Slide 1: BSA Limited Half Year Trading Update
29th January 2010 For personal use only BSA Limited Half Year Trading Update INVESTOR PRESENTATION
Slide 2: Contents
For personal use only Contents Half Year Trading Update New Business Development – Progress Acquisition Recap – Allstaff Group Strategic Outlook FY2010 Trading Outlook Page 2
Slide 3: Half Year Trading Update
For personal use only Half Year Trading Update • Net profit after tax of $2.5 million • EBITDA of $5.4 million after acquisition costs of $0.5m • Basic earnings per share of 1.26 cents • Revenue increased to $136.7million • Operating cash flow $2.1 million • Expected Interim Dividend 1c per share -
Slide 4: Half year financials
For personal use only Dec 2009 Dec 2009 Dec 2008 Financials 6 Months 6 Months 6 Months Pro-forma Actual Actual Movement Revenue $ 191.4m 136.7m 122.0m 14.7m EBITDA $ 10.4m 5.4m 8.2m (2.8m) EBITDA % 5.5% 4.0% 6.7% (40%) NPAT $ 4.5m 2.5m 4.3m (1.8m) NPAT % 2.3% 1.8% 3.5% (49%) Expected Interim Dividen
Slide 5: Revenue & EBITDA by Segment
For personal use only Revenue & EBITDA by Segment Revenue EBITDA $90 $10,000,000 Millions $80 $8,000,000 $70 $6,000,000 $60 $50 $4,000,000 $40 $2,000,000 $30 $0 $20 Contracting Solutions Building Services Corporate -$2,000,000 $10 $0 -$4,000,000 Contracting Solutions Building Services -$6,000,000 20
Slide 6: Cashflow from operations
For personal use only Dec 31 2009 Dec 31 2008 Cashflow from operations 6 Months 6 Months Actual ($’000) Actual ($’000) Cash flows from operations 2,073 8,081 Cash flows from investing (2,329) (342) Cash flows from financing 7,799 (5,974) Net Debt at end of period 14,439 14,320 • Cash flow in line wi
Slide 7: Balance Sheet
For personal use only Balance Sheet BALANCE SHEET Dec-09 Jun-09 Dec-08 Current Assets Cash at Bank 17,054 9,511 6,108 • Includes Allstaff acquisition from 10th Trade, other debtors and prepayments 62,450 41,193 36,908 December 2009 Inventory 3,498 2,581 2,887 Total Current Assets 83,002 53,285 45,90
Slide 8: Conservatively Geared – Well Placed for Growth
For personal use only Conservatively Geared Dec 31 2009 Dec 31 2008 – Well Placed for Growth Actual ($’000) Actual ($’000) Net Debt 14,440 14,320 Equity 61,608 56,514 Net Debt : Equity 23.4% 25.3% Net Debt: Net Debt + Equity 19.0% 20.2% Net pro-forma interest expense 750 671 Net interest cover (Pro-
Slide 9: Strong Order Book
For personal use only Strong Order Book • Building Services success on large-scale, complex, design & construct projects requiring a high level of sustainability with order book circa $181m (Triple ‘M’ $117m / Allstaff $64m) Triple M Allstaff • City Square (BHP) WA • Westfield Shopping NSW • 111 Eag
Slide 10: Contracting Solutions
For personal use only Contracting Solutions • Revenue of $77 million • EBITDA of $6.9 million (excluding HO allocations) • HO Allocations include Corporate, Finance, IT, HR and OH&S • Solid margins continue due to improved efficiencies on key projects driven by investment in enabling technologies •
Slide 11: Building Services
For personal use only Building Services • Revenue of $59 million (Triple ‘M’ $52m / Allstaff $7m) • EBITDA of $2.8 million (excluding HO allocations) • Negligible contribution from Allstaff – acquired 10th December 2009 • Maintenance and recurring revenue growing with acquisition of Allstaff is now
Slide 12: New Business Development - Progress
For personal use only New Business Development - Progress • Senior management team now on board and actively building pipeline of opportunities: • Substantial investment in Senior people in Business Development with outcome in 2010/11 • $121 million/annum of open tenders submitted and under consider
Slide 13: New Business Development - Acquisitions
For personal use only New Business Development - Acquisitions • Appointed head of M&A in late December 2009 to analyse investment opportunities and build acquisition pipeline • Allstaff acquisition completed 10th December 2009 • Other opportunities under active consideration • Must meet key acquisit
Slide 14: Recap - Acquisition of Allstaff Group of Companies
For personal use only Recap - Acquisition of Allstaff Group of Companies 10th December 2009
Slide 15: Acquisition Summary
For personal use only Acquisition Summary • Effective 10th December 2009 BSA Limited acquired 100% of the shares in the Allstaff Group of Companies • Purchase price of $13 million, comprising; • Cash $12 million • Issue of 4,545,455 BSA Shares representing $1million at 30 Day VWAP at 25/9/2009 of $0
Slide 16: Allstaff - Overview
For personal use only Allstaff - Overview • Headquartered in Melbourne, Allstaff is a market leader in commercial air conditioning installation and mechanical services. • Established in 1975 and has a team of 300 employees • Annual revenues of circa $110million • Operates in Victoria, New South Wale
Slide 17: Preliminary Acquisition Balance Sheet
For personal use only Preliminary Acquisition Balance Sheet ASSETS $million Cash 10.7 Preliminary acquisition balance sheet as at Receivables 16.0 10th December 2009 subject to audit Stocks 0.3 Other 2.4 Cash at acquisition at peak of the working Plant and equipment 1.1 capital cycle Vehicles 2.3 To
Slide 18: Acquisition and Integration Costs
For personal use only Acquisition Costs Acquisition costs circa $500k relating to legal fees, accounting and tax due diligence will be immediately expensed in accordance with AASB 3 - Business Combinations (Revised) Integration Costs Integration costs circa $500k will be incurred and expensed during
Slide 19: Amortisation
For personal use only Amortisation • A preliminary estimate of the intangible assets and goodwill arising from the acquisition has been undertaken. • As a result annual amortisation of $1 million is expected to be incurred during the first 2 years post acquisition. • FY2010 $0.5 million (11th Decemb
Slide 20: Summary
For personal use only Summary • First acquisition since 2008 strategic review • Satisfies key investment criteria • eps accretive • Conservatively geared post acquisition • Significantly strengthens position within Building Services Sector • Triple M and Allstaff will continue to operate independent
Slide 21: Outlook
For personal use only Outlook
Slide 22: Strategic Outlook
For personal use only Strategic Outlook • Augmentation strategy has a 3 year horizon • Major organic growth opportunities • Building Services: • Government and private sector infrastructure spending • Healthcare remains a focus • Increased focus on recurring revenues via growth of Facilities Service
Slide 23: Full Year Outlook
For personal use only Full Year Outlook • Ramp up of Triple ‘M’ project earnings in 2nd Half will deliver half on half improvement • Investment in business development will start to deliver earnings in 2nd Half • I&C Mobile Tower commencing Feb 2010 • Sky Racing Installation commencing Jan 2010 • Ot
Slide 24: Summary
For personal use only Summary • Half Year result in line with expectations • Expected Interim Dividend 1c per share - following sign of final HY accounts • Investment in Business Development starting to gain traction • Allstaff acquisition completed and acquisition pipeline being developed • Integra