Smart Parking Limited (ASX:SPZ)
FY24
Results
26 August 2024
CEO Paul Gillespie
smartparking.com
FY24 Highlights
Revenue of $54.31m up | Adjusted EBITDA | |||
21% | $14.7m2 up | |||
28%2 | ||||
* Compared to PCP | * Compared to PCP | |||
1,424 | Adjusted free cash | |||
Total flow of $12.2m3 up | ||||
up 28% sites | 40% | |||
* As at 30 June 2024 compared to PCP | * Compared to PCP |
1 Excludes $0.1m of revenue from Denmark and interest income of $0.2m
2 Excludes $0.6m investment in new Denmark market, $0.2m investigating new territories and other non-operating/non-recurring items 3 Excludes Denmark investment and exceptional costs
Adjusted EBITDA
margin of 27% up
150bps
* Compared to PCP
Cash of
$7.2m
* As at 30 June 2024
FY24 Results Presentation | smartparking.com | PAGE 2
CEO Observations
- Disciplined execution of strategy delivers continued growth
- 21% revenue growth, 27% adjusted EBITDA margin
- Adjusted free cashflow up 40%1
- Strong organic growth in the UK, NZ and Germany complemented by 2 acquisitions (Germany & UK)
- Building scale in new territories, Denmark operations commenced January 2024
- July 2024 revenue of $5.5m up 34% on PCP, a record month
- Ongoing research in new markets including Europe and USA
- Balance sheet capacity to self-fund ongoing organic growth, and complementary acquisitions
1 excludes non-operating/non-recurring items and Denmark investment
Record FY24 results
Delivering Record results |
Total Group ANPR sites | 1,424 |
1,112 | |
839 | |
619 | |
496 | |
389 | |
286 |
Sites at | Sites at | Sites at | Sites at | Sites at | Sites at | Sites at |
30 June 2018 | 30 June 2019 | 30 June 2020 | 30 June 2021 | 30 June 2022 | 30 June 2023 | 30 June 2024 |
Growth strategy - FY24
| Leveraging core technology and capability in new territories
NEW
UK | NZ | Australia (QLD)1 | Germany | Denmark |
GROWTH IN | 1,124 total sites | 162 total sites | 71 total sites | 67 total sites |
ANPR SITES | 21% up on PCP | 93% up on PCP | 0% up on PCP | 148% up on PCP |
GROWTH | 14% up on PCP | 70% up on PCP | 89% down on PCP | 477% up on PCP |
IN PBNs | ||||
- Business established in January 2024
- Sales team and operations structure in place
- First 11 contracts secured and revenue being generated
REVENUE | 43,985 | 4,572 | 70 | 2,790 | 109 |
($000s) | 21% up on PCP | 56% up on PCP | 95% down on PCP | 519% up on PCP | |
TAM | 45,000 sites | 3,000 sites | 2,000 sites | 90,000 sites | 10,000 sites |
1 Technology enforcement currently paused |
FY24 Results Presentation | smartparking.com | PAGE 4
FY24 business update
| Record results, expanding market opportunities to accelerate growth.
FINANCIALEXPANSION
OUTLOOK
-
Record results -
Revenue $54.31m and Adjusted EBITDA $14.7m2. Adjusted EBITDA margin of 27%2. - Strong FY24 with contributions from all regions with revenue growth compared to PCP of: UK: 21%, NZ: 56%, Germany: 519%
- Record free cashflow of $12.2m up 40% on PCP.
- Cash of $7.2m after spending $7.7m on 2 acquisitions, $4.2m on investment in organic expansion and $1m on repayment of borrowings.
- Advanced negotiations to establish debt facilities to fund international expansion and complementary M&A.
- Completed 2 new acquisitions in Germany and UK whilst expanding into the new territory of Denmark.
- 1,424 total group ANPR sites under management as at 30 June 2024, up 28% on PCP.
- Focused on accelerated commercial growth in Germany and New Zealand, with key enterprise contract wins as sales team gains traction.
- Continuing to scale the core business in the UK with a broad base of new business wins.
- Denmark Parking Services business established in January 2024 and generating revenues, first 11 contracts signed and 5 sites installed and generating PBN revenue.
-
Positive outlook for further profitable growth in FY25 - on track to exceed 1,500 sites under management ahead of December
2024 target date. - Continuous and disciplined execution of site expansion plans in large addressable markets.
- Ongoing portfolio optimisation to increase yields.
- Continuing to leverage proprietary market leading technology and deep domain expertise to facilitate industry change away from archaic and legacy systems.
- Integration of Local Parking Security, recent UK acquisition.
- Scope for further accretive acquisitions across all territories with conversion opportunities to SPZ platform.
- Cash to fund growth, technology investments and complementary acquisition opportunities.
1 Excludes $0.1m of revenue from Denmark and interest income of $0.2m
2 Excludes $0.6m investment in new Denmark market, $0.2m investigating new territories and other non-operating/non-recurring items
FY24 Results Presentation | smartparking.com | PAGE 5
FY24
Financial
Update
FY24 Results Presentation | smartparking.com | PAGE 6
FY24 business update
| Balancing growth and investments.
$m's | FY24 | FY23 | FY24 vs FY23 |
Revenue (excluding interest revenue) | 54.3 | 45.1 | 21% |
Cost of Sales | (16.8) | (13.9) | (21%) |
Gross Profit | 37.5 | 31.2 | 20% |
Overheads | (22.8) | (19.7) | (16%) |
Adjusted EBITDA1 | 14.7 | 11.5 | 28% |
Foreign exchange gains/(losses) | (0.2) | 1.2 | (121%) |
Other Non-operating/Non-recurring items | (0.7) | (0.5) | (33%) |
Denmark and new territory investigation | (0.8) | - | - |
EBITDA | 13.0 | 12.1 | 7% |
Depreciation and amortisation | (7.0) | (5.4) | (30%) |
Loss on sale of assets | (0.1) | - | - |
EBIT | 5.9 | 6.7 | (12%) |
Net Interest | (0.3) | (0.5) | 30% |
Net Profit | 5.6 | 6.2 | (10%) |
Tax expense | (1.9) | 0.2 | (1,089%) |
Net Profit after tax | 3.7 | 6.4 | (42%) |
Gross Margin % | 69.0% | 69.1% | |
Overheads/Revenue % | 42.0% | 43.7% | |
Adjusted EBITDA Margin % | 27.0% | 25.5% | |
Basic EPS (cents per share) | 1.06 | 1.82 |
Revenue increased 21% due to the expansion of sites under management by 28%, demonstrating revenue growth in all territories except Queensland
Overheads are up 16% compared to FY23 with a review of resourcing requirements following increased activity, expansion into new territories and acquisitions.
Adjusted EBITDA of $14.7m is up 28% on FY23. Includes some benefit from favourable foreign exchange movements.
NPAT of $3.7m includes the EBITDA adjustments detailed above, a $1.6m increase in depreciation and amortisation related
to growth in the number of sites under management, new leases and amortisation related to new business acquisitions and an increase in the tax expense following the benefit of Group tax losses for UK companies being consumed in FY23.
1 The balances are adjusted for amounts that are not related to underlying operations or not expected to occur in the future as well | FY24 Results Presentation | | smartparking.com | PAGE 7 |
as Denmark and new territory investigation | ||
Revenue growth
| Revenue up 21% from increased sites under management and expansion into new territories
($000s) | |||||||||||||||||||||
1,370 | 1,648 | ||||||||||||||||||||
970 | |||||||||||||||||||||
1,230 | 54,346 | ||||||||||||||||||||
6,366 | (1,336) | ||||||||||||||||||||
(953) | |||||||||||||||||||||
45,051 | |||||||||||||||||||||
Revenue | Revenue | 24) | Revenue | 23) | Revenue | Revenue | Revenue | Revenue | |||||||||||||
Revenue | Revenue | ||||||||||||||||||||
FY23 | MS | LPS | 5 | Mar | GE | PI | 14 | July | MS | MS | Technology | FY24 | |||||||||
UK | NZ | AU | |||||||||||||||||||
(from | (from | ||||||||||||||||||||
UK parking management revenue growth of 21% compared to FY23.
German Parking Management revenue (excl. PI acquisition) of $1.4m up 215% on PCP (FY23: $0.5m).
Revenue includes $2.6m from acquisitions including ParkInnovation (acquired July 2023) and Local Parking Security (acquired March 2024).
July 2024 revenue is $5.5m up 34% on PCP. This is a record month and does not include benefit of new sites to be installed in FY25.
FY24 Results Presentation | smartparking.com | PAGE 8
Positive free cash flow
| $7.2m cash to fund growth strategy and shareholder returns
Cash Flow Waterfall ($m)
Adjusted free cash flow of $12.2m1
Cash on hand of $7.2m as at 30 June 2024.
Adjusted free cashflow of $12.2m up 40% on PCP.
Minimal maintenance CAPEX required - capital light business model.
16.1 (0.9)
(3.0)
10.7
(0.6)
(1.1)
(5.2)
(7.7)7.2
(1.1)
Sources of cash | m's |
Free cashflow | 12.2 |
Uses of cash | |
New territory expansion (Denmark) | (0.6) |
Growth capex (organic growth) | (5.2) |
Acquisitions (Germany & UK) | (7.7) |
Debt repayment | (1.1) |
Other non operating/non recurring items | (1.1) |
(15.7) | |
Net movement in cash | (3.5) |
2023 | 2 | paid | payments | cashflow | Items | Capex | of cash) | Interest | 2024 | |||||||||||||
30 June | Cash | Flow | Tax | Exceptional | 30 June | |||||||||||||||||
Growth | . | Borrowings/Loan | ||||||||||||||||||||
Operating | Lease | operating | (net | |||||||||||||||||||
Cash | at | subsidiaries | Cash | at | ||||||||||||||||||
Adjusted | Denmark | of | in | |||||||||||||||||||
Purchase | Movement | |||||||||||||||||||||
Net | ||||||||||||||||||||||
- Excludes Denmark and Exceptional items to enable like for like comparison with PCP. CAPEX isn't included in free cashflow as relates to future growth.
- Excludes tax paid, exceptional items and Denmark cashflow as shown separately.
Opening cash | 10.7 |
Closing cash | 7.2 |
FY24 Results Presentation | smartparking.com | PAGE 9
Operating expense analysis
| Increased costs reflect scaling territories for growth and acquisition of ParkInnovation
($000s) | ||||||||||||||||||||
684 | 407 | 339 | 22,800 | |||||||||||||||||
1,124 | 169 | |||||||||||||||||||
(490) | ||||||||||||||||||||
893 | ||||||||||||||||||||
19,674 | ||||||||||||||||||||
FY23 | growth | Jul | 23) | Security24) | changes | changes | changes | movements | FY24 | |||||||||||
in | in | |||||||||||||||||||
expenses | (acquired | Parking | in Mar | personnel | personnel | personnel | expenses | |||||||||||||
opex | ||||||||||||||||||||
Operating | investment | Local | UK | NZ | AU | Other | Operating | |||||||||||||
German | ParkInnovation | (acquired | ||||||||||||||||||
Overheads includes $1.3m from businesses acquired during the year
$0.5m reduction in personnel costs in Australia related to the pause in Queensland operations.
UK personnel costs up 11% on FY23. UK minimum wage increased 9.7% in April 2023, and 9.8% in April 2024.
FY24 Results Presentation | smartparking.com | PAGE 10