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

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.