Perth-based human services provider APM (ASX: APM) was born with the desire to help people of all backgrounds land jobs. Turns out, many organisations are on board with this desire seeing as the Company is locking in contracts across the world, with its most recent wins in Canada and the US.
Under the Ontario Employment Services Transformation, the Company will expand its growth in Canada. In addition, the International APM Group has been awarded two new JobCorps contracts in the United States.
APM Group CEO, Michael Anghie said, “As a company, our purpose is Enabling Better Lives and we strive to collaborate with our Stakeholders to support positive impact through the Programs we deliver for our clients, Stakeholders and the community.”
He added, “North America is an important growth market for APM as we continue to build a leading global health and human services company supporting positive outcomes for the clients and stakeholders we serve. The contract awards will provide annual revenue of approximately $150 million and will contribute to our organic growth in-line with expectations.”
The Ontario government is making changes to how they help people find jobs. They want it to be easier and faster for people to get the help they need. With APM’s assistance, job seekers all over Ontario will be able to get help in one place. They are doing this in stages to make sure it works well before they do more.
International APM Group currently delivers the Ontario Employment Services Transformation Program in the Peel and York regions. It has completed Phase 2 and was also awarded the Ottawa region. The contract has a five-year term (three-year contract plus a two-year extension option) and transitioning has commenced.
As for the US wins, Job Corps is the largest nationwide residential career training program in the country and has been operating for over 50 years with allocated funding of $2.75 billion per annum in 2023. The program helps young people between 16 and 24 years of age to complete their high school education. It also trains them for meaningful careers and helps them get employed.
Since 1964, the Job Corps program has trained and educated over two million people across the country. The US government program offers students a place to stay and meals while they learn specific skills in training programs for three years. Not only does Job Corps help students finish their education and gain technical skills for jobs, but it also provides help finding a job, housing, childcare, and transportation after the program ends.
APM has been given contracts to work with Job Corps in Cassadaga, New York and San Marcos, Texas. The Cassadaga contract will last for five years, while the San Marcos contract is only for one year, giving time for a future decision. Both contracts will start in April 2023.
Anghie added, “The contract awards are a credit to our people who are focused on delivering high-quality support to their clients and our funders. We look forward to continuing to deliver positive impacts, working closely with our partners in North America.”
In H1 FY23, the Company’s revenue increased by 39% to $853.7 million due to expansion in North America, including acquisitions, a ramp-up in Restart Scheme in the UK, and growth in the health business in Australia. However, their cash has fallen by 30% to $99.3 million.
These new contract wins, paired with the Company’s renewed focus on the UK market, have bolstered APM’s efforts to rake in the money while increasing workforce participation worldwide.
Alinda is a Business Reporter for The Sentiment
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