Hitech Group Australia Limited · ASX:HIT
Hitech Group Australia — Investor Presentation (July 2016)
11 slides from Hitech Group Australia's investor presentation, Jul 26, 2016
Slide 1: HiTech Group Australia Limited (ASX:HIT) July 2016
For personal use only HiTech Group Australia Limited (ASX:HIT) July 2016
Slide 2: Investor Overview
Investor Overview For personal use only • HiTech is a specialist provider of Recruitment & Consulting services – predominantly in the IT sector • Majority of revenue is generated from IT contracting placements, providing a source of growing recurring revenue • FY16 was another year of tremendous gro
Slide 3: About HiTech
About HiTech For personal use only • HiTech is a specialist recruitment and consulting firm focused on finding skilled professionals primarily in Information and Communications Technology (ICT) as well as Office Support, Finance and Sales & Marketing • Operating for 23+ years with a proven business
Slide 4: FY15 Results
FY15 Results For personal use only • Revenue of $15.1m (up 88%) and Gross Profit of $3.2m (up 163%) • Operating PBT (ex Investments) of $2.1m (up 1800%) • Permanent placement revenue up 17%, contracting revenue up 89% • $1.8m cash at 30 June 2015. No debt • NTA of 12c
Slide 5: FY16 Results Update
FY16 Results Update For personal use only • Unaudited revenue increase for FY2016 of 10-15% and Gross Profit increase of 10-20% • Mix of permanent and contracting placements – vast majority continues to be in IT contracting • Net cash position to be in the vicinity of $3.5m at 30 June, 2016 • FY16 c
Slide 6: HiTech Client Base (partial)
HiTech Client Base (partial) For personal use only
Slide 7: Business Model
Business Model For personal use only • HiTech provides ICT recruitment across all skill sets as well as add-on services in Office Support, Finance and Sales & Marketing • We maximise the return for clients and deliver value from our proprietary candidate database of over 320,000 IT professionals • L
Slide 8: Favourable Market Conditions
Favourable Market Conditions For personal use only • Hiring expectations in Australia are at a four year high • 91% of Australian employers planned to maintain or increase their permanent headcount in 2016 • Information Technology continues to top the list of employment growth • IT and Government ar
Slide 9: Opportunities For Growth
Opportunities For Growth For personal use only • The Department of Employment forecasts the ICT employment market to grow by 14.9% by 2020 • Within the ICT market certain professions are growing significantly faster - ICT Managers (+25%), Support & Test Engineers (+26.5%) and Software Programmers (+
Slide 10: Delivering Returns To Shareholders
Delivering Returns To For personal use only Shareholders • HiTech is trading on an underlying FY15 Price/Earnings multiple of 7x (and lower for FY16), compared to a P/E multiple of 13x for the sector and 15x for the broader market (Source: Morningstar & Company Research) • The board acknowledges tha
Slide 11: Outlook
Outlook For personal use only • Market conditions are positive with hiring expectations at a four year high and ICT leading the way • HiTech is leveraged to the growth trends of the expanding ICT jobs market, rapid growth of certain ICT professions, increased use of contractors and large scale publi
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