Mcs Services Limited · ASX:MSG
Mcs Services — Shareholder Meeting (November 2017)
20 slides from Mcs Services's shareholder meeting presentation, Nov 30, 2017
Slide 1: Chairman's Letter
CHAIRMAN’S LETTER Specialising in the provision of For personal use only uniformed guard security in the Retail and Events sector, MCS is a Premier Player in these fields and an increasing presence in covert security to the retail sector as well as security in Education, Tourism, Health Care and oth
Slide 2: Chairman's Letter (continued)
- undergone major consultative updates to the Strategic Planning and business modeling; - acquired the client base of State Security Services WA including prestigious private schools, Government contracts and a range of For personal use only Retail and Commercial Clients; - embarked on a comprehensi
Slide 3: Dividend
Both Retail and Event security work is subject to seasonality, typically with increased work levels from Christmas to Easter tending to skew results into the 2nd half of the financial year. For personal use only Except for the long-term loan arrangement with the MCS Security vendor, currently of $0.
Slide 4: Board
These two actions will provide the Company with an increased capacity to actively grow our business – organically and through acquisition - for the benefit of all shareholders. For personal use only As Chair, and together with my fellow director Matthew Ward, I will take full advantage of this DRP p
Slide 5: For personal use only
Also, as State and Federal Governments seek to grow the tourism industry by actively developing entertainment and For personal use only sporting precincts and events, demand in that sector is also expected to increase. Our Event security business is seeing expansion opportunities, notwithstanding th
Slide 6: For personal use only
overall costs and securing new contracts via our current and future pipeline tenders, through acquisitions and progressive Australia-wide expansion. It is YOUR company and I am very confident as your Chair that we will go from strength to strength. For personal use only I would like to thank our Chi
Slide 7: CEO Address
CEO ADDRESS For personal use only INTRODUCTION Good morning ladies and gentleman. My name is Paul Simmons, and I am the Chief Executive Officer of MCS. I welcome all shareholders to this, our second AGM as a listed security company. I firstly thank our Chairman, The Hon Bob Kucera, for his address a
Slide 8: Opportunities for the Security Industry and Our Company
We continue to discuss opportunities for similar acquisitions, to grow our business into other security sectors and geographies. Legacy Issues We have successfully and efficiently dealt with the legacy issues of the Intiga business acquisition; The acquisition price has been adjusted to a mode
Slide 9: Immediate Future and Challenges
Looking at the immediate future: We are now moving into the 2nd half of the year which is always our highest generating period For personal use only due to extended Christmas-holiday trading hours, Easter trading and summer Events and sports; We are awaiting formal confirmation of a major tender
Slide 10: AGM November 2017
For personal use only AGM 30 November 2017
Slide 11: Disclaimer
Disclaimer For personal use only This Document should not be considered as an offer or invitation to subscribe for or purchase and securities in MCS Services Limited (“MCS”) or as and inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities
Slide 12: Summary
Summary For personal use only Corporate Snapshot Operations Long term contracts with blue chip clients ASX Code MSG High proportion of recurring revenue Share Price $0.022 (29/11/17) Growth opportunities in Events, Education, Healthcare, Resources, Ports, Marine, Govt, Transport Number of shares on
Slide 13: FY17 Highlights
FY17 Highlights For personal use only Growth: • Acquired client base with < 1 year payback and diversified into schools security Financial: • Profitable in first full financial year of operations • Revenue increased to over $18m. • Inaugural net profit after tax $0.4m • Net cash to fund growth Capit
Slide 14: Summarised Profit/(Loss)
Summarised Profit/(Loss) For personal use only FY17 FY16 $’m $’m (8 month trading) Revenue - Security 18.1 11.8 Gross Profit 3.9 2.8 Underlying EBITDA 0.8 0.3 Depreciation / Amortisation (0.17) (0.6) Significant Items (0.1) - Impairments / Writedowns - (5.6) Profit loss before tax 0.53 (5.9) Tax (0.
Slide 15: Cash flows
Cash flows For personal use only FY17 FY16 $’m $’m Operational 0.2 0.3 Investing (0.1) (3.2) Financing (1.3) 3.9 Net (1.1) 1.1 Closing Cash 1.2 2.4
Slide 16: Financial Position
Financial Position For personal use only 30 June 2017 30 June 2016 $’m $’m Cash 1.2 2.4 Other current assets 2.8 2.0 4.0 4.4 Non current assets 0.2 0.5 Total assets 4.2 4.9 Trade & other payables (1.6) (2.4) Other (0.5) (0.7) (2.1) (3.1) Related Party Loan (0.3) - Other non current liabilities (0.2)
Slide 17: Clients
For personal use only Clients
Slide 18: Strategy
Strategy For personal use only Growth: • Organic via increased tendering activity to expand client base • Acquisitions for entry into new verticals and markets • Innovation to differentiate customer proposition Customers • Continue to exceed client expectations Financial Returns • Recurring revenue
Slide 19: Outlook / Guidance
Outlook / Guidance For personal use only Outlook • Positive outlook with WA economy improving • Many opportunities in security services • Awaiting result of two significant tenders, with many other tenders submitted • Only at the start of the journey FY18 Guidance • FY18 Revenue expected to exceed $
Slide 20: Contact Details
For personal use only Contact Details: Chief Executive Officer: Paul Simmons Chief Financial Officer: Mark Englebert Tel (08) 93012420