APM Human Services International's UK contract win to contribute in FY24 earnings

APM Human Services International

28/05/2023 23:40

** Morningstar forecasts a six-month earnings contribution
in fiscal 2024 from APM Human Services International Ltd's
 APM.AX  contract win in the United Kingdom 
    ** Brokerage raises fair value estimate for APM by 4% to A$
2.90
    ** Company said it won contract worth A$720 mln ($488.38
mln) in the U.K. for functional assessment services
    ** Morningstar says recent contract win in the U.K. proves
that its can expand its global service offerings more easily
than competitors 
    ** Brokerage maintains fiscal 2023 underlying net profit
after tax before amortisation forecast at A$178 mln
    ** In the longer term, APM’s average revenue per person,
given less outcomes fees, would likely decrease and weigh on
margins in a high unemployment environment - Morningstar
    ** All of 5 analysts rate the stock "buy" or higher; their
median PT is A$3.70 – Refinitiv data
    ** Stock down 14.3% this year, as of last close


($1 = 1.4743 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru, editing by Deepa
Babington)
 ((Poonam.Behura@thomsonreuters.com;))