Multinational human services provider APM has won a $720 million contract to provide its services in the UK but declared its earnings growth was expected to take a hit.
Multinational human services provider APM has won a $720 million contract to provide its services in the UK but declared its earnings growth was expected to take a hit.
West Perth-based APM Human Services announced that its 2023 financial year earnings growth was impacted by lower client flow into employment services programs, a shortage of qualified allied professionals and higher costs.
Its underlying net profit after tax is expected to be in the range between $175 million and $180 million for FY23.
“We continue to execute well on our strategy delivering strong growth globally despite the more challenging market conditions reflecting the quality of our leadership and people and the resilience of our business,” chief executive Michael Anghie said.
Mr Anghie said the company was continuing to assess strategic acquisitions and was focused on growth through existing programs and mobilising new contracts.
Shares in APM were up more than 8 per cent after it announced it secured the $720 million contract to deliver function assessment services on behalf of the Department for Work and Pensions in the UK.
APM is expected to commence work under the five-year contract in 2024, which has the option for an additional two-year contract extension.
Mr Anghie said they looked forward to partnering with the Department of Work and Pensions to deliver these important functional assessment services.
“APM is one of the leading health service providers in Australia delivering assessment services across a wide range of sectors including health, disability and aged care,” he said.
“The opportunity to deliver function assessment services demonstrates the strength of our local service delivery team, our reputation for service excellence and our ability to leverage APM’s expertise across regions and markets.
“The contract win continues the trend of APM executing its strategy and diversifying its business globally both geographically and in terms of service and revenue models.”
