Slide 1: FY16 Results
For personal use only FY16 RESULTS 25 August 2016 PETER CAUGHEY, CEO & MANAGING DIRECTOR 1
Slide 2: FY16 Overview
FY16 Overview For personal use only • Underlying EBITDA +$0.1m (-$2.3m in FY15) • Significant improvement in statutory net loss after tax to -$1.8m (-$24.6 in FY15) – Restructure costs of -$1.9m (-$21.4m in FY15) pre-tax – One-off gain on sale of Gaskets property of $2.0m pre-tax • Restructuring of
Slide 3: Group – financial summary
Group – financial summary For personal use only ($m) FY15 FY16 % change Revenue from sale of goods 190.7 176.8 -7.3% Underlying EBITDA1 -2.3 0.1 NM Underlying EBIT1 -6.4 -3.2 50.0% Restructuring and related costs -21.4 -1.9 91.3% EBIT -27.7 -3.1 88.8% Statutory net profit/(loss) after tax2 -24.6 -1.
Slide 4: Restructure update
Restructure update For personal use only • Formal restructuring program to be completed by December 2016 • 9 duplicate distribution centres were closed (4 remaining locations) • Warehouse Management System roll-out complete • Relocated a majority of the support finance team to Melbourne • New catego
Slide 5: Softening industry environment
Softening industry environment For personal use only Australian Engineering and Building industries Commentary $40 $35 • CYG predominantly services $30 customers in the engineering and Work completed ($b) $25 mining industries • Mining and energy projects drove $20 the boom in engineering work from
Slide 6: Coventry's business segments
Coventry’s business segments For personal use only 1 2 Trade Distribution Coopers Fluid Systems The largest specialty fastener distributor in Australia and New Konnect Zealand Supplier of spare parts, workshop and on-site services to the mining & related industries Niche supplier of hardware to the
Slide 7: Trade Distribution
Trade Distribution For personal use only ($m) FY15 FY16 % change Revenue 116.9 109.6 -6.2% Underlying EBIT -7.5 -1.0 87.0% One-off items -10.4 -1.5 85.8% • Operations of Konnect and Artia were integrated in FY16 • Revenue declined by 6.2% – Due to impact of weakening mining and engineering sectors •
Slide 8: Fluids
Fluids For personal use only ($m) FY15 FY16 % change Revenue 60.7 53.4 -12.0% Underlying EBIT 2.1 2.8 34.4% One-off items -0.9 -0.1 -89.6% • The business also faces challenging mining sector contraction, resulting in lower revenue • Cost base has been ‘right-sized’ to offset the fall in revenue • As
Slide 9: Gaskets
Gaskets (1) For personal use only ($m) FY15 FY16 % change Revenue 13.6 17.3 27.2% Underlying EBIT 2.1 2.9 38.1% One-off items - 2.0 NM • Underlying EBIT up 38.1% to $2.9m – a record contribution • $2.0m one-off gain on sale and leaseback of property • Significant customer win in second half of FY16
Slide 10: Corporate
Corporate For personal use only ($m) FY151 FY16 % change Property operations (net) 0.7 0.9 28.6% Underlying expenses -9.6 -8.1 15.6% One-off items -10.0 -0.3 97.0% • Head office provides centralised support services to the Group – Reduced by $1.5m during FY16 – Ongoing program to assess and reduce e
Slide 11: Cash flow
Cash flow For personal use only ($m) FY15 FY16 Comment Material improvements from Net cash from operating activities -17.7 -1.9 restructure program $5.8m of capex in FY16, Net cash from investing activities1 36.3 -1.7 expected to reduce in FY17 to levels of depreciation Nil dividends declared in Net
Slide 12: Balance sheet
Balance sheet For personal use only • NTA reduced by 6% to $2.03 per share ($m) Jun-15 Jun-16 Cash & cash equivalents 8.7 3.5 Inventories 59.3 57.4 Trade and other receivables 31.7 30.8 Other 0.1 - Total current assets 99.8 91.7 Deferred tax assets 13.4 16.1 Property, Plant & Equipment 16.8 16.0 Int
Slide 13: Outlook
Outlook For personal use only • Economic conditions expected to remain variable in FY17 • Expect to see full benefits from the restructuring initiatives to flow by the end of FY17 • Trade Distribution’s focus is to balance its business in the engineering/mining sectors with more exposure to the buil
Slide 14: Disclaimer
Disclaimer For personal use only 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.