Hitech Group Australia Limited · ASX:HIT
Hitech Group Australia — Investor Presentation (August 2018)
19 slides from Hitech Group Australia's investor presentation, Aug 31, 2018
Slide 1: Full Year Results Presentation (ASX Code: HIT)
Full Year Results Presentation (ASX Code: HIT) 31 AUGUST 2018
Slide 2: Consistent track record is being rewarded in share price
Consistent track record is being rewarded in share price…. Price A$ HIT.ASX Share Price $1.2 $1.0 $0.8 $0.6 $0.4 HIT Market $0.2 Cap reached $0.0 A$43M in Aug 15 Nov 15 Feb 16 May 16 Aug 16 Nov 16 Feb 17 May 17 Aug 17 Nov 17 Feb 18 May 18 Aug 18 Aug 2018 Qualifications: BA (Sydney University), DipEd
Slide 3: HiTech overview
HiTech overview • HiTech Group Australia Limited is a specialist provider of recruitment and Cloud ICT (Information and Communication Technology) consulting services Computing & IoT • Services cover ICT, Office Support, Sales & Marketing and Finance sectors Cyber Applications • HiTech generates the
Slide 4: Key Investment Considerations
Key Investment Considerations HiTech is in a strong and unique position to be 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 fin
Slide 5: Investment highlights – Investor proposition
Investment highlights – Investor proposition - 4 cents per share fully franked dividend declared in 2H FY2018, bringing total dividends for the last 12 months to 8 cents per share fully franked Dividends - Annualised gross dividend yield of over 11% at the current share price of $1.00* - Current int
Slide 6: A simple Tier growth strategy
A simple 2 Tier growth strategy - On-boarding of new clients Organic Growth - Enhance the service offering provided to existing clients by providing a broader suite of recruitment and ICT consulting solutions in addition to base contracting agreements - Expand the company’s ICT offering into high ma
Slide 7: Australia ICT industry overview
Australia ICT industry overview Historical & Forecast ICT Employment, Selected Sector Spending⁽²⁾ 2011-22⁽¹⁾ A$ BN 2011 2016 2022 30 2016 2019 300,000 25.70 25 250,000 22.00 20 200,000 150,000 15 10.50 9.40 100,000 10 50,000 5 0 0 ICT ICT technical ICT sales ICT trades Electronic ICT industry IT Ser
Slide 8: Demand for contingent workforce in Australia continues to rise
Demand for contingent workforce in Australia continues to rise… 2015 Contingent Workforce 2020 Contingent Workforce 30% Contingent Workforce 50% 50% Non Contingent Workforce 70% 975m Contingent Workers Globally, ~30% of 1.75b Contingent Workers Globally, ~50% total global workforce of total global w
Slide 9: HiTech FY2018 results highlights - Revenue
HiTech FY2018 results highlights - Revenue 2015 2016 2017 2018 A$ M 30 26.38 25 23.32 20 18.26 15.04 15 10 5 0 Revenue • FY2018 Revenue up 13% driven by growth in contracting and permanent placement revenue • FY2018 is the company’s fourth consecutive year of double digit growth 9
Slide 10: HiTech FY2018 results highlights - EBITDA
HiTech FY2018 results highlights - EBITDA 2015 2016 2017 2018 A$ M 5 4 3.81 3.43 3 2.19 2 1.35 1 0 Underlying EBITDA • Underlying EBITDA continues to grow steadily with a 13% increase over the FY2017 results 10
Slide 11: HiTech FY2018 results highlights - NPAT
HiTech FY2018 results highlights - NPAT A$ M 2015 2016 2017 2018 4 3 2.68 2.41 2 1.59 1 0.81 0 Underlying NPAT • A dividend for FY2018 of 4 cents fully franked has been declared payable on 12 September 2018, which if annualised, equates to a 11.4% gross yield⁽¹⁾ • FY2018 Underlying NPAT increased by
Slide 12: Strong Balance Sheet and financial discipline
Strong Balance Sheet and financial discipline ⁽1⁾ Net Debt A$ M 0 -1 -2 -1.84 -3 -4 -4.41 -5 -5.21 -6 -5.94 -7 2015 2016 2017 2018 HiTech is a resilient and strong company with a robust balance sheet and no debt and cash balance of $5.86M which is unique in the industry ⁽1⁾ Net Debt = Total Debt - C
Slide 13: Specialised service with a winning formula for success
Specialised service with a winning formula for success • HiTech works closely with select, identified blue chip client base names on talent acquisition and specialist assignments • Management intimately understands the key drivers of recruitment and ICT consulting services for its clients – Over 50
Slide 14: HiTech revenue breakdown
HiTech revenue breakdown FY2018 Revenue Breakdown - Top 10 Clients Average History of Service by Client Type Concentration 17% Australian Govt (Federal & State) Private Sector 83% Years 0 4 8 12 16 20 + Top 10 Others • HiTech has a long history and robust working partnership with its key established
Slide 15: Stable client base – majority are Federal Government clients
Stable client base – majority are Federal Government clients FY2018 Revenue Breakdown – 1% 1% 2% Client Type 2% 2% 2% 4% 6% 3% 16% 4% Further 4% breakdown of 4% FY2018 Federal Govt Revenue 4% 10% 4% 4% 13% 7% 91% Federal Department 1 Federal Department 2 Federal Department 3 Federal Department 4 Fed
Slide 16: HiBase - proprietary, 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 17: 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 18: 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 18
Slide 19: 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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