Ashley Services Group Ltd. · ASX:ASH
Ashley Services — FY2016 Earnings Presentation
22 slides from Ashley Services's earnings presentation, Aug 30, 2016
Slide 1: 2016 Full Year Results Presentation
For personal use only 2016 FULL YEAR RESULTS PRESENTATION 30 August 2016
Slide 2: Notice and Disclaimer
NOTICE AND DISCLAIMER For personal use only Purpose and Date: This presentation contains general background information about the activities of Ashley Services Group Limited ABN 92 094 747 510 (“ASH”) as at 30 August 2016 (“Presentation Date”). No financial advice: The information in this presentati
Slide 3: Agenda
AGENDA For personal use only 1. Summary 2. Full Year Results 3. Divisional Update 4. Compliance Update 5. Strategy Update 6. Outlook 3
Slide 4: Summary
1. SUMMARY For personal use only Over the past 6 months the Company has been focused on pursuing its 2 key objectives to: 1. Stabilise the earnings base; and 2. Build momentum with the Culture, Accountability and Focus initiatives Significant progress has occurred in both areas The strategic rev
Slide 5: Financial Summary and Overview
2. FULL YEAR RESULTS 2.1 FINANCIAL SUMMARY AND OVERVIEW For personal use only Statutory Total revenue of $281 million (-7.6% vs pcp) results Loss after income tax attributable to ordinary equity holders of (continuing $67 million operations) Loss per share of 44.7 cents Significant Totalled
Slide 6: FY16 Income Statement Continuing Operations
2. FULL YEAR RESULTS 2.2 FY16 INCOME STATEMENT CONTINUING OPERATIONS For personal use only $ million FY16 FY15 Labour Hire Revenue Timing of account wins vs losses (-$10 million) Revenue by Segment but will revert in FY17 following 3 wins in June Labour Hire 248.6 261.0 to August 2016 period Train
Slide 7: 2H16 vs 1H16 Result Continuing Operations
2. FULL YEAR RESULTS 2.3 2H16 VS 1H16 RESULT CONTINUING OPERATIONS Labour Hire Division For personal use only $ million 1H16 2H16 FY16 2H16 revenues down 8% vs 1H16 Revenue by Segment due to timing of wins / losses Labour Hire 129.4 119.2 248.6 – 2 large accounts lost during Training 14.9 17.3 32.
Slide 8: Statutory Profit Reconciliation
2. FULL YEAR RESULTS 2.4 STATUTORY PROFIT RECONCILIATION For personal use only Statutory FY16 EBITDA loss includes a number of large non-recurring items: $ million Statutory (loss) from Continuing Operations After Income Tax (69.9) First half charges Impairment of Labour Hire and Training assets 6
Slide 9: Balance Sheet
2. FULL YEAR RESULTS 2.5 BALANCE SHEET $ million 30 Jun 16 31 Dec 15 30 Jun 15 Working capital For personal use only Labour Hire debtors down $2 million Cash and cash equivalents 1.7 2.4 12.6 Training debtors & WIP down $8 million vs pcp due to: (a) reduction in revenues; Trade & other receivabl
Slide 10: FY16 Cash Flow
2. FULL YEAR RESULTS 2.6 FY16 CASH FLOW $ million FY16 FY15 For personal use only Underlying EBITDA (7.4) 20.1 Operating cash flows Change in working capital 6.5 (4.0) Working capital change mainly relates to decrease in trade & other receivables Net interest received/(paid) (0.3) 0.1 (refer slide
Slide 11: Labour Hire Division
3. DIVISIONAL RESULTS 3.1 LABOUR HIRE DIVISION Revenue by Industry FY16 For personal use only $ million 2H16 1H16 2H15 1H15 54% 3PL Revenue 119.2 129.4 125.7 135.3 15% Retail (Logistics) Operating costs (117.4) (126.3) (122.2) (129.8) EBITDA 1.8 3.1 3.5 5.5 13% Horticulture EBITDA margin % 1.5% 2.4%
Slide 12: Labour Hire Division (Cont'd)
3. DIVISIONAL RESULTS 3.1 LABOUR HIRE DIVISION (CONT’D) For personal use only Modest drop in hours billed vs pcp reflected 45%/55% split between up-traders and down-traders across Action Workforce’s customer base Customer retention reasonable during the period with value of wins greater than los
Slide 13: Training Division
3. DIVISIONAL RESULTS 3.2 TRAINING DIVISION For personal use only $ million 2H16 1H16 2H15 1H15 Over the past 8 consecutive half-years Revenue 17.3 14.9 22.5 22.3 the Training Division has reported an average $6.4 million / 36% EBITDA Operating costs (16.5) (22.3) (15.6) (14.9) contribution margin
Slide 14: Ashley Institute of Training
3. DIVISIONAL RESULTS 3.2.1 ASHLEY INSTITUTE OF TRAINING For personal use only Greater strategic focus on 6 key industry segments: Food & Agriculture; Telco & Security; Hospitality; Aged Care, Children’s Services and Community Services; Industrial and Logistics; and Business Management Number of
Slide 15: Integracom
3. DIVISIONAL RESULTS 3.2.2 INTEGRACOM For personal use only As the market leader in telco training, we are taking decisive steps to grow from our existing base 2H16 enrolments were consistent with 1H16 but activity levels were slightly stronger Customer Wins: Large Broadband supplier training
Slide 16: SILK Education & Training
3. DIVISIONAL RESULTS 3.2.3 SILK EDUCATION & TRAINING For personal use only Maintained enrolment levels and student completions over the period Gained new funding contract in QLD (since rolled over for FY17) Continue to service a number of large corporate customers in the retail food, hotel an
Slide 17: Compliance Update
4. COMPLIANCE UPDATE The Company has 6 RTOs and strives for the highest level of compliance across its business For personal use only RTO Legal entity / trading name Renewal CRICOS number date registration 40596 Australian Institute of Vocational Development Pty Ltd 21 January 2018 N/A 90804 Vocatio
Slide 18: Strategy Update
5. STRATEGY UPDATE For personal use only Ashley Services Group is a real business: it engaged 5,000+ workers during FY16 Unique integrated jobs and skills business model with a broad customer base, national reach and access to skilled resources across a variety of disciplines Labour Hire and Rec
Slide 19: Strategy Update (Cont'd): Turnaround Plan
5. STRATEGY UPDATE (CONT’D) The turnaround plan is progressing well For personal use only Step Status 1. Accelerate growth in Labour 3 new customer wins in Agri, Retail and Warehousing / Hire and Recruitment Logistics sectors (annual value $25+ million) replacing 2 businesses account losses ($20 m
Slide 20: Strategy Update (Cont'd): Turnaround Plan
5. STRATEGY UPDATE (CONT’D) The turnaround plan is progressing well For personal use only Step Status 2. Turnaround Training Division b) Grow NSW & WA business Solid increase in enrolments and commencements for NSW and WA year-on-year Strategic shift under way in QLD, with public market c) Resus
Slide 21: Outlook
6. OUTLOOK For personal use only Over the next 12 months, the Company’s 2 key objectives are to: 1. Build the earnings base (especially in Ashley Institute of Training and Integracom) 2. Continue with the discrete Culture, Accountability and Focus initiatives While extracting greater value from th
Slide 22: Ashley Services Group
X ASHLEY SERVICES GROUP TRAINING | RECRUITMENT | LABOUR HIRE