Coventry Group Limited · ASX:CYG
Coventry — Investor Presentation (February 2019)
22 slides from Coventry's investor presentation, Feb 22, 2019
Slide 1: Investor presentation – FY19 half year results
Investor presentation – FY19 half year results 22 February 2019
Slide 2: Contents
Contents • Our Group • FY19 half year trading update • Summary and outlook
Slide 3: Coventry Group
Coventry Group Coventry Group Ltd (ASX: CYG) delivers innovative industrial solutions to the mining, construction and manufacturing sectors.
Slide 4: Company overview
Company overview Coventry Group Ltd (ASX: CYG) delivers innovative industrial solutions to the mining, construction and manufacturing sectors. We supply a range of We value the health, safety fastening systems, cabinet hardware systems and hydraulics, lubrication, and well being of our people fire s
Slide 5: Coventry's value proposition
Coventry’s value proposition Renewed focus on our people Deliver service excellence Improved financial outcomes and our customers Quality products Grow sales Training Stock availability Improve margins Business Development Employee expertise Reduce DC infrastructure costs Technolog
Slide 6: Vision/strategic direction
Vision/strategic direction Exciting opportunity to build a leading scaled Industrial Supply Group. • As the Group has stabilized performance over recent times and with a clear pathway back to profitability, the Board and Executive Leadership Team have spent time developing the vision for the busines
Slide 7: Board
Board The Coventry Group Board of Directors has a wealth of knowledge and experience. Neil Cathie – Independent Non-Executive Andrew Nisbet – Independent Non-Executive Chairman Director 27 year career at Australia’s largest and most successful Appointed in September 2017 plumbing and bathroom di
Slide 8: Executive Leadership Team
Executive Leadership Team Highly credentialed Executive Leadership Team with a proven track record in B2B trade distribution. Background Robert Bulluss (CEO and See previous slide Managing Director) Rod Jackson (CFO) Rod was appointed Chief Financial Officer in September 2017. He is an ACA qualified
Slide 9: FY19 half year results
FY19 half year results Positive progress towards sustainable profitable growth
Slide 10: FY19 half year overview
FY19 half year overview • The Group is committed to the health, safety and well being of our personnel ❶ People & safety • 5 minor Lost Time Injuries in 1H FY19 • Highly credentialed Executive Leadership Team with a proven track record in B2B trade distribution and acquisitions ❷ Leadership team • F
Slide 11: FY19 half year financial highlights
FY19 half year financial highlights • Sales +5.2% (excluding acquisitions) 1H FY19 (2) 1H FY19 (1) (2) ($m) 1H FY18 Up to $89.6m (1H FY18: $83.3m) Inc. Torque Exc. Torque Excellent growth in CFS and TDNZ Revenue from sale of goods 89.6m 87.7m 83.3m TDA sales decline arrested and set up for gro
Slide 12: Trade Distribution
Trade Distribution ($m) 1H FY19 1H FY18 % change Revenue 52.6 52.3 0.5% EBIT -0.4 -1.9 77.8% Improvement in both Australia (TDA) and New Zealand (TDNZ) • TDNZ is performing strongly • TDA is continuing to show encouraging signs as service levels and capability improve • Sales up 0.5% on 1H FY18 In
Slide 13: Trade Distribution - Australia
Trade Distribution - Australia ($m) 1H FY19 1H FY18 % change Revenue 35.5 37.4 -5.2% EBIT (underlying) -2.2 -3.4 33.8% TDA continues to show signs of improvement – more to do… • Sales are in line with PCP excluding one off items Includes the impact of unprofitable store closures ($474k) Sales mo
Slide 14: Trade Distribution - New Zealand
Trade Distribution - New Zealand ($m) 1H FY19 1H FY18 % change Revenue 17.1 14.9 14.7% EBIT (underlying) 1.8 1.4 25.2% TDNZ continued to perform strongly with improvement in all key metrics • Sales up 14.7% on 1H FY18 • Underlying EBIT up 25.2% on 1H FY18 • EBIT margin of 10.5% • Preparation for ope
Slide 15: Cooper Fluid Systems
Cooper Fluid Systems ($m) 1H FY19 1H FY18 % change Revenue 37.0 31.0 19.5% EBIT (underlying) 3.6 2.3 56.5% Continued solid growth from CFS • Sales up 19.5% on 1H FY18 Sales up 13.2% excluding Torque • Underlying EBIT up 56.5% on 1H FY18 EBIT up 37.4% excluding Torque • EBIT margin of 9.7% • Torq
Slide 16: Corporate
Corporate ($m) 1H FY19 1H FY18 % change Revenue 0.0 0.0 n.a. EBIT (underlying) 4.6 3.6 27.8% Corporate service functions stabilized • Net Corporate costs of $4.6m (1H FY18 $3.6m). • The 1H FY18 result included $1.1m of income not repeated in FY19 from the Redcliffe WA property and Cyber insurance cl
Slide 17: Balance sheet
Balance sheet ($m) Jun-17 Jun-18 Dec-18 • Cash position of $8.5m Cash & cash equivalents 5.1 5.0 8.5 Inventories 49.3 46.4 48.4 Trade and other receivables 29.3 30.5 28.9 • The Group has a strong working Total current assets 83.7 81.9 85.8 capital position with Current Property, Plant & Equipment 4.
Slide 18: Cash flow
Cash flow ($m) Jun-17 Jun-18 Dec-18 Net cash from operating activities -5.0 -4.0 -1.4 Net cash from investing activities -0.2 19.3 -9.1 Net cash used in financing activities 7.6 -14.5 13.9 Net (decrease)/increase in cash and cash equivalents 2.4 0.9 3.4 Effect of movement in exchange rates -0.8 -1.0
Slide 19: Nubco acquisition
Nubco acquisition Nubco is Tasmania’s largest independent retailer of industrial hardware and supplies. • Overview Diversified customer and product base Nubco Proprietary Limited (“Nubco”) is Tasmania’s largest Meets Coventry’s key acquisition criteria: independent supplier of industrial and h
Slide 20: Summary and outlook
Summary and outlook February 2019
Slide 21: Summary and outlook
Summary and outlook ❶ Experienced team is in place Focus on sales growth and sustainable profitable growth ❷ Group sales growth Has continued in first half of FY19 ❸ Our key markets are performing well In mining and resources, construction and industrial sectors ❹ Strong balance sheet No debt and fi
Slide 22: Disclaimer
Disclaimer Reliance on third party information The information and views expressed in this Presentation were prepared by Coventry Group Ltd (the Company) and may contain information that has been derived from publicly available sources that have not been independently verified. No representation or
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