Slide 1: 2016 Half Year Results Presentation
For personal use only 2016 HALF YEAR RESULTS PRESENTATION 24 February 2016
Slide 2: Notice and Disclaimer
NOTICE AND DISCLAIMER For personal use only Purpose and Date: This presentation contains general background information about the activities of Ashley Services Group Limited ABN 92 094 747 510 (“ASH”) as at [X] February 2016 (“Presentation Date”). No financial advice: The information in this present
Slide 3: Agenda
AGENDA For personal use only 1. Summary 2. Half Year Results 3. Divisional Update 4. Compliance Update 5. Strategy Update 6. Outlook 3
Slide 4: 1. Summary
1. SUMMARY For personal use only Board and senior management renewal – Ross Shrimpton has been replaced by Stewart Cummins as Managing Director and CEO effective 15 February 2016 o Mr Shrimpton moved into an NED role from this date – Paul Brittain staying on as CFO – Targeting to have a majority o
Slide 5: Financial Summary and Overview
2. HALF YEAR RESULTS 2.1 FINANCIAL SUMMARY AND OVERVIEW For personal use only Statutory Total revenue of $144 million (-7.5% vs pcp) results Loss after income tax attributable to ordinary equity holders of $67 million Loss per share of 44.4 cents Significant Totalled $61 million net expense:
Slide 6: 1H16 Income Statement
2. HALF YEAR RESULTS 2.2 1H16 INCOME STATEMENT $ million 1H15 Labour Hire Revenue For personal use only 1H16 Proforma Unusually low Christmas peak for major Revenue by Segment retail logistics customers (-$3 million) Down trade by key engineering customers Labour Hire 129.4 135.3 (-$2.7 million)
Slide 7: 1H16 Result vs December Update
2. HALF YEAR RESULTS 2.3 1H16 RESULT VS DECEMBER UPDATE For personal use only Statutory 1H16 EBITDA loss includes a number of period end adjustments: $ million YTD October 2015 EBITDA loss (0.6) Trading loss over November / December 2015 (0.8) Guidance had assumed a break-even performance but Ashl
Slide 8: Results of Impairment Review
2. HALF YEAR RESULTS 2.4 RESULTS OF IMPAIRMENT REVIEW For personal use only Note 12 of the Company’s FY15 Annual Report set out the cash flow assumptions regarding impairment which were applied in the 30 June 2015 accounts and were considered appropriate at the time The Company’s 1H16 financial
Slide 9: Balance Sheet
2. HALF YEAR RESULTS 2.5 BALANCE SHEET $ million 31 Dec 15 30 Jun 15 31 Dec 14 Working capital For personal use only Labour Hire debtors up $10 million from Cash and cash equivalents 2.4 12.6 9.3 June 2015 due to seasonal factors, in line with December 2014 Trade & other receivables 38.7 37.7 44.8
Slide 10: 1H16 Cash Flow
2. HALF YEAR RESULTS 2.6 1H16 CASH FLOW $ million 1H16 1H15 Operating cash flows For personal use only Working capital increase mainly reflects Underlying EBITDA (6.7) 11.6 decrease in trade and other payables ($3.4 Change in working capital (4.4) (15.7) million) Income tax receivable from 30 Ju
Slide 11: Labour Hire Division
3. DIVISIONAL RESULTS 3.1 LABOUR HIRE DIVISION For personal use only Revenue by Industry 1H16 $ million 1H16 2H15 1H15 Revenue 129.4 125.7 135.3 53% 3PL Operating costs (126.3) (122.2) (129.8) 18% Retail (Logistics) EBITDA 3.1 3.5 5.5 12% Horticulture EBITDA margin % 2.4% 2.8% 4.1% 6% Engineering 11
Slide 12: Labour Hire Division (Cont'd)
3. DIVISIONAL RESULTS 3.1 LABOUR HIRE DIVISION (CONT’D) For personal use only Modest drop in hours billed vs pcp reflected 45%/55% split between up-traders and down-traders across Action Workforce’s customer base Customer retention strong during the period – For 2H16, one large retail account ha
Slide 13: Training Division
3. DIVISIONAL RESULTS 3.2 TRAINING DIVISION 10 layers of quality built into Ashley’s student lifecycle … For personal use only $ million 1H16 2H15 1H15 1. Training & Assessment Strategies Revenue 14.9 22.5 22.3 2. Student Suitability Discussions Operating costs (22.3) (15.6) (14.9) 3. Student Enrolm
Slide 14: Training Division (Cont'd)
3. DIVISIONAL RESULTS 3.2 TRAINING DIVISION (CONT’D) For personal use only Over the past 8 consecutive half-year periods the Training 8 7.4 Division has reported an 6.0 average $6 million 6 EBITDA contribution 4.0 (2.8) (equivalent to a 36% net 4 margin) (1.5) EBITDA ($ million) 2 In 1H16 the Co
Slide 15: Ashley Institute of Training
3. DIVISIONAL RESULTS 3.2.1 ASHLEY INSTITUTE OF TRAINING For personal use only Lower commencements due to: (1) delays during 1-in-5 year changeover with Job Service Providers in national employment system; (2) big drop in QLD public market; and (3) funding changes in SA & TAS Completions rates a
Slide 16: Integracom
3. DIVISIONAL RESULTS 3.2.2 INTEGRACOM For personal use only Strong growth in enrolments over the period, with a consistent level of completions Customer Wins: Large Broadband supplier training contracts, Global Security supplier outsourced training, and several prime contractor training program
Slide 17: SILK Education & Training
3. DIVISIONAL RESULTS 3.2.3 SILK EDUCATION & TRAINING For personal use only Maintained enrolment levels and student completions over the period Gained new funding contract in QLD Continue to service a number of large corporate customers in the retail food, hotel and resort markets – 8 new cust
Slide 18: Compliance Update
4. COMPLIANCE UPDATE The Company has 6 RTOs and strives for the highest level of compliance across its business For personal use only RTO Legal entity / trading name Renewal CRICOS number date registration 51895 Tracmin Pty Ltd 28 Feb 16 N/A (being renewed) 22537 Global Education and Training Group
Slide 19: Strategy Update
5. STRATEGY UPDATE For personal use only Ashley Services Group is a real business: it engaged 5,000+ workers during 2015 Unique integrated jobs and skills business model with a broad customer base, national reach and access to skilled resources across a variety of disciplines Labour Hire and Rec
Slide 20: Strategy Update (Cont'd)
5. STRATEGY UPDATE (CONT’D) For personal use only The new Managing Director has conducted a short Strategic Review process as part of his 2 month induction – the changes to flow from this are evolutionary in nature and will be implemented gradually, as the fundamentals of the Company’s integrated
Slide 21: Road to Recovery strategy steps
5. STRATEGY UPDATE (CONT’D) For personal use only There are 5 key steps in Ashley Services’ “Road to Recovery” strategy: 1. Accelerate growth in Action Workforce and Concept Engineering 2. Lift external market share in Blackadder Recruitment 3. Turn around Ashley Institute of Training a) Rationalise
Slide 22: Outlook
6. OUTLOOK For personal use only Over the next 6 months, the Company’s 2 key objectives are to: 1. Stabilise the earnings base (especially in Ashley Institute of Training) 2. Build momentum with its Culture, Accountability and Focus initiatives The recent new business wins – a large FMCG contract
Slide 23: Ashley Services Group
X ASHLEY SERVICES GROUP TRAINING | RECRUITMENT | LABOUR HIRE 23