Overview of Ashley Services Group's H1 FY2024 results

Ashley Services Group (ASX: $ASH) has released its H1 FY2024 results, showcasing the performance trends across its labour hire, technical services, and training divisions. The company reported improved systems and processes, enhanced leadership and management dynamics, and diversification of its labour hire. Additionally, the technical services division has been established, and the training segment has shown growth, delivering historical margins.

Executive commentary on H1 FY2024 performance

The company's H1 FY2024 results reflect a positive trend in revenue and EBITDA performance across its divisions. The labour hire division saw a 10.3% increase in revenue, with OPW contributing $28.4m. However, underlying hours worked were down 5%, attributed to challenging market conditions and rate increases from inflation. The training division achieved a 28.4% revenue growth, with additional courses and geographic expansion. Despite flat underlying revenue, the labour hire division's EBITDA was $8.8m, while the training division's EBITDA reached $2.0m, maintaining its margin amidst increasing costs to serve and a decrease in government support benefits for trainees.

Summary of H1 FY2024 results and outlook

Ashley Services Group's H1 FY2024 results demonstrate a positive performance in its labour hire, technical services, and training divisions. The company has laid foundations for future growth, with improved systems and processes, enhanced leadership dynamics, and the establishment of the technical services division. Despite market challenges, the labour hire division's revenue increased, and the training division achieved significant growth. Looking ahead, the company aims to continue diversifying its labour hire, maintain margin in the training segment, and navigate through market challenges to achieve sustainable growth.