Australia Markets closed

Why is the People Infrastructure share price going gangbusters?

Tom Richardson

The People Infrastructure Ltd (ASX: PPE) share price is now up from $1.59 this time last year to $3.88 today which will leave many investors asking what’s driving this workforce services business higher and has it got further to run?

People Infrastructure describes itself as “a technology enabled workforce management company delivering innovative solutions to workforce challenges faced by Australia’s leading businesses. People Infrastructure is a diversified provider of workforce management across four main sectors including healthcare, information technology, specialist services and labour hire.”

For the six-months ending December 31 2018 it reported a net profit after tax of $5.75 million on revenue of $133 million, which translated into a dividend of 4 cents per share. 

The group is pursuing an aggressive acquisition strategy to generate growth and in June 2018 raised $20 million at $2.70 per share to fund more acquisitions in its health and community care business. 

Based on 72.4 million shares on issue the company has a market value of $281 million versus its half year profit of $5.7 million, so it’s possible to see that investors are pricing in more growth to its valuation. 

The company recently told investors that trading for the first 5 months of calendar year 2019 was ahead of the first 5 months of calendar year 2018. It will hand in its full year results late August 2019. 

Other services business on the ASX include legal eagles IMF Bentham Limited (ASX: IMF), or until its recent takeover and de-listing Programmed Group.

The Motley Fool’s #1 BANK STOCK for 2019

BRAND NEW! For a limited time, The Motley Fool Australia is giving away an urgent new investment report with all the details on our #1 BANK STOCK for the next 12 months and beyond…

Now, if you’ve been around this site for any length of time, you know The Motley Fool usually shuns bank shares.

But we’ve recently discovered a ‘hidden in plain sight’ bank stock with what we think is mouth-watering potential.

With the company boasting nearly 25% net profit growth every year for the last 5 YEARS…

And the shares paying a fully franked dividend that beats the pants off term deposits!

So if you like steady, high-growth income plays – we’ve got you covered!

You’re invited. Simply click the link below to discover our #1 ASX bank stock to profit in 2019. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!

More reading

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has recommended People Infrastructure Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019