Gattaca Plc · LSE:GATC
Gattaca — FY2013 Earnings Presentation
29 slides from Gattaca's earnings presentation, October 2013
Slide 1: Preliminary Results for the year to 31 July 2013
Preliminary Results for the year to 31 July 2013 Adrian Gunn – Chief Executive Officer Tony Dyer – Chief Financial Officer October 2013
Slide 2: Headlines
Headlines • Growth in Revenue, NFI and Profit • Contract NFI up 11% • Permanent Fees up 5% ↑10% Revenue £408.9m • NFI Conversion increased by 5pps to 29% • Underlying earnings per share up 37% • Net debt reduced by £4.0m to £10.5m • Dividend for year up 15% to 18.0 pence ↑37% Underlying EPS 33.4 pen
Slide 3: Results & Group Performance
Results & Group Performance 3
Slide 4: Income Statement
Income Statement Year to 31 July 2013 2012 Increase £m £m Revenue 408.9 371.4 +10% Contract NFI 27.2 24.6 +11% Contract gross margin (%) 6.8% 6.8% Permanent fees 11.2 10.7 +5% Discontinued operations1 - 0.8 Gross profit (NFI) 38.4 36.1 +6% Gross margin (%) 9.4% 9.7% Operating overheads (27.3) (27.4)
Slide 5: Half Year Splits
Half Year Splits Year to 31 July 2013 H1 2013 H2 FY 2013 2012 H1 2012 H2 FY 2012 £m £m £m £m £m £m Revenue 197.3 211.6 408.9 176.7 194.7 371.4 Contract NFI 13.2 14.0 27.2 11.6 13.0 24.6 Contract gross margin (%) 6.9% 6.8% 6.8% 6.8% 6.9% 6.8% Permanent Fees 5.3 5.9 11.2 5.2 5.5 10.7 Discontinued oper
Slide 6: Earnings per share & Dividends
Earnings per share & Dividends Year to 31 July 2013 2012 Change Profit after tax £million 7.5 5.7 +32% Average shares in issue million 23.5 23.4 +0% Shares under option million 1.0 0.8 +25% Fully diluted shares million 24.5 24.2 +1% Underlying earnings per share1 Basic pence 33.4 24.3 +37% Diluted p
Slide 7: Statement of financial position
Statement of financial position As at 31 July 2013 2012 £m £m Non-current assets Tangible 1.7 1.8 Intangible 1.2 0.8 Current assets Trade debtors 67.9 62.1 Other debtors 1.3 0.6 Cash1 0.9 0.6 Total assets 73.0 65.9 Liabilities Trade & other creditors (29.3) (23.2) Invoice discounting facility 2 (11.
Slide 8: Cashflow
Cashflow Year to 31 July 2013 2012 £m £m Profit from operations 10.7 8.7 (Increase) in trade debtors (6.5) (6.2) Increase in trade creditors & provisions 6.0 5.5 Non-cash items: Depreciation & amortisation 0.8 0.7 Share based payment charge 0.6 0.5 Cash inflow from operating activities 11.6 9.2 Cash
Slide 9: Contract Activity
Contract Activity 8,000 £0.6m £0.56m 7,000 £0.50m £0.5m 7,000 £0.45m £0.42m 6,700 £0.44m 6,000 £0.41m £0.38m £0.4m 6,000 5,000 5,100 4,800 £0.30m 4,500 4,000 £0.3m 4,400 £0.25m 3,700 £0.21m 3,000 3,400 £0.2m 3,000 2,000 £0.1m 1,000 0 £- 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Contractors a
Slide 10: Permanent Activity
Permanent Activity 7,000 £0.23m £0.22m £0.22m 6,000 £0.17m £0.19m £0.2m £0.17m 5,000 £0.12m £0.13m 4,000 £4,300 £4,300 £0.09m £4,100 £0.06m £0.1m £3,900 £3,900 £3,800 £3,800 £3,700 £3,600 3,000 2,870 £3,500 2,600 2,550 2,000 2,210 2,190 £- 2,120 1,670 1,520 1,000 1,278 857 0 (£0.1m) 2004 2005 2006 2
Slide 11: 10 year performance
10 year performance £40m £450m Net Fee Income £35m £400m Profit from operations Revenue £350m £30m £300m £25m £250m £20m £200m £15m £150m £10m £100m £5m £50m £- £- 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 NFI conversion % 34% 36% 40% 40% 42% 39% 34% 23% 24% 29% Dividend (pence per share) 15
Slide 12: Business Review
Business Review 12
Slide 13: 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 ane, Sulppy | SulAyisuanig | Suman
Slide 14: Operational structure
Operational structure MATCHTECH GR@®UP PLC MATCHTECH GR@UP PLC Shared Services Engineering 62% NFI Vv matchtech | Infrastructure ——~_ |_ Energy matchtec h Science Automotive Aerospace Marine Professional Services 38% NF! V s&@ CONNECTUS Technology excellence in oracle applicator BarclayMeade | Profe
Slide 15: Engineering
Engineering NFI by sector (£m) NFI split Infrastructure Energy 2013 2012 Aerospace Automotive 2013 Marine 82% contract NFI Science 18% permanent fees Other 2012 80% contract NFI 20% permanent fees 15
Slide 16: Engineering
Engineering Performance 2013 2012 Change (£m) (£m) % Revenue 293.5 266.6 +10% Contract NFI 19.6 17.9 +9% Contract gross margin (%) 6.8% 6.8% Permanent fees 4.4 4.5 -2% Total NFI 24.0 22.4 +7% Gross margin (%) 8.2% 8.4% Operating overheads (14.8) (14.9) -1% Underlying profit from operations 9.2 7.5 +
Slide 17: Engineering Overview
Engineering Overview Infrastructure Energy Aerospace Automotive Marine Science
Slide 18: Engineering Overview
Engineering Overview • Highways and Rail infrastructure benefiting from public investment • Property seeing increased private investment • High Speed 2 and International infrastructure projects, especially in the Middle East dominate the news • UK recognised as the global centre of excellence for ne
Slide 19: Engineering Overview
Engineering Overview • UK global centre for advanced engineering technology and know-how • Demand for UK products in developing nations • Continuing to source engineers from Europe as the skills shortages worsen • New German product lines delayed • Contractors on the QEC programme declining as first
Slide 20: Professional Services
Professional Services NFI by sector (£m) NFI split Technology 2013 2012 Professional Services 2013 53% contract NFI Education 47% permanent fees 2012 49% contract NFI 51% permanent fees 20
Slide 21: Professional Services
Professional Services Performance 2013 2012 Change (£m) (£m) % Revenue 115.4 104.5 +10% Contract NFI 7.6 6.7 +13% Contract gross margin (%) 7.0% 6.8% Permanent fees 6.8 6.2 +10% Discontinued operations 1 - 0.8 Total NFI 14.4 13.7 +5% Gross margin (%) 12.5% 13.1% Operating overheads (12.5) (12.5) +0%
Slide 22: Technology Overview
Technology Overview • Convergence of technology as Electronic Engineering and Business Application Software share more common platforms • Candidate cross-over now very common, creating a gap in the market • Provanis acquisition will accelerate ERP niche market development
Slide 23: Professional Staffing Overview
Professional Staffing Overview • Low volume high margin contingency recruitment across London and the Home Counties • Focus on the Retail, FMCG, IT/Telco and Energy sectors • Strategically supporting Matchtech and Connectus clients across the UK. • Clients a mixture of FTSE and SME’s Finance, HR, Pr
Slide 24: Employability & Skills Overview
Employability & Skills Overview • Increased Government funding in apprenticeship programmes continues to generate significant growth within employability & Skills sector • This high volume permanent recruitment brand provides a managed recruitment solution to a small number of key clients
Slide 25: Outlook
Outlook Contract NFI Growth Skills shortage in Engineering will continue driving wage inflation Permanent Fee Growth Candidate confidence returning - should encourage growth in permanent marketplace Margin Improvement Further multi-brand specialisation will help improve margin % NFI per head Client
Slide 26: 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 27: Appendices
Appendices 27
Slide 28: Business Plan: 7 Key Aims
Business Plan: 7 Key Aims KPI Description 2013 Progress 2014 Objectives Continue to improve staff Staff attrition in 2013 Enhance our internal Improving our staff retention engagement and ensure was 31%, including 5% recruitment selection & levels we provide career development opportunities relating
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