Slide 1: FY2018 Half Year Results
FY2018 Half Year Results Chris Coonan, CEO John Wise, CFO ww.lmw.com.au
Slide 2: Agenda
Agenda • Summary of Results • Review by revenue source ‐ Residential ‐ Commercial ‐ Government • MVS & Earnout • WA Acquisition of further 12.5% • Market Outlook • Full Year Expectation • Q&A
Slide 3: Summary of Results
Summary of Results • Revenue increased 95.3% to $22.5M • Profit before tax was up 139.0% to $2.8M • Uplift largely attributable to MVS National • Strong performance of residential business • Outperformed targeted synergies from MVS National acquisition • Cash reserves remain healthy • Earnings per s
Slide 4: Summary of Results
Summary of Results 6 MONTHS ENDED CHANGE 31 Dec 17 31 Dec 16 $’000 $’000 $’000 % Increase Revenue 22,522 11,530 10,992 95.3% Profit before tax 2,835 1,186 1,649 139.0% Profit after tax 2,040 875 1,165 133.1% Earnings per share 2.68 cents 3.09 cents
Slide 5: Revenues by Source
Revenues by Source 25 Millions • Strong growth in Residential 20 revenues of +50% against previous corresponding period 15 • Government revenues delivering +60% growth on 10 previous period’s total revenue 5 - Dec 2015 Dec 2016 Dec 2017 Residential Commercial Government
Slide 6: Dec 16 v Dec 17
Dec 16 v Dec 17 3,500 #039;000 3,000 2,500 2,000 1,500 1,000 500 -
Slide 7: Revenue by Source
Revenue by Source • Government revenues were below expectations for the first half of FY2018, however we anticipate second half revenues to exceed the first half • Commercial revenues achieved expectations through each geography, excluding South East Queensland due to restructuring of staff • LMW re
Slide 8: MVS & Earnout
MVS & Earnout Due to timing of Government earnings, the dilutionary event of the MVS Earnout now saves circa 16% dilution from transaction • The earnout was based on the “implied MVS Group Earn Out EBITDA” for the Calendar year 2017. This was calculated as the government business gross margin adjust
Slide 9: Synergy Savings Achieved
Synergy Savings Achieved • We estimated annualised synergy savings of at least $1.5M at time of acquisition • We have achieved savings of $1.9M • The annualised synergies are expected to be $2.4M per annum from FY2019 onwards • Actual savings achieved: 6 months to 6 months to Total Annualised $M Dec
Slide 10: WA Acquisition of Further 12.5%
WA Acquisition of Further 12.5% • LMW has exercised its option to acquire a further LMW WA Performance 12.5% of Forrest Street Pty Ltd (from existing shareholders) at a cost of $663K effective 1 January 2018 (initial 12.5% was acquired for $715K). • The continued strong and improving performance of
Slide 11: Market Outlook
Market Outlook • Residential market remains strong in Melbourne, flattened in Sydney and remains subdued in other locations. • Expecting continuation of flat markets particularly in residential. • Melbourne and Sydney Commercial Market remain very strong however SEQ has weakened and the market is su
Slide 12: Our Strategy & Focus
Our Strategy & Focus • Focus on growth of our regional operations. • Continued investment in our Victorian operations which have shown strong growth. • Expansion of our insurance and non-mortgage valuation business. • Strong investment in our IT platforms to deliver higher efficiency, in the medium
Slide 13: Full Year Forecast
Full Year Forecast Previous Guidance $M First Half Full Year Original1 Flexed2 Revenue 22.5 46.6 52.0 48.2 PBT 2.8 7.8 10.2 8.3 NPAT 2.0 5.3 7.0+ 5.6 EPS (cents) 2.68 7.00 9.00+ 7.42 Note 1 Previous guidance included gross revenues of $60M of which $52M was owned revenue. It was based on profit leve
Slide 14: Q&A
Q&A
Slide 15: Contact Details
CONTACT DETAILS Level 6, 55 Clarence Street Sydney NSW 2000 T: (612) 8823 6300 SHARE REGISTRY Automic Level 3, 50 Holt Street Surry Hills NSW 2010 T: 1300 288 664 KEY DATES August – Full Year Results November – Annual General Meeting