- Recruitment and building services company The GO2 People’s (GO2) share price saw a high of 247 per cent after releasing its March quarterly report
- GO2’s operational cashflow was $728,000 for the quarter, which increased its year-to-date figure to $2.48 million
- Customers receipts totalled $7.9 million, which is a decrease against the December quarter as January was expected to be a slow month
- The company said its business has adapted well to the challenges presented by COVID-19 and has maintained full operations
- However there was some unusual activity with GO2’s share price as it started the day at 1.7¢ and was soon at a high of 6.1¢ each
- The ASX scratched its head and demanded answers
- GO2 responded saying it wasn’t aware of any specific information that hadn’t been announced other than the quarterly report announced in the morning
- GO2 ended Wednesday’s session 171 per cent in the green, trading for 4.6¢ each
Recruitment and building services company The Go2 People’s (GO2) share price is up over 170 per cent after releasing its March 2020 quarterly.
Immediately after its release, the company entered a trading pause as the ASX had query in regards to GO2’s trading volume in the last few days.
During this quarter, the company was focusing on its core recruitment and training business through positive cashflow and earnings before interest, taxes, depreciation, and amortisation (EBITDA).
GO2’s operational cashflow was $728,000 for the quarter, which increased its year-to-date figure to $2.48 million.
Receipts from customers for the March quarter totalled $7.9 million, which is a decrease against the December quarter. This is attributed to January being a general slow month after the Christmas break.
Direct operating costs have also fallen, while overhead stabilisation has seen staff costs reduced by 12 per cent on the previous quarter and 120 per cent on the March 2019 quarter.
In positive news, GO2’s training division has developed its first online training course and is currently developing other online courses.
The company said its business has adapted well to the challenges presented by COVID-19 and has maintained full operational delivery capacity.
GO2 said it maintains contact with its clients on a daily basis.
“A lack of available flights from Perth to regional areas of WA has created a bottleneck scenario for companies in the WA mining sector attempting to mobilise personnel to mine sites,” GO2 said.
“Whilst the company continues to fill job orders from its WA mining clients, slower than expected deployment is likely to impact revenue in April. It is not, however, anticipated to be an ongoing issue as mining companies work towards solutions,” it added.
ASX Price Query
GO2’s share price started the day at 1.7¢ and was soon at a high of 6.1¢ each. The ASX scratched its head and put GO2 in a trading pause until it answered its query.
GO2 has quickly replied to the questions.
The ASX was wondering what made the share price go up so high. GO2 responded to its surging share price stating it is not aware of any specific information that has not been announced.
“The company is not aware of any specific information concerning it that has not been announced which, if known, could be an explanation for the recent increase in price or volume in trading in the company’s securities,” the company told the ASX.
GO2 ended the day a staggering 171 per cent in the green after a height of 247.06 per cent. It is trading at 4.6 cents each at market close.