Hiremii Ltd (ASX:HMI) has achieved strong growth in revenue, with March quarter 2022 (Q3 FY22) revenue of $3.36 million rising by 93% compared to Q3 FY21 and by 32% compared to Q2 FY22.
The technology-driven full-service recruitment company’s revenue of $7.22 million for the nine months ended Q3 FY22 also increased by 37% compared to the nine months ended Q3 FY21.
The increase in revenue in Q3 FY22 was driven by a combination of organic growth in candidate placements and a full quarter of Inverse revenues offsetting the significant reduction in Hiremii revenues incurred from the loss of the low-margin UGL meter reader contract in NSW.
The main driver for Hiremii’s revenue growth going forward will be increases in active recruited contractors for the company's clients.
There are now about 80 contractors actively employed by Hiremii group clients after a reduction in blue-collar shorter term contracts which are rapidly being replaced by managerial and professional longer term contractors.
Hiremii's diversified client base of over 100 clients, 40 of whom are active, provides a significant opportunity to grow contractors as previous Covid related labour supply restrictions continue to ease in the remainder of 2022.
Focus on AI-driven recruitment platform
Commenting on the achievements over the last quarter, Hiremii managing director Andrew Hornby highlighted that "Despite tough ongoing restrictions on labour movement and candidate supply, Hiremii delivered a second quarter of strong revenue Q-o-Q growth of 32% since the acquisition of Inverse.
“We completed the integration of our two recruitment businesses in the quarter as promised, releasing substantial cost savings and resetting the organisation to focus on placing much-needed high-quality candidates for our clients going forward into Q4 and beyond.
“The development of our Hiremii AI-driven recruitment platform continues with the focus for the next quarter on finalising the customer user environment for Shortlistmii, ready for first customer trials in early FY23.
“With attractive employment opportunities in WA coupled with Covid restrictions now easing across Australia, we are expecting a gradual improvement in the supply of potential new candidates for our clients in the coming months too."
Well-funded
Hiremii’s fundraising activities generated cash flows of $1.24 million in the quarter, $640,000 of which was allocated to share capital, and the remainder was held as borrowings until shareholder approval of further placement capacity to allow the issue of shares for the remainder.
This was obtained at an EGM on 11 April 2022.
Hiremii's cash balance on 31 March 2022 was $2.47 million, benefitting from a reducing cash burn from operations and boosted by the part-completion of the capital raising initiatives.