Gattaca Plc · LSE:GATC
Gattaca — FY2012 Earnings Presentation
30 slides from Gattaca's earnings presentation, October 2012
Slide 1: Preliminary Results for the year to 31 July 2012
Preliminary Results for the year to 31 July 2012 Adrian Gunn – Chief Executive Officer Tony Dyer – Chief Financial Officer October 2012
Slide 2: Headlines
Headlines • Growth in Revenue, NFI and Profit • Unprecedented demand supplying contractors to UK clients with: +23% Revenue £371.4m • Global demand for their services • Multi-year engineering infrastructure projects in the UK • Permanent Fees up 22%, but demand level throughout year +21% NFI £36.1m
Slide 3: Results & Group Performance
Results & Group Performance 3
Slide 4: Income Statement
Income Statement Year to 31 July 2011 2012 Increase £m £m Revenue 301.8 371.4 +23% Contract NFI 20.4 24.6 +21% Contract gross margin (%) 7.0% 6.8% Permanent Fees 9.4 11.5 +22% Gross profit (NFI) 29.8 36.1 +21% Gross margin (%) 9.9% 9.7% Operating overheads (23.0) (27.4) -19% Profit from operations 6
Slide 5: Half Year Splits
Half Year Splits Year to 31 July 2011 H1 2011 H2 FY 2011 2012 H1 2012 H2 FY 2012 £m £m £m £m £m £m Revenue 141.1 160.7 301.8 176.7 194.7 371.4 Contract NFI 9.5 10.9 20.4 11.6 13.0 24.6 Contract gross margin (%) 6.9% 7.0% 7.0% 6.8% 6.9% 6.8% Permanent Fees 4.1 5.3 9.4 5.6 5.9 11.5 Gross profit (NFI)
Slide 6: Earnings per share & Dividends
Earnings per share & Dividends Year to 31 July 2011 2012 Change Profit after tax £million 4.7 5.7 +21% Average shares in issue million 23.4 23.4 +0% Shares under option million 0.6 0.8 +33% Fully diluted shares million 24.0 24.2 +1% Earnings Per Share Basic pence 20.3 24.3 +20% Diluted pence 19.7 23
Slide 7: Statement of financial position
Statement of financial position Year to 31 July 2011 2012 £m £m Non-current assets Tangible 1.7 2.1 Intangible 0.1 0.5 Current assets Trade debtors 55.8 62.1 Other debtors 0.7 0.6 Cash1 0.5 0.6 Total assets 58.8 65.9 Liabilities Trade & other creditors (17.2) (23.2) Invoice discounting facility 2 (1
Slide 8: Cashflow
Cashflow Year to 31 July 2011 2012 £m £m Profit from operations 6.8 8.7 (Increase) in trade debtors (15.3) (6.2) Increase in trade creditors & provisions 2.8 5.5 Non-cash items: Depreciation & amortisation 0.5 0.7 Share based payment charge 0.3 0.5 Cash inflow from operating activities (4.9) 9.2 Cas
Slide 9: Contract Activity
Contract Activity 8,000 £0.52m £0.49m £0.47m £0.5m 7,000 £0.43m £0.43m £0.42m 6,700 £0.40m £0.40m 6,400 6,000 £0.4m 6,000 5,000 5,200 5,100 £0.3m 4,700 4,620 4,440 4,400 4,400 4,390 4,000 3,850 3,000 3,430 £0.2m 3,150 3,070 2,900 2,000 £0.1m 1,000 0 £- 2009 H1 2009 H2 2010 H1 2010 H2 2011 H1 2011 H2
Slide 10: Permanent Activity
Permanent Activity 7,000 £0.24m £0.23m £0.22m 6,000 £0.21m £0.2m £0.17m 5,000 £0.12m £0.12m £4,500 4,000 £4,200 £4,200 £0.07m £4,000 £0.1m £3,900 £3,800 £3,700 £3,600 3,000 2,000 £- 1,335 1,300 1,250 1,000 1,190 1,020 860 810 785 0 (£0.1m) 2009 H1 2009 H2 2010 H1 2010 H2 2011 H1 2011 H2 2012 H1 2012
Slide 11: Performance over last 10 years
Performance over last 10 years £40m £400m £35m Net Fee Income £350m Profit from operations £30m Revenue £300m £25m £250m £20m £200m £15m £150m £10m £100m £5m £50m £- £- 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 NFI conversion % 34% 34% 36% 40% 40% 42% 39% 34% 23% 24% 11
Slide 12: Business Review
Business Review 12
Slide 13: New reporting structure for FY2012/13
New reporting structure for FY2012/13 Engineering Professional Services • Aerospace • Professional Services • Automotive • Skills & Employability • Energy • Technology • Infrastructure • Marine • Science TECHNOLOGY 13
Slide 14: Engineering
Engineering Infrastructure Energy Aerospace Automotive Marine Science Other 14
Slide 15: Engineering
Engineering Performance 2011 2012 Change (£m) (£m) % Revenue 224.3 266.6 +19% • Strong top line growth in both contract and perm fees Contract NFI 15.2 17.9 +18% Contract gross margin (%) 6.9% 6.8% Permanent Fees 4.0 4.5 +13% • Profit from operations impacted Total NFI 19.2 22.4 +17% by: Gross margi
Slide 16: Market Dynamics
Market Dynamics Aerospace • Growth Drivers Global demand for more fuel efficient commercial aircraft is creating unprecedented levels of recruitment activity across all the Engineering skills types in both development and production. • Key Clients Eaton Aerospace, Hyde Group, AgustaWestland, Claverh
Slide 17: Market Dynamics
Market Dynamics Energy (Oil & Gas, Nuclear & Renewable) • Growth Drivers Global demand for Engineering talent in Oil & Gas (especially with offshore experience) is driving up margins and pay rates in the UK. Our advanced service delivery capability is providing us with the tools to outperform our ma
Slide 18: Market Dynamics
Market Dynamics Marine • Growth Drivers The QEC programme is creating a high demand for shipbuilding contractors both design & build. The demand for Engineers will remain high as the Type 26 Frigate and Successor Submarine programmes move into the detailed design stage. • Key Clients BAe Shipbuildin
Slide 19: Professional Services
Professional Services Technology Professional Services Education 19
Slide 20: Professional Services
Professional Services Performance 2011 2012 Change (£m) (£m) % Revenue 77.5 104.5 +35% • Very strong top line growth in Technology both contract and perm fees Contract NFI 5.2 6.7 +29% Contract gross margin (%) 6.9% 6.8% Permanent Fees 5.4 7.0 +30% • Profit from Services Professional operations incr
Slide 21: Market Dynamics
Market Dynamics Barclay Meade (Professional Services) • Growth Drivers We continue to win market share from competitors as the brand gains recognition and our client relationships mature. Our premium pricing model is being maintained as we build upon our reputation as a niche provider. • Niche Marke
Slide 22: Market Dynamics
Market Dynamics Information Systems & Technology (Technology) • Growth Drivers The convergence of technology, as Embedded Electronic Engineering and Business Application Software share more common platforms, the cross over of candidates within these industries is now very common, creating a gap in t
Slide 23: Business Model
CANDIDATES CLIENTS 23 ame Sulppy | BulAyisuanig | SumalD Sa
Slide 24: Business Plan: Key Aims
Business Plan: 7 Key Aims KPI Description 2012 Progress 2013 Objectives Building on our early Consolidation of the To scale up and make all Expanding sector diversification success, looking to existing sector teams existing core teams and geographical reach grow new sectors and strategic UK location
Slide 25: Outlook
Outlook • Skills shortages driving unprecedented demand for contract staff in our markets • Diversification strategy is broadening client base allowing us to take market share • Trading remains in line with the Board’s expectations since year end • Contractor numbers still growing, up 2% since year
Slide 26: Investment Summary
Investment Summary • Well balanced Broad spread of clients relationships and business mix • Established Strong track record of organic NFI and profit growth • Specialist Niche sector expertise • Flexible Efficient systems and high operational flexibility • Resilient Contract business model, committe
Slide 27: Appendices
Appendices 27
Slide 28: Previous Reporting - 2011
Previous Reporting - 2011 Built Science & Matchtech 2011 Eng'ering Environ't IS&T Medical Matchtech Germany Professn'l elemense Group Performance (£m) Revenue 139.0 65.4 57.2 7.0 268.6 1.7 19.4 12.1 301.8 Contract NFI 8.6 4.6 3.3 0.8 17.3 0.5 1.4 1.3 20.5 Contract gross margin (%) 6.3% 7.1% 6.1% 13.
Slide 29: Previous Reporting - 2012
Previous Reporting - 2012 Built Science & Matchtech 2012 Eng'ering Environ't IS&T Medical Matchtech Germany Professn'l elemense Group Performance (£m) Revenue 165.3 77.9 81.2 9.0 333.4 3.1 23.3 11.6 371.4 Contract NFI 10.0 5.1 4.7 0.9 20.7 0.7 1.5 1.7 24.6 Contract gross margin (%) 6.1% 6.6% 6.0% 11
Slide 30: Disclaimer
Disclaimer The information in this presentation pack which does not purport to be comprehensive has been provided by Matchtech, and has not been independently verified. While this information has been prepared in good faith, no representation or warranty, express or implied, is or will be made and n