Gattaca Plc · LSE:GATC
Gattaca — FY2015 Earnings Presentation
27 slides from Gattaca's earnings presentation, October 2015
Slide 1: Preliminary Results for the year to 31 July 2015
Preliminary Results for the year to 31 July 2015 Brian Wilkinson – Chief Executive Officer Tony Dyer – Chief Financial Officer October 2015
Slide 2: Results
Results
Slide 3: Group income statement (incl 4 months' maiden contribution from Networkers)
Group income statement (incl 4 months’ maiden contribution from Networkers) Year to 31 July Matchtech Networkers 2015 2014 Change £m £m £m £m % Revenue 445.0 57.3 502.3 451.6 +11% Contract NFI 33.1 7.0 40.1 32.8 +22% Contract gross margin (%) 7.6% 12.8% 8.2% 7.5% Permanent fees 12.2 2.5 14.7 12.2 +2
Slide 4: Matchtech Income statement (ex-Networkers)
Matchtech Income statement (ex-Networkers) Year to 31 July 2015 2014 Change £m £m % Revenue 445.0 451.6 -1% Contract NFI 33.1 32.8 +1% Contract gross margin (%) 7.6% 7.5% Permanent fees 12.2 12.2 +0% Gross profit (NFI) 45.3 45.0 +1% Gross margin (%) 10.2% 10.0% Operating overheads (30.8) (31.4) -2%
Slide 5: Earnings per share & dividends
Earnings per share & dividends Year to 31 July 2015 2014 Change Profit after tax £million 8.3 9.1 -9% Average shares in issue million 26.8 24.7 +9% Shares under option million 1.3 1.4 -11% Fully diluted shares million 28.1 26.1 +8% Earnings per share Basic pence 31.0 37.0 -16% Diluted pence 29.6 35.
Slide 6: Balance sheet & cashflow
Balance sheet & cashflow ↑£30.5m ↑3 days ↑9ppts 1: £33.6m Debtor Net debt Days 46 days Debtor days2: 49 days Operating cash conversion: 124% (2013: (2014:49 £3.1m) days) (2014: 46 days) (2014: 115%) ↑£35m ↓1 day ↑£33.8m Banking facilities: £95m Creditor days: 9 days Net assets: £76.5m (2014: £60m) (
Slide 7: Net debt & cashflow (bridge analysis)
Net debt & cashflow (bridge analysis) £10.0m £0.0m (£3.1m) (£10.0m) (£20.0m) (£2.6m) (£1.4m) (£0.9m) (£16.8m) (£0.7m) (£30.0m) (£4.0m) (£28.2m) (£29.2m) (£5.4m) (£33.6m) (£40.0m) (£8.4m) (£2.7m) (£43.4m) (£50.0m) July 2014 Networkers Networkers Acquisition & Adjusted Working Non-cash Capital Interes
Slide 8: 10 year performance
10 year performance £60m £600m Net Fee Income Profit from Adjusted operations EBITA Revenue £50m £500m £40m £400m £30m £300m £20m £200m £10m £100m £- £- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 NFI conversion % 40% 40% 42% 39% 34% 23% 24% 29% 30% 31% Dividend (pence per share) 15.6p 15.6p 1
Slide 9: Integration
Integration • The process of integrating the two organisations has started well • A great deal in common both culturally and professionally • Identified synergies of £1.3m in FY2016 from Stock Exchange listing costs, the Board, management and the rationalisation of property • Areas for rationalisati
Slide 10: Operating Review
Operating Review
Slide 11: Group net fee income
Group net fee income NFI by sub-sector 2015 2014 NFI by type Infrastructure Group £54.8m Energy £54.5m Matchtech Automotive £45.3m £45.0m Aerospace Networkers £9.5m Maritime £9.5m General Engineering 2015 Contract NFI: 73% Permanent Fees: 27% General Engineering 2014 Contract NFI: 73% Permanent Fees
Slide 12: Engineering
Engineering NFI by sub-sector 2015 2014 NFI by type Infrastructure £10.4m £8.0m Automotive £4.3m £4.3m Energy £3.8m £4.7m General Engineering £3.6m £3.8m Aerospace £3.4m £3.5m Maritime £3.2m £2.8m 2015 Contract NFI: 80% Permanent Fees: 20% 2014 Contract NFI: 83% Permanent Fees: 17% 12
Slide 13: Engineering growth drivers
Engineering growth drivers Infrastructure Maritime Energy Clients busy on UK Projects UK defence remains strong Global Oil & Gas market - Bidding out for HS2 - Type 26 Frigate remain deflated - Aberdeen western bypass - Successor Submarine Downstream petrochemical - Smart motorways M6 & M3 Internati
Slide 14: Professional Services
Professional Services NFI by sub-sector 2015 2014 NFI by type Technology £11.2m £11.7m Professional Staffing £4.0m £4.0m London £1.5m £2.3m Aerospace Marine General Engineering 2015 Contract NFI: 60% Permanent Fees: 40% 2014 Contract NFI: 53% Permanent Fees: 47% 14
Slide 15: Professional Services growth drivers
Professional Services growth drivers IT Professional Skills Corporate accounts Transformation projects Increasing skills shortages NHS framework - shared service department require a greater number of - cost reduction candidates to be trained Industry 4.0 – the evolution - leaner support functions o
Slide 16: Networkers
Networkers NFI by sub-sector 2015 2014 NFI by type Telecoms £4.6m £4.4m IT £3.3m £3.6m Energy £1.6m £1.5m Aerospace Marine General Engineering 2015 Contract NFI: 74% Permanent Fees: 26% 2014 Contract NFI: 72% Permanent Fees: 28% 16
Slide 17: Networkers growth drivers
Networkers growth drivers Telecoms IT Energy Convergence of Growth markets big data, Construction of 9 offshore technologies within mobile cloud technologies and wind farms planned in 2016 telecoms and IT, utilising 4G digital media Many wind farms globally networks Core markets in ERP, moving out o
Slide 18: New Group Business Balance
New Group Business Balance1 55% Engineering 25% IT 20% Telco 70% Contract 30% Permanent 30% Framework 45% PSL 25% Contingent 70% UK 30% Overseas 1 Based on annualised net fee income for the year to 31 July 2015 18
Slide 19: New Group Overview
New Group Overview 1 Source: Recruitment International Top 500 Report 2015 19
Slide 20: 2016 key opportunities
2016 key opportunities Rolling out Engineering services internationally Strengthening business development to generate more major account business Combining Networkers contingency sales success with Matchtech’s strong major account management Leveraging relationships by mobilising internal talent in
Slide 21: Outlook
Outlook 2016 financial year has started well, in-line with management expectations Selected consultants moving to international offices to accelerate growth Good business development pipeline and encouraging signs from initial joint bids Larger scale relationships, across geographies and disciplines
Slide 22: Appendices
Appendices
Slide 23: Our purpose
Our purpose Engage our staff Delight our clients Promote our candidates Within the top 5% of Going the extra mile The relationship benchmark group Engagement score of ‘You get us’ Specialist 90% 91% completed staff Market intelligence Personalised approach engagement survey 23
Slide 24: Our 2017 strategy
Our 2017 strategy Sharpen Invest in Greater scale Go-to recuiter attractive yet even more in our chosen our focus markets specialist markets Move up Place higher Work with Charge right level clients who price for value chain candidates value service quality service Think Attract International Follow
Slide 25: Our 2017 vision
Our 2017 vision Market leading specialist recruiter Employer of choice Best partner to clients & candidates Rapidly developing international business Premium stock for investors 25
Slide 26: Our Investment proposition
Our Investment proposition Well Balanced Established Specialist Broad client relationships Strong track record of Niche sector expertise and business mix organic NFI and profit growth Flexible Resilient Committed funding Efficient systems and high Contract business model Facilities of £95m operation
Slide 27: International opportunities
International opportunities Country / Region South Africa Europe non Singapore Malaysia Canada Mexico Dubai Qatar China Division Sector Subsector USA UK Aero OEM/Supply chain Manufacturing Support P P P Aero Airline/Supply chain Airline / maintenance P P Aero Airline/Supply chain Retrofit / modifica