Cpt Global Limited · ASX:CGO
Cpt Global — H1 2014 Earnings Presentation
16 slides from Cpt Global's earnings presentation, Feb 24, 2014
Slide 1: CPT Global Limited Half Year Results February 2014
Independent Experience For personal use only CPT Global Limited Half Year Results February 2014
Slide 2: Disclaimer
Disclaimer For personal use only This document has been prepared by CPT Global Limited (CPT Global) and comprises written material/slides for a presentation concerning CPT Global. The presentation is for information purposes only and does not constitute or form part of any offer or invitation to acq
Slide 3: The Company
The Company • Founded in Australia in 1993, listed on the ASX in 2000 For personal use only • Provides specialist IT consultancy services • Technical • IT Management • Clients in public and private sectors • The value proposition of CPT Global is the optimisation of IT cost structures • Approximatel
Slide 4: Global Operations
Global Operations • Australia ~50 clients For personal use only • Melbourne • Sydney • Canberra • Europe ~15 clients • United Kingdom • France • Germany • Italy • Belgium • Nordic Region • Americas ~20 clients • USA • Canada • Brazil • Asia ~5 clients • Singapore • China • Hong Kong 4
Slide 5: Service
Service AUSTRALIA NORTH AMERICA EUROPE ASIA & SOUTH AMERICA For personal use only Cost Optimisation / Performance Tuning Capacity Planning SERVICES Testing Technical Services Management Consulting Success Fee Based CONTRACT TYPE Fixed Price Time & Materials Financial Services Telecommunications CLIE
Slide 6: Revenue Mix Is Changing
Revenue Mix Is Changing For personal use only Regional contribution to Full Year Revenue FY’10 FY’14 F 15% 33% 18% 10% 1% 75% 48% Australia Europe North America Asia & South America 6
Slide 7: First Half Profit & Loss
First Half Profit & Loss For personal use only • CPT Global achieved a turnaround in results H1’14 H1'13 Income Statement Δ that commenced in H2’13 and has continued ($m) ($m) into H1’14 Revenue 19.8 16.7 18% EBITDA 2.5 (0.9) 360% • Turnaround driven by International business, D&A 0.1 0.1 3% which h
Slide 8: Australia
Australia For personal use only Australian Revenue • Australia has been a difficult market over 30m the past 18 months reflecting larger corporate and government departments 25m reducing IT expenditure 20m • CPT Global has chosen not to contest a 15m margin battle in this very competitive market 10m
Slide 9: Europe
Europe For personal use only European Revenue • CPT Global first entered the European 8m market in 1998 7m • Whilst revenue growth since 2010 has 6m been strong, it is still dependent on a small 5m number of large clients resulting in volatility 4m of revenues and profits 3m • The Australian dollar
Slide 10: North America
North America For personal use only North American Revenue • First entered North American market in 16m 2003 14m • Traction has accelerated in the last 2 years 12m • Benefit from weakened AUD commenced 10m in H2’13 and will continue in FY’14 8m 6m • Having achieved critical mass, we expect 4m less v
Slide 11: Foreign Exchange Impact
Foreign Exchange Impact For personal use only • CPT Global’s International business revenue and profit contribution has been positively affected by the weakening AUD • First half revenue and profit before tax has increased by $1.2m and $0.4m on conversion to AUD when comparing current year exchange
Slide 12: First Half Balance Sheet
First Half Balance Sheet For personal use only • Strong balance sheet Balance Sheet ($m) H1'14 FY'13 Cash 3.0 1.2 • Debt free Debtors 6.4 6.0 • Healthy working capital ratio of 1.78:1 Unbilled revenue (WIP) 3.4 3.8 • Clean receivables and WIP ledger Total Current Assets 13.3 11.5 Deferred tax assets
Slide 13: First Half Cash Flow
First Half Cash Flow For personal use only • Cash conversion fluctuates based on the timing Cash Flow ($m) H1'14 H1'13 of large contracts Receipts 20.2 18.6 Payments (17.9) (18.5) • Excellent cash conversion again in current year Gross Operating Cash Flow 2.4 0.2 • Funding facility is in place to su
Slide 14: Dividend
Dividend For personal use only • Declared interim dividend of 3.0 cents per share fully franked for half year ending 31 December 2013 • Franking credits of more than $1.5m available after payment of interim dividend 14
Slide 15: Outlook
Outlook For personal use only • CPT has maintained the momentum it achieved in H2’13 into H1’14 • The outlook in North America remains strong with continued long term Fixed Price and Risk / Reward Engagements • A global services agreement has been signed with a major financial institution which shou
Slide 16: Market Metrics
Market Metrics For personal use only Key Metrics Board & Senior Management Shares Outstanding 36.7m Fred Grimwade (Non-Executive Chairman & Director) Share Price 80c Gerry Tuddenham (Managing Director) Market Capitalisation $29.4m Peter Wright (Director) Cash & Cash Equiv. $3.0m Alan Baxter (Non-Exe