Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Investor Presentation (February 2020)
20 slides from Southern Cross Electrical Engineering's investor presentation, Feb 26, 2020
Slide 1: Half Year ended 31 December 2019 results
Half Year ended 31 December 2019 results 26 February 2020 1
Slide 2: About SCEE
About SCEE E&I Contractor Southern Cross Electrical Engineering (SCEE) is an ASX listed electrical, instrumentation, communication and maintenance services company recognised for our industry leading capabilities Combination Established in 1978 in WA, the combination in 2016 with Datatel Communicati
Slide 3: Highlights
Highlights Financial Operational Outlook Record half year revenue of $230.3m Commercial and infrastructure remain On track to exceed FY20 revenue up 27% on PCP as largest revenue contributors forecast of over $420m EBITDA of $10.9m up 21%, EBIT of Resources activity at low levels in Expecting strong
Slide 4: Record half year revenues
Record half year revenues Revenue of $230.3m a record for half year and up 26.7% on PCP Summary financials: Significant contributors included Westconnex M5 tunnels, HY20 HY19 Chg. % various Parramatta Square buildings and fit outs, RAAF Tindal, Westmead Hospital and NBN roll-out in various states $m
Slide 5: Revenue by sector
Revenue by sector Infrastructure still largest sector followed by commercial Resources declined as forecast but starting to grow again with recent significant project wins HY19 HY20 $182m $230m $12m $7m $9m $53m $20m $88m $20m Commercial Public infrastructure & defence Resources Telecommunications &
Slide 6: Revenue by geography
Revenue by geography New South Wales remains very strong Western Australia and Queensland fallen back with resources decline but now growing again HY19 HY20 $182m $230m $2m $4m $9m $10m $9m $31m $80m $40m New South Wales & ACT Western Australia Queensland Northern Territory Victoria & Tasmania $60m
Slide 7: Strong balance sheet
Strong balance sheet Cash remained at same level in period with $53.3m at 31 Balance sheet summary: December 2019 (30 June 2019: $53.3m) No debt Dec 19 Jun 19 New leasing standard AASB 16 adopted on 1 July 2019 $m $m Resulted in recognition of $5.6m of right of use assets and $5.6m of lease liabilit
Slide 8: Operating cash inflows
Operating cash inflows Cash remained at same level in period with small working capital outflow and $6.5m paid to Heyday vendors for final earn out payment FY19 final dividend paid with underwritten Dividend Reinvestment Plan No interim dividend declared while conserving cash to pursue acquisition o
Slide 9: Order book by sector
Order book by sector Order book of $440m remains at similar level to start of period despite record amount of activity Includes over $250m of work already secured for FY21 Resources component of order book starting to grow again following recent project announcements Jun 19 Dec 19 $450m $440m $10m $
Slide 10: Strategy and sector outlooks
Strategy and sector outlooks 10
Slide 11: Leading national diversified electrical contractor
Leading national diversified electrical contractor NT QLD Commercial WA RAAF Tindal Rio Tinto Amrun Resources Rio Tinto - Cape Lambert, Dampier Rio Tinto Gove Arrow MSA EIR, Tom Price, Paraburdoo, Ergon Energy Agreement Public Infrastructure & defence ERA Ranger Mine MSA Brockman 2, Yandi NBN constr
Slide 12: Strategy
Strategy SCEE primarily sees itself as an electrical contractor Historically focussed in resources, over the last four years we implemented a strategy to diversify into commercial, infrastructure, defence, telecommunications, industrial, energy and utilities work Our growth strategy continues so as
Slide 13: Public infrastructure and defence
Public infrastructure and defence Infrastructure SCEE’s largest sector for revenue in FY19 and remains so in Infrastructure revenue: this period HY20 HY19 Sector primarily driven by government expenditure. Significant investment sanctioned, with peak activity to come and electrical work generally la
Slide 14: Commercial
Commercial Commercial largest component of SCEE order book Commercial revenue: Multiple base-builds and fit-outs in Sydney and Canberra HY20 HY19 with eleven projects contributing at least $4m of revenue each in period. $m $m Revenue 88.0 52.6 Most significant contributors were Parramatta Square 3 &
Slide 15: Resources
Resources As forecast resources activity at low level in period as Wheatstone LNG Resources revenue: completed in H2 FY19 and no other significant construction opportunities replaced it HY20 HY19 Significant resources wins announced at end of period particularly at $m $m Kemerton Lithium Plant and R
Slide 16: Telecommunications and data centres
Telecommunications and data centres Sector revenue increased as data centre projects awarded in May Telco revenue: 2019 ramped up HY20 HY19 NBN construction roll-out passing peak nationally but works $m $m continued in WA, QLD and VIC Revenue 20.3 12.1 Commenced first NBN maintenance and upgrading c
Slide 17: Industrials, energy & utilities
Industrials, energy & utilities Sector stable and tendering variety of industrial projects Industrials revenue: Agnew wind farm electrical works performing successfully in WA HY20 HY19 Still pipeline of opportunities for SCEE for electrical construction $m $m portion of renewables projects Revenue 9
Slide 18: Conclusion and outlook
Conclusion and outlook • Record half year revenue of $230.3m up 27% on PCP • EBITDA of $10.9m up 21%, EBIT of $8.4m up 22% and NPAT of $5.5m up 24% on PCP due to continuing growth in infrastructure and commercial activity • Balance sheet remains strong with total cash of $53.3m and no debt • On trac
Slide 19: Corporate summary
Corporate summary Capital Structure Shareholders at 31 January 2020 ASX Code SXE Thorney Investments 18.5% Share Price (20 February 2020) 62.0c First Sentier Investors 8.4% No. of ordinary shares 247.6m Other Institutions 29.7% Market Capitalisation (20 February 2020) $153.5m Frank Tomasi 18.9% Numb
Slide 20: Disclaimer
Disclaimer Some of the information contained in this presentation given in this presentation is given for illustrative purposes only contains “forward-looking statements” which may not directly and should not be relied upon as (and is not) an indication of or exclusively relate to historical facts.
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