Gattaca Plc · LSE:GATC
Gattaca — H1 2014 Earnings Presentation
26 slides from Gattaca's earnings presentation, April 2014
Slide 1: Interim Results for the period to 31 January 2014
Interim Results for the period to 31 January 2014 Adrian Gunn – Chief Executive Officer Tony Dyer – Chief Financial Officer April 2014
Slide 2: Highlights
Highlights • Revenue up 12% • Total NFI up 19% • Contract NFI up 20% ↑19% NFI £22.1m • Permanent fees up 17% • EBITA up 53% (underlying1 up 32%) • Earnings per share up 43% • Interim dividend up 5% ↑43% EPS 18.1 pence • Net Debt £8.6m (2013 H1: £8.0m) • Contract margins increased to 7.4% (2013 H1: 6
Slide 3: Results & Group Performance
MATCHTECH GR@®UP PLC Results & Group Performance
Slide 4: Income Statement
Income Statement Period to 31 Janaury Reported Underlying 2014 2013 Change 2014 2013 Change £m £m % £m £m % Revenue 220.9 197.3 +12% 215.4 197.3 +9% Contract NFI 15.9 13.2 +20% 15.1 13.2 +14% Contract gross margin (%) 7.4% 6.9% 7.2% 6.9% Permanent fees 6.2 5.3 +17% 6.2 5.3 +17% Gross profit (NFI) 22
Slide 5: Earnings per share & Dividends
Earnings per share & Dividends Period to 31 January Reported Underlying 2014 2013 Change 2014 2013 Change Profit after tax £million 4.4 3.0 +47% 4.5 3.4 +32% Average shares in issue1 million 24.4 23.5 +4% 23.6 23.5 +0% Shares under option million 1.6 1.1 +45% 1.6 1.1 +45% Fully diluted shares millio
Slide 6: Balance sheet
Balance sheet As at 31 January 2014 2013 £m £m Non-current assets Tangible 1.6 1.8 Intangible 4.6 0.6 Current assets Trade debtors 61.0 59.5 Other debtors 2.7 1.1 Cash1 0.6 0.5 Total assets 70.5 63.5 Liabilities Trade & other creditors (22.9) (26.5) Invoice discounting facility 2 (9.2) (8.5) Net ass
Slide 7: Cashflow
Cashflow Period to 31 January 2014 2013 £m £m Profit from operations 6.2 4.2 Decrease in trade debtors 6.7 2.2 (Decrease)/Increase in trade creditors & provisions (7.0) 3.6 Non-cash items: Depreciation & amortisation 0.7 0.4 Share based payment charge 0.5 0.4 Cash inflow from operating activities 7.
Slide 8: Contract Activity
Contract Activity 10,000 £0.7m £0.67m1 9,000 £0.64m £0.56m £0.6m £0.56m 8,000 £0.52m £0.49m 7,000 £0.47m 7,0001 £0.5m £0.43m £0.43m 7,000 £0.42m 6,900 6,700 6,700 £0.40m £0.40m 6,000 6,400 £0.4m 6,000 5,000 5,200 5,100 £0.3m 4,700 4,000 4,400 4,400 3,000 £0.2m 2,000 £0.1m 1,000 7.4%1 8.6% 8.2% 7.8%
Slide 9: Permanent Activity
Permanent Activity 2,000 £0.26m 1,800 £0.23m £0.22m £0.22m £0.22m £0.21m £0.21m 1,600 £0.2m £0.17m 1,540 1,400 1,380 1,335 1,300 £0.12m 1,200 £0.12m 1,250 1,220 1,190 £0.1m 1,000 1,020 £0.07m 800 860 810 785 600 £- 400 200 £3.9k £3.8k £3.6k £3.7k £4.0k £4.2k £4.2k £4.5k £4.1k £4.4k £4.0k 0 (£0.1m) 2
Slide 10: 10 year performance
10 year performance £50m £500m Net Fee Income Profit from operations £45m £450m Revenue £40m £400m £35m £350m £30m £300m £25m £250m £20m £200m £15m £150m £10m £100m £5m £50m £- £- 2004 A 2005 A 2006 A 2007 A 2008 A 2009 A 2010 A 2011 A 2012 A 2013 A 2014 F Analysts NFI conversion % 34% 36% 40% 40% 4
Slide 11: Business Review
Business Review
Slide 12: Recruitment Market
Recruitment Market GENERALIST MATCHTECH GR@®UP PLC SPECIALIST ZERO HOUR CONTRACTS UNSKILLED LOW MARGIN TRANSACTIONAL RECRUITMENT EASY TOFILL LOW PAY RATES HIGH VOLUME TEMPS HARD TO FILL SKILL SHORTAGES HIGH PAY RATES NICHE PROFESSIONAL CONTRACTORS LIMITED COMPANIES 12 ane, Sulppy | SulAyisuanig | Su
Slide 13: Operational structure
Operational structure 154 sales force heads sales force heads 147 112 shared service heads 13
Slide 14: Engineering
Engineering NFI by sector (£m) NFI split Infrastructure Energy Aerospace Automotive Marine Science Other 14
Slide 15: Engineering
Engineering Underlying performance 2014 H1 2013 H1 Change (£m) (£m) % Revenue 153.2 141.7 +8% Contract NFI 11.0 9.5 +16% Contract gross margin (%) 7.3% 6.8% Permanent fees 2.3 2.0 +15% Total NFI 13.3 11.5 +16% Gross margin (%) 8.7% 8.1% Operating overheads (8.3) (7.5) +11% Profit from operations 5.0
Slide 16: Engineering Overview
Engineering Overview Infrastructure Energy Aerospace Automotive Marine Science 16
Slide 17: Engineering Overview
Engineering Overview • Continued investment in Highways, Rail Infrastructure and Utilities • Renewed confidence in the sector is starting to increase demand for permanent staff • UK Power Networks framework, won in February 2013, is now fully implemented • UK Oil & Gas continues to benefit from reco
Slide 18: Engineering Overview
Engineering Overview • Despite the closure of shipbuilding at Portsmouth, the Defence sector remains busy • Type 26 frigate and the Successor submarine programmes providing long term visibility • The commercial sector showing early signs of recovery • Commercial aircraft market creating demand for a
Slide 19: Professional Services
Professional Services NFI by sector (£m) 2013 H1 2012 H1 NFI split 19
Slide 20: Professional Services
Professional Services Underlying performance 2014 H1 2013 H1 Change (£m) (£m) % Revenue 62.2 55.6 +12% Contract NFI 4.1 3.7 +11% Contract gross margin (%) 7.0% 7.1% Permanent fees 3.9 3.3 +18% Total NFI 8.0 7.0 +14% Gross margin (%) 12.9% 12.6% Operating overheads (6.8) (6.2) +10% Profit from operat
Slide 21: Technology Overview
Technology Overview • Cloud services, cyber security, big data, digital media and next generation eCommerce are all creating demand • Provanis is well positioned to capitalise on future Oracle ERP upgrades and implementation projects • European skills shortages within technology 21
Slide 22: Professional Staffing Overview
Professional Staffing Overview • Permanent recruitment activity has increased over the last 6 months • In London, job flow & candidate interviews are at an all-time high for our business • Continuing to execute a sector specific strategy • Gaining market share as our client relationships mature Fina
Slide 23: Employability & Skills Overview
Employability & Skills Overview • Last year’s focus on winning exclusive accounts with major vocational training providers is generating significant growth • This year the focus is on maximising the opportunities within these major accounts • Brand strength enabling us to win higher margin business
Slide 24: Outlook
Outlook Contract NFI Growth The skills shortage in Engineering continues to make contracting the chosen method of engagement for both clients and candidates Contract Margin Improvement Good progress has been made in H1 and continuing with our niche sector focus we anticipate the margin % in the medi
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 Committed funding F
Slide 26: 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