We should be getting news on the H1 dividend this week (hopefully Monday). As mentioned before I am keen to understand what impact Covid has had on ASH's supply of labour to meet strong demand. Importantly, another labour hire company, PeopleIn (PPE), put out a positive update this week (key details below) which suggests things are going well for the industry. This gets me confident of a H1 divvy of at least 2.2c for ASH, with risks probably weighted to the upside.
The following is an exert from PPE's trading update this week.
Operating conditions continue to be positive for PeopleIN given the strength of the employment market and unprecedented demand from clients for employees.
The FY22 outlook expects PeopleIN’s businesses to be positively impacted by low levels of unemployment and higher turnover of our clients’ employees driving demand for recruitment services, the opening of borders resulting in international workers filling unfilled roles, as well as wage inflation driving higher margins.
ASH Price at posting:
55.5¢ Sentiment: Buy Disclosure: Held
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