Slide 1: 1st Half FY24 Results Presentation
1st Half FY24 Results Presentation 21 February 2024 COMMS G ROUP LIMITE D ( ASX : CCG ) www. co m m sg ro up . l i m it e d Th is docu me n t h as be e n approve d by t h e B oard of Comms Grou p Limit e d
Slide 2: Agenda
Agenda Introduction to Comms Group 3 Financial Highlights 6 Business Highlights 13 Strategy & Outlook 15 2
Slide 3: Introduction
Comms Group Limited Introduction 3
Slide 4: Business Background
Business We service our customers via three key divisions Background Telco service provider to Australian SME & corp. mid-market sectors (<1,000 employees) Comms Group Limited is a with the latest products and award winning cloud-based communications customer service. and managed IT services provide
Slide 5: Our Global Network
Our Global Network Comms Group is a leader in Microsoft Teams calling for global businesses. Our Goal is to be the leading provider in the Asia Pacific region for both CPaaS and UCaaS offerings. We continue to expand our network reach into new countries with a number of licence applications in progr
Slide 6: Financial Highlights
Comms Group Limited Financial Highlights 6
Slide 7: Key Financial Highlights
Key Financial Highlights Continued Revenue Growth With Solid Underlying Profit Growth Trends In All Business Units H1 FY24 H1 FY24 H1 FY24 FY24 revenue FY24 underlying Revenue Gross Profit Underlying EBITDA1 target EBITDA target UP 4% ON PCP UP 5% ON PCP UP 29% ON PCP $53M $6.5M TO $27M TO $12.8M TO
Slide 8: Financial Performance 1H FY24
Financial Performance 1H FY24 $M 1H FY23 1H FY24 • Annualised monthly operating revenues tracking above $53m. Operating Revenue 26.0 27.0 • Group gross margin increased to 48% c.f. pcp of 47%. Cost of Sales (13.8) (14.2) • Operating expenses held largely flat - a strong result considering cost incre
Slide 9: Financial Performance Over Time
Financial Performance Over Time Operating Revenue • Growth in overall revenue in 1H FY24 and 51.9 we expect to see further revenue growth in 2H FY24. 50 41.0 40 25.9 • ICT continued growth trajectory with strong 30 25.1 23.7 performance in the latest half. We expect further $m 19.1 20 growth to reve
Slide 10: Financial Performance Over Time (cont)
Financial Performance Over Time (cont) Gross Profit 24.2 25 19.1 20 12.0 • Continued increase in overall gross profit in 1H FY24 15 11.4 11.1 • All businesses are showing an increasing trend in $m 9.0 10 6.9 monthly EBITDA. 4.4 12.2 12.8 5 8.0 4.6 4.5 • Expect to see an increase in gross profit and
Slide 11: Cash Flow
Cash Flow $M 1H FY23 1H FY24 Underlying operating cashflows 1.5 3.4 Less: payment of business acquisition, restructuring, integration & other 0.5 1.1 one-off expenses Less: net Interest paid 0.4 0.4 Less: income tax paid - 0.2 Net cash from operations 0.6 1.7 Plus: proceeds from bank borrowings 1.3
Slide 12: Balance Sheet
Balance Sheet Balance sheet Cash at bank Total Intangibles including CBA term loan reduced to Carried forward continues to $2.4m at 31 Dec Goodwill $42.9m with $8.1m at 31 Dec 2023. tax losses strengthen. Net 2023. Undrawn significant margin Covenant testing indicates of $1.3m with assets increasing
Slide 13: Business Highlights 1H FY24
Comms Group Limited Business Highlights 1H FY24 13
Slide 14: Business Highlights 1H FY24
Business Highlights 1H FY24 Positive New • Continued to see excellent levels of new sales contracts signed into FY24. Sales Level • Total of $4.0m ARR1 of new sales contracts closed in 1H FY24 Continues • All three business units have a healthy sales pipeline of quality sales deals. Continued strong
Slide 15: Strategy & Outlook
Comms Group Limited Strategy & Outlook 15
Slide 16: Strategic Review Update
Strategic Review Update As announced to the ASX on 21 June 2023, a strategic review is currently underway to consider all options available to the Board including a potential sale of one or more of Comms Group’s businesses in order to maximise shareholder value. Discussions are underway with a range
Slide 17: 2024: Comms Group Future Dividend Policy
2024: Comms Group Future Dividend Policy The Directors of Comms Group are pleased to advise that they have resolved to adopt a dividend policy from the end of FY24. The dividend policy from FY24 onwards is to pay a target payout ratio of 30% to 40% of sustainable profits. Noting that payment of divi
Slide 18: Group Outlook $53m to $55m
Group Outlook FY24 revenue We expect growth FY24 Underlying Strategic Review target across all EBITDA target Underway which 3 business units may change the $53m in the Group $6.5m composition of the in FY24 Group. to $55m to $7m 18
Slide 19: Contact Us
Contact Us Investor Website www.commsgroup.limited Enquiries www.commsgroup.limited/feedback 19
Slide 20: Comms Global Cloud Communications
CoOmmMs Global Cloud Communications
Slide 21: Glossary
Glossary Term Definition Cloud Communications The provision of key communications services from cloud servers based in data centres and over high speed internet connections. Cloud PBX, Cloud Phone, A cloud PBX functions the same as an in office PABX but is hosted in a cloud server accessed via the i
Slide 22: Disclaimer
Disclaimer The material in this presentation is a summary of Comms Group Ltd’s (CCG) To the maximum extent permitted by law, neither CCG nor its related corporations, activities and results, and is current at the date of this presentation. Further details Directors, officers, employees or agents, no