FY2012 Results Presentation By Chris Sutherland, Managing Director - - PowerPoint PPT Presentation

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FY2012 Results Presentation By Chris Sutherland, Managing Director - - PowerPoint PPT Presentation

FY2012 Results Presentation By Chris Sutherland, Managing Director 30 May 2012 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


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FY2012 Results Presentation

By Chris Sutherland, Managing Director 30 May 2012

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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 Announcements issued to the ASX since the 2011 Annual Report and can be found on the Programmed website at www.programmed.com.au.

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Welcome to the world of Programmed

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Safety pause

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23% reduction in LTIFR (lost time injury frequency rate) Revenue of $1,394 million, up 14% on pcp1 Profit of $31.2 million, up 41% on pcp1 Earnings per share of 26.4c, up 40% on pcp1 Fully franked final dividend of 8 cents per share, up from 6 cents on pcp Net debt lower to $87.8 million (down from $118.3 million at Mar 2011) Debt refinanced to Oct 2014 Significant contracts for Allseas (Gorgon) and WA Water Corporation commenced in Dec 2011 and Feb 2012 respectively Acquisition of Turnpoint – effective 4 Apr 2012 Major brand refresh completed

1 pcp excluding discontinued operations

Group FY12 highlights

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Group results

Group Results

Year Ended 31 March 2012 Year Ended 31 March 2011 % change $m $m

Continuing operations

Revenue 1,393.6 1,220.2 14% EBITDA (before restructuring costs) 67.6 60.9 11% Depreciation and Amortisation (10.9) (12.7) 14% EBIT (before restructuring costs) 56.7 48.2 18% Restructuring costs 0.0 (5.9) EBIT 56.7 42.3 34% Interest (12.5) (14.4) 13% Profit Before Tax 44.2 27.9 58% Income Tax Expense1 (13.0) (5.7) Profit From Continuing Operations 31.2 22.2 41% Discontinued operations2 0.0 (11.8) Profit After Tax (statutory basis) 31.2 10.4 200% Earnings Per Share 26.4 8.8 200% Earnings Per Share (continuing operations) 26.4 18.8 40% Weighted Average Shares on Issue (million) 118.2 118.2

1 2011 includes $1.9m tax benefit from retrospective change in tax consolidation rules to allow

additional deductions for assets acquired after 1 July 2002

2 Discontinued operations comprise the United Kingdom painting business

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Group revenue

200 400 600 800 1,000 1,200 1,400 1,600 1H 2H Full Year

Group Revenue ($m)

FY2011 FY2012

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Group EBIT

10 20 30 40 50 60 1H 2H Full Year

Group EBIT ($m)

FY2011 FY2012

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Group revenue by region

New South

Wales, 16% Queensland, 16%

South Australia, 5%

Victoria, 15%

Western Australia, 41% New Zealand, 4%

Other, 3%

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Group cash flow

Group Cash Flow

Year Ended 31 March 2012 Year Ended 31 March 2011 % change $m $m Gross Operating Cash Flow 72.7 29.1 150% Interest paid (14.9) (14.9) 0% Income tax paid (9.5) (8.9) 7% Net Operating Cash Flow 48.3 5.3 810% Net purchases of non current assets (7.2) (4.9) Payment for businesses 2.1 (0.1) Proceeds from sales of businesses 3.2 3.1 Other investing cash flows 0.4 0.1 Net Investing Cash Flow (1.5) (1.8) (17%) Net borrowings / (repayments) (19.4) (19.1) Proceeds from issue of shares 0.0 0.0 Dividends paid (13.0) (10.6) Net Financing Cash Flow (32.4) (29.7) 9% Net Increase / (Decrease) in Cash 14.4 (26.2) 154.8% Cash at beginning of year 20.1 46.5 Disposals & Exchange Rate Variances 0.2 (0.2) Cash at End of Period 34.7 20.1 72.4%

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Group balance sheet

Balance Sheet

31 Mar 2012 31 Mar 2011 % change $m $m Cash 34.7 20.1 73% Trade and other receivables 214.7 180.7 19% Contract Recoverables 129.8 133.8 (3%) Inventories 66.2 73.8 (10%) Property, plant & equipment 24.3 24.4 (0%) Goodwill & other intangible assets 255.6 251.1 2% Other assets 31.6 33.7 (6%) Total Assets 756.9 717.6 5% Trade and other payables 146.8 134.3 9% Borrowings 122.5 138.4 (12%) Provisions and other liabilities 114.1 93.3 22% Total Liabilities 383.4 366.1 5% Total Equity 373.5 351.5 6% Net Debt 87.8 118.3 (26%) Net Debt / Equity 23.5% 33.7% (30%)

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Debt refinancing

New bank syndicated lending facility until October 2014 The facility includes three financing tranches aggregating $250 million comprising

  • Working capital and overdraft facility of $70 million (rolling 1 year

term)

  • A revolving debt facility of $120 million (3 year term)
  • A bank guarantee facility of $60 million (rolling 1 year term)

Other arrangements remain for ongoing support of asset finance requirements ($20 million)

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Property & Infrastructure division

Market conditions tightened in second half lowering projected sundry work volume and margins A number of projects delivered at tighter margins in response to competition Strong success in securing major long term contracts

100 200 300 400 500 600 700 1H 2H Full Year

Property & Infrastructure Revenue ($m)

FY2011 FY2012

5 10 15 20 25 30 35 1H 2H Full Year

Property & Infrastructure EBIT($m)

FY2011 FY2012

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Resources division

Business development efforts of prior year rewarded with significant increase in volume of work Major Gorgon contract mobilised successfully in Dec 2011 Provided services to more than 60 offshore vessels / rigs or platforms during the year Onshore maintenance and construction support work increased on prior year

50 100 150 200 250 300 350 400 1H 2H Full Year

Resources Revenue ($m)

FY2011 FY2012

5 10 15 20 25 30 1H 2H Full Year

Resources EBIT($m)

FY2011 FY2012

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Integrated Workforce division

Challenging conditions remain across retail, manufacturing and light industrial sectors (may have become tighter over last quarter) SME’s remain cautious about hiring people Major miners seek permanent employees Despite weak conditions, business has low cost base and will respond strongly to a broader economic recovery

50 100 150 200 250 300 350 400 450 1H 2H Full Year

Workforce Revenue ($m)

FY2011 FY2012

2 4 6 8 10 12 1H 2H Full Year

Workforce EBIT($m)

FY2011 FY2012

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Strategy – 6 key plans of FY12

Improve our HSE performance Improve our general management skills Improve the returns on capital in our painting business Mine our customer base Minimise the impact of weakness in the general (non- resources) economy Expand our exposure to resources opportunities

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Outlook

“While the external business environment remains challenging and demand from some sectors has weakened, we continue to expand our operations with focus in markets where economic activity is growing. Overall, the group projects moderate growth in earnings for FY2013”

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Appendix

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Safety is paramount. We will act to ensure the safety and environmental well- being of our customers, the public and ourselves.

Our Vision: To be the leading provider of staffing, maintenance and project services, without injury

SAFETY TEAMWORK

We respect everyone’s contribution by working together to achieve common goals and project outcomes. Our sense of team extends to building long-term customer and community relationships for the benefit of all.

ACCOUNTABILITY

We encourage individuals and teams to take responsibility and ownership of the process, and the

  • utcome, through

decisive leadership and initiative.

HONESTY & INTEGRITY

Our business relationships are based on fair, open, and ethical principles. We take pride in the way we work with our customers and communities, the integrity of our services, and doing what we say we are going to do.

RECOGNITION & ENJOYMENT

We are a people

  • business. We

recognise and reward

  • utstanding

achievement, and provide opportunity for

  • ur employees to

develop and

  • succeed. We create

an environment for every team member to have a positive, enjoyable and rewarding work experience.

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Programmed today

$1.4 billion+ revenue 100+ offices around Australia and NZ 10,000+ employees

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Our visible commitment, leadership, systems and processes to prevent injury with a goal of Zero Harm Our ability to recruit, deploy and manage a large skilled workforce to support our customers’ operations…5,000+ permanent and 5,000+ casuals…30,000+ people each year Our many long-term contracts…more than 5,000 Our diversity across all industry sectors including the offshore oil and gas sector Our wide network that serves and supports large and small customers alike across Australia and NZ…100+ branches

Our competitive advantages

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INTEGRATED WORKFORCE

Staffing Services

Customers contract a complete MANAGEMENT and / or maintenance SOLUTION Customers contract the STAFFING service

PROPERTY & INFRASTRUCTURE

Maintenance, Building and Operational Services PROPERTY SERVICES FACILITY MANAGEMENT KLM ELECTRICAL & COMMUNICATIONS

Customers contract the TASK capability

Our structure

RESOURCES

Maintenance, Construction and Operational Services TOTAL MARINE SERVICES CONSTRUCTION & MAINTENANCE

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FY12 segment revenue

Revenue by division

Year Ended 31 March 2012 Year Ended 31 March 2011 % change $m $m Continuing Operations Property & Infrastructure 656.2 607.5 8% Resources 354.0 213.5 66% Workforce 380.9 397.5 (4%) Other Revenue 2.5 1.7 47% Total Continuing Operations 1,393.6 1,220.2 14% Discontinued Operations1 0.0 7.4 Total Consolidated Revenue 1,393.6 1,227.6 14%

1 Discontinued operations comprise the United Kingdom painting business

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FY12 segment EBIT

EBIT by division

Year Ended 31 March 2012 Year Ended 31 March 2011 % change $m $m Continuing Operations Property & Infrastructure 26.8 31.5 (15%) Resources 28.3 14.3 98% Workforce 11.3 11.1 2% Unallocated1 (9.7) (14.6) 33% Total Continuing Operations 56.7 42.3 34% Discontinued Operations2 0.0 (12.4) Total Consolidated EBIT 56.7 29.9 89%

1 In FY 2011 unallocated costs were $8.7m and restructuring costs were $5.9m 2 Discontinued operations comprise the United Kingdom painting business