investor presentation september 2011 - global ... structure global construction services limited...
TRANSCRIPT
INVESTOR PRESENTATION September 2011
GCS – INTEGRATED SERVICES
MARKET LEADER
Global Construction Services Limited (GCS) is a proudly owned and managed, Australian construction and maintenance services company that offers a diverse range of integrated products and services that include:
• Specialised workforce and site services • Scaffold and access • Shutdown and maintenance support • Plant and equipment • Formwork and concreting • Site accommodation • Design and Engineering
GCS – INTEGRATED SERVICES
SERVICES & MARKETS
PLANNING SITE ESTABLISHMENT CONSTRUCTION OPERATIONS
Design Development Estimating HSE Systems Project Implementation
Traffic Management Temporary Fencing Temporary Offices Temporary Ablutions Temporary Lighting & Power Generation Site Canteens HSE Systems
Scaffolding Formwork Concrete Pumping Concrete Placement General Equipment Hire Material Hoists Window and Curtain Wall Installation Specialist Painting Specialist Workforce HSE Management
Access Solutions Maintenance Shutdowns Specialist Workforce
We service Infrastructure, Energy/Oil & Gas, Resources, Commercial and Residential Sectors of the market.
GCS – INTEGRATED SERVICES
PERTH
GERALDTON
NEWMAN
KARRATHA
BUNBURY BUSSELTON DUNSBOROUGH
MELBOURNE
SYDNEY
BRISBANE
TOWNSVILLE
GCS has the infrastructure and operational flexibility to service clients in our key markets.
CURRENT BRANCH LOCATIONS
GCS – INTEGRATED SERVICES
ORGANISATIONAL STRUCTURE
GLOBAL CONSTRUCTION SERVICES LIMITED
PARENT COMPANY
Ph: 1300 653 146 Ph: 139 GCS (139 427)
GCS – INTEGRATED SERVICES
GCS STRUCTURE
GCS RAPID ACCESS PTY LTD
Perth Metro (WA) South West (WA)
Commercial & Industrial
Scaffolding, Formwork, Timber
& Plywood
Hire, Sales & Labour
GCS BUDGET PORTABLES
PTY LTD North West (WA) Perth Metro (WA) South West (WA)
Site Offices, Ablutions, Sea
Containers, Cement Sheds,
Site Toilets
Hire & Sales
GCS HIRE PTY LTD
North West (WA) Perth Metro (WA) South West (WA)
General Plant & Equipment Hire
Hire & Sales
NEWAVE CONTRACTING
PTY LTD
Perth Metro (WA)
Commercial Concrete Supply
& Lay
GCS CONCRETE PUMPING PTY LTD
Perth Metro (WA)
Commercial Concrete Pumping
50% Interest
GCS NORTHWEST
PTY LTD
North West (WA)
Scaffolding, Formwork, Timber
& Plywood, Site Offices,
Ablutions
Hire, Sales & Labour
CASC CONSTRUCTIONS
PTY LTD
Perth Metro (WA)
Commercial Formwork Contracting
GCS SECURITY SCAFFOLDING
PTY LTD
Perth Metro (WA) South West (WA)
Residential Scaffolding, Hoists,
Temporary Fencing, Chemical
Toilets, Sewer Toilets, Site
Lockers
Hire, Sales & Labour
SMARTSCAFF PTY LTD *
VIC NSW QLD
Commercial & Industrial Scaffolding
50% Interest
* Pending Final Settlement
Ph: 139 GCS (139 427)
GCS – INTEGRATED SERVICES
GIS STRUCTURE
GLOBAL (RAPPEL) ROPE ACCESS &
RIGGING
Australia Wide
Rope Access Specialists IRATA accredited
GLOBAL SPECIALISED
PAINTING
North West (WA) Perth Metro (WA) South West (WA)
Specialist Painting Workforce & Services
GLOBAL HUMAN RESOURCES (WA)
Western Australia
Labour Hire, Skilled & Semi-skilled Trades
People, Safety Training
GLOBAL HUMAN RESOURCES (QLD)
Queensland
Labour Hire, Skilled & Semi-skilled Trades
People, Safety Training
GLOBAL TRAFFIC & SAFETY
North West (WA) Perth Metro (WA) South West (WA)
Traffic Planning, Road Closures, Access
Management
GLOBAL ACCESS & RIGGING
North West (WA) Perth Metro (WA) South West (WA)
Specialist Workforce & Services for Scaffold &
Rigging
GLOBAL WINDOWS & FACADES
Australia Wide
Large Scale Glass, Aluminium, & cladding
Installation
Ph: 1300 653 146
GCS – INTEGRATED SERVICES
CORPORATE HIGHLIGHTS FY11
• The acquisition of specialised labour hire company Global Industrial Services Pty Ltd in June 2011 diversifies and opens up significant opportunities to GCS through a more comprehensive packaged offering to customers in key markets.
• Strategic 50% investment in SmartScaff Pty Ltd (pending completion of transaction) provides GCS immediate access to the East Coast of Australia through an experienced management team.
• Strengthened management team through the appointment of new high calibre executives to focus GCS on the pipeline of growth opportunities.
GCS – INTEGRATED SERVICES
FINANCIAL HIGHLIGHTS FY11
Delivers strong result in line with earnings guidance and market expectations:
• NPAT $19.4 million ($11.4m); margin 13.4% (12.5%) [up 70%]
• Revenue $146.4 million ($91.6m) [up 60%] • EBITDA $38.0 million ($23.3m); margin 26.2% (25.6%) [up 63%]
• EBIT $29.9 million ($16.9m); margin 20.6% (18.6%) [up 77%]
• EPS 20.8 cents (13.1c) [up 59%]
• NTA 61.7 cents per share (59.2c)
• Dividend 8.25 cents fully franked (5.50 cents) • Gearing 37% (42%); (net debt/equity)
NOTE: The financial results contained in this presentation are based on accounts which are in the process of being audited.
GCS – INTEGRATED SERVICES
PRELIMINARY STATEMENT OF FINANCIAL POSITION
JUNE 2011 (‘$000)
JUNE 2010 (‘$000)
JUNE 2011 (‘$000)
JUNE 2010 (‘$000)
Cash 17,535 11,634 Creditors & Payables 22,653 13,843
Trade Debtors 30,546 22,115 Borrowings 15,726 11,530
Inventories 4,014 2,822 Unearned Income 10,871 5,000
Prepayments 2,159 1,630 Tax Liabilities 9,377 2,192
Total Current Assets 54,254 38,201 Total Current Liabilities 58,627 32,565
PP&E 120,825 91,670 Borrowings 38,633 34,915
Investments 262 199 Unearned Income - 3,489
Intangibles 61,386 24,216 Provisions 816 505
Tax Assets 3,900 1,841 Deferred Tax Liabilities 9,765 7,697
Other Non Current Assets 203 541
Total Non Current Assets 186,576 118,467 Total Non Current Liabilities 49,214 46,606
TOTAL ASSETS 240,830 156,668 TOTAL LIABILITIES 107,841 79,171
CONTRIBUTED EQUITY 96,479 54,083
NET ASSETS 132,989 77,497 RETAINED EARNINGS 36,510 23,414
GCS – INTEGRATED SERVICES
STATEMENT OF CASH FLOWS FY11
Operating Cash flows
JUNE 2011 (‘$000)
JUNE 2010 (‘$000)
Financing Cash flows
JUNE 2011 (‘$000)
JUNE 2010 (‘$000)
Receipts from Customers 151,388 90,128 Repayment of Borrowings (27,657) (9,251)
Payments to Suppliers (106,607) (60,106) Proceeds of Share Issues 18,292 4,000
Net Interest (2,888) (3,120) Transaction Costs of Share Issues
(816) (152)
Income Taxes Paid (1,143) 351 Dividends Paid (4,851) (3,390)
Total Operating Cash flows 40,750 27,253 Total Financing Cash flows (15,032) (8,793)
Investing Cash flows
PP&E (4,610) (10,821) NET INCREASE IN CASH 5,908 6,883
Acquisition of subsidiaries, net of cash
(15,200) (1,120) CASH AT BEGINNING OF YEAR
11,634 4,733
Related Party Loans - 364 FX Adjustments (7) 18
Total Investing Cash flows (19,810) (11,577) CASH AT END OF YEAR 17,535 11,634
GCS – INTEGRATED SERVICES
OPERATIONAL HIGHLIGHTS FY11
Commercial Division
• The Commercial Division performed strongly underpinning the FY11 result.
• Achievement of key milestones on major projects, including the $79 million Fiona Stanley Hospital project.
• Greater contributions from the general plant hire division GCS Hire, which has expanded its geographical footprint.
• Consistent growth in Temporary Site Accommodation Division.
GCS – INTEGRATED SERVICES GCS – INTEGRATED SERVICES
OPERATIONAL HIGHLIGHTS FY11
Residential Division
• Increased market share in a price sensitive market.
• Superior product offering, experienced management and customer focus is a key point of differentiation, providing a competitive advantage in this mature market.
• Additional investment in modernisation of key equipment including material hoists, site lockers, and transportable site toilets and amenities.
• Upgrading of logistics capability to meet increasing demand.
GCS – INTEGRATED SERVICES
OPERATIONAL HIGHLIGHTS FY11
Resources and Industrial Division
• Activity levels continue to improve with significant pipeline of opportunities. • Geographical footprint of the general plant hire division GCS Hire has
expanded into the Northwest & Midwest of Western Australia increasing exposure to the Resources, Oil & Gas and Energy sectors.
• Robust market in Temporary Site Accommodation with significant expansion in the fleet in 2011 to meet ongoing demand.
• Increased opportunities to leverage and package a greater range of service offerings including specialised labour services through the acquisition of Global Industrial Services Limited (GIS).
GCS – INTEGRATED SERVICES
SEGMENT INFORMATION FY11
Segment information Commercial Residential Resource & Industrial
Total
Year ended 30 June 2011 $’000 $’000 $’000 $’000
Total Segment revenue 210,727 23,979 17,879 252,585
Intersegment revenue (105,127) (1,688) (558) (107,373)
Revenue from external customers 105,600 22,291 17,321 145,212
Interest revenue 159 53 17 229
Adjusted EBITDA 33,011 5,131 3,464 41,606
Depreciation and amortisation 5,712 1,488 788 7,988
Income tax expense 7,871 1,501 97 9,469
Share of profits of equity investees 63 - - 63
Year ended 30 June 2010 $’000 $’000 $’000 $’000
Total Segment revenue 99,615 20,329 13,311 133,255
Intersegment revenue (39,700) (1,537) (922) (42,159)
Revenue from external customers 59,915 18,792 12,389 91,096
Interest revenue 38 8 6 52
Adjusted EBITDA 18,711 3,922 2,592 25,225
Depreciation and amortisation 3,173 2,455 708 6,336
Income tax expense 4,386 314 (874) 3,826
Share of profits of equity investees 146 - - 146
GCS – INTEGRATED SERVICES
• After an outstanding performance in FY11, GCS is strongly placed to capture significant new contract revenue in FY12 and beyond on the back of increased activity in civil construction and burgeoning demand for services to support expansion in the Oil & Gas and Resources sector.
• We anticipate earnings to hold steady in FY12 due to the delay in start up of a number of new projects across all sectors.
• The Group is confident of an uplift in earnings from FY13 and onwards as a result of anticipated project awards during FY12.
OUTLOOK FOR FY12
GCS – INTEGRATED SERVICES
GROWTH STRATEGY
• Continue to leverage strong position in WA economy whilst commencing expansion into the East Coast via strategic investment in SmartScaff Pty Ltd.
• Diversify into related industries and sectors.
• Maintain a disciplined approach to acquisitions, targeting businesses that are:
• profitable, with growth potential
• synergistic with GCS’s existing operations
• earnings accretive.
• Continue to deliver organic growth.
GCS – INTEGRATED SERVICES
INVESTMENT CASE
• GCS Group’s expansion into the East Coast via its 50% shareholding in SmartScaff Pty Ltd will allow the company the opportunity to now compete on a National basis.
• GCS provides exposure to the high growth Western Australian and Queensland economies.
• GCS has consistently delivered results in line with market expectations since listing in 2007.
• GCS continues to tender significant contract opportunities in the Commercial and Resource & Industrial sectors, taking advantage of in excess of $100 billion of committed resources and infrastructure projects in Western Australia alone.
• Currently undervalued by comparison to other ASX listed companies in similar markets.
GCS – INTEGRATED SERVICES
TOP 20 SHAREHOLDERS 31 August 2011
Ph: 139 GCS (139 427) www.gcs-group.com.au