ASX code - LCM full year results investor briefing

Transcription

1 ASX code - LCM 2015 full year results investor briefing 3 September 2015

2 performance summary FY15 against previous corresponding period (pcp) $133.8m Revenue FY14: $127.9m $8.3m Statutory NPAT FY14: $5.0m 7cps Full year dividend FY14: 5.5cps $12.1m EBITDA^ FY14: $6.7m 12.0c Basic EPS FY14: 7.2c $21.9m Cash balance FY14: $12.2m Revenue growth and margins in line with guidance Solid balance sheet and net cash position Strong project performance across the Company s portfolio Workforce of 550 people (FY14: 610) Streamlined organization structure to deliver effectively in a challenging market 2 ^Refer to end note on page 14

3 financial summary FY15 Revenue of $133.8m, up from $127.9m in FY14 Increased revenue from hydrocarbons customers including expanded gas pipeline services Approximately 80%of revenue derived from brownfield (sustaining) works Revenue growth delivered with reduced staff numbers as the business continues to optimise workforce profile EBITDA^ of $12.1m, up from $6.7m in FY14 EBITDA margin of 9.0%, up from 5.2% in FY14 reflects strong project performance and streamlined cost base Sustained margins in minerals and metals, including successful EPC delivery Sustainably reduced annual overheads by $5m whilst retaining core capability *^Refer to end notes on page 14 3

4 financial summary FY15 NPAT of $8.3m, up from $5.0m in FY14 Includes $0.9m of income tax credits related to R&D incentives (FY14: $1.2m) Benefits from R&D are expected to continue into FY16 NPAT result represents basic earnings per share of 12.0 cents, up from 7.2 cents in FY14 Strong earnings-to-cash conversion through highly effective working capital management and strong project performance Final dividend of 3.5 cents per share 50% franked Full year dividend of 7.0 cents per share 50% franked (FY14: 5.5 cents per share fully franked) Reflects payout ratio of 59%, at the top end of the stated policy range of 40-60% of NPAT Share buy-back program completed on 26 May 2015 with 2.7 million shares acquired at a cost of $2.0m 4

5 our business We remain focused on enhancing the value and performance of assets. Our skill set extends across all phases of the asset and project lifecycle. 5 5

6 representative customers Successfully completed significant EPC contracts with Epic Energy. Ongoing projects with Epic Energy, Samsung C&T, Oil Search, Chevron Australia, Origin Energy, APA and others Focus on supporting brownfield (existing) assets, with targeted participation in major greenfield projects Recurring base load of work activity continues, including a large portfolio of small engineering consulting assignments and commissioning phase on large projects Continued expansion of Competency Training, including operational training and course delivery into PNG and Asia 6

7 adapting to market opportunities In FY15: Continued expansion in hydrocarbons, including successful delivery into the gas pipeline market Continued strong project performance with minerals, metals and key infrastructure customers In FY16: Remain agile and retain focus on value creation, innovation, and operating performance improvements for customers across all markets Investment into key growth initiatives will capture further market opportunities Revenue contribution from hydrocarbons customers expected to remain strong, based on an anticipated increase in brownfield activity Growth in Consult and Maintain services, particularly thought targeted mergers and acquisitions activity 7

8 our strategy FY16+ Strengthen core skill set and develop new services Targeted acquisition strategy to grow capabilities and geographic footprint Strengthen Asset Performance offering Develop people, processes and technology-based solutions that drive innovation 8

9 Outlook FY16 LogiCamms has delivered a sustainable increase in profitability supported by strong project performance and continued operational improvements, in spite of challenging market conditions. The business model combines a differentiated Consult capability with growth opportunities, a solid Deliver base with expansion potential, and an emerging Maintain business with increasing customer interest. Each line of business complements the others, providing opportunities to offer a more comprehensive range of services to our customers. LogiCamms has effectively adapted to changing conditions in its major markets and re-established both a sustainable level of profitability and a strong competitive position. As a result, the business is well-positioned to exploit a range of growth opportunities in spite of increasing competition and challenging markets. - Steve Banning, Managing Director 9

10 appendices 10

11 LogiCamms at a glance 550 people 65% revenue from hydrocarbons customers in FY15 (20% in FY12) 8 offices Consult Deliver Maintain LogiCamms is a professional engineering and consulting services company with offices across Australia and New Zealand. Key industries: Hydrocarbons Minerals and metals Infrastructure Our purpose is to enhance the value and performance of assets. 11

12 financial summary FY15 FY15 FY14 Comparison A$m Statutory Results to 30 June 2015 Statutory Results to 30 June 2014 Change Revenue $133.8m $127.9m +5% Gross Profit Gross Profit % $51.4m 38.4% $49.5m 38.7% +4% EBITDA EBITDA Margin % $12.1m 9.0% $6.7m 5.2% +81% EBIT $9.9m $4.5m +120% NPAT NPAT Margin (%) $8.3m 6.2% $5.0m 3.9% +66% Operating Cash Flow $18.6m $5.6m +232% EPS (Basic) (cents per share) DPS (cents per share) FF = Fully franked PF = Partially franked 12.0c 7.2c +67% 7.0c PF 5.5c FF +40% 12

13 balance sheet (June 2015) key items Balance Sheet Item Balance A$m Comparison to 30 June 2014 Comments Cash $21.9m $12.2m Strong positive operating cash flow Trade & Other Receivables (current) $23.0m $29.1m Strong cash collection cycle, highly effective and efficient working capital and project management Current Trade and other Payables $12.6m $7.9m Increase in proportion of procurement spend through major projects and timing of project commitments around year end 13

14 disclaimer & notes The purpose of this presentation is to provide general information about LogiCamms Limited (Company). It is not recommended that any person makes any investment decision in relation to the Company based solely on this presentation. This presentation does not contain all information which would be material to the making of a decision in relation to the Company. Any investor should make its own independent assessment and determination as to the Company s prospects prior to making any investment decision, and should not rely on the information in this presentation for that purpose. This presentation does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold securities in the Company. This presentation contains certain statements which may constitute forward-looking statements. Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements. No representation or warranty, express or implied, is made by the Company that the matters stated in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, the Company, its officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the material contained in this presentation and exclude all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission therefrom. The Company accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information. End Notes ^ Earnings Before Interest Tax Depreciation and Amortisation. The reference to EBITDA is unaudited and unreviewed however is based on amounts extracted from the audited financial statements and reconciles to the profile before and after income tax as reported in the Consolidated Statement of Profit or Loss and other Comprehensive Income contained within the Company s Financial Report and Appendix 4E for FY15 as follows: Net Profit Before Tax 30 June June 2014 $10.2m $4.6m Net finance income ($0.3m) ($0.1m) Depreciation $2.2m $2.2m EBITDA $12.1m $6.7m The presentation of EBITDA is intended to provide a measure of the Group s performance before the impact of non-cash expense items such as depreciation and net finance income. TRIFR = the Total Recordable Injury Frequency Rate is a rolling 12 month average measure of safety performance. 14

15 further information Investor Relations Paul Bowker Director, Corporate Development Tel Media Enquiries Alasdair Jeffrey Rowland Tel Registered Office 433 Boundary Street Spring Hill, Brisbane Queensland, Australia 4000 Tel Web Our Values 15