APM Human Services tells shareholders it will meet forecasts, unveils first acquisition since listing
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It’s been a tough first few weeks as an ASX listed company for APM Human Services (ASX:APM) but it got some respite today.
APM listed on the ASX at $3.55 per share in a deal that valued it at over $1 billion, but it shed a quarter of its value in the past three weeks.
Today however its shares rose thanks to an acquisition and a confirmation it was set to meet its prospectus forecasts.
APM will be buying physiotherapy and home care group Lifecare, a company with 48 clinics in four different states.
It says the business will be additive to the prospectus forecasts and earnings accretive having made $53 million in revenue and earnings of $10 million.
“The acquisition of Lifecare adds scale and services in a key growth sector for APM,” said CEO Michael Anghie.
“It allows us to expand our Allied Health service offering and reach through a combination of physical clinics, mobile and telehealth services, enabling access for our clients in metropolitan, regional and rural centres.”
The deal will cost $68 million which will be funded by the company’s existing cash reserves.
The company also reconfirmed its FY22 prospectus forecasts saying it was on track to reach them all.
It tipped $1.3 billion in revenue, $295 million in earnings and a $155 million net profit. All three of those figures represent growth of at least 20% from FY21 but the company says more could be to come thanks to the Lifecare acquisition.
“Across employment services in its key markets, APM continues to see increased opportunities for clients as it connects with a growing number of employers and as markets re-open and the demand for talent increases,” the company said.