Straker Ltd · ASX:STG
Straker — Investor Presentation (November 2021)
13 slides from Straker's investor presentation, Nov 25, 2021
Slide 1: H1 FY22 Presentation
TIMELINE Straker STG:ASX H1 FY22 Presentation 25 Nov 2021 1
Slide 2: H1 Financial Highlights
H1 Financial Highlights 1H: A period of strong organic growth and margin expansion has set a strong platform as we head towards our aspirational $100m revenue target 57% 73% $18m +500bp 60% Revenue Growth Gross Pro t Growth Cash at bank Gross Margin Growth FY22 Revenue Growth* 24 14 20 56 50 $23.3m
Slide 3: Business now set to scale
Business now set to scale Revenue and sta As we head towards our aspirational goal of $100m in revenue we do not expect our headcount or operating costs to increase at the same rate as our revenue. 50 Revenue (NZD Millions) 37.5 Revenue aspirational target Sta 100 25 75 Revenue (NZD Millions) 12.5 3
Slide 4: Successful acquisitions through a portfolio approach
M&A To date Straker has made 8 successful acquisitions, when you take a portfolio approach and look at all 8 acquisitions in total the strategy has been a very successful one for growth and contribution back to the Group 16% 0.57x 270bp Revenue Growth Revenue Multiple Margin uplift Revenue across al
Slide 5: M&A outlook and criteria
M&A • The market remains very active for M&A and we are in advanced discussion with several opportunities. • We remain confident we will close at least one more M&A this financial year and we have a strong balance sheet to support our negotiations. Our M&A Criteria • Material revenue contribution to
Slide 6: IBM update
IBM update The IBM global deal remains a major focus as we continue to onboard content. In April we gave an indication of how we were tracking with regards to onboarding content in word volumes from IBM. You can see from our The link below is an interview done with IBM Globalisation Executive H1 res
Slide 7: SaaS Progress
SaaS Progress We are continuing to work on our RAY SaaS project as reported in our September technology showcase. We have underlying SaaS revenue of $5m through our Lingotek TMS platform and see an opportunity to grow our SaaS revenue though advanced features and usage based pricing in RAY. Our aim
Slide 8: Financial Performance
Financial Performance • Revenue growth of 57% YOY (68% constant currency) driven by organic growth and the acquisition of Lingotek. • Gross Margin % up 500 basis points, driven by continuing e ciencies in the translation process and the addition of higher margin subscription revenue from Lingotek. •
Slide 9: Financial Position
Financial Position 30-Sep 31-Mar 2021 2021 $’000 $’000 • Cash bolstered by capital raise in June of A$25m (NZ$25.8m net) less repayment of $8.4m in loans. Cash and cash equivalents 18,205 7,175 Trade receivables 8,633 5,752 Other assets and prepayments Total Current Assets 3,382 30,220 3,074 16,001
Slide 10: Cash Flow
Cash Flow • Receipts from customers were up 38% to $20.3m re ecting revenue growth and customer payment terms. • Increased other operating cash out ows re ects an increased investment in on-boarding a major client (IBM), investment in sales and marketing initiatives, and the addition of Lingotek to
Slide 11: Continued delivery on plans
Continued delivery on plans IPO indication Actual 50 COM Revenue (NZD Millions) On Global NZTC Lingotek 37.5 Spain/USA Spain NZ USA 25 2019 2019 2020 2021 12.5 At our IPO in 2018 we indicated the market was ripe for consolidation 0 and we would continue to make acquisitions and get consolidation and
Slide 12: Q&A Session
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Slide 13: Contact
Contact: CEO - grant@straker.com.au CFO - david.ingram@straker.com.au STG:ASX 13