Coventry Group Limited · ASX:CYG
Coventry — Investor Presentation (February 2020)
22 slides from Coventry's investor presentation, Feb 21, 2020
Slide 1: FY20 Half Year Results Presentation
FY20 Half Year Results Presentation February 2020 Delivering innovative industrial solutions and services ASX: CYG
Slide 2: Corporate Snapshot
Corporate Snapshot Key Market Metrics SHARE PRICE SHARES ON MARKET NET DEBT 20 February 2020 ISSUE CAPITALISATION 31 December 2019 $ 1.085 89.8M $ 97.4M $- 5.9M Substantial Shareholders 30.8% 9.5% 5.8% 5.1% ASX: CYG
Slide 3: Health, Safety and Wellbeing
Health, Safety and Wellbeing The health, safety and wellbeing of our people is our number one priority We value the health, safety and • • 5 Lost Time Injuries (LTI’s) in FY20 All people returned to work in a short time frame wellbeing of our people first and Commitment to improving our health, safe
Slide 4: Business Overview
Business Overview We supply a range of fastening systems, industrial products and hydraulics, lubrication, fire suppression and refueling systems, cabinet hardware systems and other products. Trade Distribution (TD) Fluid Systems (FS) Comprises Konnect and Artia Comprises Cooper Fluid Systems (CFS)
Slide 5: Vision / Strategic Direction
Vision / Strategic Direction Our vision is to create a leading Industrial Supply and Services Group achieving sustainable profitable growth through sensible organic development and acquisitions. EXCITING OPPORTUNITY TO BUILD A LEADING SCALED INDUSTRIAL SUPPLY GROUP The Group has The Board and A clea
Slide 6: Key People
Key People NEIL CATHIE ROBERT BULLUSS ANDREW NISBET JAMES TODD ROD JACKSON Independent Non- CEO & Managing Independent Non- Independent Non- CFO Executive Chairman Director Executive Director Executive Director 27 year career at Australia’s Appointed CEO in May 2017 Appointed in September Appointed
Slide 7: Our Story
Our Story 1929 _ 1967 _ 1984 _ 1929 1965 1966 1983 2000 Mr Ronald James Kyle The business prospers. Listed on Acquires a number of Numerous acquisitions including acquires a car dealership the ASX. businesses: diversification into a number of Appointed both Ford and Holden from a liquidator and Fast
Slide 8: FY20 Trading Update
FY20 Trading Update Coventry Group’s trading performance continues to improve in FY20. Strong H1 FY20 sales growth +36.8% including acquisitions Excluding acquisitions H1 FY20 sales growth +7.7% which represents solid organic growth – 39.8% 39.2% • H1 sales growth inc. acquisitions momentum is build
Slide 9: FY20 Half Year Financial Results
FY20 Half Year Financial Results • Sales +36.8% (including acquisitions) compared to prior corresponding period (PCP) ($m) H1 FY20 H1 FY19 Sales +7.7% excluding acquisitions compared to PCP Revenue from sale of goods 122.6 89.6 Sales of $122.6m (FY19: $89.6m) Solid growth in Fluid Systems (FS)
Slide 10: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow • Net debt position at 31 December 2019 of -$5.9m ($m) Jun-18 Jun-19 Dec-19 Cash & cash equivalents 5.0 5.3 3.0 • The increase in debt is due to raising inventory levels to Trade and other receivables 30.5 39.5 35.4 manage growth in the Fluid Systems business, provide Inv
Slide 11: Corporate costs
Corporate costs ($m) H1 FY20 H1 FY19 Net corporate costs 5.0 4.4 Net corporate costs as a % of revenue 4.1% 5.0% Corporate costs are higher than PCP • Higher insurance costs (particularly D&O liability insurance) • IT costs required to rectify legacy issues and relocate systems to the cloud • Costs
Slide 12: Fluid Systems – Financial Overview
Fluid Systems – Financial Overview ($m) H1 FY20 H1 FY19 Revenue from sale of goods 46.0 37.0 EBITDA 5.1 3.9 Fluid Systems sales growth +24.1% • EBITDA improvement of 32.7% H1 FY20 • Sales growth is continuing to be driven by our strong value proposition and increase in service, maintenance, upgrade
Slide 13: Fluid Systems – Growth Strategy Update
Fluid Systems – Growth Strategy Update Fluid Systems has substantial room to grow both organically and through acquisitions • We are the market leader with less than 10% market share in a fragmented market • Our view is the mining and resources sector will remain strong for the next few years (subje
Slide 14: Fluid Systems – Branch Network
Fluid Systems – Branch Network • Relocating and integrating Torque and Cooper Fluid Systems Adelaide operations into a better quality customized facility in the second half of 2020 • Relocated Hunter Valley branch to a larger custom built facility • Taken additional space in Mackay to cater for grow
Slide 15: Trade Distribution – Financial Overview
Trade Distribution – Financial Overview ($m) H1 FY20 H1 FY19 Revenue from sale of goods 76.6 52.3 EBITDA 3.9 -0.3 Trade Distribution sales growth +46.3% • EBITDA improvement of $4.1m H1 FY20 Australia sales growth +65.2% • EBITDA improvement of $3.8m compared to PCP • In KAA our improved service and
Slide 16: Trade Distribution – Growth Strategy Update
Trade Distribution – Growth Strategy Update Trade Distribution Australia (KAA and Nubco) • KAA remains our biggest opportunity for sales and contribution growth. Konnect is one of only three fastener suppliers with true national supply capability. Fastening systems specialisation is being maintained
Slide 17: Trade Distribution – Growth Strategy Update
Trade Distribution – Growth Strategy Update Trade Distribution New Zealand (KANZ) • We are the market leader in NZ. • We expect continuing solid performance. • The NZ economy is going well in particular in the Auckland construction market. • We will get the benefit of the full year impact of new sto
Slide 18: Trade Distribution – Branch & DC Network
Trade Distribution – Branch & DC Network • New branches opened in Australia (Mackay) Plans for two new branches in H1 FY20 • Re-configuring Pinkenba branch applying Nubco store merchandising, marketing and promotion concepts • Pop-up store concept successful in Mt Gambier. • Merge of South Melbourne
Slide 19: Acquisitions
Acquisitions We are actively assessing acquisition opportunities Focus on new geographies Profitable & cash flow Sensible strategic acquisitions and industries positive • The Group will take a highly disciplined approach to acquisitions with strict criteria. • Team in place who have a very successfu
Slide 20: Outlook
Outlook The outlook is positive - the Group expects continuing improvement in financial performance in H2 FY20. • The business has substantial operating leverage as sales grow. There are limited additional operating costs required to support sales growth – the majority of incremental gross margin sh
Slide 21: Disclaimer
Disclaimer Reliance on third party information Forward looking statements The information and views expressed in this presentation were prepared by This presentation may include forward-looking statements. Although the Coventry Group Ltd (the Company) and may contain information that has Company bel
Slide 22: ASX: CYG
\) Coventry Group Ltd & Coventry Group Ltd
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