ferrets stock to watch: ambition group ltd

Ferrets Stock to Watch: AMBITION GROUP LIMITED
08:29, Monday, 7 August 2006

A COMPANY TRYING TO EXPLOIT A GOOD NAME

Sydney - Monday - August 7: (RWE Aust Business News)
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OVERVIEW
--------

The Ferret discussed Ambition Group's (ASX:AMB) prospects back in
June and concluded it was worth watching following major changes in the
management structure.

However, the price has not moved much in the market and is still
just under $1 after hovering between 90c and 97.5c in the interim.

Ambition, the fast-expanding recruitment group operating in
Australia and Asia, was back in the spotlight last week.

The company reported results for the half year to June 30 with
operating revenues of $27.34 million up from $19.87 million in the
previous corresponding period, an increase of 37.5 per cent.

Profit before tax of $2.19 million was up from $1.07 million in
the previous corresponding period, an increase of 105.1 per cent.

The company announced that in the the first half of 2006 the
organic businesses, together with recent acquisitions, contributed to a
solid growth in revenue and profits.

In Australia, Ambition continued to produce revenue growth in
both permanent and contracting recruitment.

Employer confidence in markets remains positive and employers
continue to invest in the recruitment process to secure competitive
advantage.

In Asia, Ambition's presence in Hong Kong, Singapore and
Shanghai has provided a strong contribution to the group result, most
significantly in permanent recruitment.

The AccountAbility business launched in October 2004 is trading
profitably, and continues to make strong ground in the
clerical/sub-profession market across both permanent and contracting
recruitment.

Both McGinty Recruitment and Watermark Search, acquired in 2005,
are performing well, with results in both businesses exceeding
expectations.

SHARE PRICE MOVEMENTS
*********************

Shares of Ambition traded at 97.5c last Friday. Rolling high for
the year has been $1 and low of 52c. Dividend is 1c to yield 1.03 per
cent. Earnings per share is 8.05c and price/earnings ratio at 12.11. The
company has 27.4 million shares on issue with a market cap of $26.7
million.

The latest results achieved pretty much in line with the
guidance disclosed on June 14, which forecasted a 110 per cent increase
in profit.

Ambition will pay a maiden fully franked dividend of 1c per share
on September 14 to shareholders on the books at August 31.

In June Paul Lyons, group managing director of the company,
reported the company had made a number of appointments to ensure its
expansion continued smoothly.

Gavin Houchell has been promoted to managing director of the
Ambition finance business in Australia.

Mr Houchell joined Ambition in 2000 and has been instrumental in
building the brand across the finance community.

He was previously divisional manager for Ambition's Sydney
business and, more recently, operational director for the accounting and
banking/finance divisions in Sydney, Parramatta and Melbourne.

In Sydney, Leisel Cunningham has been appointed to operational
director for the Sydney commerce accounting business.

Ms Cunningham joined Ambition in 2000 and since that time has
held various managerial roles.

Duncan McNeil (North) and Sinead Brady (Parramatta) have been
promoted to divisional managers - both have contributed extensively to
Ambition's growth since they joined in 2003.

In Melbourne, Paul Gerrard has been appointed as general
manager for Victoria with a brief to aggressively build the commerce
accounting and banking/finance businesses

BACKGROUND
**********

Ambition Group was listed on the Australian Stock Exchange on
November 23, 1999.

Ambition is a careers, recruitment and contracting group with
offices in Sydney, Parramatta, Chatswood, Melbourne, Brisbane, Hong
Kong and Shanghai.

The group has expertise in accounting, banking/finance,
information technology and marketing.

It provides recruitment agency and consultancy services to
candidates in the IT/internet, accounting and finance fields.

In January 2005 the company acquired independent recruiter
McGinty in Brisbane.

It absorbed a team of 15 people in Brisbane, structured as
follows:

* Clerical accounts;

* Qualified and executive accounting;

* Office support;

* Excellent blend of permanent and temp revenue; $5m
revenue;
* Earn-out payments in February 2006 and February 2007;

* Significant clients include Stockland, Capral, Dept Public
Works;

* McGinty was placed around third or fourth in the market,
opportunity for growth in existing markets plus add suburban offices.

The new company was earnings positive after the first 12 months.

ENDS