investor presentation
play

Investor Presentation Results year ended 31 December 2019 Ian - PowerPoint PPT Presentation

Investor Presentation Results year ended 31 December 2019 Ian Temple, Chief Executive Officer John Hunter, Chief Financial Officer / Chief Operating Officer 2019 Results Covid-19 Financial and operating highlights Portfolio management


  1. Investor Presentation Results year ended 31 December 2019 Ian Temple, Chief Executive Officer John Hunter, Chief Financial Officer / Chief Operating Officer

  2. 2019 Results Covid-19 Financial and operating highlights Portfolio management Mergers and acquisitions Current trading & outlook Appendices 2

  3. COVID-19 update • To date disruption primarily manifested itself in candidate start dates being delayed within APAC • Situation has now escalated, impacting our EMEA and US businesses. • It is not yet clear how long the pandemic will last or its financial impact. • Current evidence suggests: • Client demand will be the biggest issue rather than our operational capability to transact work • Permanent recruitment activity will be more impacted than contract recruitment • Some sectors and markets will be affected more than others (e.g: consumer markets) • Group’s balance sheet is strong. • We have significant, largely unutilised, banking facilities in place. • Government support should help mitigate the downturn. • Stress testing shows the Group can withstand both a material and prolonged decline in revenue. • Dividend suspended. Board will review whether it is appropriate to pay a “catch up” dividend in due course. 3

  4. Financial and operational highlights • NFI 4% lower at £29.4m (2018: £30.5m) driven by: • Impact of political uncertainty and IR35 in the UK • Slowdown in some Asian markets, exacerbated by political protests in Hong Kong • Proforma NFI growth/(decline): • EMEA (9%) • APAC (12%) (13% CC) • USA 82% (81% CC) • As a result underlying PBT decreased by £0.3m to £2.9m (2018: £3.2m*) • Profit conversion ratio fell to 9.9% (2018: 10.5%*); • Net cash generated from operations of £3.4m (2018: £7.8m*) • Net cash £4.5m (2018: £4.9m) • Underlying EPS at 7.5p (2018: 8.9p*) 4 * Restatement following the application of IFRS 16.

  5. NFI analysis Permanent/Contract Regionals Sector Energy Other Permanent Contract EMEA USA APAC 5% 7% Technology 24% Finance 9% 33% Sales & 40% Marketing 9% 55% 60% Business Transformation Life Sciences 12% 19% 13% Legal 14% 5

  6. Portfolio management 6

  7. Trading summary 2019 2018 (as restated) Revenue £121.3m £135.7m Gross profit (Net fee income) £29.4m £30.5m - Permanent NFI £17.6m £17.8m - Contract NFI £11.8m £12.7m Operating costs (£27.3m) (£27.9m) Other income £0.5m £0.5m Operating profit before exceptional items £2.6m £3.1m Exceptional items (£0.9m) - Operating profit after exceptional items £1.7m £3.1m Underlying profit before tax* £2.9m £3.2m * Underlying PBT excludes amounts in respect of NCI profit or loss, foreign exchange gains/(losses), amortisation of acquired intangibles, share based payments and exceptional items. 7

  8. Balance sheet 2019 2018 (as restated) Non-current assets £16.6m £16.9m - Intangible assets £12.9m £13.0m - Tangible assets £0.9m £0.9m - Right of use assets £1.9m £2.3m - Other assets £0.9m £0.7m Current assets £21.8m £24.9m - Debtors £17.2m £19.7m - Cash and cash equivalents £4.6m £5.2m Total assets £38.4m £41.8m - Current liabilities £12.1m £15.3m - Non-current liabilities £2.8m £4.5m Total liabilities £14.9m £20.1m Net assets £23.5m £21.7m Net assets have increased in the year by £1.8m Net cash at year end of £4.5m Current ratio of 1.8 (2018: 1.6) 8

  9. Cashflow statement 2019 2018 (as restated) Cash generated from operating activities £3.4m £7.8m Cash used in investing activities (£0.3m) (£0.4m) Cash used in financing activities (£2.9m) (£5.0m) Exchange (loss)/gain on cash (£0.8m) - Cash at year end £4.6m £5.2m Borrowings at year end (£0.1m) (£0.3m) Net cash £4.5m £4.9m Average available funds £10.5m £8.4m Equity dividends paid £0.5m £0.4m 9

  10. M&A strategy STAGE 2 – HOW WE ADD VALUE STAGE 1 - OBJECTIVE FIT • > £5m NFI • Market & proposition • > £1m EBITDA • People • Contract led • Platform • Complementary service lines • Finance • Developed markets/ economies • Funding 10

  11. Outlook and current trading • Challenging and highly uncertain trading conditions – Covid-19 • IR35 legislation delayed but impact still remains • Focus on • Cash preservation • Maintaining critical mass in key markets 11

  12. Appendices V1

  13. Purpose, mission & vision – Hydrogen Group Group Mission Group Vision Group Purpose Using technology, expertise and A world where more people Powering Customer Intimacy insight to help our businesses deliver love their work and achieve Enabling people to achieve their goals. deep and effortless customer intimacy their goals. in disrupted markets.

  14. Operating model Proposition People By being closer to niche Adopting a growth mindset, we disrupted markets we will take develop our people so they can advantage of job creation over-deliver and reap the rewards Core current principles Performance Platform Deeper understanding of data Powering us to become informs decisions and ensures leaders in machine-enabled we achieve our goals customer intimacy 14

  15. Team Journey Financial: Financial: - 10% - 20% EBIT - Breakeven Market Leader conversion £200k minimum NFI per quarter Focus: - Proving there is a Focus: market that we can Fast Growth - Grow profit get to Market £100k minimum NFI - Leverage position Leader per quarter What’s next? - Grow NFI Financial: Focus: - 30% to 50% EBIT Incubator - Growing NFI & what conversion Up to £100k NFI over needs to happen to What’s next? two quarters get you to Market Leader 15

  16. Building Market Leading businesses Case study – Technology Texas FAST GROWTH MARKET LEADER INCUBATOR NFI £362k PPH £18k EBIT 41% £ NFI £120k PPH £10k EBIT 11% NFI £81k PPH £9k EBIT 0% Q4 17 Q1 18 Q2 18 Q3 18

Download Presentation
Download Policy: The content available on the website is offered to you 'AS IS' for your personal information and use only. It cannot be commercialized, licensed, or distributed on other websites without prior consent from the author. To download a presentation, simply click this link. If you encounter any difficulties during the download process, it's possible that the publisher has removed the file from their server.

Recommend


More recommend