Hitech Group Australia Limited · ASX:HIT
Hitech Group Australia — Investor Presentation (January 2019)
21 slides from Hitech Group Australia's investor presentation, Jan 25, 2019
Slide 1: Corporate Presentation (ASX Code: HIT)
For personal use only Corporate Presentation (ASX Code: HIT) 25 JANUARY 2019
Slide 2: Consistent track record is being rewarded in share price
Consistent track record is being rewarded in share price…. For personal use only Volume A$/share in “000 2.00 Share Price Volume 350 1.50 Historical price movements for the past 3 years 300 250 200 HIT Market Cap 1.00 reached 150 A$43M in Aug 100 2018 0.50 50 0.00 0 26-Jan-16 26-Apr-16 26-Jul-16 26-
Slide 3: HiTech overview
HiTech overview For personal use only • 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 gener
Slide 4: Key Investment Considerations
Key Investment Considerations For personal use only 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 i
Slide 5: Investment highlights – Investor proposition
Investment highlights – Investor proposition For personal use only - 4 cents per share fully franked dividend declared in 2H FY2018, bringing total dividends for the last 12 months to 8 cents per share fully franked Dividends - Annualised gross dividend yield of ~12% at the current share price of $0
Slide 6: A simple Tier growth strategy
A simple 2 Tier growth strategy For personal use only - On-boarding of new clients Organic Growth - Enhance the service offering provided to existing clients by providing a broader suite of recruitment and ICT consulting solutions in addition to base contracting agreements - Expand the company’s ICT
Slide 7: Australian ICT industry overview
Australian ICT industry overview For personal use only A$ BN 25 23.40 2019 2023 20 19.40 15 10 5 0 IT Services • Driving the growth will be organisations performing a digital transformation, with IT services providers increasingly expected to take on the role of a business transformation consultant
Slide 8: Australian ICT industry - core future themes
Australian ICT industry - core future themes For personal use only • “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
Slide 9: HiTech’s client focus aims to meet evolving needs across…
For personal use only 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 Procu
Slide 10: HiTech FY2018 results highlights - Revenue
HiTech FY2018 results highlights - Revenue For personal use only 2015 2016 2017 2018 A$ M 30 26.38 25 23.32 20 18.26 15.04 15 10 5 0 Revenue • FY2018 Revenue up 13% driven by growth in contracting and permanent placement revenue • FY2018 is the company’s fourth consecutive year of double digit growt
Slide 11: HiTech FY2018 results highlights - EBITDA
HiTech FY2018 results highlights - EBITDA For personal use only 2015 2016 2017 2018 A$ M 5 4 3.81 3.43 3 2.19 2 1.35 1 0 Underlying EBITDA • Underlying EBITDA continues to grow steadily with a 13% increase over the FY2017 results 11
Slide 12: HiTech FY2018 results highlights - NPAT
HiTech FY2018 results highlights - NPAT For personal use only A$ M 2015 2016 2017 2018 4 3 2.68 2.41 2 1.59 1 0.81 0 Underlying NPAT • A 2nd half dividend for FY2018 of 4 cents fully franked was paid on 12 September 2018, which if annualised, equates to a 11.9% gross yield⁽¹⁾ • FY2018 Underlying NPA
Slide 13: Strong Balance Sheet and financial discipline
Strong Balance Sheet and financial discipline For personal use only ⁽1⁾ Net Debt A$ M 0 -1 -2 -1.84 -3 -4 -4.41 -5 -5.21 -6 -5.94 -7 2015 2016 2017 2018 HiTech is a resilient and strong company with a robust balance sheet and no debt and cash balance of $5.86M which is unique in the industry ⁽1⁾ Net
Slide 14: Specialised client service with a winning formula for success
Specialised client service with a winning formula for success For personal use only • 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 Di
Slide 15: The HiTech Ethos
The HiTech Ethos For personal use only • 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
Slide 16: HiTech revenue breakdown
HiTech revenue breakdown For personal use only 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 wi
Slide 17: Stable client base – majority are Federal Government clients
Stable client base – majority are Federal Government clients For personal use only 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 Fe
Slide 18: HiBase - proprietory, predictive database of ICT talent
HiBase - proprietory, predictive database of ICT talent For personal use only • 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
Slide 19: Overcoming any technology and competitor disruptions
Overcoming any technology and competitor disruptions For personal use only • 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 •
Slide 20: Contact information
Contact information For personal use only 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 For personal use only 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 an
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