, after an
initial downturn in the first six months, to achieve a full year increase of 3% and a strong
upward trend heading into 2008.
Peoplebank’s Managing Director, Leon Lau, said the result reflected a solid performance by
the company in refocusing on key areas of growth during the latter half of the year.
“Not only did Peoplebank finalise the successful acquisition of Gryphon Consultants to give us a strong presence in every Australian mainland state, but we also enhanced our performance in high margin permanent placements compared to the less profitable contractor billings,” he said.
During the last six months of FY2007, Peoplebank’s gross profit ratio of permanent to
contractor placements improved significantly from 13:87 to 18:82, approaching the
company’s target ratio of 20:80 or better.
Mr Lau said the acquisition of prominent Perth-based IT recruiting firm, Gryphon Consultants
P/L had a minimal impact on earnings since it was only completed in late-May 2007, but the
company expects a solid result from the WA operation in 2008, contributing to expectations
of higher future growth.
“2007 saw Peoplebank cement its position as one of Australia’s leading specialist IT&T
recruitment firms and we are confident of achieving continued strong growth throughout
2008,” he said.
Peoplebank Achieves National Coverage with Acquisition of Leading WA Recruitment Firm Gryphon Consultants
Sydney, 23rd May 2007…Peoplebank Australia Limited (ASX: PBA), one of Australia’s largest specialist IT&T recruitment companies, has acquired WA-based IT&T recruitment firm, Gryphon Consultants Pty Ltd, for $3.15 million with a further incentive payment for growth over the next 12 months. The acquisition will be earnings accretive from the outset and will be funded using existing debt facilities.
One of Western Australia’s leading IT&T recruitment companies with a reputation for excellence gained over 26 years, Gryphon has 14 staff and a roster of blue chip clients that complements Peoplebank’s existing client base. Currently Gryphon has approximately 100 on-hired IT&T professionals generating annual revenue of $10.5 million.
Peoplebank Managing Director, Leon Lau, said the Gryphon acquisition fills a gap in the company’s national network, giving it a strong foothold in the booming WA economy and enabling it to extend the range of services it provides to clients.
“This acquisition reinforces Peoplebank’s continued commitment to playing an industry leadership role and delivering solid, consistent returns to our shareholders through a strategy of organic growth and acquisition,” he said.
As part of the agreement, Gryphon Consultants’ Managing Director, Tony Ciallella, will remain with the company to ensure a smooth transition.
“This is a very exciting development both for Gryphon and for our WA clients, who will now have access to a far greater depth and breadth of expertise and resources through the Peoplebank network,” said Mr Ciallella. “Peoplebank is a proven performer in the recruitment space, particularly in our core specialisation of IT&T and I am confident that this will be a very happy marriage for all concerned.”
For further information, please contact either Leon Lau, Managing Director or Marcus Emery, Director Recruitment Services on 02 9220 8000.
About Gryphon Consultants
Gryphon Consultants is a West Australian recruitment and careers consultancy serving local industry and candidates since 1981. With 26 years local knowledge and experience plus preferred supplier/panel member to state government, corporate and small business recruitment panels, Gryphon assists its clients with employee retention strategies, salary and skills surveys, staff assessment and development strategies, locating ‘hard to find’ skills, and more. www.gryphon.com.au
Peoplebank Make the 2006 BRW Fast 100 
Hot on the heels of our record financial results in our first year as a listed company, Peoplebank has been included in the BRW Fast 100 for the first time.
We’ve been ranked at number 80 in this prestigious list of the fastest growing businesses in Australia.
It’s a result that reflects the continued quality, strength of management and improved efficiencies we’ve brought to our business.
It’s also a testament to the overall strength of a robust recruitment sector.
While it’s great to be recognised for our achievements to date, we’re not resting on our laurels.
We see this as another step on our journey to deliver strategic growth, industry leadership and consistent shareholder returns through exceptional client service and delivery.
We’re looking forward to continuing to deliver strong results both for our 2007 financials and for our customers.
Peoplebank's 2006 Annual Report
Peoplebank Australia Limited's 2006 Annual Report has been released and is accessible from the Investor Relations section of this site.
Peoplebank FY06 results
Peoplebank Australia Limited reports record earnings in first full year result. Full press release here. Preliminary
Financial Report & Full Year Accounts are accessible from the Investor Relations section of this site.
Hot Stocks Under $1
Phillip Rennie
BRW 28/09/2005
52-week high/low: 63¢-52¢
Market capitalisation: $22.2 million
Reason to buy: Participating in the IT management recruitment revival.
Recruitment firms have often done well as listed companies, despite the field being highly competitive. Peoplebank Australia (PBA) was floated in June and is selling at a modest premium over its 50¢ issue price. The business was founded in 1990 to specialise in IT contracting and recruitment. It has 92 staff, more than 900 contractors and turnover of $106 million.
IT management recruitment is experiencing strong demand. Not only is IT investment making a comeback after lagging in recent years, but strong capital expenditure generally by Australian companies points to a high level of accompanying IT needs. Peoplebank expects organic growth in line with this IT upswing. It is also seeking bolt-on acquisitions.
Net profit for 2004-05 exceeded prospectus forecasts and the company expects to better this for 2005-06. No specific dividend forecast was made with the float, but the policy is to pay out 50% of profit. Earnings per share in 2004-05 was 6.6¢, suggesting a prospective payment of perhaps 3.3¢ in 2006.
This is a small company, with a capitalisation that will not appeal to institutions. But the industry is attractive and Peoplebank has growth potential.
Launching on the ASX
Derek Parker
The Australian 29/07/2005
Taking your business on to the Australian Stock Exchange let's you maintain growth, yet still keep control. The Australian talks to Peoplebank. Download Article (.pdf)
Peoplebank Chalks Up Health Premium
Henry Byrne
Australian Financial Review 16/06/2005
Peoplebank, a recruiting company in the information technology and telecommunications sectors, made a healthy start to life on the Australian Stock Exchange yesterday, closing at a 20% premium to its issue price.
On a day when the market continued to march towards record territory, Peoplebank hit the boards at a 10¢ premium to its issue price of 50¢, and closed at 60¢.
However, with the size of the free float at about 23 million shares, or about 55% of the 41.26 million shares quoted, only 73,000 shares changed hands. Peoplebank directors Leon Lau and David Armstrong hold about 44% of the shares in the company. The shares are in escrow until at least December 31, 2005.
Peoplebank was established in 1990 to offer specialist contracting and recruitment services. It intends to use the capital it has raised to pay down $3 million in debt and position itself for future growth, including accessing future equity capital after its listing.
The climate for new IPOs such as Peoplebank may have been aided by the glut of money that has hit the market in the wake of the completion of a number of major takeovers such as BHP Billiton's bid for WMC Resources.
But despite a favourable climate the standard of offerings has not been outstanding, according to Investors Mutual portfolio manager Monik Kotecha.
"People say there's a lot of cash around, maybe that's correct, but the general quality hasn't been that great," Mr Kotecha said.
Meanwhile, EIM Resources, an investment company that specialises in the resources sector, said it was aiming to list through a $20 million initial public offering that is not underwritten. It planned to issue up to 20 million shares at $1.00 each and would use the proceeds to buy a portfolio ASX.
Peoplebank Aquire iGate Australia
Sydney Morning Herald 15/06/2004
Australian-owned IT recruiter Peoplebank Australia has acquired the Australian recruitment arm of Nasdaq-listed iGate Inc. The acquisition, Peoplebank's largest and fourth since 2000, includes iGate's contracting and recruitment services in Canberra, Melbourne, Sydney and Brisbane.
iGate's staff will merge into Peoplebank's operations, resulting in a new Peoplebank branch in Canberra. According to Peoplebank's PR blurb, the merged company will have revenues in excess of $100 million, 60 staff and more than 800 billable contractors, operating out of offices in Sydney, Melbourne, Brisbane and Adelaide. This has effectively more than doubled the size of Peoplebank, which before the merger had revenues of $40 million.
Peoplebank managing director Leon Lau says his company was able to acquire iGate because, other than in North America, the company is getting out of recruitment worldwide. Lau says: "They have also sold their UK recruitment business. iGate has changed direction and they're opening an office in India and moving into business process outsourcing."
Lau also says Peoplebank is still in the market to make other IT recruitment acquisitions, even as the IT market has continued to pick up steam over the past six months. "The market's in a consolidation phase and IT is all we do."
Peoplebank Open iGate to Big League
David Crowe
Australian Financial Review 09/06/2004
The contracting agency Peoplebank has acquired the local operations of its global rival, iGate, in a deal that vaults the Australian company into the big league of technology recruiters.
The acquisition expands Peoplebank to annual turnover of about $100 million from its roll of about 800 billable contractors.
The deal is the company's fourth purchase in the past few years and signals its plan to compete directly with larger rivals such as Candle, the listed recruiter with $162 million in annual sales.
Westpac's private equity arm, Quadrant Capital, has backed the contracting company with convertible debt to buy iGate and possibly other companies in the future.
For iGate, which is based in the US but has a large Indian operation, the deal is the latest step in its plan to divest its contracting subsidiaries and focus on business process outsourcing and computer services.
Outsourcing services will continue to be offered in Australia by another iGate subsidiary, iGate Global Solutions.
Peoplebank founder Leon Lau said yesterday that staff were being transferred from iGate offices to Peoplebank after the signing of the agreement on June 1, which ended about five months of negotiation.
The iGate contracting business was built on the foundations of a Canberra contracting company acquired in 1986 and operates in Brisbane, Canberra, Melbourne and Sydney but is especially strong in the federal government market.
The iGate business process outsourcing operations continue in Australia under the name iGate Global Solutions, a sister company also owned by Pittsburgh company iGate, which is listed on the Nasdaq.
"This does not affect the local operations of iGate Global Solutions in any manner," said Ajith Madhavan, practice development manager at iGate Global Solutions. "Our offices will continue to operate in Sydney and Melbourne as before and service clients nationally."
The outsourcing company has made clear its intention to build up its services operations in Australia.
The chief executive of iGate Global Solutions, Phaneesh Murthy, said in Sydney in April that he would form alliances with Australian companies to create new outsourcing services.
Peoplebank, founded by Mr Lau in 1990, has bought rival agencies DMA in Sydney, Leaders in Brisbane and Gambit National in Adelaide. A year ago it had annual turnover of $40 million but Mr Lau said that would rise to $100 million once the iGate operations were absorbed.
Peoplebank would grow from 35 to 60 permanent staff, he said.
Mr Lau said the company had 800 billable contractors at work. The company also had a small business in placing permanent technology staff.
The value of the deal was not disclosed. An announcement by iGate in the US said the company collected $US10 million ($14 million) from the sale of both iGate Australia and another subsidiary, Direct Resources Scotland in Edinburgh.
Peoplebank Acquires iGate
1st June 2004
Leading Australian owned and operated IT recruiter Peoplebank Australia, has acquired the Australian Personnel Services arm of NASDAQ listed iGate Inc. This includes their contracting and recruitment services in Canberra, Melbourne, Sydney and Brisbane. iGate Australia's staff will merge into Peoplebank's operations, resulting in a new branch in Canberra for national recruiter Peoplebank.
This is Peoplebank's 4th acquisition in as many years. Leon Lau, Peoplebank's Managing Director, said this acquisition is Peoplebank's largest and is part of their continuing growth and expansion strategy. Peoplebank will ensure the smooth transition of staff, contractors and clients. Moving forward, the combined entity will have revenues in excess of $100M, 60 staff and over 800 billable contractors.
Peoplebank is in its 15th year of operations and has developed a strong foundation of national clients.
"Peoplebank has honed our recruitment services over the past 15 years to be one which I believe is unsurpassed in terms of client and candidate satisfaction.
"We pride ourselves on having Account Managers with high standard of ethics and professionalism. We value competency, integrity and relationships. These values are part of our culture and philosophy, and we look forward to extending these to our new contractors and clients alike" said Lau.
Peoplebank Selected as an Approved Supplier to the NSW Government
January 2004
Peoplebank are proud and excited at being re-appointed as a Preferred Supplier to the NSW Government. The former panel of suppliers was reduced by 30% for this contract, leaving 61 companies authorised to provide IT contractors to the NSW Government
Under Contract 047/881, Peoplebank is an approved supplier of IT Contract personnel. This marks the 15th year that Peoplebank has been supplying IT contractors to the NSW Government.
Peoplebank Continues Growth with Gambit Acquisition
Friday 03rd October 2003 02:39 p.m. AEST
Growing IT recruitment company Peoplebank has continued its expansion with the acquisition of leading Adelaide IT recruiter Gambit Recruiting.
Gambit has a solid range of Adelaide-based clients, plus a couple of national preferred supplier contracts, which are serviced jointly with Peoplebank's offices in the eastern states.
Gambit principal Phil Gamble said Gambit had also acted as Adelaide partner on some of Peoplebank's national clients for some years, so the two businesses knew each other well.
The acquisition took effect on October 1, and makes Gambit the third IT recruitment business Peoplebank has bought in the last three years (DMA in 2001 and Leaders in IT in 2002). Peoplebank now has offices in Sydney, Melbourne, Brisbane and Adelaide.
Gambit was established in Adelaide in 1998, but its two principals, Phil Gamble and Andrew Sage have both been in recruiting for more than 15 years.
Gamble, who has known Peoplebank director Leon Lau for more than 20 years, will join the Peoplebank board.
Peoplebank will be taking on all Gambit staff, and the business will trade under the Peoplebank name.
Andrew Sage will work on a consulting basis for Peoplebank as well as on projects outside the recruitment industry.
Peoplebank Acquires Leaders IT
Wednesday 26th February 2003 03:25 p.m. AEST
Growing east coast technology recruiter Peoplebank has strengthened its Brisbane presence with the acquisition of Leaders IT.
Peoplebank's Brisbane office has performed well for the group over the past couple of years and the acquisition of Leaders IT will push it into the top three IT recruiters in the Brisbane market, according to Peoplebank managing director Leon Lau.
'We have been looking for such an opportunity for a while in the Brisbane market, as we see this as a key area in which we can grow', said Lau.
Leaders IT had five consultants and is a supplier to a range of state and federal government departments as well as to Brisbane-based IT employers.
Former Leaders IT md and proprietor Claire Lingard will work in a consulting role with Peoplebank during the transition period.
Peoplebank has taken over Leaders IT's contractor and client base and will integrate the operation into its existing Brisbane office along with some of the Leaders IT staff.
The acquisition is expected to lift Peoplebank's total revenue to around $45 million. The company has offices in Melbourne, Sydney and Brisbane.
Peoplebank acquired the old DMA contractor base when DMA went into liquidation in 2001.
