FY2015 Results Presentation By Chris Sutherland, Managing Director 27 May 2015
Important notice and disclaimer The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. This presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Programmed Maintenance Services Limited, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied, is given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, projections, prospects or returns contained in this presentation. Such forecasts, projections, prospects or returns are by their nature subject to significant uncertainties and contingencies. This presentation should be read in conjunction with the 2015 Annual Report which can be found on the Programmed website at www.programmed.com.au. 2
Welcome to the world of Programmed 3
Safety pause 4 4
Group FY15 highlights Safety – 15% reduction in LTIFR (lost time injury frequency rate) to 1.7 Revenue of $1,434 million, similar to last year EBIT 1 of $50.1 million, down 5.1% Profit after tax of $30.4 1 million, down 4.7% Earnings per share of 25.7c 1 , down 4.5% Fully franked final dividend of 11.5 cents per share, up 4.5% Gross operating cash flow was $80.9 million or 146% of EBITDA Net debt down 83% to $7.0 million Net debt/equity is 1.7% at March 2015 1 Before non trading items 5
Group results Group Results Year Ended Year Ended % change 31 Mar 2015 31 Mar 2014 $m $m Revenue 1,434.2 1,434.9 (0.0%) Results Before Non Trading Items EBITDA 61.4 64.0 (4.1%) Depreciation and amortisation (11.3) (11.2) 0.9% EBIT 50.1 52.8 (5.1%) Interest (5.4) (7.4) (27.0%) Profit before Tax 44.7 45.4 (1.5%) Income tax expense (14.3) (13.5) 5.9% Profit after Tax (before non trading items) 30.4 31.9 (4.7%) Non Trading Items Restructuring and other costs (3.8) (1.0) Incentive payment (Turnpoint acquisition) (1.4) Share of net loss of associate (OneShift) (0.6) (0.7) Tax on non trading items 1.1 0.3 Profit after Tax (statutory basis) 25.7 30.5 (15.7%) Earnings per Share (before non trading items) 25.7 26.9 (4.5%) Earnings per Share (statutory basis) 21.7 25.8 (15.9%) Weighted Average Shares on Issue (million) 118.5 118.2 6
Group revenue by region (41% pcp) WA 37% (6% pcp) New Zealand 8% Other VIC 1% 19% NSW (18% pcp) 15% SA 6% QLD 14% (5% pcp) 7
Group revenue by sector Transport 4% (20% pcp) Other 6% (4% pcp) Offshore Oil (7% pcp) Onshore & Gas Retail & Mining 17% Commercial 2% 12% Manufacturing & Industrial 18% Government & (12% pcp) Infrastructure 41% (44% pcp) 8
Group cash flow Group Cash Flow Year Ended Year Ended % change 31 Mar 2015 31 Mar 2014 $m $m Gross Operating Cash Flow 80.9 80.6 0% Interest paid (5.1) (7.8) (35%) Income tax paid (10.1) (17.0) (41%) Net Operating Cash Flow 65.7 55.8 18% Net purchases of non current assets (8.8) (4.9) Payment for businesses 0.0 (5.1) Other investing cash flows 0.4 0.4 Net Investing Cash Flow (8.4) (9.6) (13%) Net borrowings / (repayments) (23.5) (36.7) Proceeds from issue of shares 0.0 0.0 Dividends paid (20.7) (18.9) Net Financing Cash Flow (44.2) (55.6) (21%) Net Increase / (Decrease) in Cash 13.1 (9.4) 239% Cash at beginning of year 29.5 38.3 Exchange Rate Variances 0.2 0.6 Cash at End of Period 42.8 29.5 45% 9
Group balance sheet Balance Sheet 31 Mar 2015 31 Mar 2014 % change $m $m Cash 42.8 29.5 45% Trade and other receivables 196.4 201.4 (2%) Contract recoverables 97.2 110.2 (12%) Inventories 82.6 73.0 13% Property, plant & equipment 24.4 26.4 (8%) Goodwill & other intangible assets 263.0 260.2 1% Other assets 26.1 33.3 (22%) Total Assets 732.5 734.0 (0%) Trade and other payables 173.6 162.4 7% Borrowings 49.8 71.7 (31%) Provisions and other liabilities 90.7 89.5 1% Total Liabilities 314.1 323.6 (3%) Total Equity 418.4 410.4 2% Net Debt 7.0 42.2 (83%) Net Debt / Equity 1.7% 10.3% 10
Property & Infrastructure division Revenue growth of 7% due to growth in new Facility Management contracts Margin improvement due to tighter operational control across all operations Painting volumes similar to FY2014 but on reduced invested capital due to greater mix of sundry work and less capital intensive programs Grounds maintenance business performed well and secured a number of new contracts Continued to focus on fit-out, maintenance and upgrades of electrical, data and communication systems resulting in a strong backlog of electrical / data / communication maintenance and upgrade work for FY16 Significant volume of new long term Facility Management (FM) work secured Property & Infrastructure Revenue ($m) Property & Infrastructure EBIT ($m) 32.4 807.6 FY14 FY15 FY14 FY15 751.9 28.0 21.3 17.0 410.3 397.3 381.3 370.6 11.1 11.0 1H 2H Full Year 1H 2H Full Year 11
Resources division Revenue and earnings lower as offshore construction work demand reduces. Demand for vessel management, manning, catering and logistical services has fallen in recent months by approximately 25% compared to pcp. Offshore construction work will continue on Inpex’s Ichthys project and then Shell’s Prelude development is likely to follow. Ongoing field extension drilling and increased production and operations support work projected in future years. Onshore miners are focused on significant cost out programs and whilst our exposure is limited there are a number of new outsourcing opportunities coming to market. Negotiations for new Australian marine EBA continue and there remains some risk of industrial action with associated short term revenue and cost impacts. Resources Revenue ($m) Resources EBIT ($m) 306.9 FY14 FY15 FY14 FY15 24.4 247.5 20.1 158.5 148.4 12.5 11.9 11.6 130.1 117.4 8.5 12 1H 2H Full Year 1H 2H Full Year
Integrated Workforce division Margins lower on similar revenue due to ongoing weakness in the blue collar economy Business reshaped in second half resulting in improved margin Costs were lowered in the second half through using our upgraded business system to centralise recruitment functions in each state, expand the mobile account/sales network and reduce the number of branches OneShift continues to grow In partnership with APM, we have been successful in securing Federal Government “ jobactive ” service provider contracts in 9 of 51 regions across Australia. Contract to start on 1 July 2015. Workforce Revenue ($m) Workforce EBIT ($m) 376.8 372.8 10.5 FY14 FY15 FY14 FY15 7.5 192.2 188.4 188.4 5.6 180.6 4.9 4.5 3.0 13 1H 2H Full Year 1H 2H Full Year
Strategy To achieve our vision, we have a plan built on 4 key components. 1 . Safety 2 . People and Culture 3 . Systems and Integration 4. Growth a) marketing and customer development b) build scale c) expansion in resources d) expansion in public infrastructure 14
Strategy To achieve our vision, we have a plan built on 4 key components. 1 . Safety • critical risk standards 2 . People and Culture • life saving rules 3 . Systems and Integration • behavioural tools 4. Growth • risk assessments a) marketing and customer development b) build scale c) expansion in resources d) expansion in public infrastructure 15
Strategy To achieve our vision, we have a plan built on 4 key components. 1 . Safety • education, demonstration and promotion of the 2 . People and Culture Programmed Difference 3 . Systems and Integration • customer service culture development program 4. Growth • common customer a) marketing and customer development satisfaction measurement and reporting b) build scale c) expansion in resources d) expansion in public infrastructure 16
Strategy To achieve our vision, we have a plan built on 4 key components. 1 . Safety • upgrade of finance system underway - 18 month project 2 . People and Culture • upgraded workforce system 3 . Systems and Integration with full service capability across any mobile device for 4. Growth job seekers and customers a) marketing and customer development • HR system upgrade b) build scale • Customer Relationship c) expansion in resources Management (CRM) system d) expansion in public infrastructure 17
Recommend
More recommend
