Gattaca Plc · LSE:GATC
Gattaca — H1 2015 Earnings Presentation
30 slides from Gattaca's earnings presentation, April 2015
Slide 1: Interim Results for the period to 31 January 2015
Interim Results for the period to 31 January 2015 Brian Wilkinson – Group Chief Executive Officer Tony Dyer – Group Chief Financial Officer Spencer Manuel – Chief Executive Officer (Networkers International) April 2015
Slide 2: Results
Results Engage our staff | Delight our clients | Promote our candidates
Slide 3: Performance Summary
Performance Summary ↓£0.7m ↑ 2% ↑ 5% Group Debtor Revenue: Days 46£220.2m days Net Fee Income: £22.5m Underlying Profit Before Tax: £6.3m (2014 (2013: H1:49 £220.9m) days) (2014 H1: £22.1m) (2014 H1: £6.0m) ↓£6.7m ↑ 15% ↑ 5% Net debt: £1.9m Operating Cash Conversion: 132% Interim Dividend Per Share:
Slide 4: Income Statement
Income Statement Period to 31 Janaury 2015 2014 Underlying Reported Adjustments Underlying Reported Adjustments Underlying Change £m £m £m £m £m £m % Revenue 220.2 220.2 220.9 220.9 -0% Contract NFI 16.3 16.3 15.9 15.9 +3% Contract gross margin (%) 7.5% 7.5% 7.4% 7.4% Permanent fees 6.2 6.2 6.2 6.2
Slide 5: Earnings per share & Dividends
Earnings per share & Dividends Period to 31 January 2015 2014 Underlying Reported Underlying1 Reported Underlying1 Change Profit after tax £million 3.8 5.0 4.4 4.7 +6% Average shares in issue million 24.7 24.7 23.5 23.5 +5% Shares under option million 1.6 1.6 1.0 1.0 +61% Fully diluted shares millio
Slide 6: Cashflow (6 months to January 2015)
Cashflow (6 months to 31 January 2015) £8.0m £6.0m £0.2m £4.0m £1.5m £0.4m £5.3m £0.3m £2.0m £1.5m £0.0m (£2.0m) £3.6m (£1.9m) (£4.0m) (£3.1m) (£6.0m) (£8.0m) July 2014 EBITA Non-cash Working Net Cap-Ex Interest Taxation Dividends Jan 2015 items Capital & Fees 6
Slide 7: Contract activity
Contract activity 10,000 £0.8m £0.69m 9,000 £0.67m £0.67m £0.7m 8,000 £0.56m £0.56m £0.6m £0.52m £0.49m 7,000 £0.5m 7,200 7,000 7,000 £0.43m 6,900 £0.42m 6,700 6,700 £0.40m £0.40m 6,400 6,000 £0.4m 6,000 5,000 £0.3m 5,200 5,100 4,700 4,000 £0.2m 3,000 £0.1m 2,000 10.4% 9.8% 9.5% 9.0% 8.4% 7.8% 7.0%
Slide 8: Permanent activity
Permanent activity 2,000 £0.26m £0.25m £0.25m 1,800 £0.23m £0.22m £0.22m £0.21m £0.21m 1,600 £0.2m £0.17m 1,540 1,400 1,450 1,380 £0.12m 1,330 1,300 1,200 1,250 1,190 1,220 £0.1m 1,000 1,020 £0.07m 800 860 810 600 £- 400 200 £3,600 £3,700 £4,000 £4,200 £4,600 £4,400 £4,600 £4,800 £5,000 £4,900 £5,40
Slide 9: New Banking Facilities
New Banking Facilities • Net consideration for Networkers funded from new HSBC term loan facility of £30m • 3 year term • Margin over LIBOR between 1.0% and 3.0% based on Leverage Ratio • Matchtech current Invoice Discounting Facility reduced by £15m; this scales back up to existing level of £60m wh
Slide 10: Operating Review
Operating Review Engage our staff | Delight our clients | Promote our candidates
Slide 11: Engineering Sector
Engineering Sector NFI by sub-sector 2015 H1 2014 H1 NFI by type Infrastructure £4.8m £3.8m Energy £2.1m £2.4m NFI Automotive £2.1m Conversion £2.2m 34% Aerospace £1.7m (2014: 39%) £1.7m Maritime £1.5m £1.6m General £1.8m Engineering 2015 Contract NFI: 81% Permanent Fees: 19% £1.6m 2014 Contract NFI
Slide 12: Engineering Growth Drivers
Engineering Growth Drivers Infrastructure Maritime Energy £15bn capital investment UK Defence projects, Type 26 Efficiency gains being made committed to the operation and Successor, in design throughout O&G market of Highways England phase Opportunity in O&G AMP 6 started £32bn over 5 Rise in consul
Slide 13: Engineering Growth Drivers
Engineering Growth Drivers General Aerospace Automotive Engineering Global commercial aircraft Research and development UK manufacturing industry seating market is estimated to decarbonise vehicles and continues to show steady to grow 32% by 2019 the fuels they use with growth Significant growth in
Slide 14: Professional Services Overview
Professional Services Overview NFI by sub-sector 2015 H1 2014 H1 NFI by type Technology £5.8m £5.7m Professional Staffing £2.7m NFI £3.1m Conversion 21% (2014: 17%) Marine General Engineering • Growth in Technology has been below our expectations • Profitable Whiteley Professional Staffing business
Slide 15: Acquisition of Networkers International plc
Acquisition of Networkers International plc
Slide 16: Overview
Overview • Transformational acquisition completed on 2 April 2015 • Total consideration of c.£57.9m(1), with deal costs of c£2.7m • 67.4p per Networkers Share • 33.4p in Matchtech Group plc Shares (representing c.17.9% of enlarged ISC) • 34.0p in Cash • Representing a 22.5% premium on Networkers clo
Slide 17: Networkers at a glance
Networkers at a glance Energy & Engineering 46% Doha Contract 73% Perm 27% Telecoms 46% Technology 38% Engineering 16% 17 UK 27% ROW 73% Source: Matchtech Group plc, Networkers acquisition presentation 28 January 2015
Slide 18: Compelling strategic rationale
Compelling strategic rationale Market leading International Balanced & Experienced Source: Illustrative combined results based on Matchtech reported NFI in year to 31 July 2014 and Networkers reported NFI in H1 results to 30 June 2014 + H2 performance in the year to 18 31 December 2013. See Appendix
Slide 19: Compelling strategic rationale - Accelerating our strategy
Compelling strategic rationale - Accelerating our strategy Sharpening • Recruitment teams aligned to clearly defined industry sectors focus • Skill specific teams working with clearly defined talent pools Sector • Digitization is creating further opportunities convergence • Well placed to capitalise
Slide 20: Combined Group overview
Combined Group overview 584 Top 5 UK IT/TELECOMS Recruiter Specialist* 9,000 4,000 18 Offices 12 Countries 5 Continents over 100 Source: Illustrative combined results based on Matchtech reported NFI in year to 31 July 2014 and Networkers reported NFI in H1 results to 30 June 2014 + H2 performance in
Slide 21: Management Board
Combined Group Management Structure Ric Piper Interim Non-Executive Chairman Board of Directors (formerly Senior Independent NED) Tony Dyer Brian Wilkinson Keith Lewis Group CFO Group CEO COO (Matchtech) Stephen Burke Rudi Kindts Richard Bradford George Materna Roger Goodman Independent NED Independ
Slide 22: Integration – Next steps
Integration – Next steps • Roadshow of international network already undertaken • Highly experienced and knowledgeable Office Heads already in place • Networkers will retain its brand at an operating level • Matchtech and Networkers are a natural fit, with limited client crossover • Potential synerg
Slide 23: Outlook & Summary
Outlook & Summary Engage our staff | Delight our clients | Promote our candidates
Slide 24: Summary & Outlook
Summary & Outlook • Steady performance in the period • Rebalancing of sales headcount into growth markets • New contract wins and contract renewals during and after period end • Transformational acquisition of Networkers International plc • Integration will provide market opportunities and cost syne
Slide 25: Q&A
Q&A Engage our staff | Delight our clients | Promote our candidates
Slide 26: Appendix
Appendix Engage our staff | Delight our clients | Promote our candidates
Slide 27: Our purpose
Our purpose Engage our staff Delight our clients Promote our candidates Within the top 5% of Going the extra mile The relationship benchmark group Engagement score of ‘You get us’ Specialist 90% 91% completed staff Market intelligence Personalised approach engagement survey 27
Slide 28: Our 2017 strategy
Our 2017 strategy Sharpen Invest in Greater scale Go-to recuiter attractive yet even more in our chosen our focus markets specialist markets Move up Place higher Work with Charge right level clients who price for value chain candidates value service quality service Attract International Follow key G
Slide 29: Our 2017 vision
Our 2017 vision Market leading specialist recruiter Employer of choice Best partner to clients & candidates Rapidly developing international business Premium stock for investors 29
Slide 30: Our Investment proposition
Our Investment proposition Well Balanced Established Specialist Broad client relationships Strong track record of Niche sector expertise and business mix organic NFI and profit growth Flexible Resilient Committed funding Efficient systems and high Contract business model Facilities of £60m operation