AWF Madison ASM Presentation

ANNUAL SHAREHOLDERS’
MEETING

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2018






25 JULY 2018

Chairman’s Address


ROSS KEENAN
CHAIRMAN
Agenda Item 1

Consolidated financial statements for the
Year Ended 31 March 2018.
Agenda Item 2

Fully imputed final dividend of 8.2 cents.
Agenda Item 3

CEO’s Report and Update


SIMON BENNETT
CEO

Agenda Item 4

•Mixed market conditions
•Timing of the election and subsequent change in
government
•Evaluation of the legislative framework
»Holidays Act
»Employment Relations (Triangular Employment)
Amendment Bill

FY18 – The Economic and Political
Landscape

FY18 Financials
$000’s FY 2014 FY 2015 FY 2016 FY 2017 FY2018
Total Revenue 148,647 196,434 214,589 256,428 279,303
Employee benefit
expense*
-129,373 -172,112 -190,333 -229,150 -253,182
EBITDA** 8,385 12,617 11,710 13,454 11,549
Profit for the
period
3,952 5,416 5,202 5,867 5,048
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
0.0
50.0
100.0
150.0
200.0
250.0
300.0
NZ$ Million

NZ$ Million

EBITDA**
Profit for the period
Total Revenue
Employee benefit expense*
* Wage and salary payments
**EBITDA: earnings before interest, tax, depreciation and amortisation. Refer to the reconciliation
to tax paid profit for the year

Cash Flow
$’000
EBITDA 11,549
Interest paid (1,297)
Interest received 32
10,284
Trade and other receivables 3,703
Trade, other payables, provisions 967
Income taxes paid (3,445)
Net cash from operating activities 11,509
Fixed Asset Net (Additions) / Disposals (484)
Share Capital 227
Dividends paid (5,350)
Draw down on Bank Facility 2,500
(750)
Settlement Absolute IT Limited earn-out (3,250)
Net Increase in cash held 5,152
Opening Bank Balance 31 Mar 2017 1,117
Closing Bank Balance 31 Mar 2018 6,269

Funding and Debt/ Dividend Reinvestment
2015 2016 2017
Absolute IT
5 months
2017
Absolute IT
12 months
2018
Group EBITDA* 12,617 11,710 13,454 15,664 11,549
Finance Cost 2,109 1,333 1,193 1,659 1,297
Interest Cover 6.0 8.8 11.3 9.4 8.9
Net Bank Debt 18,608 21,870 32,383 32,328 29,731
Leverage Ratio (Net bank debt /
EBITDA)
1.5 1.9 2.4 2.0 2.6
*EBITDA: earnings before interest, tax, depreciation and amortisation.
Refer to the attached reconciliation to tax paid profit for the year.
$’000
Gross dividend @8.2 cents per
share
2,704
Dividend Reinvestment 773
Cash Out 1,931
The Dividend Reinvestment of $773k was applied to the Bank Term repayment of $3.0m
Bank covenants:
Interest coverage > 3
Leverage ratio < 3

•Technology and process improvement
•Finding synergies within the Group
•Leveraging our scale, reach and resources
•Building alternative solutions to the traditional
recruitment model e.g. Managed Service offering
Our Areas of Focus

Resolutions:

•Director elections
5.1 Recommended re-appointment of Nick Simcock

Of the shares voted by proxy – 94.85% support resolution 5.1
Agenda Item 5

Resolutions:

•Director elections
5.2 Recommended re-appointment of Julia Hoare

Of the shares voted by proxy – 94.85% support resolution 5.2

Agenda Item 5

Resolutions:

•Director elections
5.3 Recommended re-appointment of Ross Keenan

Of the shares voted by proxy – 94.85% support resolution
5.3

Agenda Item 5

Auditors’ Reappointment and Remuneration.
Agenda Item 6

Resolutions:

•Auditors’ Fees
6.1 Authorise the Directors to fix the fees for the
Auditors for the year.

Of the shares voted by proxy – 94.85% support resolution
6.1

Agenda Item 6

2018 Restricted Shares.
Agenda Item 7

General Business.
Agenda Item 8

Close of meeting.

Appendix to Presentation:
Reconciliation: EBITDA to Tax Paid Profit for the year
FY2017
$’000
FY2018
$’000

EBITDA 13,454 11,549
Investment Revenue 2 32
Fair Value gain on settlement of Absolute IT earn-out
payment
170
Depreciation and Amortisation expense (3,003) (3,344)
Impairment (443)
Finance costs (1,193) (1,297)
Acquisition related costs expense (262)
Profit before tax 8,555 7,110
Income tax expense (2,688) (2,062)
Profit for the year 5,867 5,048