Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — FY2020 Earnings Presentation
19 slides from Southern Cross Electrical Engineering's earnings presentation, Aug 31, 2020
Slide 1: Full Year Results Presentation
Full Year Results Presentation Year Ended 30 June 2020 31 August 2020 1 Full Year Results 2020
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 Third year of record revenues with full Infrastructure remained as largest Targeting FY21 revenues of $400m year revenue of $415.1m up 8% on prior revenue contributor Order book of $440m includes over year Significant wins included Albemarle $330m of work sec
Slide 4: Coronavirus impact
Coronavirus impact Operational Financial Construction designated an essential service and Negative financial impacts each individually not material SCEE’s operations generally continued as planned but but significant in combination: second half still significantly affected • Substantial acquisition
Slide 5: Record revenues but tougher second half
Record revenues but tougher second half Summary financials: Third year in row of record revenues, up 8% on prior year FY20 FY19 Chg. % Significant contributors included WestConnex M5 tunnels, Parramatta Squares 3 & 4 buildings and fit-outs, RAAF Tindal, $m $m Westmead Hospital and Wynyard Place Reve
Slide 6: Infrastructure remains largest sector
Infrastructure remains largest sector Infrastructure still largest sector although now closely followed by commercial As forecast, in FY20 resources declined to its lowest point since listing on ASX but now increasing again with significant project wins in second half and growing pipeline FY19 FY20
Slide 7: Strong balance sheet and debt free
Strong balance sheet and debt free Cash increased slightly in year to $55.3m at 30 June 2020 (30 June Balance sheet summary: 2019: $53.3m) No debt Jun 20 Jun 19 New leasing standard AASB 16 adopted on 1 July 2019 $m $m Current assets 170.8 161.2 Resulted in recognition of $5.6m of right of use asset
Slide 8: Net cash inflow
Net cash inflow Working capital outflow of $13.2m including $11.2m in second half primarily as WestConnex M5 demobilised and negotiating commercial close out $6.5m paid to Heyday vendors for final earn out payment in September 2019 and FY19 final dividend paid with underwritten Dividend Reinvestment
Slide 9: Diversified order book
Diversified order book Order book of $440m at same level as half year Includes over $330m of work already secured for FY21 Resources share of order book increased following recent project announcements Jun 19 Jun 20 $450m $440m $60m $110m Commercial Infrastructure Resources $130m $260m $200m $130m 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 Commercial Rio Tinto - Cape Lambert, Dampier Rio Tinto Gove Rio Tinto Amrun Arrow MSA Resources EIR, Tom Price, Paraburdoo, ERA Ranger Mine MSA Brockman 2, Yandi RAAF Tindal Ergon Energy Agreement Infrastructure BHP – Newman, Port Hedland,
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 maintena
Slide 13: Infrastructure stimulus
Infrastructure stimulus Infrastructure now also includes works that in previous years SCEE presented separately as “Telecommunications & Datacentres” and Infrastructure revenue: “Industrial, Energy & Utilities” FY20 FY19 Infrastructure was SCEE’s largest revenue contributor in FY19 and $m $m remaine
Slide 14: Commercial pipeline remains steady
Commercial pipeline remains steady Commercial remains largest component of SCEE order book Commercial revenue: Multiple base-builds and fit-outs in Sydney and Canberra with twelve projects FY20 FY19 contributing at least $5m of revenue each in FY20 $m $m SCEE commercial activity forecast to remain a
Slide 15: Resources rebounding
Resources rebounding As forecast resources activity at low level in FY20 Resources revenue: However significant resources wins at Kemerton Lithium Plant and Rio Tinto HY20 HY19 Gove mean order book almost doubled from a year ago $m $m Bidding significant iron ore and other opportunities Revenue 46.2
Slide 16: Conclusion and outlook
Conclusion and outlook • Third year of record revenues with full year revenue of $415.1m up 8% on prior year • EBIT* of $16.4m down 16% and NPAT of $10.9m down 14% on prior year • Balance sheet remains strong with total cash of $55.3m and no debt • Fully franked 3 cents per share dividend declared •
Slide 17: Corporate summary
Corporate summary Capital Structure Shareholders at 13 August 2020 ASX Code SXE Thorney Investments 17.9% Share Price (28 August 2020) 43.5c First Sentier Investors 8.5% No. of ordinary shares 247.6m Perennial Value Management 7.0% Market Capitalisation (28 August 2020) $107.7m Other Institutions in
Slide 18: Appendix – IFRS reconciliation
Appendix – IFRS reconciliation SCEE’s results are reported under International Financial Reporting Standards (IFRS) as issued by FY20 FY19 the International Accounting Standards Board. $m $m The Company discloses certain non-IFRS measures that are not prepared in accordance Contract revenue 415.1 38
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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