Mitchell Services Limited · ASX:MSV
Mitchell Services — H1 FY2025 Earnings Presentation
20 slides from Mitchell Services's earnings presentation, Feb 20, 2025
Slide 1: Half Year Results Financial Year 2025
HALF YEAR RESULTS FINANCIAL YEAR 2025 ASX:MSV
Slide 2: Disclaimer
2 DISCLAIMER This investor presentation has been prepared by Mitchell Services Limited (“the Company”). The information contained in this presentation does not take into account the investment Information in this presentation is of a general nature only and should be read in conjunction with objecti
Slide 3: Agenda
3 AGENDA 1. MARKET PROFILE 2. 1H25 BUSINESS SUMMARY 3. OVERVIEW 4. OPERATIONAL UPDATE 5. PROFIT AND LOSS 6. RETURN ON INVESTED CAPITAL 7. BALANCE SHEET 8 CASH FLOW 9. DEBT PROFILE 10. CAPITAL EXPENDITURE 1H25 RESULTS PRESENTATION 11. FY25 STRATEGY 12. SUMMARY 13. DEFINITIONS
Slide 4: Market Profile
4 MARKET PROFILE ASX INFORMATION BOARD OF DIRECTORS ASX Stock Symbol MSV Nathan Mitchell Executive Chairman Shares on Issue (at 18/02/2025) 212,308,159 Scott Tumbridge Non- Executive Director Share Price (at 18/02/2025) A$0.355 Peter Miller Non-Executive Director Market Capitalisation A$75.4m Robert
Slide 5: 1H25 Business Summary
5 1H25 BUSINESS SUMMARY REVENUE $99.4m EBITDA $12.7m LOSS AFTER TAX $0.3m 18% FROM $121.6m in 1H24 37% FROM $20.0m in 1H24 107% FROM $4.3m profit in 1H24 OPERATING CASHFLOW $10.6m SAFETY PERFORMANCE RETURN ON INVESTED CAPITAL (0.1%) 57% INDUSTRY LEADING 15% 1H25 RESULTS PRESENTATION CRITICAL RISK MA
Slide 6: Overview
6 OVERVIEW ▪ All 1H25 expiring contracts re-won ▪ The drilling services market for global mining majors and existing producers is stronger than exploration, which remains soft ▪ High quality revenue streams o Circa 85% of revenue is from global mining majors o Revenue is split circa 50% surface dril
Slide 7: Operational Update
7 OPERATIONAL UPDATE ▪ 1H25 was impacted by a temporary reduction in utilisation attributable to a variety of factors including: ▪ The underground fire event at Grosvenor mine ▪ Mining industry corporate activity ▪ Elevated rainfall events ▪ 1H25 represented a transition phase with significant inves
Slide 8: Operational Update: Loop
: OPERATIONAL UPDATE • 50/50 JV between MSV and Talisman • Two customers to date • Customer 1 • Initial feasibility and consulting work complete • Drilling in progress • Customer 2 • Initial feasibility and consulting work in progress • Potential drilling towards the end of CY25 • https://loopdecarb
Slide 9: The Loop Full-Service Offering
THE LOOP FULL-SERVICE OFFERING From concept through to execution, our unique capabilities We integrate all aspects of the decarbonisation solution, allow us to manage the decarbonisation solution from end- including health, management systems, safety and to-end. environmental risk. Our extensive ope
Slide 10: Decarbonisation: An Opportunity in Disguise
Corporate Strategy Global corporates are aligning decarbonisation DECARBONISATION:AN strategies to net zero by 2050 with interim targets by 2030. OPPORTUNITY IN DISGUISE WHAT’S DRIVING CHANGE? Safeguard Mechanism The Safeguard Mechanism has commenced, The transition toward a clean energy future is h
Slide 11: Profit and Loss
12 PROFIT AND LOSS Earnings impacted by reduced utilisation combined with mobilisation costs for newly won contracts $25m $20.0m $15m $12.7m $5m $6.2m $4.3m ($0.5m) ($0.3m) 1H24 1H25 1H25 RESULTS PRESENTATION -$5m EBITDA EBT NPAT ▪ As expected, 1H25 EBITDA significantly reduced, down approx. 36% vs
Slide 12: Return on Invested Capital
13 RETURN ON INVESTED CAPITAL $80m 20.0% $73.4m $60m $67.2m 15.0% $40m 10.0% $20m 5.0% $19.5m $19.8m $14.0m ($0.1m) $0m 0.0% 1H24 1H25 1H25 RESULTS PRESENTATION -$20m -5.0% PPE & Intangibles Working capital EBIT (annualised) ROIC ▪ 1H25 unfavourable earnings has realised a negative ROIC of 0.1% comp
Slide 13: Balance Sheet
14 BALANCE SHEET BALANCE SHEET REMAINS STRONG HEADING INTO 2H25 31 Dec 24 30 Jun 24 Change $000's $000's % Balance Sheet Summary • Overall reduction in net asset position Current assets 45,861 57,466 (20.2) largely due to the FY24 final dividend and Non-current assets 68,450 69,941 (2.1) share buy-b
Slide 14: Cash Flow
15 CASH FLOW REASONABLE CASH FLOW PERFORMANCE RELATIVE TO EARNINGS OPERATING CASH FLOW SUMMARY ▪ Underlying earnings have constrained operating cashflows of $10.6m, which are reduced 57% 1H25 1H24 Change compared to the record 6-month period ended 31 December 2023 $000's $000's % Receipts from custo
Slide 15: Debt Profile
16 DEBT PROFILE LOW DEBT PROVIDES OPTIONALITY FACILITY ▪ The short-term net debt increase was in line with previously disclosed expectations, with the $4.3m increase 31-Dec-24 30-Jun-24 Movement largely a result of the FY24 final dividend payment, share buy back and investment into growth options $0
Slide 16: Capital Expenditure
17 CAPITAL EXPENDITURE DISCIPLINED ALLOCATION OF CAPITAL YEAR ON YEAR CAPITAL EXPENDITURE ▪ The Company remains committed to its $20m Capital Management Strategy which includes the application of sensible limits to capital $16m expenditure $7.3m ▪ Total capital expenditure for 1H25 was $12m $10.2m w
Slide 17: FY25 Strategy
18 FY25 STRATEGY ▪ The overall strategy of the Company is to optimise the long-term growth of the business and returns to shareholders by: ▪ Maintaining and, where possible, improving the profitability of the existing business ▪ Identifying drilling opportunities offshore for existing clients ▪ Iden
Slide 18: Summary
19 SUMMARY ▪ Quality brand with long history and high-quality revenue streams ▪ The drilling services market for global mining majors and existing producers is stronger than exploration, which remains soft ▪ 1H25 represented a transition period as rig count temporarily decreased with ramp up spend a
Slide 19: Definitions
20 DEFINITIONS Capex Capital expenditure Cash Conversion The ratio of A to B; where A is the reported cash flows from operating activities and B is the reported EBITDA Ratio Earnings before interest, tax, depreciation and amortisation; calculated as NPAT plus income tax expense plus finance charges
Slide 20: Contact
CONTACT Andrew Elf Chief Executive Officer 112 Bluestone Circuit Seventeen Mile Rocks Qld 4073 PO Box 3250 Darra Qld 4076 P: 07 3722 7222 M: 0413 608 018 E: a.elf@mitchellservices.com.au