Avada Group Limited · ASX:AVD
Avada — H1 2024 Earnings Presentation
23 slides from Avada's earnings presentation, Feb 28, 2024
Slide 1: AVADA Group Limited 1H FY24 Results
AVADA Group Limited 1H FY24 Results 28 February 2024
Slide 2: Important notice and disclaimer
Important notice and disclaimer This document dated 28 February 2024 has been prepared by AVADA Group Limited (ACN 648 988 783) (the Company) and is provided for information purposes only. It contains summary information about the Company and its activities and is current as at the date of this docu
Slide 3: Agenda
Agenda 01 Overview 02 Financials 03 Business update 04 Appendix AVADA Group Limited – 1H FY24 Results Page 3
Slide 4: Overview
01 Overview
Slide 5: 1H FY24 at a glance
1H FY24 at a glance Operational and financial highlights REVENUE GROSS MARGIN U N D E R LY I N G INCREASED 12% 22.8%, INCREASED E B I T D A (1) $ 9 . 3 M , O P E R AT I N G C A S H TO $101.3M FROM PRIOR YEAR GROWTH OF 30% FLOW (EXCL. M&A (1H23: $90.5M) AND BEING INCLUDING 6% COSTS) M AI N TAI N E D
Slide 6: Introducing AVADA
Introducing AVADA AVADA (ASX:AVD) offers integrated traffic management services including planning and permits, traffic control, equipment hire, event management and incident response. FY23 Results Key metrics $183.2m 2,364 Revenue Traffic controllers $16.1m 1,030 EBITDA Vehicles 21% ~$47m Gross pro
Slide 7: The market opportunity
The market opportunity “We represent around 200,000 traffic Significant organic growth potential from a large management professionals and a and highly fragmented market. $2 billion industry nation wide.” (1) Source: https://tmaa.asn.au/ Average industry growth rate expectations of 4% per (1) Estima
Slide 8: A broad industry footprint
A broad industry Infrastructure Maintenance Government footprint Civil construction Energy Local Traffic management services are Roads and highways Water State a regulated requirement for all civil infrastructure construction and Upgrades Repair and upgrades Federally funded maintenance projects in
Slide 9: AVADA's competitive edge
AVADA’s competitive edge Our businesses AVADA is a market leader with a strong competitive position in a highly fragmented industry. As the largest ASX listed company in the industry we have the foundation to deliver. Integrated network of strong local brands. Centralised corporate functions and pro
Slide 10: Financials
02 Financials
Slide 11: Financial performance summary
Financial performance summary Summary income statement Like-for-like revenue growth of 4% with some headwinds observed in Q2 from workforce constraints impacting client delivery. Changes to operating structure, training and monitoring implemented in response. Gross margins supported by efficiencies
Slide 12: Balance sheet
Balance sheet Decrease in cash reflects completion payment for the STA acquisition ($1.1m funded by AVADA after equity raise), $2.7m of working capital absorbed post STA acquisition, $'000s Jun-23 Dec-23 $3m earn-out payment in respect of the Verifact Traffic acquisition, and $2m of capital Current
Slide 13: Cash flow
Cash flow Strong operating cash conversion has been maintained in 1H FY24, continuing the trend from 2H FY23. This has enabled the business to reduce liabilities and invest in fleet. 1H FY24 included funding of STA net working capital of $2.7m. Growth through acquisition has led to some volatility i
Slide 14: Business update
03 Business update
Slide 15: Operating update
Operating update Integration of Wilsons Traffic Management completed Integration of STA well progressed AVADA continues to position its business to capture the significant pipeline Process to centralise core operating systems on one platform to improve reporting continues with Payroll and opportunit
Slide 16: Operating update
Operating update Consistency of platforms is enabling deployment of data analytics to drive compliance, governance and business insights, assisting strategic and operational decision making AVADA Group Limited – 1H FY24 Results Page 16
Slide 17: Acquisitions & JV update
Acquisitions & JV update • • STA integration well progressed Initial trading in line with expectations • Trading to December below expectations • Operational adjustments made in NZ through Improved deal structures client strategies and reduction in overheads, providing risk mitigation including real
Slide 18: Trading update & business outlook
Trading update & business outlook Continued strong pipeline of infrastructure projects and maintenance work Organisational restructure and integrations together with an ongoing focus on cost and operational efficiency underpins maintenance of strong margins Strong pipeline of work, supported by cont
Slide 19: Appendix
04 Appendix
Slide 20: Underlying earnings reconciliation
Underlying earnings reconciliation Notes: 1. Tax expense calculated at 30% of profit before tax 2. Adjustments have not been subject to independent audit or review AVADA Group Limited – 1H FY24 Results Page 20
Slide 21: Underlying earnings reconciliation
Underlying earnings reconciliation (a) Reported financial information for AVADA Group Limited for the six months ended 31 December 2023 (b) Revenue in respect of the reduction in contingent consideration for the acquisition of Wilsons Traffic Management (c) Adjustments reflect non-recurring and non-
Slide 22: Contact Us
Contact Us AVADA Group Limited ABN 57 648 988 783 Suite 1, Level 2, 116 Ipswich Road Woolloongabba QLD 4102 T 1300 321 995 E contact@avadagroup.com.au avadagroup.com.au
Slide 23: avadagroup.com.au
avadagroup.com.au ABN 57 648 988 783