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ferrets stock to watch: candle australia ltd

  1. 4,756 Posts.
    Ferret's Stock to Watch: CANDLE AUSTRALIA LIMITED
    09:10, Wednesday, 18 July 2007

    ACCELERATING EXPANSION FOR FUTURE GROWTH IS THE WAY TO GO

    Sydney - Wednesday - July 18: (RWE Aust Business News)
    ******************************************************

    OVERVIEW
    ********

    Recruitment and staff augmentation company, Candle Australia Ltd
    (ASX:CND) continues on the acquisition trail with the news yesterday of
    the purchase of pre-employment screening company Reality Check.

    Established in 2005, Reality Check provides rigorous and
    independent identity, integrity and credential checks, verifying
    information provided by individuals in their employment applications.

    Candle said pre-employment screening, including probity
    checking, is an effective means of safeguarding an organisation from
    fraud and corruption and is a legal requirement in many industries,
    specifically banking and finance.

    The company added that Reality Check's services will add value
    to Candle's recruitment service offerings.

    Candle's success in the last decade has been a string of astute
    expansion acquisitions.

    The company decided in April to accelerate future growth rate
    with this strategy in appointing former chief executive and top
    operator Robert Collins, who has become Head of Acquisitions.

    Mr Collins has been focusing on the establishment of new
    services, new lines of business, new geographic locations and expansion
    via acquisition.

    In a recent trading update and strategic appointments, chairman
    and founder Geoff Moles pointed out that since 2001 Mr Collins, as
    managing director, had developed a strong management team and leadership
    culture which led to Candle Australia's record profit growth and
    outstanding returns to shareholders.

    Mr Collins has relinquished his roles as CEO and MD to allow some
    of his team to move ahead, including Jane Bianchini, who is now COO
    responsible for Candle ICT in Australia and New Zealand and The One
    Umbrella.

    Profit results for the full year look positive after taking in
    the expansion in the second half of the year.

    The interim half year to December 31 showed a 19 per cent
    growth in net profit to $6.4 million compared with the previous
    corresponding period.

    The result was achieved on revenue growth of 10 per cent to
    $145.2 million while EBITDA climbed 17 per cent to $10.1 million.

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

    Shares of Candle yesterday rose 6c to $3.70. Rolling high for
    the year is $3.83 and low $3.09. Dividend is 18c to yield 4.86pc.
    Earnings per share is 25.5c and price/earnings ratio 14.51. The company
    has 53.4 million on issue with a market cap of $197.7 million.

    The latest deal involving Reality Check will give additional
    servicing to existing clients, while the purchase will also present
    opportunities to work with organisations that do not currently use
    recruitment agencies or outsource their recruitment processes.

    The contract is subject to a number of conditions precedent
    which will be satisfied in the next few weeks.

    The transaction comprises a modest deposit with incentives for
    profit growth over three years.

    BACKGROUND
    **********

    Candle Australia listed on the Australian Stock Exchange in
    January 1997.

    It is a recruitment and staff augmentation company providing
    specialist technical, executive and office support personnel in the areas
    of information and communications technology, banking, finance,
    insurance, commercial accounting, library, records management, sales and
    marketing.

    Established 23 years ago, Candle Australia has a reputation for
    high-quality delivery and ethical business practices within the industry,
    and remains one of the largest and longest standing
    recruitment suppliers in the region.

    Candle Australia operates through four divisions consisting of a
    number of quality recruitment brands: the information and communications
    technology division represented by Candle ICT; the accounting, business
    support and financial services division represented by Alliance; the
    library and records management division represented by The One Umbrella;
    and the executive division represented by Lloyd Morgan.

    It employs over 470 staff through a network of 31 offices
    located in Sydney, Melbourne, Brisbane, Perth, Adelaide and Canberra in
    Australia; Auckland and Wellington in New Zealand; Hong Kong, Beijing,
    Shanghai, Shenzhen in China; Kuala Lumpur in Malaysia; and Singapore.

    Candle's objective is to be the leading recruitment supplier of
    skilled professionals and support staff to business and government in
    the region.

    Earlier this year Candle acquired EL Consult's Asian operations
    earlier, established new offices in China, Hong Kong, Malaysia and
    Singapore and re-branded Parker Bridge, Alliance Recruitment and Freeman
    Adams to Alliance.

    Last year it bought Lloyd Morgan, re-branded Premier Personnel
    to Alliance Recruitment, a new Alliance Recruitment branch was opened in
    Parramatta re-branded Executive Search and Selection to Lloyd Morgan, and
    re-branded Choice IT to Candle ICT.

    In 2005 it took out Parker Bridge Australia and Choice IT, new
    Alliance Recruitment branches were opened in Brisbane, Mount Waverly and
    Hurstville, re-branded Workskills Professionals to Alliance Recruitment
    and a new Freeman Adams branch was opened in Brisbane.

    2004 saw the purchase of Premier Personnel and The One Umbrella,
    the launch of Executive Search and 1,700 contractors were on assignment
    with Candle ICT

    In 2003, Candle acquired Workskills Professionals, a new Alliance
    Recruitment branch opened in Sydney and a new Freeman Adams
    branch opened in Melbourne.

    Robert Collins was appointed managing director in 2001 along with
    Geoff Moles as chairman

    In 1999 Candle acquired Australian IT recruitment specialist
    Unisys People, 1,500 contractors were on assignment with Candle ICT and
    Freeman Adams, specialists in banking and finance, was acquired.

    ENDS

    Copyright © 2007 RWE Australian Business News. All rights reserved.
 
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