AD1 secured contract extension with NSW Government for recruitment tech

The NSW Government has remained loyal to HR tech company AD1 Holdings (ASX: AD1) by ending their contract for 2-years which will extend use of AD1’s ApplyDirect recruitment software services, specifically for the iWorkforNSW platform.

Over the past 12 months, the iWorkforNSW platform has seen substantial activity, with over 60,000 job postings, 970,000 applications, and 47 million views.

The initial engagement signed in June 2022, marked the start of a significant partnership between AD1 and the NSW Government. The recent decision to exercise the renewal clause underscores the platform’s effectiveness in modernising the candidate experience and enhancing the NSW Government’s employer brand. The improved functionality also streamlines candidate management across various government departments.

“We continue to invest time and resources in improving our platform offerings, tailoring solutions to better support our customers into the future,” said AD1 CEO, Todd Perkinson. 

“The renewal further supports our position as a trusted partner.”

The contract extension comes off the back of a successful migration to the new Gen3 platform, providing additional features that can be utilised by NSW Government HR teams. 

Upgrades unify several different functions within AD1’s tech offering onto a single platform which reduces costs and offers enhanced features that include talent pooling, candidate profiles, job alerts, and improved employer Content Management Systems (CMS)

No material details about the extension were disclosed by AD1

For the quarter ended 31 March 2024, AD1 reported $788k in custom receipts with net cash operating outflows of just $17k, an 88% reduction from the December quarter. 

While it took the YTD (9 months) operating cash outflows to $418k, AD1 is in the midst of a cost saving program, aiming to deliver $3.5 million in annualised savings from FY25 onwards. 

As of 31 March 2023, AD1 Holdings had $271k of cash on hand.