Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — FY2021 Earnings Presentation
19 slides from Southern Cross Electrical Engineering's earnings presentation, Aug 25, 2021
Slide 1: Full Year Results Presentation
Full Year Results Presentation Year Ended 30 June 2021 1 Full Year Results 2021 25 August 2021
Slide 2: About SCEE
About SCEE Electrical Southern Cross Electrical Engineering (SCEE) is an ASX listed electrical, instrumentation, communication Contractor and maintenance services company recognised for our industry leading capabilities Diversification Established in 1978 in WA, and primarily servicing the resources
Slide 3: Highlights
Highlights Financial Operational Outlook Full year revenue of $370.2m down 10.8% Work mix changed as resources activity Targeting FY22 revenues of circa $500m on prior year increased and transport infrastructure and EBITDA in range of $29m-$33m - Although revenue fell short of target declined assume
Slide 4: H2 record half of revenue
H2 record half of revenue Second half revenue of $234.8m, up 73.4% on first half Summary financials: Workforce doubled in FY21 including recruiting net 400 further employees in second half to meet client requirements to ramp up on FY21 FY20 Chg. % large-scale mining projects $m $m Significant revenu
Slide 5: Coronavirus impacts
Coronavirus impacts FY21 Post-FY21 Construction continued to be designated an essential Post 30 June lockdowns on East Coast resulted in Sydney service in all states throughout FY21 construction shutdown for part of July Operations generally continued as planned but Costs minimised as workforce stoo
Slide 6: Revenues by sector
Revenues by sector Resources activity more than doubled as major projects ramped up – FY21 $130m vs. FY20 $46m Commercial activity remained steady – FY21 $165m vs. FY20 $173m Infrastructure reduced as large transport infrastructure projects completed in prior year – FY21 $76m vs. FY20 $196m FY20 FY2
Slide 7: Strong balance sheet and debt free
Strong balance sheet and debt free Cash decreased slightly in year by $4.3m to $51.0m at 30 June 2021 Balance sheet summary: (30 June 2020: $55.3m) despite funding Trivantage acquisition with net cash outflow of $22.2m and $7.2m FY20 final dividend Jun 21 Jun 20 Remain debt free $m $m Acquisition of
Slide 8: Good cash collection
Good cash collection Cash result of $51.0m particularly pleasing given high levels of activity at year-end have significant working capital requirements Trivantage meeting deferred consideration earn-out targets and Board having declared a 4.0 cents per share FY21 final dividend will mean cash outfl
Slide 9: Order book
Order book Order book of $430m includes over $350m of work secured for FY22 Balanced across the three sectors Jun 20 Jun 21 $440m $430m $110m $142m $156m Commercial Infrastructure Resources $200m $130m $132m 9 Full Year Results 2021 9
Slide 10: Strategy and sector outlooks
Strategy and sector outlooks 10
Slide 11: Leading national diversified electrical contractor
Leading national diversified electrical contractor WA NT QLD MARBL JV Kemerton Lithium Plant Rio Tinto Gove Arrow MSA Rio Tinto Gudai-Darri ERA Ranger Mine MSA Major supermarkets and retail Rio Tinto - Cape Lambert, Tom Price, Energy Queensland Services Agreement Paraburdoo Water projects BHP – Newm
Slide 12: Strategy
Strategy SCEE primarily sees itself as an electrical contractor diversified across the resources, commercial and infrastructure sectors Our growth strategy continues to be to deepen our presence in those sectors and broaden our geographic diversity This includes particularly targeting maintenance an
Slide 13: Sector outlooks
Sector outlooks Commercial remained largest sector by revenue in FY21 and now includes a contribution from Trivantage’s supermarket services business The Sydney CBD office construction market is quieter than in recent times but there are still significant targets there being tendered by Heyday Comme
Slide 14: Resources sector
Resources sector Resources activity more than doubled on prior year as major mining projects ramped up Significant revenue contributors included Albemarle Kemerton Lithium Plant, Rio Tinto Gudai-Darri and Rio Tinto Gove Pipeline continues to increase where significant new growth opportunities are pr
Slide 15: Trivantage
Trivantage Trivantage acquisition exceeding expectations with all businesses outperforming forecasts and earn-out targets The acquisition has substantially increased SCEE’s exposure to recurring and services maintenance style work Since acquisition notable developments include: • In the supermarkets
Slide 16: Conclusion and outlook
Conclusion and outlook • Record half of revenue up 73.4% on first half • Trivantage acquisition exceeding expectations with all businesses outperforming forecasts and earn-out targets • Profits ahead of target with EBITDA* of $29.6m up 37.0% and NPAT of $13.8m up 26.6% on prior year • Balance sheet
Slide 17: Corporate summary
Corporate summary Capital Structure Shareholders at 5 August 2021 ASX Code SXE Thorney Investments 17.8% Share Price (23 August 2021) 50.7c First Sentier Investors 9.2% No. of ordinary shares 248.1m Perennial Value Management 6.2% Market Capitalisation (23 August 2021) $125.8m Other Institutions in
Slide 18: Appendix – IFRS reconciliation
Appendix – IFRS reconciliation SCEE’s results are reported under International FY21 FY20 Financial Reporting Standards (IFRS). SCEE discloses certain non-IFRS measures that are not $m $m prepared in accordance with IFRS. The non-IFRS Contract revenue 370.2 415.1 measures should only be considered in
Slide 19: Disclaimer
Disclaimer Some of the information contained in this presentation given in this presentation is given for illustrative purposes only contains “forward-looking statements” which may not directly and should not be relied upon as (and is not) an indication of or exclusively relate to historical facts.
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