Hitech Group Australia Limited · ASX:HIT
Hitech Group Australia — FY2019 Earnings Presentation
21 slides from Hitech Group Australia's earnings presentation, Aug 20, 2019
Slide 1: Presentation – Full Year FY2019 Results
Presentation – Full Year FY2019 Results (ASX Code: HIT) 20 AUGUST 2019
Slide 2: Consistent track record of revenue and earnings growth
Consistent track record of revenue and earnings growth Volume 400 1.50 in “000 A$/share Volume Price 300 1.00 200 HIT Market Cap reached 0.50 A$48M in Aug 100 2019 - 0.00 15-Aug-16 15-Feb-17 15-Aug-17 15-Feb-18 15-Aug-18 15-Feb-19 15-Aug-19 Qualifications: BA (Sydney University), DipEd. Ray Hazouri
Slide 3: HiTech overview
HiTech overview • HiTech Group Australia Limited is a specialist provider of recruitment and ICT (Information and Communication Technology) consulting services • Established in 1993 - Listed on the ASX in 2000 • HiTech generates the majority of its revenue from ICT contracting and consulting, meanin
Slide 4: Australian ICT industry - core future themes
Australian ICT industry - core future themes • “Technology suppliers must enable organisations to execute on their enterprise-wide digital strategies” • “End users will look to IT services providers for consultation on next-generation technologies. They will seek assistance in using these technologi
Slide 5: Key Investment Considerations
Key Investment Considerations HiTech is in a strong and unique position as a key beneficiary of the high demand for skilled technologists and ICT services in Australia Stable & experienced Fast growing Changing towards leadership team technology market contingent workforce in Australia Robust financ
Slide 6: Investment highlights – Investor proposition
Investment highlights – Investor proposition - 4 cents per share final fully franked dividend declared for 2H FY2019, payable on 12 September 2019, bringing total dividends for the last 12 months to 8 cents per share fully franked Dividends - Annualised gross dividend yield of over 10.4% at the curr
Slide 7: A simple Tier growth strategy
A simple 2 Tier growth strategy - On-boarding of new clients Organic Growth - Enhance the service offering provided to existing clients by providing a broader suite of ICT consulting and recruitment solutions in addition to base contracting agreements - Expand the company’s ICT offering into high ma
Slide 8: HiTech’s client focus aims to meet evolving needs across…
HiTech’s client focus aims to meet evolving needs across… Talent acquisition Managed service Security and cybersecurity provider Internet of Things Cloud services Digital transformation Big data & analytics Apps Networks Transformative PC and components Storage technology Procurement Software Data c
Slide 9: HiTech FY2019 results highlights - Revenue
HiTech FY2019 results highlights - Revenue FY2015 FY2016 FY2017 FY2018 FY2019 A$ M 35 30.28 30 26.38 25 23.32 20 18.26 15.04 15 10 5 0 Revenue • FY2019 Revenue up 15% due to winning new business and stronger contracting numbers • FY2019 is the company’s 5th consecutive year of double digit growth 9
Slide 10: HiTech FY2019 results highlights - EBITDA
HiTech FY2019 results highlights - EBITDA A$ M FY2015 FY2016 FY2017 FY2018 FY2019 5 4.09 4 3.81 3.43 3 2.19 2 1.35 1 0 Underlying EBITDA (1) • FY2019 EBITDA grew 10% over previous year • FY2019 is the company’s 5th consecutive year of double digit EBITDA growth ⁽¹⁾ Underlying EBITDA includes various
Slide 11: HiTech FY2019 results highlights - NPAT
HiTech FY2019 results highlights - NPAT A$ M FY2015 FY2016 FY2017 FY2018 FY2019 4 3 2.90 2.68 2.41 2 1.59 1 0.81 0 Underlying NPAT (1) • FY2019 NPAT increased by an impressive 13% over the FY2018 results • FY2019 is the company’s 5th consecutive year of double digit NPAT growth ⁽¹⁾ Underlying NPAT i
Slide 12: HiTech is Building an Impressive Dividend History
HiTech is Building an Impressive Dividend History CPS 10 FY2016 FY2017 FY2018 FY2019 FY2016 FY2017 FY2018 FY2019 120% 109.4% 8.0 8.0 105.0% 8 100% 91.3% 6.0 6 80% 60% 4 40% 2.0 28.5% 2 20% 0 0% Dividend Payout Ratio • FY2019 full year dividends of 8 cents per share fully franked and strong payout ra
Slide 13: Strong Balance Sheet and financial discipline
Strong Balance Sheet and financial discipline Net Debt ⁽1⁾ A$ M 0 -1 -2 -1.84 -3 -4 -4.41 -5 -5.21 -6 -5.86 -5.93 -7 FY2015 FY2016 FY2017 FY2018 FY2019 HiTech is a resilient and strong company with a robust balance sheet, no debt and cash balance of $5.9M at end of FY2019 which is unique in the indu
Slide 14: A winning formula for success
A winning formula for success • HiTech works closely with select, identified blue chip client base names on talent acquisition and specialist ICT assignments • Consistently in top 3 suppliers from over 1,300 suppliers on the multibillion-dollar Digital Marketplace * Source: Digital Transformation Ag
Slide 15: The HiTech Ethos
The HiTech Ethos • Management intimately understands the key drivers of recruitment and ICT consulting services for its clients – Over 50 years of combined expertise • Execute and deliver on time for clients: rewarded with long, established business relationships and recurring revenue stream • No re
Slide 16: HiTech revenue breakdown
HiTech revenue breakdown FY2019 Revenue Breakdown - Top 10 Clients Average History of Service by Client Type Concentration 14% Australian Govt (Federal & State) Private Sector 86% Years 0 4 8 12 16 20 + Top 10 Others • HiTech has a long history and robust working partnership with its key established
Slide 17: Stable client base – majority are Federal Government clients
Stable client base – majority are Federal Government clients FY2019 Revenue Breakdown – 1% 1% 2% Client Type 2% 2% 2% 6% 5% 2% 4% 14% Further 4% breakdown of 4% FY2019 Federal Govt Revenue 9% 4% 4% 4% 14% 7% 93% Federal Department 1 Federal Department 2 Federal Department 3 Federal Department 4 Fede
Slide 18: HiBase - proprietory, predictive database of ICT talent
HiBase - proprietory, predictive database of ICT talent • HiBase is a predictive intelligence tool built by HiTech for sourcing talent • A comprehensive up to date database of over 360,000 professional candidates for contract or permanent positions • The HiTech Services team is at the forefront of t
Slide 19: Overcoming any technology and competitor disruptions
Overcoming any technology and competitor disruptions • HiTech works at the forefront of specialist ICT services • The human element to this work is critical and irreplaceable • Human interaction and decision making will not disappear for critical ICT projects and assignments • “Automated platforms”,
Slide 20: Contact information
Contact information Elias Hazouri CEO elias@hitechaust.com (02) 9241-1919 www.hitechaust.com Level 9, 189 Kent Street, Sydney, NSW 2000, Australia 20
Slide 21: Important information and disclaimer
Important information and disclaimer This presentation has been prepared by HiTech Group Australia Limited ABN: 41 062 067 878 (“HiTech”). This document contains background information about HiTech current at the date of this presentation. The presentation is in summary form and does not purport be
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