Advtech Limited · JSE:ADH
Advtech — H1 2004 Earnings Presentation
20 slides from Advtech's earnings presentation, August 2004
Slide 1: Results for the 6 months ended 30 June 2004
Results for the 6 months ended 30 June 2004
Slide 2: Interim Results – 2004
Interim Results – 2004 If you are planning for a year, sow rice; if you are planning for a decade, plant trees; if you are planning for a lifetime, educate people. Chinese proverb
Slide 3: Key Financial Highlights – 2004
Key Financial Highlights – 2004 HEPS +47% Operating margin up to 9.6% (2003: 8.4%) and continuing operating margin up to 10.7% (2003: 9.9%) Fees received in advance +36% Net asset value per share +23% Net gearing reduced to 4.5% from 34.7% and net interest paid reduced by 80% The excellent results p
Slide 4: Operational Review - 2004
Operational Review - 2004 Fourth consecutive period of sustained growth Strong performance from the Education division Significant improvement in the Resourcing division’s results Funding mismatch addressed Improvement in working capital management
Slide 5: Operational Review - 2004
Operational Review - 2004 Reduction in litigation costs Taxation charge in line with increased headline earnings Closure of Bond South Africa announced Construction commenced on 3 new campuses (in Gauteng and Natal) Appointment of new Group Financial Director (John Deeb)
Slide 6: Financial Performance
Financial Performance Salient Financial Information for the 6 months ended 30 June HEPS (cents) NAV Per Share (cents) 6 70 5 60 50 4 2001 2001 40 3 2002 2002 30 2003 2003 2 2004 2004 20 1 10 0 0 2001 2002 2003 2004 2001 2002 2003 2004 Continuing Revenue (R'000) Continuing EBITDA (R'000) 300,000 45,0
Slide 7: Segmental Performance
Segmental Performance Segmental information for the 6 months ended 30 June Education Revenue (R'000) Resourcing Revenue (R'000) 250,000 140,000 120,000 200,000 100,000 150,000 80,000 100,000 60,000 40,000 50,000 EBITDA Margin % 20,000 0 0 2001 2002 2003 2004 25% 2001 2002 2003 2004 20% 15 % 10 % Edu
Slide 8: Cash Flow Performance
Cash Flow Performance Key cash flow information for the 6 months ended 30 June 90,000 80,000 70,000 60,000 2001 50,000 2002 40,000 2003 30,000 2004 20,000 10,000 0 Cash generated by Working capital changes Cash generated from operations operating activities
Slide 9: Capex
Capex Capital commitments R’000 Remainder of current year 20 657 Future years 27 143 47 800 Comprising: - Buildings on 3 new campuses (1 owned, 2 leased) 35 000 - Furnishing/equipping of new campuses + normal ongoing operational capex for the group 12 800 • To be funded out of internal cash resource
Slide 10: Report Card
Report Card 2003 Year-end Strategy: • Addressing the Bond University relationship Announced the wind-up of Bond SA • D Improved results from Recruitment E S 30% improvement in operating profit • A S Restructuring completed – focus on growth and expansion P 4th Abbotts (1st in Gauteng) opened and wor
Slide 11: JSE Statistics
JSE Statistics Share Price graph for past 12 months: JSE Sector: Cyclical Services – Support Services Market Cap (3 Aug 2004) = R342,5m (3 Aug 2003 = R169,3m) (3 Aug 2002 = R146.8m) Share Liquidity graph: Average Shares Traded per Month # of shares in issue – 393 664 886 4,000,000 3,000,000 PE Multi
Slide 12: Shareholder Analysis
Shareholder Analysis Analysis of Major Shareholders (>5%) at 30 June 2004: Shareholder Percentage Praxis Private Equity 15.4 Old Mutual 11.0 AdvTech Share Incentive Trust 10.2 Welihockyj Interests 7.3 BD Buckham 7.2 Network Healthcare Holdings Ltd 6.7 Sanlam 5.8 Other 36.4 Total (±3 000 registered s
Slide 13: Divisional Review - Education
Divisional Review - Education Schools Schools Tertiary Tertiary • Junior College (20) • Varsity College (7) • Crawford (22) • Rosebank College (4) • Abbotts (4) • College Campus (2) • Vega (2) • Bond South Africa (1) Enriching Human Capital …
Slide 14: Education – State of Play
Education – State of Play Revenue from continuing operations up 15% to R242 million Operating profit from continuing operations up 8% to R48 million Strong performance from schools (Crawford) and tertiary (Varsity College, Rosebank College and Vega) due to increased enrolments New Abbotts College on
Slide 15: Education – State of Play
Education – State of Play Construction commenced on 3 new sites in Gauteng and Natal Strong annuity nature of revenue stream Approximately 24 000 students across South Africa “Education, training and skills development are key foundations of social and economic progress, and preconditions for addres
Slide 16: Divisional Review - Resourcing
Divisional Review - Resourcing Brent Cassel Communicate Insource Kapele Network IT √ √ √ Finance/Logistics √ √ √ √ √ Sales/Marketing √ √ Engineering √ √ Office Support √ Executive Search √ Temps/Contracting √ √ √ Call Centre √ √ Exploiting Human Opportunity …
Slide 17: Resourcing – State of Play
Resourcing – State of Play Revenue from continuing operations up 3% to R35 million Operating profit from continuing operations up 30% to R4.5 million Delivered 12 months of improved performance Well established brands with proven track records Market leader in permanent IT recruitment Ranked in the
Slide 18: Growth Strategy
Growth Strategy At Group IC level G ATE R ST TBA At Divisional level I ON ANS P At Campus EX 1st Abbotts in Gauteng level IC opened in 2004 N GA Work commenced on 3 new OR Enrolments up sites approx. 10% in 2004
Slide 19: Outlook & Prospects
Outlook & Prospects Education: Focus on growing core Education brands Increased enrolments = Improved contribution to HEPS for full year (Bond closure costs fully provided for) Resourcing: Re-organisation concluded Market showing signs of improvement Improved results for the full year OVERALL = Expe
Slide 20: Questions
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