wellcom RESULTS FOR THE HALF YEAR ENDING 31 DECEMBER 2014

Transcription

1 RESULTS FOR THE HALF YEAR ENDING 31 DECEMBER 2014 Wayne Sidwell Executive Chairman Stephen Rees Chief Executive Officer - Australia/NZ Andrew Lumsden Chief Financial Officer

2 COMPANY OVERVIEW World s leading provider of content creation, production and content management services. Global capacity with operations in Australia, New Zealand, Asia, UK and US. Unique client site (Hub) service delivery model. Leading edge technology offering (Knowledgewell). Reliable history of growth and fully-franked dividend payments.

3 BLUE CHIP CLIENT BASE WHYBIN \ TBWA Melbourne Sydney Melbourne Adelaide Sydney Auckland Adelaide London SingaporeLondon Kuala Lumpur New York Auckland Singapore Ohio Kuala LumpurLos Angeles

4 3 STREAMS OF BUSINESS CONTENT PRODUCTION TECHNOLOGY Melbourne Melbourne Sydney Sydney Adelaide Adelaide Auckland London Auckland Singapore London Kuala Lumpur Singapore New York Kuala Ohio LumpurLos Angeles

5 We create rich and engaging content that helps leading brands make strong and meaningful connections with their customers. Photography Retouching/CGI Video 3D Design Animation Website Design App Developement Melbourne Sydney Melbourne Adelaide Sydney Auckland Adelaide London SingaporeLondon Kuala Lumpur New York Auckland Singapore Ohio Kuala LumpurLos Angeles

6 We combine the content we create with tactical messaging and produce advertising and marketing collateral for leading industries. Melbourne Sydney Melbourne Adelaide Sydney Auckland Adelaide London SingaporeLondon Kuala Lumpur New York Auckland Singapore Ohio Kuala LumpurLos Angeles

7 We develop and deploy technology that automates manual tasks, simplifies processes and reduces cost. Our technology is used to produced promotional collateral with speed, accuracy and consistency. Melbourne Melbourne Sydney Sydney Adelaide Adelaide Auckland London Auckland Singapore London Kuala Lumpur Singapore New York Kuala Ohio LumpurLos Angeles

8 MARKET POSITIONING We are an integral part of the advertising and marketing ecosystem. Melbourne Melbourne Sydney Sydney Adelaide Adelaide Auckland London Auckland Singapore London Kuala Lumpur Singapore New York Kuala Ohio LumpurLos Angeles

9 KEY PERFORMANCE HIGHLIGHTS NET REVENUES 42% UP ON P.C.P FULL SERVICE HUBS NOW ACCOUNT FOR MORE THAN 7 0% OF GLOBAL REVENUES EARNINGS BEFORE INTEREST AND TAX 22% UP ON P.C.P NET PROFIT AFTER TAX 11% UP ON P.C.P S T R O N G C A S H A N D FINANCIAL POSITION No debt and cash flows from operating activities of $5.79M Cash on hand approximately $6.0M Net tangible assets per share of cents FULLY FRANKED HALF YEAR DIVIDEND INCREASED TO 8.5 CENTS PER SHARE

10 MARKET CONDITIONS AND TRENDS Retail spending was mixed in the lead up to Christmas and caution remains. Retailers continue to invest in catalogues (print and online). Digital is the fastest growing marketing channel. Procurement endorse production decoupling as best practice. Working with major retailers, financial institutions and corporations to create and distribute content. Global brands are seeking regional partners to adapt content for local markets.

11 NEW BUSINESS Australasia Stockland (Content Creation and Advertising Production) Kmart (Content Creation) Target (Content Creation) United Kingdom BASF (Content Creation and Advertising Production) Canon (Content Creation and Advertising Production) Mothercare (Content Creation) United States Tempur Sealy (Digital Advertising Production) Simon Malls (Technology)

12 KEY RESULTS 1H15 ($m) 1H14 ($m) Change (%) Statutory revenue Net revenue * EBITDA EBIT Net profit for the period Net revenues up by 42% to $41.43M. Net profit up 11% to $4.63M. Dividend per share increased to 8.5 cents per share. Significant franking credits remain within the Group. EPS (cents) DPS (cents) Franking (%) Return on net assets (%) * Net revenue excludes print management pass through costs

13 SUMMARY FINANCIAL POSITION 1H15 ($m) FY14 ($m) Cash and debtors Inventories and work in progress Intangibles (Goodwill) Intangibles (Software Development) Debt Nil Nil Strong financial position with no debt. Capital expenditure includes new business wins (Kmart, Target). Cash flows from operating activities of $5.79M. Equity NTA per share (cents) Debtor days Working capital ratio H15 ($m) 1H14 ($m) Capital expenditure Net cash flows from operating activities Melbourne Sydney Adelaide Auckland London Singapore Kuala Lumpur

14 GROUP RESULTS FY15 1H15 ($ 000) 1H14 ($ 000) Change (%) Statutory revenue 54,791 44, Less: Pass through costs (13,362) (14,913) Net revenue 41,429 29, Results from operating activities 7,867 6, Margin 19.0% 22.4% Unallocated & restructure* (1,078) (986) +9.3 Net interest income (45) Income tax expense (2,112) (1,589) Net profit for the period 4,632 4, * Includes $80K of redundancy costs in 1H15 (1H14: $420K)

15 AUSTRALASIA 1H15 ($ 000) 1H14 ($ 000) Change (%) Net segment revenue 26,197 24, Segment result 6,318 5, Margin 24.1% 24.5% Staffing Net segment revenues up 7.6%. Segment result up 6.1%, margins consistent. Includes investment in new business wins (Kmart, Target) Leveraging low cost production through Wellcom Malaysia Centre of Excellence. DSO of 39 days (Dec 14) from 41 days (Jun 14).

16 UNITED KINGDOM 1H15 ($ 000) 1H14 ($ 000) Change (%) Net segment revenue 6,316 4, Segment result Margin 3.3% 12.3% Staffing Net segment revenues up 29.7% to $6.32M. Includes investment in new business wins (BASF, Canon, Mothercare) DSO of 58 days (Dec 14) from 62 days (Jun 14).

17 UNITED STATES 1H15 ($ 000) 1H14 ($ 000) Change (%) Net segment revenue 8,940 - n/a Segment result 1,340 - n/a Margin 15.0% - Staffing 82 - n/a Wellcom US performing ahead of expectations. Leveraging global relationships. Active marketing of our Knowledgewell technology platform. DSO of 38 days (Dec 14) from 37 days (Jun 14) Melbourne Sydney Adelaide Auckland London Singapore Kuala Lumpur

18 STRATEGIC AND OPERATIONAL UPDATE Group wide content distribution network established to support global business opportunities. New business wins including Kmart, Target, BASF, Canon, Mothercare, Tempur Sealy. Growth in creative content, video production and digital services. Integrated production capabilities are a unique point of difference in the market. Further leverage of low cost production through Wellcom s Centre of Excellence - K.L. Continual development and deployment of Knowledgewell technology. Continued focus on complementary acquisitions.

19 CONTACT DETAILS Wellcom Group Limited!!!! 870 Lorimer Street!!!!! Port Melbourne Victoria Wayne Sidwell Executive Chairman Stephen Rees Chief Executive Officer - Australia/New Zealand Andrew Lumsden Chief Financial Officer

20 DISCLAIMER The material in this presentation is a summary of the results of Wellcom Group Limited (Wellcom) as at the 18 February 2015, for the half year ended 31 December 2014 together with an update on Wellcom s activities, and is current at the date of preparation 18 February Further details are provided in the Company s full year accounts and results announcement released on 20 August This presentation includes forward-looking statements, opinions and estimates that are based on information, assumptions and contingencies which by their nature are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-looking statements. Such forward-looking statements, opinions and estimates are not guarantees of future performance. They involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Wellcom, and which may cause actual results to differ materially from those expressed or implied in this presentation. The information contained in this presentation is given in good faith and has been prepared from information believed to be accurate and reliable. The information presented is in summary only and is not intended to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial circumstances or needs of any particular investor. To the maximum extent permitted by law, neither Wellcom nor its related corporations, directors, employees or agents, nor any other person, accepts any liability, for any loss or damage whether direct, indirect or consequential, arising from the use of this presentation, its contents or otherwise arising in connection with it. This presentation should be read in conjunction with other publicly available material. Further information including historical results and a description of the activities of Wellcom is available on our website,