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Investor Relations > Business Summary
Investor Relations
The Investors section is for our investors or people who are interested in investing in us . More Information about us can be found in the About Peoplebank area.

Business Summary

Peoplebank's Business

Over 80% of Peoplebank's gross margin is generated by contracting income where clients hire IT&T contractors under labour hire contracts. 70% of this revenue is comprised of repeat business. These contracts are on average 3 to 6 months in length and are often renewed for longer periods. This period is determined by the size of the IT project with many of these lasting from 18 to 36 months. This business is underpinned by the company's list of over 200 Preferred Supplier Agreements and its ability to source suitable candidates in response to demand from these PSAs.

Contract Recruitment

Peoplebank has over 600 clients and over 3500 billable contractors currently billing circa $110,000 per capita on an annualised basis. Peoplebank's top 20 clients comprise Federal and State Government Departments or semi-Government bodies along with corporates.

With Endorsed Supplier status and GITC (Government Information Technology Conditions) NSW Government Approved Supplier

accreditation, Peoplebank is one of the largest suppliers of IT&T contractor services to the Federal Government including Centrelink, the Department of Defence and the Australian Tax Office. Peoplebank also holds Preferred Supplier status with State Government departments in New South Wales (under NSW 047/881 State Government's Contract Control Board), Queensland (GITC), Victoria and South Australia. Some of Peoplebank's State Government clients include Department of Commerce, NSW Roads & Traffic Authority, QLD Department of Natural Resources and Mines, Department of Education and Training, NSW Police, Queensland Treasury and Victoria Work Cover Authority.

Permanent Recruitment

Traditional recruitment or placing of permanent staff into clients for a placement fee represents c. 15% of Peoplebank's 2008 gross margin forecast. This market has grow strongly in 2006 and 2007 as companies hire or 'renew' their staffing needs after severe downsizing between 2001 and 2003. Large companies and Government Departments have recommenced large IT projects and implementations, causing increasing demand for permanent IT&T placements.

Peoplebank holds Preferred Supplier contracts for the provision of IT&T contractor and permanent recruitment services to many of Australia's largest companies and the Federal and State Governments. Peoplebank considers that the permanent recruitment market offers a significant growth opportunity.

Business Mix

Peoplebank's client mix is Federal & State Government and Corporate clients with 25% being government and 75% corporate client base. This client spread insures against an over reliance on specific client activity, allowing Peoplebank to maintain revenue streams through the peaks and troughs of IT&T project cycles.