Coventry Group Limited · ASX:CYG
Coventry — Investor Presentation (February 2021)
17 slides from Coventry's investor presentation, Feb 26, 2021
Slide 1: FY21 Half Year Results
FY21 Half Year Results New financing facility with the NAB 26 February 2021 ASX: CYG
Slide 2: Health, Safety and Wellbeing
Health, Safety and Wellbeing The health, safety and wellbeing of our people is our number one priority • 5 Lost Time Injuries (LTI’s) for a total of 38 lost days for H1 FY21. We value the • Detailed root cause analysis (RCA) investigations are completed for all health, safety and LTI’s and serious n
Slide 3: Business Overview
Business Overview We supply a range of fastening systems, industrial products and hydraulics, lubrication, fire suppression and refueling systems, cabinet hardware systems and other products. Trade Distribution (TD) Fluid Systems (FS) Comprises Konnect and Artia Comprises Cooper Fluid Systems Austra
Slide 4: Corporate Snapshot
Corporate Snapshot Key Market Metrics SHARE PRICE SHARES ON MARKET NET ASSETS 25 February 2021 ISSUE CAPITALISATION 31 Dec 2020 $ 1.03 90.0M $ 92.7M $ 104.7M We acknowledge the support of our substantial Shareholders 26.5% 9.5 % 9.2% 6.9% 5.0% ASX: CYG
Slide 5: Our journey to profitable sustainable growth
Our journey to profitable sustainable growth Base year - FY17 FY20 Sales $151.0m Right strategy, right people, right markets Sales $247.6m EBITDA -$9.7m EBITDA $6.6m Net assets $61.6m Net assets $102.1m Changes in Board and HIS Hose Leadership acquisition Torque Industries Team Dec 2020 acquisition
Slide 6: H1 FY21 Trading update
H1 FY21 Trading update H1 FY21 Trading Trading performance continued to improve during H1 FY21. update Sales for H1 FY21 of $138.1m up +12.5% on the prior year including acquisitions and +11.9% excluding acquisitions. Includes $5.5m of the large $8.0m order previously reported. Fluid Systems (FS) sa
Slide 7: H1 FY21 Financial results
H1 FY21 Financial results EBITDA up +74.5% on prior year ($m) H1 FY21 inc. H1 FY21 exc. H1 FY20 % change inc. • Sales +12.5% (including acquisitions acquisitions acquisitions acquisitions) compared to Revenue from sale of goods 138.1 137.3 122.7 +12.5% prior corresponding period (PCP) EBIT 5.5 5.5 2
Slide 8: H1 FY21 Financial results
H1 FY21 Financial results FS EBITDA up +31.1% for on prior year TD EBITDA up +46.5% for on prior year Fluid Systems Fluid Systems ($m) H1 FY21 inc. H1 FY21 exc. H1 FY20 % change inc. • An excellent half for the FS acquisitions acquisitions acquisitions division with sales up +21.1% and EBITDA up +31
Slide 9: H1 FY21 Financial results
H1 FY21 Financial results • The Group has a solid balance sheet. • The Group continues to take action to manage inventory levels, debtor collections and operating costs to improve our cash position • Net assets as at 31 December of $104.7m. • Net tangible assets of $48.4m. • Net debt as at 31 Decemb
Slide 10: Trade Distribution
Trade Distribution Markets COVID-19 • Industrial – performing well • No Government JobKeeper support received in Australia • Commercial construction – performing well – expect some slow • Minimal impact from Melbourne lockdown and stage 3 restrictions down in calendar year 2021 in Auckland • Infrast
Slide 11: Fluid Systems
Fluid Systems Markets COVID-19 • Mining resources • No Government JobKeeper support received • Iron Ore – performing very well and expected to stay solid • Minimal impact from COVID-19 • Coal – some softness in thermal coal market • Supply chain disruption overseas and locally is being managed • Def
Slide 12: HIS Hose acquisition
HIS Hose acquisition Coventry Group acquires the business and assets of HIS Hose • Completed the acquisition of the business and assets of H.I.S. Hose Pty. Ltd. (“HIS Hose”) on 1 December 2020, funded through the company’s existing debt facility • H.I.S. Hose Pty Ltd is a market leader in the supply
Slide 13: Strategic rationale
Strategic rationale The HIS Hose acquisition is aligned to our Group growth strategy and acquisition strategy Acquisition criteria HIS Hose Alignment with CGL Group strategy Industrial Supply market Excellent fit for Coventry Group and Fluid Systems segment. Provides geographical expansion (Victoria
Slide 14: New financing arrangements
New financing arrangements Partnership with the National Australia Bank • The Coventry Group has entered a new 3 year financing arrangement with the National Australia Bank (NAB), subject to final documentation. The financing agreement provides a holistic banking offering including: • A $45m Borrowi
Slide 15: Outlook
Outlook With a positive start in H1 FY21, the Group remains cautiously optimistic for the FY21 financial year • The markets in which FS and TD operate are to date performing well. Whilst pleased to report positive growth in the first half, we are not providing full year guidance due to continuing CO
Slide 16: Disclaimer
Disclaimer Reliance on third party information Forward looking statements The information and views expressed in this presentation were prepared by This presentation may include forward-looking statements. Although the Coventry Group Ltd (the Company) and may contain information that has Company bel
Slide 17: ASX: CYG
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