Gattaca Plc · LSE:GATC
Gattaca — FY2016 Earnings Presentation
22 slides from Gattaca's earnings presentation, Nov 3, 2016
Slide 1: Preliminary Results for Year Ended 31st July 2016
Preliminary Results for Year Ended 31st July 2016 Brian Wilkinson – Chief Executive Officer Tony Dyer – Chief Financial Officer 3rd November 2016
Slide 2: Strategic Position Post-Networkers
STRATEGIC POSITION POST-NETWORKERS
Slide 3: Overview of Gattaca
Overview of Gattaca 9,000 contractors No1 UK Engineering1 13 offices, 11 countries 4,000 permanent placements Top 5 UK Technology1 Candidates placed in Revenue of £618m 750 employees over 100 countries Trusted by 2,500 employers In excess of 1 million AIM listed candidates on our database 1 Source:
Slide 4: Gattaca Strategic Positioning
Gattaca Strategic Positioning Engineering Technology Largest specialist international pure play Engineering & Technology recruiter: Dual brand approach ‘Gattaca’ to pursue outsourced solutions without causing confusion Process led - scalable Contract & Permanent International coverage (bot
Slide 5: Our Business Model
Our Business Model B catraca Business model Net Fee Income (NFI) Contribution Distribution Target Zone Shareholder Value Resilient Recurring Market Leading High Conversion 68% UK 32% International 60% Engineering 40% Technology 75% Framework/Preferred supplier 25% Contingency 74% Contract 26% Perman
Slide 6: Highlights & Results
% GATTACA Highlights & Results
Slide 7: Highlights
Highlights Profits in line with market expectations Strong performance in Engineering, with NFI growth of 6% Newly created Engineering Technology division, combining existing Networkers and Matchtech skill sets and targeting “Internet of Things” is already one of our fastest growing business u
Slide 8: Income Statement
Income Statement Period to 31 July 2016 2015 Reported Underlying 1 1 Reported Adjustments Underlying Reported Underlying Change Change £m £m £m £m £m % % Revenue 617.6 (0.7) 616.9 502.3 622.8 +23% -1% Contract NFI 53.9 (0.2) 53.7 40.1 54.2 +34% -1% Contract gross margin (%) 9.0% 9.0% 8.2% 9.0% Perma
Slide 9: Effective Tax Rate
Effective Tax Rate Period to 31 July 2016 2015 Reported Reported £m £m Profit before tax 15.1 11.3 Corporation Tax Rate 20.0% 20.7% Corporation Tax 3.0 2.3 Non-deductable expenses 0.7 0.4 Irrecoverable withholding tax 1.1 0.3 Prior year adjustment - (0.2) UK and overseas tax rates differential 0.4 0
Slide 10: Earnings per share & Dividends
Earnings per share & Dividends Period to 31 July 2016 2015 £m £m % Profit before tax 15.1 11.3 +34% Taxation (5.2) (3.0) +73% Effective tax rate 34.4% 26.5% Profit after tax 9.9 8.3 +19% million million Average shares in issue 30.9 26.8 Shares under option 1.1 1.3 Fully diluted shares 32.0 28.1 +14%
Slide 11: Cashflow
Cashflow £15.5m of cash generated before dividends £8.6m net cash generated after dividends Net debt reduced to £25.0m £15.5m £0.0m (£5.0m) (£10.0m) £1.8m £1.5m £4.8m (£1.6m) (£0.9m) (£15.0m) (£1.2m) £15.2m (£20.0m) (£4.1m) (£25.0m) (£25.0m) (£6.9m) (£30.0m) (£33.6m) (£35.0m) (£40.0m) Net Debt
Slide 12: Cash & net debt
Cash & net debt Consistent cash generation Cash generated before dividends Net Debt £20m £20.0m £15.5m £11.9m £12.5m £10.0m £10m £5.5m £7.7m £10.0m £5.2m £2.9m £0.3m -£7.9m £- £- -£1.2m -£3.1m -£3.1m -£4.5m -£10m -£10.0m -£9.8m -£10.5m -£14.5m -£16.0m -£20m -£20.0m -£25.0m -£30m -£30.0m -£33.6m -£
Slide 13: Debtor Days
Debtor Days Combined debtor days increased marginally 66 64 50 49 44 44 31 July 16 31 July 15 31 July 16 31 July 15 31 July 16 31 July 15 Matchtech Networkers Combined 13
Slide 14: Integration
Integration Integration largely complete Identified annualised gross synergies of £3.1m to be fully realised in 2017 Final integration costs of £0.5m expected in 2017 H1 £1.8m invested to improve the business and accelerate future growth Sales synergies coming through Synergies 2016 2017 I
Slide 15: Operational Highlights
Operational Highlights
Slide 16: Global Headcount
Global Headcount United Kingdom Americas Asia Middle East & Africa (80% of group NFI) (7% of group NFI) (5% of Group NFI) (8% of group NFI) 6 14 12 11 171 18 23 580 57 49 67 (76%) 279 (8%) (7%) (9%) 130 31 32 26 Engineering Technology Management & Group Support Global headcount: 753 Sales: 538 (71%)
Slide 17: Engineering
Engineering NFI NFI by type 2016 2015 Permanent Fees 43.5 41.1 29% 28% 2016 31.0 29.5 2015 12.5 72% 11.6 71% Contract Net Fee Income Contract Perm Total NFI by sector NFI by region 2% 1% 10% Infrastructure 3% 7% Energy 28% General Engineering UK 9% Engineering Technology MEA Auto Americas 9% Aero As
Slide 18: Engineering Growth Drivers
Engineering Growth Drivers Infrastructure Energy Maritime Infrastructure • Rail - HS2; Crossrail (phase 2); • Renewables - northern Europe • UK defence – QEC carrier Wessex to Waterloo, South West offshore wind farm construction servicing, Type 26 frigate repairs & Rail extension successor submarine
Slide 19: Technology
Technology NFI £m NFI by type 2016 2015 Permanent Fees 21% 30.8 21% 28.9 24.4 2016 22.8 2015 79% 6.1 6.4 79% Contract Net Fee Income Contract Perm Total NFI by sector NFI by region IT UK 15% MEA Telecoms Americas 15% 49% 51% 60% 10% 19
Slide 20: Technology Growth Drivers
Technology Growth Drivers Development Cloud Cyber Security • The demand for applications to be • Cloud continues to reshape • Increasing spend on Cyber on a mobile platform is increasing enterprise IT Security • Organisations rely heavily on the • Prediction that more than half of • Constantly evolv
Slide 21: Outlook
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Slide 22: Outlook
Outlook Slowdown in trading in the UK with NFI in 2017 Q1 forecast to be down 3% on 2016 (Contract down 2%; Permanent down 7%) Strategic repositioning of Group is now complete Two well regarded brands in highly attractive Engineering and Technology markets Demand for skilled engineers remain