Slide 1: Results for Half Year Ended 31 December 2007
For personal use only COVENTRY GROUP LTD ABN 37 008 670 Results for Half Year Ended 31 December 2007 Roger Flynn Tony Hockley Executive Chairman Chief Financial Officer 22 FEBRUARY 2008
Slide 2: Summary (Update)
SUMMARY (Update) F’08 For personal use only • From project gestation to implementation • Transformation & consolidation • Target business basics • Organic growth F’09 • Performance growth • Business growth • Drive Profitability
Slide 3: Overview of HY 08
For personal use only OVERVIEW OF HY 08 • Results unsatisfactory • A period of ultimate disruption in WA – Automotive • Re-focussing Automotive business • Change process implemented • Getting control back into the business / processes • Stabilising IT Platform • Driving accountability • High employe
Slide 4: Results Summary
For personal use only RESULTS SUMMARY • Total sales flat at $250m (after adjusting for Bitumen) • Normalised PBIT down by 32% to $8m • Normalised profit after tax down 42% to $3.9m • No interim dividend • Significant relocation costs of $2.7m • Costs re discontinued operations of $0.3m
Slide 5: Financial Overview
FINANCIAL OVERVIEW CONTINUING OPERATIONS For personal use only $M HY08 HY07 % Change Sales 248.5 247.0 ↑1 EBIT (normalised) 8.0 11.4 ↓ 30 Net profit after tax 1.8 0.6 ↑300 (after minority interest) EPS (normalised) - cents 9.5 17.8 ↓47 EPS – cents - basic 4.1 1.8 ↑127
Slide 6: Financial Overview (Cont'd)
FINANCIAL OVERVIEW (Cont’d) – CONTINUING OPERATIONS For personal use only $M HY08 HY07 EBIT / Sales (%) 3.2 4.6 Return on capital employed (%) 6.7 9.6 (EBIT / equity + net debt) Return on equity (%) 4.6 8.1 (NPAT / equity) Above ratios are based on normalised earnings
Slide 7: Cash Flow & Gearing
For personal use only CASH FLOW & GEARING $M HY08 HY07 Operating cash flow 9.6 3.6 Closing net interest bearing debt 70.4 79.8 Closing equity 169.6 168.4 Net debt / equity (%) 45.5 47.4 Net debt / equity + net debt (%) 31.3 32.1 Interest cover (times) 4.0 5.0 •Stronger Operating Cash Flows •Debt lev
Slide 8: Dividends
For personal use only DIVIDENDS $M HY08 HY07 EPS –normalised (cents) 9.5 18.3 Dividend per share (cents) 0 17.0 Franking (%) N/A 100 Franking account balance ($M) 24.0 20.0 • Decision not to pay interim dividend to preserve funds • Plan to return to paying a dividend as soon as practicable
Slide 9: Capital Employed
For personal use only CAPITAL EMPLOYED $M HY08 HY07 Capital expenditure 5.5 7.9 Stock turns 2.8 2.9 Days sales in trade debtors 58.5 54.3 • Capital expenditure moderating now the “hump” of computer systems over and relocation project complete.
Slide 10: Automotive
For personal use only AUTOMOTIVE $M HY08 HY07 % Change Revenue 107.5 121.7 ↓ 12 EBIT (normalised) (2.8) 1.3 EBIT margin (%) - 1.1 Capital employed 64.7 74.6 Return on capital employed(%) - 3.5 • Changing management – re focus • Results from WA severely adversely affected by Oracle implementation clo
Slide 11: Industrial
For personal use only INDUSTRIAL $M HY08 HY07 % Change Revenue 136.6 130.6 ↑ 5 EBIT (normalised) 11.7 11.6 ↑ 1 EBIT margin (%) 8.6 8.9 Capital employed 111.7 103.3 Return on capital employed (%) 21.0 22.5 • Cooper Fluids very strong growth – new branches – SA (October ‘07) and Vic (February ’08) • H
Slide 12: Gaskets
For personal use only GASKETS $M HY08 HY07 % Change Revenue 6.0 5.6 ↑8 EBIT 1.0 0.6 ↑ 68 EBIT margin (%) 16.6 10.7 Capital employed 9.6 9.8 Return on capital employed (%) 21.0 12.2 • Very strong performance in a mature market • Move to quality / performance products a major boost to business • Profi
Slide 13: "Stock Take" of Group
For personal use only “STOCK TAKE” OF GROUP • Solid businesses - $0.5bn in revenue • Well positioned in strongest economies - WA/Qld • Businesses have a high degree of resistance to economic downturns (but are not immune) • Well established / recognised brands with strong geographic distribution • S
Slide 14: Path Forward
For personal use only PATH FORWARD • As a matter of urgency get every business in a position to contribute to the Group • In the short term progress process improvements – better buying, improved customer service, reduced cost structures • Change to “ownership” mindset • In F08 concentrate more on o