Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — H1 FY22 Earnings Presentation
18 slides from Southern Cross Electrical Engineering's earnings presentation, Feb 28, 2022
Slide 1: Half Year Ended 31 December 2021 Results Presentation
Half Year Ended 31 December 2021 Results Presentation Half Year 31 December 2021 Results 11 28 February 2022
Slide 2: Our businesses
Our businesses Southern Cross Electrical Engineering Limited (“SCEE Group”) is a national electrical, instrumentation, communications and maintenance services company established in 1978 and listed in 2007 (ASX:SXE). The acquisitions of Datatel in 2016, Heyday in 2017 and Trivantage in 2020 means th
Slide 3: Highlights
Highlights H1 FY22 Operations Outlook Record half of revenue of $253.0m up Resources SCEE’s largest sector for first Reaffirming targeting FY22 revenues of 87% on PCP time since H1 FY17 circa $500m and EBITDA in range of Record workforce of 2,000 Rio Tinto Gudai-Darri and Albemarle $29m-$33m Kemerto
Slide 4: Coronavirus and workforce
Coronavirus and workforce Coronavirus Workforce East Coast lockdowns resulted in total Sydney construction Notwithstanding interstate travel restrictions added further shutdown for part of July and later shutdowns in Victoria 200 employees in WA to service resources sector to make record workforce C
Slide 5: Further record half of revenue
Further record half of revenue Revenue of $253.0m broke previous half’s record revenue Summary financials: (H2 FY21: $234.8m) and up 87% on prior corresponding period despite subdued activity levels in parts of East H1 22 H1 21 % Coast business $m $m Significant revenue contributors in half were Alb
Slide 6: Revenue split by sector
Revenue split by sector All three sectors up on prior corresponding period, including contributions from Trivantage In particular, Resources up 223% as SCEE Electrical’s major construction projects at full activity H1 FY21 H1 FY22 $135m $253m $81m $39m $64m Commercial $126m Infrastructure Resources
Slide 7: Strong balance sheet, no debt
Strong balance sheet, no debt Cash decreased only slightly in period by $1.1m to $49.9m Balance sheet summary: at 31 December 2021 (30 June 2021: $51.0m) despite funding Trivantage deferred consideration of $10.0m in September and FY21 final dividend of $10.2m in November Dec 21 Jun 21 $m $m Remain
Slide 8: Cashflow
Cashflow Cash result pleasing given continuing high levels of activity has significant working capital requirements and having funded Trivantage deferred consideration for meeting earn-out targets Half Year 31 December 2021 Results 88
Slide 9: Record order book
Record order book Record order book grew by 28% over period and now exceeding half a billion dollars Particularly driven by East Coast infrastructure projects including Sydney Metro Pitt Street Station and Western Sydney International Airport 30 June 2021 31 December 2021 $430m $550m $160m $156m $14
Slide 10: Current projects
Current projects MARBL JV Kemerton Lithium Multiplex Western Sydney Processing Plant International Airport Circa $150 Million Over $100 Million Rio Tinto Gudai-Darri Iron Ore CPB Sydney Metro Pitt Street Mine Station Over $100 Million Circa $40 Million Half Year 31 December 2021 Results Ergon Energy
Slide 11: Strategy
Strategy SCEE primarily sees itself as an electrical contractor diversified across the resources, commercial and infrastructure sectors Our growth strategy continues to be to deepen our presence in those sectors and broaden our geographic diversity This includes particularly targeting maintenance an
Slide 12: Resources sector
Resources sector Resources activity more than tripled on prior corresponding period Resources revenue: Primarily driven by high levels of activity at Albemarle Kemerton Lithium Plant and HY22 HY21 Rio Tinto Gudai-Darri but also contributions from BHP Villages Security Project and general works for R
Slide 13: Infrastructure sector
Infrastructure sector Wide sector for SCEE, including transport, road, rail, utilities, defence, telco, health and aged care, education, prisons, datacentres and Infrastructure revenue: agribusiness facilities HY22 HY21 Record levels of transport investment sanctioned on East and West $m $m Coast Re
Slide 14: Commercial sector
Commercial sector Commercial now includes a full contribution from Trivantage’s Commercial revenue: supermarket services business HY22 HY21 Sydney commercial building activity was quite subdued in half with disruptions from lockdowns, coronavirus restrictions and workforce $m $m isolation requiremen
Slide 15: Conclusion and outlook
Conclusion and outlook • Record half of revenue of $253.0m up 87% on PCP • Record workforce of 2,000 • Profit ahead of consensus with EBITDA* of $14.1m up 46%, EBIT* of $9.8m up 34% and NPAT of $6.7m up 48% on PCP • Strong balance sheet with cash of $49.9m and no debt • Record order book of $550m •
Slide 16: Corporate summary
Corporate summary Capital Structure Shareholders at 10 February 2022 ASX Code SXE Thorney Investments 16.5% Share Price (23 February 2022) 56.0c First Sentier Investors 9.1% No. of ordinary shares 259.9m Other Institutions in Top 30 Shareholders 12.8% Market Capitalisation (23 February 2022) $145.5m
Slide 17: Appendix – IFRS reconciliation
Appendix – IFRS reconciliation SCEE’s results are reported under H1 22 H1 21 International Financial Reporting Standards (IFRS). SCEE discloses certain non-IFRS $m $m measures that are not prepared in Contract revenue 253.0 135.4 accordance with IFRS. The non-IFRS measures should only be considered
Slide 18: Disclaimer
Disclaimer Some of the information contained in this presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect the current intentions, plans, expectations, assumptions and beliefs of Southern Cross El
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