Mcs Services Limited · ASX:MSG
Mcs Services — Shareholder Meeting (November 2016)
24 slides from Mcs Services's shareholder meeting presentation, Nov 28, 2016
Slide 1: Chairman Address and CEO Presentation
28 November 2016 Australian Securities Exchange (ASX) Level 40, Central Park For personal use only 152-154 St George’s Terrace Perth WA 6000 Chairman Address and CEO Presentation MCS Services Limited (ASX: MSG) (MCS or the Company) is pleased to provide the enclosed Chairman’s Address and CEO Presen
Slide 2: Chairman's Address – 2016 AGM of Shareholders
CHAIRMAN’S ADDRESS – 2016 AGM of Shareholders 2016 was an exciting and challenging For personal use only year for MCS Services as it realised its vision of transforming from a mining and exploration organization (as Redgum Resources Limited) into one of Western Australia’s leading security providers
Slide 3: Highlights
capacity to expand through organic growth, and a focused acquisition strategy, to broaden, grow and consolidate our place in providing security across Western Australia and all other Australian States and Territories. For personal use only HIGHLIGHTS: The Company has fulfilled the principal objectiv
Slide 4: Summary and Outlook
What these Highlights emphasize is our determination to build and grow MCS Services into the company of choice in the Security Sector. Our Vision supports this and our mission will pursue it for and on behalf of all shareholders. For personal use only SUMMARY AND OUTLOOK 2016 has been a transformati
Slide 5: For personal use only
Similarly, the Event and Sports security and management area is flagging expansion, with increased activities and proposed State based teams in all major codes, particularly in women’s sports. More games mean more demand for security and with opportunities around the future opening of the new Perth
Slide 6: For personal use only
Finally, I would like to thank our Chief Executive Officer Paul Simmons, his senior management team, each and every one of our valued employees and my current fellow Director, Mr. Josh Puckridge. For personal use only Sincerely, The Hon. RC (Bob) Kucera, APM JP
Slide 7: CEO Address – Introduction
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 our first AGM as a listed security company. I would like to firstly thank our Chairman, The Hon Bob Kucera, for his ad
Slide 8: For personal use only
Thirdly, Healthcare providers are increasingly recognising the need for on-site security – particularly on wards treating patients presenting with the effects of drugs and alcohol. Further, we are in acquisition discussions with a Retail security business in the Eastern States which provides concier
Slide 9: Looking at the immediate future
Looking at the immediate future: We are now moving into the 2nd half of the year which is always our highest generating period due to extended Christmas trading hours, Easter trading and summer Events and sports; Our trial period with a Local Council in Perth seeking to address social issues on
Slide 10: Onwards
ONWARDS I thank all our Guards and head office staff for their tireless work this year. And my senior management team for focussing on driving the business forward for the benefit of For personal use only shareholders, employees, clients and partners. I would like to take this final opportunity to t
Slide 11: Exceeding Client Expectations – CEO Presentation
For personal use only ASX: MSG Exceeding Client Expectations CEO Presentation of the 2016 Annual General Meeting of Shareholders
Slide 12: Disclaimer
Disclaimer For personal use only This Document is a presentation of general background information about the activities of MCS Services and related entities (“MCS”) current at the date of presentation and does not purport to be complete or contain all information which its recipients may require in
Slide 13: Corporate Structure
MCS Services Limited: Corporate Structure For personal use only Board of Directors Corporate Snapshot Chairman Bob Kucera ASX Code MSG Non Executive Director Josh Puckridge Share Price $0.03.5c (25/11/16) Number of shares on Issue 201 million Senior Management Market Capitalisation $7m CEO Paul Simm
Slide 14: FY16 Group Results
MCS Services Limited: FY16 Group Results For personal use only FY16 $’m Revenue - Security 11.83 Underlying EBITDA - Security 0.81 Underlying EBITDA – Corporate / Other (0.56) Depreciation / Amortisation - Security (0.14) Depreciation / Amortisation - Other (0.57) Impairments / Writedowns / Consider
Slide 15: FY2015 v FY2016 Segment Results
MCS Security / Intiga: FY2015 v FY2016 Segment Results For personal use only Revenue up 7% year-on-year Comparison: 12 month periods FY16 results as shown include 20 unaudited pre-transaction data for 18 July-Oct 2015. 16 FY16 gross margin and EBITDA impacted by (once every 3 years) 14 Guard-p
Slide 16: Results since acquisition Nov 2015
MCS Security / Intiga: Results since acquisition 1 Nov 2015 For personal use only Dec ‘15 March ‘16 June Total Sept Balance Rolled Note (2 $’m ‘16 FY16 (8 ‘16 FY17 FY17 (12 months) $’m months) $’m $’m months) $’m $’m $’m Actual Actual Actual Actual Actual Forecast Forecast Revenue - Retail 2.82 4.00
Slide 17: Competitive Strengths
MCS Security: Competitive Strengths For personal use only Market/Customers: Employees: • Leader in the Perth retail / events market • Direct employee model, few sub-contractors • Strong existing client base, blue chip customers • Compliance, training and recruitment • Long-term contracts • Large sta
Slide 18: Existing Market Segments and Selected Clients
MCS Security: Existing Market Segments and Selected Clients For personal use only Geography Retail & Other Sports/ Events
Slide 19: Strategic Growth
Strategic Growth: Oil and gas, mining, eastern states, ancillary services For personal use only Organic growth: Organic growth: Pipeline of new work and renewals Reputation and scale: Mining, Oil & Gas, Retail, Industrial, Commercial, Able to tender for large retail, sports, health care and even
Slide 20: Strategy Rationale
Strategy Rationale For personal use only Fragmented Market Diversification Financial Returns • Operators seeking benefits of • Diversified end-user • Recurring revenue base and solid larger group or succession • Diversified sector: retail, growth planning sports, events, healthcare, • Long term cont
Slide 21: Currently Under Review
Currently Under Review For personal use only • WA-based, family owned Port / • Forecast $2m pa turnover, incl 2 recently awarded long-term contracts. Pipeline potential Industrial • Forecast $350k EBITDA after integration into existing MCS processes and retaining Vendor as Manager Security • Prelimi
Slide 22: Strategy Timeline
Strategy Timeline For personal use only • Merger of MCS and Intiga businesses 2015 • ASX Listing • MCS / Intiga operational integration • Assess potential acquisition targets: 2016 • marine/ ports sector • Eastern States retail / events • Organic Growth: • Retail, Healthcare, Government, Oil & Gas,
Slide 23: Summary and Outlook
Summary and Outlook For personal use only FY16 Achievements • MCS and Intiga operational merger, including staffing, management and head office • All customer contracts maintained • Aiming to build robust balance sheet to further fund growth and acquisitions • Ready to declare maiden dividend Outloo
Slide 24: Contact Details
For personal use only Contact Details: Chief Executive Officer: Paul Simmons Chief Operating Officer: John Boardman Chief Financial Officer: Mark Englebert Tel (08) 93012420