News: Initiation Report – Disrupting the $12bn recruitment industry with Australia’s largest...

Analyst comment: The recruitment industry was one of the first sectors to move online in the late 1990′s, with the development of online job boards. Whilst this undoubtedly improved job visibility, over time the proliferation of related online service providers has increased the number of intermediaries involved in the hunt for the right candidate.  Not only has this slowed the overall recruitment process, it has also led to an increase in direct costs to employers.

ApplyDirect’s disruptive approach to the recruitment industry significantly reduces the requirement for intermediaries in the recruitment process by bringing the candidate directly to the employers career page and application process.  Not only does this reduce the cost to the employer, it also enhances the candidate experience and therefore, level of engagement, in this new employer led recruitment process.

Signing the NSW government, one of Australia’s largest employers, so early in the company’s development, is a tremendous endorsement for ApplyDirect’s unique approach to recruitment services.

In the long term, we believe that Google for Jobs, which was recently launched in the US, should complement ApplyDirect’s business model and therefore potentially, expedite its growth when introduced to the Australia.

The information in this email should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.

Valuation:  We initiate coverage on ApplyDirect with a valuation of $0.58 / share (SP – $0.15 / share). 

 

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