Verbrec Ltd · ASX:VBC
Verbrec — FY2018 Earnings Presentation
9 slides from Verbrec's earnings presentation, August 2018
Slide 1: FY18 Results Presentation
FY18 RESULTS PRESENTATION AUGUST 2018
Slide 2: FY18 Summary
FY18 SUMMARY • EBITDAI margin of 2.28% reflecting year of $1.84m $81.8m $(0.8m) consolidation after FY17 restructuring • Revenue in line with guidance EBITDAI Revenue NPAT • $10.5m cost savings in FY18 from FY17 FY17: $(8.1m) FY17: $81.1m FY17: $(23.6m) restructure • Work in hand increased to $30.8m
Slide 3: FY18 Financial Performance
FY18 FINANCIAL PERFORMANCE FY18 FY17 Variance Variance • Revenue constrained by external factors ($m) ($m) ($m) (%) impacting key clients but increased 10% on like-for-like basis REVENUE 81.8 81.1 0.7 0.8% • FY18 result includes impact of CEO EBIT 0.1 (10.8) 10.9 XXX termination costs NPAT (0.8)
Slide 4: Financial Position
FY18 FINANCIAL POSITION • Debtors days reduced from 69 to 56 with 30 June 30 June low level of bad debts and disciplined 2018 2017 management of work in progress, billings and cash collection CASH 4,156 4,983 • Receivables increased in line with revenue RECEIVABLES 19,982 18,245 • Modest increase in
Slide 5: Our Business
OUR BUSINESS CONTROLS AND AUTOMATION Control networks engineering solutions — Design & Procure and Turnkey projects ELECTRICAL AND INSTRUMENTATION Engineering solutions — Design, Design & Procure and Turnkey projects FACILITIES ENGINEERING Feasibility, design and EPCM services to oil and gas and pro
Slide 6: Core Markets
CORE MARKETS Hydrocarbons, Minerals & Metals • Marketplace remains competitive • Increased activity reflecting improved commodity pricing • Increase in demand for productivity improvements and completion of deferred capital works • Significant brownfield project opportunities for Asset Performance a
Slide 7: Key Clients
KEY CLIENTS CAPRICORN COPPER Jemena OTL SEARCH LIMITED origin, S Gl e Australian Paper OPAde_ 0 iil SA Water Hogan Incitec Pivot Limited OWATER ITERRA — epicencrgy sntrim Grommet methan Paton, RioTinto (errs
Slide 8: Forward Workload
FORWARD WORKLOAD FY18 REVENUE $81.1m $81.8M WORKLOAD – $50.0m AT END AUGUST 1 FY19 REVENUE $90m+ GUIDANCE FY19 earnings guidance: EBITDA margins in mid-single digits (FY18: 2.28%) Workload is made up of July and August revenues, current order book, and FY19 training revenue forecast
Slide 9: FY19 Priorities
FY19 PRIORITIES REVENUE LEADERSHIP BRAND Strengthen core engineering business by focussing on Controls & Automation, Complete CEO recruitment Refocus LogiCamms Electrical & Instrumentation, Facilities Engineering and Asset Performance process already underway brand around core • Expand core service