Gattaca Plc · LSE:GATC
Gattaca — FY2014 Earnings Presentation
24 slides from Gattaca's earnings presentation, October 2014
Slide 1: Preliminary Results for the year to 31 July 2014
Preliminary Results for the year to 31 July 2014 Brian Wilkinson – Executive Chairman Adrian Gunn – Chief Executive Officer Tony Dyer – Chief Financial Officer October 2014
Slide 2: Results
Results Engage our staff | Delight our customers | Promote our candidates
Slide 3: Performance Summary
Performance Summary ↑10% ↑17% ↑27% Group Revenue £451.6m Net Fee Income £45.0m EBITA £13.6m (2013: £408.9m) (2013: £38.4m) (2013: £10.7m) ↑20% ↑19% ↑14% Profit Before Tax £11.9m Adjusted Basic EPS 39.1 pence1 Final Dividend 14.59 pence2 (2013: £9.9m) (2013: 32.9 pence) (2013: 12.85 pence) 1 Adjusted
Slide 4: Income Statement
Income Statement Year to 31 July 2014 2013 Change Like for Like1 £m £m % % Revenue 451.6 408.9 +10% +7% Contract NFI 32.8 27.2 +21% +14% Contract gross margin (%) 7.5% 6.8% Permanent fees 12.2 11.2 +9% +9% Gross profit (NFI) 45.0 38.4 +17% +13% Gross margin (%) 10.0% 9.4% Operating overheads (31.4)
Slide 5: Earnings per share & Dividends
Earnings per share & Dividends Year to 31 July 2014 2013 Change Profit after tax £million 9.1 7.5 +22% Average shares in issue million 24.7 23.5 +5% Shares under option million 1.4 1.0 +42% Fully diluted shares million 26.1 24.5 +6% Earnings per share Basic pence 37.0 32.0 +16% Diluted pence 35.0 30
Slide 6: Balance Sheet & Cashflow
Balance Sheet & Cashflow ↓£7.4m ↓3 days ↑11ppts Debtor Net debt: Days£3.1m 46 days Debtor days: 46 days Operating cash conversion: 121% (2013: 49 £10.5m) days) (2013: 49 days) (2013: 110%) ↑£10m ↓1 day ↑32% Banking facilities: £60m Creditor days: 8 days Net assets: £42.7m (2013: £50m) (2013: 9 days)
Slide 7: Cashflow
Cashflow £15.0m £10.0m £4.1m £0.0m £0.3m £0.7m £2.1m £5.0m £2.8m £13.6m £4.2m £0.0m £4.5m (£3.1m) (£5.0m) (£10.0m) (£10.5m) (£15.0m) July 2013 EBITA Non-cash Equity Working Net Cap-Ex Interest Taxation Acquisition Dividends July 2014 items Placing Capital & Fees 7
Slide 8: Contract activity
Contract activity 10,000 £0.67m £0.70m 9,000 £0.56m £0.60m 8,000 £0.50m 7,000 £0.50m 7,200 £0.45m £0.42m £0.44m 7,000 6,700 £0.41m 6,000 £0.38m £0.40m 6,000 5,000 5,100 £0.30m 4,800 £0.30m 4,500 4,400 4,000 £0.25m 3,700 3,400 3,000 £0.20m 2,000 £0.10m 1,000 10.4% 9.8% 9.5% 9.0% 8.4% 7.8% 7.0% 6.8% 6
Slide 9: Permanent activity
Permanent activity £0.25m £10,000 £0.25m £0.23m £0.22m £0.22m £9,000 £8,000 £0.19m £0.20m £0.17m £0.17m £7,000 £6,000 £0.15m £0.13m £0.12m £5,000 £5,000 £4,940 £4,580 £4,580 £4,000 £0.09m £0.10m £3,900 £3,900 £3,800 £3,800 £3,700 £3,600 £3,000 3,000 2,870 2,600 2,550 £0.05m 2,190 £2,000 2,120 2,120
Slide 10: 10 Year Performance Summary
10 Year Performance Summary £50m £500m £45m £450m £40m £400m £35m £350m £30m £300m £25m £250m £20m £200m £15m £150m £10m £100m £5m £50m 36% 40% 40% 42% 39% 34% 23% 24% 28% 30% £0m £0m 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Net Fee Income EBITA Revenue NFI Conversion % 10
Slide 11: Operating Review
Operating Review Engage our staff | Delight our customers | Promote our candidates
Slide 12: NFI Business Mix
NFI Business Mix 25% 28% 28% 29% 27% 75% 72% 72% 71% 73% 2010 2011 2012 2013 2014 Contract Permanent 12
Slide 13: NFI Sector Split
NFI Sector Split £17.9m* £14.4m £13.7m £10.6m £7.8m £27.1m £22.4m £24.0m £18.4m £19.2m 2010 2011 2012 2013 2014 Engineering Professional Services * Including £1.8m NFI from Provanis 13
Slide 14: Engineering Overview
SALES STAFF KEY CLIENTS NUMBER OF CONTRACTORS ENGINEERING “<< 1 at — RECRUITMENT SPECIALIST 14 o asesuq 0 3y8njaq | yels un 3}OWIOId | SJaWO SND JN saleplpued INO
Slide 15: Engineering Sector
Engineering Sector NFI by sub-sector 2014 2013 NFI by type Infrastructure £8.0m £5.9m Energy £4.7m £4.7m NFI Automotive £4.3m Conversion £4.1m 39% Aerospace £3.5m (2013: 37%) £3.0m Maritime £2.8m £3.0m General Engineering £3.8m 2014 Contract NFI: 83% Permanent Fees: 17% £3.3m 2013 Contract NFI: 82%
Slide 16: Engineering Growth Drivers
Engineering Growth Drivers Infrastructure Maritime Energy £38bn investment into rail £3.2bn MOD award contract North Sea EPC contractors engineering projects for upkeep of RN fleet directly recruiting Highways Agency reporting Type 26 Frigate programme Margins and pay rates record levels of spending
Slide 17: Engineering Growth Drivers
Engineering Growth Drivers General Aerospace Automotive Engineering Limited demand for design High End OEM’s benefiting 3.9% growth in output from and development of new from global demand UK manufacturing sector aircraft structures UK supply chain at record Strong growth within Manufacturing order
Slide 18: Professional Services Overview
Professional Services Overview 18
Slide 19: Professional Services Overview
Professional Services Overview NFI by sub-sector 2014 2013 NFI by type Technology: Connectus £9.8m £9.1m Provanis £1.8m NFI Professional Staffing £6.3m £5.3m Conversion Aerospace 17% (2013: 12%) Marine General Engineering 2014 Contract NFI: 57% Permanent Fees: 43% 2013 Contract NFI: 53% Permanent Fe
Slide 20: Our purpose
Our purpose Engage our staff Delight our clients Promote our candidates Within the top 5% of Going the extra mile The relationship benchmark group Engagement score of ‘You get us’ Specialist 90% 91% completed staff Market intelligence Personalised approach engagement survey 20
Slide 21: Our 2017 strategy
Our 2017 strategy Sharpen Invest in Greater scale Go-to recuiter attractive yet even more in our chosen our focus markets specialist markets Move up Place higher Work with Charge right level clients who price for value chain candidates value service quality service Attract International Follow key G
Slide 22: Our 2017 vision
Our 2017 vision Market leading specialist recruiter Employer of choice Best partner to clients & candidates Rapidly developing international business Premium stock for investors 22
Slide 23: Our Investment proposition
Our Investment proposition Well Balanced Established Specialist Broad client relationships Strong track record of Niche sector expertise and business mix organic NFI and profit growth Flexible Resilient Committed funding Efficient systems and high Contract business model Facilities of £60m operation
Slide 24: Outlook
Outlook Increasing contract margin percentage Volume of permanent vacancies increasing Improvements in the NFI we generate per sales head Increasing operational efficiencies Continued investment is sales headcount in growth markets “The new financial year has started well, building on our solid foun