Gattaca Plc · LSE:GATC
Gattaca — Matchtech Group — H1 2013 Earnings Presentation
29 slides from Gattaca's earnings presentation, April 2013
Slide 1: Interim Results for the period to 31 January 2013
Interim Results for the period to 31 January 2013 Adrian Gunn – Chief Executive Officer Tony Dyer – Chief Financial Officer April 2013
Slide 2: Financial Headlines
Financial Headlines Revenue ↑12% Net Fee Income ↑8% £0.1m reduction in overheads Underlying NFI conversion 25.9% Underlying profit from operations ↑41% Tax rate ↓to 25.0% from 29.5% EPS ↑33% Operating cash generation 245% Debtor Days ↗1 day Net Debt ↓£3m Interim Dividend ↑3% 2
Slide 3: Operational Headlines
Operational Headlines • Strong demand for supplying contractors to UK clients with: • Global demand for their services • Multi-year engineering infrastructure projects in the UK • Underlying permanent fees at same stable level for past 18 months • NFI conversion increase from 19.8% to 25.9% reflects
Slide 4: Results & Group Performance
MATCHTECH GR@OUP PLC Results & Group Performance
Slide 5: Income Statement
Income Statement Period to 31 January 2013 2012 Increase £m £m Revenue 197.3 176.7 +12% Contract NFI 13.2 11.6 +14% Contract gross margin (%) 6.9% 6.8% Permanent fees 5.3 5.2 +2% Discontinued operations1 - 0.4 Gross profit (NFI) 18.5 17.2 +8% Gross margin (%) 9.4% 9.7% Operating overheads (13.7) (13
Slide 6: Earnings per share & Dividends
Earnings per share & Dividends Period to 31 January 2013 2012 Change Profit after tax £million 3.0 2.2 +36% Average shares in issue million 23.5 23.4 +0% Shares under option million 1.1 1.1 +0% Fully diluted shares million 24.6 24.5 +0% Earnings per share Basic pence 12.65 9.53 +33% Diluted pence 12
Slide 7: Statement of financial position
Statement of financial position Period to 31 January 2013 2012 £m £m Non-current assets Tangible 1.8 1.7 Intangible 0.6 0.8 Current assets Trade debtors 59.5 53.3 Other debtors 1.0 0.9 Cash1 0.6 0.9 Total assets 63.5 57.6 Liabilities Trade & other creditors (26.5) (20.7) Invoice discounting facility
Slide 8: Cashflow
Cashflow Period to 31 January 2013 2012 £m £m Profit from operations 4.4 3.4 Decrease in trade debtors 2.4 2.2 Increase in trade creditors & provisions 3.2 3.3 Non-cash items: Depreciation & amortisation 0.4 0.3 Share based payment charge 0.4 0.2 Cash inflow from operating activities 10.8 9.4 Cash c
Slide 9: Contract Activity
Contract Activity 8,000 £0.6m £0.56m £0.52m 7,000 £0.49m £0.47m £0.5m 6,700 6,700 6,000 £0.43m £0.43m 6,400 £0.42m £0.40m £0.40m 6,000 £0.4m 5,000 5,200 5,100 4,700 4,620 4,440 4,000 £0.3m 4,400 4,400 4,390 4,220 3,850 3,430 3,000 3,150 £0.2m 3,070 2,900 2,000 £0.1m 1,000 0 £- 2009 H1 2009 H2 2010 H
Slide 10: Permanent Activity
Permanent Activity 7,000 £0.22m £0.22m £0.22m 6,000 £0.21m £0.21m £0.2m £0.17m 5,000 £0.12m £0.12m 4,000 £4,500 £0.07m £4,200 £4,200 £0.1m £4,100 £4,000 £3,900 £3,800 £3,600 3,000 £3,700 2,000 £- 1,335 1,190 1,300 1,000 1,220 1,250 1,020 860 785 810 0 (£0.1m) 2009 H1 2009 H2 2010 H1 2010 H2 2011 H1
Slide 11: Business Review
Business Review
Slide 12: Group Structure
Group Structure Infrastructure Energy Aerospace Automotive Marine Science Other 12
Slide 13: Engineering
Engineering NFI by Sector (£m) @ 2013H1 ™ 2012H1 Infrastructure Energy Aerospace MATCHTECH GR@GUP PLC NFI by type (%) 2013 H1 ™@ 82% Contract NFI ™ 18% Permanent Fees 2012 H1 ™ 80% Contract NFI 20% Permanent Fees NFI by region (%) 2013 H1 @ 95% UK | 5% International 2012 H1 ™ 96% UK 4% International
Slide 14: Engineering
Engineering Performance 2013 H1 2012 H1 Change (£m) (£m) % Revenue 141.7 127.9 +11% Contract NFI 9.5 8.8 +8% Contract gross margin (%) 6.8% 7.0% Permanent fees 2.0 2.0 +0% Total NFI 11.5 10.8 +6% Gross margin (%) 8.1% 8.4% Operating overheads (7.4) (7.7) +4% Underlying profit from operations 4.1 3.1
Slide 15: Market Dynamics
Market Dynamics Infrastructure (Utilities, Rail, Highways & Buildings) • Growth Drivers Major rail projects such as HS2, Crossrail and the Doha Metro along with key highways projects LoHAC, A453 and the M1 Managed Motorway Scheme continue to generate demand for contractor staff. In the utilities sec
Slide 16: Market Dynamics
Market Dynamics Aerospace • Growth Drivers OEM’s are cascading more responsibility to their supply chain and suppliers are moving to full service design & build. There is a move from metallic to composite components, such as A350 wing and A320 sharklets and a drive for more fuel efficient engines, s
Slide 17: Market Dynamics
Market Dynamics Marine • Growth Drivers The Type 26 and Successor programmes have come on-line as the QEC and Oman programmes start to taper off. The commercial manufacturing & engineering marketplace is also showing signs of recovery and the leisure market is seeing increases in the volume of overs
Slide 18: Professional Services
Professional Services NFI by Sector (£m) @ 2013H1 ™ 2012H1 Technology 44 2ral Professional Staffing 2. Skills & Employability MATCHTECH GR@GUP PLC NFI by type (%) 2013 H1 @ 53% Contract NFI ™ 47% Permanent Fees 2012 H1 ™ 45% Contract NFI 55% Permanent Fees NFI by region (%) 2013 H1 M 98% UK | 2% Int
Slide 19: Professional Services
Professional Services Performance 2013 H1 2012 H1 Change (£m) (£m) % Revenue 55.6 48.8 +14% Technology Contract NFI 3.7 2.9 +28% Contract gross margin (%) 7.1% 6.3% Permanent fees 3.3 3.1 +6% Professional Services Discontinued operations 1 - 0.4 Total NFI 7.0 6.4 +9% Gross margin (%) 12.6% 13.1% Edu
Slide 20: Market Dynamics
Market Dynamics Connectus (Technology) • Growth Drivers. Big Data, Smart Manufacturing, Cyber Security, Mobile Computing and ERP projects is creating a demand for both contract and permanent staff. There continues to be a skills shortages across Europe in software development, business analytics, sy
Slide 21: Market Dynamics
Market Dynamics Barclay Meade (Professional Staffing) • Growth Drivers Having defined our product offering to have a greater emphasis on the professional level, qualified market place our market share within London and the Home Counties continues to grow. This is complemented with specialist teams o
Slide 22: Market Dynamics
Market Dynamics Alderwood (Employability & Skills) • Growth Drivers There has been a consolidation in the Work Based Learning market due to continued investment in new apprenticeship programmes. The Welfare to Work providers who support the governments “Work Programme” are also focusing more on the
Slide 23: Outlook
Outlook • The engineering contract markets remain robust with clients continuing to see strong global demand for their products and services and we look to continue supporting long term major infrastructure projects which provide us with longer term visibility • Our ability to find and recruit scarc
Slide 24: Appendices
Appendices
Slide 25: 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, committ
Slide 26: Business Plan: 7 Key Aims
Business Plan: 7 Key Aims KPI Description 2013 Objectives Continuing to look at staff To review our internal selection Improving our staff retention engagement and providing process so we employ the right levels career opportunities people develop the business Deliver an even faster, more Shared ser
Slide 27: Business Model
CANDIDATES CLIENTS 27 ame Sulppy | BulAyisuanig | SumalD Sa
Slide 28: 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% 28
Slide 29: 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