Veris Limited · ASX:VRS
Veris — H1 FY2019 Earnings Presentation
22 slides from Veris's earnings presentation, Feb 28, 2019
Slide 1: Veris 1H FY19 Results and Conference Call
Veris Limited have three operating businesses in the 2019 financial year - Surveying, Professional & Advisory and Communications Veris invite you to join a conference call at which, Managing Director, Adam Lamond and CFO, Brian Mangano will be presenting these results. Date: Thursday 28 February 201
Slide 2: 1H FY19 Financial Dashboard
1H FY19 Financial Dashboard Revenue EBITDA1 NPATBA2 $63.6m $3.3m $0.2m 37% (23%) (57%) Cash Net Debt $6.9m $15.3m 24% 25% 1. EBITDA is a non-IFRS measure 2. Underlying NPATBA. Excludes non cash impairment Slide 2
Slide 3: Revenue - 1H FY19
Revenue - 1H FY19 1H FY19 1H FY18 Surveying $47.4m $41.3m Professional & Advisory $9.7m - Communications $6.5m $5.0m TOTAL $63.6m $46.3m Slide 3
Slide 4: Revenue - Growth
Revenue - Growth ‒ Acquired and strong organic growth 140,000 Elton Net Revenue Veris Net Revenue Aqura Net Revenue from Surveying $000s $000s $000s ‒ Consistent revenue growth from 120,000 Professional & Advisory ‒ Strong revenue growth 100,000 Communications ‒ All divisions contributed to group re
Slide 5: Revenue – Location 1H FY19
Revenue – Location 1H FY19 Survey & Geospatial $47.4m Professional & Advisory $9.7m Communications $6.5m Total $63.6m $7.9m $0.6m $0.2m $8.4m $6.3m $8.8m $0.02m $18.3m $12.8m $0.3m Slide 5
Slide 6: The Veris Strategy
The Veris Strategy Creating a national professional services business, with three pillars of growth Professional and Advisory Surveying Geospatial Professional and Advisory Services are Surveying is a profession that involves examining and Geospatial Services relate to products, services and tools e
Slide 7: Top Tier Clients across Australia – National Agreements
Top Tier Clients across Australia – National Agreements Diversified, national client base; adding value through seamless national agreements and service offerings Slide 7
Slide 8: Surveying – Veris Australia
Surveying – Veris Australia Australian Surveying industry = $3 billion per annum Surveying covers a broad spectrum of service lines which Veris provide including cadastral, civil and construction and engineering surveying along with 3D spatial services such as lidar, 3D laser scanning, ground penetr
Slide 9: Veris Australia – Well positioned for future growth
Veris Australia – Well positioned for future growth 2H Outlook 1H Revenue 1H EBITDA ‒ Implementing operational review savings 50,000 15% 6,000 56% 45,000 40% ‒ Stable revenue to drive efficiencies 40,000 5,000 35,000 4,000 ‒ Focus on gross margin improvement 30,000 $000 $000 25,000 3,000 (55%) ‒ Con
Slide 10: Professional and Advisory Services – Elton Consulting
Professional and Advisory Services – Elton Consulting Estimated Australian market = $2 billion for the services provided Elton Consulting, a Veris Company is a recognised Tier 1 provider of professional and advisory services for all levels of government, private and community sectors. Elton work acr
Slide 11: Elton Consulting – Well positioned for continued growth
Elton Consulting – Well positioned for continued growth 2H Outlook 1H Revenue 1H EBITDA ‒ Local Government – NSW local housing strategies 12,000 1,600 15% 10% 1,400 33% ‒ Social, health, education and transport infrastructure 10,000 28% 1,200 projects – government and private sectors 8,000 1,000 ‒ P
Slide 12: Communications - Aqura Technologies
Communications - Aqura Technologies Estimated Market Values: Content Access Networks $500m Industrial Wireless and IoT $3bn Unified Communications $100m Aqura Technologies specialises in the development and implementation of technologies to service the Industrial Communications sector. Aqura’s techn
Slide 13: Aqura – Well positioned for continued growth
Aqura – Well positioned for continued growth 2H Outlook 1H Revenue 1H EBITDA $m ‒ Recent announcement of further $7.9m contract win 7 $m 1.2 913% 30% ‒ Strong market demand for Aqura offerings 6 1 136% 5 ‒ Expanding geographic footprint to east coast 0.8 4 0.6 ‒ Leveraging core capabilities to parti
Slide 14: Operational Review - Surveying
Operational Review - Surveying Project scope and team Commenced Board endorsed direction - October 2018 Primary objective = gross margin improvement Lead by Executive Director with Regional Manager - Qld/NT and Regional Manager - NSW/ACT Phase 1 completed – December 2018 Phase 2 ongoing Actions ‒ Im
Slide 15: Operational Review - Surveying
Operational Review - Surveying Actions ‒ New Surveying leadership team headed by Executive Director and Regional Manager – Qld/NT Culture & People with additional role as National Operations Lead ‒ Development of Principals Academy training program and Annual Principals Forum ‒ Improved quality, con
Slide 16: Summary and Outlook
Summary and Outlook 1H FY19 Outlook - Group revenue increased by 37% - Strong revenue pipeline across all three businesses - Cash increased by 24% - Focus on gross margin improvement for Surveying - Reduction of net debt by 25% - Reforecasting group financials through to 31 December 2019 - Consisten
Slide 17: Appendix
Appendix Slide 17
Slide 18: Financial – 1H FY19 Results
Financial – 1H FY19 Results $m 1H FY19 1H FY18 Revenue 63.6 46.3 EBITDA1 3.3 4.2 Depreciation (2.5) (1.4) Amortisation (2.1) - (2.1) Acquisition related cost/income (0.1) (0.6) Restructuring costs (0.7) (1.1) Share-based payments (0.1) (0.3) Impairment2 (34.4) - EBIT (36.6) (1.3) Net interest expens
Slide 19: Financial – Cash Flow and Balance Sheet
Financial – Cash Flow and Balance Sheet Cash Flow Balance Sheet $m 1H FY19 1H FY18 $m 31 Dec 2018 30 June 2018 Cash flow from operations 8.1 (0.2) Cash 6.9 5.6 Net interest expense (0.7) (0.5) Hire Purchase Facilities (7.7) (9.4) Cash flow from operating activities 7.4 (0.7) Commonwealth Bank Facili
Slide 20: Cash flow waterfall
Cash flow waterfall Borrowings $000 Opening 1 July 2018 16,584 15 Repayments (2,033) Closing 31 Dec 2018 14,551 (1.9) 4.7 (0.7) 0.4 (1.1) 10 (3.4) $m 3.3 5 6.9 5.6 0 Opening EBITDA Working Capex Interest Equip Acquisitions Debt/HP Closing Cash Capital (net HP) net Disposals repayments cash Slide 20
Slide 21: Corporate Directory
Corporate Directory Capital Structure Share Price Share price (ASX: VRS) $0.073 1 0.32 0.3 Ordinary shares 363m 0.28 0.26 Market capitalisation $26.5m 0.24 0.22 Cash (31 Dec 18) $6.9m 0.2 0.18 Debt (31 Dec 18) $22.3m 0.16 0.14 Enterprise value $41.9m 0.12 0.1 Dividend per share (FY18) $0.005 0.08 0.
Slide 22: Disclaimer
Disclaimer This Document should not be considered as an offer or invitation to subscribe for or purchase any securities in Veris Limited (“Veris” or the “Company”) or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in Veris s