Presentation is loading. Please wait.

Presentation is loading. Please wait.

1 The Better Business People Full Year Results Presentation Year Ended 30 June 2005 Ross Wraight, Chief Executive Officer Tony Scotton, Chief Operating.

Similar presentations


Presentation on theme: "1 The Better Business People Full Year Results Presentation Year Ended 30 June 2005 Ross Wraight, Chief Executive Officer Tony Scotton, Chief Operating."— Presentation transcript:

1 1 The Better Business People Full Year Results Presentation Year Ended 30 June 2005 Ross Wraight, Chief Executive Officer Tony Scotton, Chief Operating Officer Geoff Richardson, Chief Financial Officer 23 August 2005 ASX Code: SAI SAI Global Limited ABN: 67 050 611 642

2 2 Agenda 1.Highlights and Market Conditions 2.Financial Overview 3.Operational Performance 4.Anstat Group Acquisition 5.Strategic Intent and Outlook

3 3 1. Highlights Ross Wraight Chief Executive Officer

4 4 l Continued revenue and profit growth –Full year compared to pro-forma last year: –Revenue up 9.6% to $105.9 million –NPAT up 37.3% to $11.4 million –Second half compared to second half last year: –Revenue up 13.2% –NPAT up 47.9% l EPS of 11.3 cents, up 36% from pro-forma 8.3 cents last year. l Adjusted EPS* of 14.0 cents, up 35% from pro-forma 10.4 cents last year. l Strong operating cash flow - $15.2 million. * A proxy for cash earnings per share, (based on NPAT plus amortization expense) Highlights

5 5 l Higher fully franked final dividend of 5.0 cents per share, compared to 4 cents last year. Taking the total dividend to 9.2 cents, up from 7.4 cents last year. l Easy i acquisition in Europe and CRS acquisition in the US completed. l Standards Australia sell down. l Australian launch of Easy I. l Consumer research conducted into the StandardsMark. Highlights

6 6 l Anstat acquisition announced in August 2005, builds Business Publishing and Information services to over $50M. l Easy i, CRS and ANSTAT delivering on strategic intent. l Solid organic performance. l Core PeopleSoft operating system upgraded. Highlights

7 7 Market Conditions l Demand for company’s products and services remained strong – new products and services drove Professional Services and Assurance Services growth. l Trade and FTA’s delivering continued growth opportunities. l Regulatory and brand protection demands high. l Continuing market rationalization and movement to global providers particularly in Assurance and Compliance. l Available acquisitions in target markets and at EPS accretive prices.

8 8 Business Model Business Publishing Professional Services Develop and license Intellectual Property Publish and distribute Sources of Intellectual Property Commercialisation of Intellectual Property Enhance through training & consulting services Provide assurance through conformity assessment & certification Assurance Services Compliance Services Deliver compliance, regulatory awareness solutions

9 9 Geoff Richardson Chief Financial Officer 2. Financial Overview

10 10 Financial Summary

11 11 Operating Cash Flow

12 12 Normalized Result

13 13 Key Performance Indicators

14 14 AGAAP – Guidance 05/06 Revenue:Historical 4-6% growth on “core” Business Publishing, Professional Services and Assurance Services businesses to continue. Acquisitions as per announcements. EBITDA:Twice revenue growth for “core” businesses. Acquisitions as per announcements. Depreciation:$2.5m - $2.7m. Amortization:Publishing Licensing Agreement [PLA] amortization of $1.6m to continue. Tax Rate:28% to 28.5%.

15 15 Tony Scotton Chief Operating Officer 3. Operations

16 Business Publishing Division

17 17 l Continued revenue, profit and margins growth. l Focus on new content opportunities, electronic transactions and marketing. l 3% revenue growth in line with historic trends. l Second half weaker than first but last quarter strong. l EBITDA grew by 8.4% - lower costs and continued hard copy to electronic conversion. Business Publishing

18 18 l EBITDA margins were higher at 29.8%, up from 28.4%. l Electronic transactions accounted for 69% of sales. –36.0% subscription –25.5% on-line downloads – 7.5% hard copy ordered on-line l Outlook - Standards publishing continuing with historical trends. Business Publishing

19 Professional Services Division

20 20 Professional Services l Improved revenue, profit and margins. l Focus on growth following consolidation of restructure. l Revenue growth of 3.6% but 8% on a like-for-like basis. l Higher sales due to improved market conditions, success in product range diversification and focussed business model. l EBITDA up from $1.1 to $1.8 million. l EBITDA margins improved from 5.0% to 8.0%.

21 21 Professional Services l Improved profitability due to higher sales, shedding of unprofitable business and lower cost base. l Continued diversification away from purely Standards related services towards business improvement products. l Solid growth experienced in Australia and the USA for Six Sigma and other business improvement methodologies. l e-learning platform developed but superseded by Easy i acquisition. l Outlook – modest growth, improving profit and margins.

22 Assurance Services Division

23 23 Assurance Services l Strong revenue, profit and margins growth. l Operational focus on improving customer service and operational efficiencies, new product development and growth, geographic development of the business and integration of CRS. l Revenue growth of 13.4% was driven by the acquisition of CRS (5.6%) and continued organic growth rates driven by new products (7.8%). l EBITDA growth, resulting from increased sales and improved operating efficiencies, was 22.4%. l EBITDA margins increased from 15.3% to 16.5%.

24 24 Assurance Services l Continuing to pursue a number of international opportunities – CRS integration, UK start up. l Strong growth rates for new products. l Continued to improve efficiencies and customer service. l Outlook – continued organic and acquisition growth.

25 25 Regulatory Compliance l Easy i acquired May 2005. l 2005 contribution to result not significant l Integration into SAI Global proceeding smoothly. l Business Development Manager has been appointed in Australia to establish operations in the Asia Pacific region. l Research into opportunities in the financial services sector (including financial advisors) has commenced. l Exploitation of OCCAM a key strategic initiative.

26 26 4. Anstat Group Acquisition l 2006 revenue (annualized) - $24 million. l Initial value: 9.6m SAI Global shares ($25m divided by 60 day volume weighted average price) plus $4.8m in cash. l Earn-out: cash payments of up to $20m if incremental EBIT growth of $2.5m is achieved by 30 June 2008 (to provide consideration for the Lawlex business). l EBIT multiple of 2006 earnings (annualized) – 7 times. l 10 months of 2006 will be brought to account. l Three business streams - Anstat Legislation - Anstat Property Information - Lawlex l Strategic fit.

27 27 5. Strategic Intent l Continue to leverage IT, Easy i and web publishing capabilities. l Develop brand across Asia and the Northern hemisphere. l Continue to consolidate acquisitions. l Bulk up Europe and Asia. l Build SAI Global staff culture across all businesses. l Improve margins and productivity.

28 28 l Ongoing solid demand for SAI Global products and services in Australia and overseas. l Revenue and profit growth to continue, but with AIFRS overlay. l Organic growth for core products around 4-6%. l More acquisitions likely. Outlook


Download ppt "1 The Better Business People Full Year Results Presentation Year Ended 30 June 2005 Ross Wraight, Chief Executive Officer Tony Scotton, Chief Operating."

Similar presentations


Ads by Google