Hitech Group Australia Limited · ASX:HIT
Hitech Group Australia — Investor Presentation (February 2019)
21 slides from Hitech Group Australia's investor presentation, Feb 28, 2019
Slide 1: Presentation - Half Year FY2019 Results
Presentation - Half Year FY2019 Results (ASX Code: HIT) 28 FEBRUARY 2019
Slide 2: Consistent track record is being rewarded in share price
Consistent 400 track record is being rewarded in share price…. 1.50 Volume A$/share in “000 Historical price movements for the past 3 years Volume Price 300 1.00 200 HIT Market Cap reached 0.50 A$43M in Aug 100 2018 0 0.00 25-Feb-16 25-Aug-16 25-Feb-17 25-Aug-17 25-Feb-18 25-Aug-18 25-Feb-19 Qualifi
Slide 3: HiTech overview
HiTech overview • HiTech Group Australia Limited is a specialist provider of recruitment and ICT (Information and Communication Technology) consulting services • Services are constantly broadening and evolving to respond to client needs and technological advances • HiTech generates the majority of i
Slide 4: Key Investment Considerations
Key Investment Considerations HiTech is in a strong and unique position to be a key beneficiary of the high demand for skilled technologists and ICT services in Australia Stable & experienced Fast growing Changing towards leadership team technology market contingent workforce in Australia Robust fin
Slide 5: Investment highlights – Investor proposition
Investment highlights – Investor proposition - 4 cents per share interim fully franked dividend declared for 1H FY2019, payable on 19 March 2019, bringing total dividends for the last 12 months to 8 cents per share fully franked Dividends - Annualised gross dividend yield of over 11% at the current
Slide 6: A simple Tier growth strategy
A simple 2 Tier growth strategy - On-boarding of new clients Organic Growth - Enhance the service offering provided to existing clients by providing a broader suite of recruitment and ICT consulting solutions in addition to base contracting agreements - Expand the company’s ICT offering into high ma
Slide 7: Australian ICT industry overview
Australian ICT industry overview A$ BN 25 23.40 2019 2023 20 19.40 15 10 5 0 IT Services • Driving the growth will be firms looking for digital transformation, with IT services providers increasingly expected to take on the role of a business consultant • Providers involved in deeper deployments of
Slide 8: Australian ICT industry - core future themes
Australian ICT industry - core future themes • “Technology suppliers must enable organisations to execute on their enterprise-wide digital strategies” • “End users will look to IT services providers for consultation on next-generation technologies. They will seek assistance in using these technologi
Slide 9: HiTech’s client focus aims to meet evolving needs across…
HiTech’s client focus aims to meet evolving needs across… Talent acquisition Managed service Security and cybersecurity provider Internet of Things Cloud services Digital transformation Big data & analytics Apps Networks Transformative PC and components Storage technology Procurement Software Data c
Slide 10: HiTech 1H FY2019 & FY2018 results highlights - Revenue
HiTech 1H FY2019 & FY2018 results highlights - Revenue FY2015 FY2016 FY2017 FY2018 A$ M 1H 2016 1H 2017 1H 2018 1H 2019 A$ M 30 26.38 15 14.06 13.28 25 23.32 11.15 20 18.26 10 8.17 15.04 15 10 5 5 0 0 Revenue Revenue • 1H FY2019 Revenue up 6% due to winning new business and stronger contracting numb
Slide 11: HiTech 1H FY2019 & FY2018 results highlights - EBITDA
HiTech 1H FY2019 & FY2018 results highlights - EBITDA A$ M A$ M 1H 2016 1H 2017 1H 2018 1H 2019 FY2015 FY2016 FY2017 FY2018 3 5 4 3.81 3.43 2 1.80 1.60 3 2.19 1.24 2 0.99 1 1.35 1 0 0 Underlying EBITDA Underlying EBITDA • 1H FY2019 EBITDA grew 12% over pcp • Underlying EBITDA continues to grow stead
Slide 12: HiTech 1H FY2019 & FY2018 results highlights - NPAT
HiTech 1H FY2019 & FY2018 results highlights - NPAT A$ M A$ M 1H 2016 1H 2017 1H 2018 1H 2019 FY2015 FY2016 FY2017 FY2018 2.0 4 1.5 3 2.68 1.23 2.41 1.07 1.0 2 0.84 1.59 0.69 0.5 1 0.81 0.0 0 Underlying NPAT Underlying NPAT • A 1st half interim dividend for FY2019 of 4 cents fully franked payable on
Slide 13: Strong Balance Sheet and financial discipline
Strong Balance Sheet and financial discipline ⁽1⁾ Net Debt A$ M 0 -1 -2 -1.84 -3 -4 -4.41 -5 -5.21 -6 -5.94 -6.10 -7 FY2015 FY2016 FY2017 FY2018 1H 2019 HiTech is a resilient and strong company with a robust balance sheet, no debt and cash balance of $6.10M at end of 1H FY2019 which is unique in the
Slide 14: Specialised client service with a winning formula for success
Specialised client service with a winning formula for success • HiTech works closely with select, identified blue chip client base names on talent acquisition and specialist ICT assignments • Consistently in top 3 suppliers from over 1000 suppliers on the multibillion dollar Digital Marketplace 14
Slide 15: The HiTech Ethos
The HiTech Ethos • Management intimately understands the key drivers of recruitment and ICT consulting services for its clients – Over 50 years of combined expertise • Execute and deliver on time for clients: rewarded with long, established business relationships and recurring revenue stream • No re
Slide 16: HiTech revenue breakdown
HiTech revenue breakdown FY2018 Revenue Breakdown - Top 10 Clients Average History of Service by Client Type Concentration 17% Australian Govt (Federal & State) Private Sector 83% Years 0 4 8 12 16 20 + Top 10 Others • HiTech has a long history and robust working partnership with its key established
Slide 17: Stable client base – majority are Federal Government clients
Stable client base – majority are Federal Government clients FY2018 Revenue Breakdown – 1% 1% 2% Client Type 2% 2% 2% 4% 6% 3% 16% 4% Further 4% breakdown of 4% FY2018 Federal Govt Revenue 4% 10% 4% 4% 13% 7% 91% Federal Department 1 Federal Department 2 Federal Department 3 Federal Department 4 Fed
Slide 18: HiBase - proprietory, predictive database of ICT talent
HiBase - proprietory, predictive database of ICT talent • HiBase is a predictive intelligence tool built by HiTech for sourcing talent • A comprehensive up to date database of over 360,000 professional candidates for contract or permanent positions • The HiTech Services team is at the forefront of t
Slide 19: Overcoming any technology and competitor disruptions
Overcoming any technology and competitor disruptions • HiTech works at the forefront of specialist ICT services • The human element to this work is critical and irreplaceable • Human interaction and decision making will not disappear for critical ICT projects and assignments • “Automated platforms”,
Slide 20: Contact information
Contact information Elias Hazouri CEO elias@hitechaust.com (02) 9241-1919 www.hitechaust.com Level 9, 189 Kent street, Sydney, NSW 2000, Australia 20
Slide 21: Important information and disclaimer
Important information and disclaimer This presentation has been prepared by HiTech Group Australia Limited ABN: 41 062 067 878 (“HiTech”). This document contains background information about HiTech current at the date of this presentation. The presentation is in summary form and does not purport be
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