Ashley Services Group Limited A > 11 Holbeche Road PO > PO BOX 166 T > 02 9672 7777 ABN 92 094 747 510 Arndell Park NSW 2148 Blacktown NSW 2148 F > 02 9672 7007 W > ashleyservicesgroup.com.au ASX Announcement Friday 29 August, 2014 Ashley Services Group – Full Year Financial Results FY14 Highlights • Pro forma Revenue, EBITDA and cash flow slightly exceeds Prospectus forecasts • Pro forma NPATA in line with Prospectus forecasts • FY15 Prospectus forecasts reaffirmed Sydney, Training and labour hire company, Ashley Services Group Limited (“ASH” or “the Company”) is pleased to announce its results for the year ended 30 June 2014. ASH listed on the ASX on 21 August, 2014. The Company delivered the following key financial results for pro forma FY14: • group revenue of $287.1 million was slightly ahead of Prospectus forecasts, with Labour Hire and Training divisions both exceeding forecasts; • earnings before interest, tax, depreciation and amortisation (EBITDA) of $22.9 million, slightly ahead of Prospectus forecasts; • net profit after tax, but before amortisation for intangibles arising from accounting for acquisitions (NPATA) of $15.0 million, in line with Prospectus forecasts; • cash conversion ratio was 85% compared to 64.7% in Prospectus forecasts, due to improved cash collection; and • cash, less debt, (including amounts payable to the vendor of Integracom) as at 30 June 2014 was $0.3 million. “Following a strong debut on the ASX in recent weeks, the Company has delivered on its benchmarks for the 2014 financial year. The result is indicative of this Company’s ability to deliver sustainable growth, in line with the track record established under the leadership of Ross Shrimpton. We look forward to continued success as the company executes its plan for growth, both organically and through acquisitions,” said Peter Turner, Chairman of Ashley Services Group. Outlook The Board and Management of ASH have reaffirmed the forecasts for FY15, as outlined in the Prospectus. For personal use only
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For personal use only - ASX · Repayment of capital (1,447) - Net cash inflow / (outflow) from financing activities 4,160 (1,003) Net cash (decrease) / increase in cash and cash equivalents
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Ashley Services Group Limited A > 11 Holbeche Road PO > PO BOX 166 T > 02 9672 7777
ABN 92 094 747 510 Arndell Park NSW 2148 Blacktown NSW 2148 F > 02 9672 7007 W > ashleyservicesgroup.com.au
ASX Announcement Friday 29 August, 2014
Ashley Services Group – Full Year Financial Results FY14 Highlights
• Pro forma Revenue, EBITDA and cash flow slightly exceeds Prospectus forecasts • Pro forma NPATA in line with Prospectus forecasts • FY15 Prospectus forecasts reaffirmed
Sydney, Training and labour hire company, Ashley Services Group Limited (“ASH” or “the Company”) is pleased to announce its results for the year ended 30 June 2014. ASH listed on the ASX on 21 August, 2014. The Company delivered the following key financial results for pro forma FY14:
• group revenue of $287.1 million was slightly ahead of Prospectus forecasts, with Labour Hire and Training divisions both exceeding forecasts;
• earnings before interest, tax, depreciation and amortisation (EBITDA) of $22.9 million, slightly ahead of Prospectus forecasts;
• net profit after tax, but before amortisation for intangibles arising from accounting for acquisitions (NPATA) of $15.0 million, in line with Prospectus forecasts;
• cash conversion ratio was 85% compared to 64.7% in Prospectus forecasts, due to improved cash collection; and
• cash, less debt, (including amounts payable to the vendor of Integracom) as at 30 June 2014 was $0.3 million.
“Following a strong debut on the ASX in recent weeks, the Company has delivered on its benchmarks for the 2014 financial year. The result is indicative of this Company’s ability to deliver sustainable growth, in line with the track record established under the leadership of Ross Shrimpton. We look forward to continued success as the company executes its plan for growth, both organically and through acquisitions,” said Peter Turner, Chairman of Ashley Services Group. Outlook The Board and Management of ASH have reaffirmed the forecasts for FY15, as outlined in the Prospectus.
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Ashley Services Group Limited A > 11 Holbeche Road PO > PO BOX 166 T > 02 9672 7777
ABN 92 094 747 510 Arndell Park NSW 2148 Blacktown NSW 2148 F > 02 9672 7007 W > ashleyservicesgroup.com.au
The key areas of focus include: • retaining and improving overall gross margin; • increasing enrolments in VET training for the public market in Queensland and NSW
as the demand driven model is introduced in these states in the second half of the CY14;
• continuing to leverage relationships with clients to identify opportunities for cross-referral revenues between the company’s Labour Hire and Training divisions;
• focus on new industry sectors, in particular telecommunications, following the acquisition of Integracom at the time of the Initial Public Offer.
Investor Conference Call Investors are invited to join a conference call hosted by Ross Shrimpton, Managing Director and Vince Fayad, Interim CFO on Monday 1 September at 11.00am AEST. To access the call please use the dial in details below: Conference ID: 870 787 Conference Call Toll-Free Access Numbers
Australia 1800 558 698 New Zealand 0800 453 055 Japan 0053 116 1281 China 4001 200 659 Singapore 800 101 2785 Canada 1855 8811 339 United Kingdom 0800 051 8245 Hong Kong 800 966 806 United States 1855 8811 339
For all other locations please dial: +61 2 9007 3187 -ENDS- For further information, please contact: Ross Shrimpton Managing Director Telephone: +61 2 9672 7777 Email: [email protected]
Kyahn Williamson Investor and Media Relations Buchan Consulting Telephone +61 3 9866 4722 or +61 401 018828 Email: [email protected]
About Ashley Services Group Originally founded in 1968, Ashley Services Group operates businesses specialising in training and labour hire. In 1999 the Company was acquired by the major shareholder of Ashley Services and has subsequently grown and diversified. The company listed on the ASX in August 2014. As a Vocational Education Training (VET) provider, the Training business services a wide range of clients in the corporate and public markets, offering training for 97 qualifications, in 96 locations across Australia. Ashley Services’ Labour Hire business provides services to large national and multi-national clients. It is a leading labour hire provider to the warehouse and logistics industries, and also has a growing presence as a provider to the horticultural, manufacturing and trades industries.
Amortisation of customer contracts and relationships 48 -
b. Auditor’s remuneration
2014 2013
$000 $000
Auditor of the parent entity – Grant Thornton1
Audit or review of financial reports under the Corporations Act 2001 30 60
Tax advisory1
3 16
Other assurance services 2 205 -
238 76
Other entities
In addition to the above, the related entities detailed in section 12 have also paid fees to the auditor, Grant Thornton and these are as follows:
Audit or review of financial reports under the Corporations Act 2001 58 52
Tax advisory 30 18
88 70
Note:
1. Trood Pratt were the tax agents and auditors of the parent entity in 2013
2. Fees in relation to Investigating Accountant services for the initial public offering. These fees have been capitalised as at 30 June 2014 and will be expensed in FY 2015
Allowance for impairment of receivables (b) (564) (504)
Other receivables
835 2,933
Loans to related entities (c) 28,210 -
48,865 9,365
Non-Current
Loans to related entities (c) - 23,728
- 23,728
a. Ageing of Trade Receivables
2014 2013
$'000 $'000
Current 0 – 30 days 13,779 4,960
Past due 31 – 60 days 5,952 1,313
Past due 60+ days 653 663
Total 20,384 6,936
b. Allowance for impairment of receivables
2014 2013
$'000 $'000
Balance at beginning of year (504) (272)
Increase in allowance recognised in profit or loss (60) (232)
Balance at end of year (564) (504)
c. Loans to related Entities
All loans are unsecured and non-interest bearing. Since balance date, with the acquisition by ASH of the various related entities, the loans will no longer be considered an external asset or liability to the consolidated group which makes-up ASH and will be eliminated on consolidation. As a result of the acquisition by ASH, the loans receivable and payable have been re-classified from non-current to current.
NOTE 11 – ACCOUNTING STANDARDS USED BY FOREIGN ENTITIES: Ashley Services Group Limited is public company, incorporated and domiciled in Australia. The information used in this preliminary consolidated final report have been based on the accounting policies of the group that are in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. These accounting policies were disclosed in the Ashley Services Group Pty Limited 30 June 2013 accounts, lodged with the ASX as part of the listing on 21 August 2014.
These financial statements and notes comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board.
NOTE 12 – RESULTS FOR THE PERIOD:
The Company’s business largely comprises of labour hire and is the owner of “Action Workforce”
brand.
Key points to note in relation to ASH’s result are:
revenues are up on prior year largely reflecting the securing of a major logistics supplier,
as well as the full effect of the OneForce acquisition;
gross margin is down from 12% to 8%, due the change in strategy for larger clients who
are capable of providing cross-selling training opportunities. However, these clients are
subject to greater margin pressures in respect of the labour hire business and
consequently, this is the reason for the decrease in gross margin ; and
increase in employee and occupancy costs to cater for the expansion in operations.
ASH considers that a more meaningful explanation of its results and statement of financial
position are on a pro-forma basis, incorporating the entities listed in section 12 above. A
separate analysis can be found in the accompanying market presentation.
NOTE 13 - THIS REPORT IS BASED ON ACCOUNTS TO WHICH ONE OF THE FOLLOWING
APPLIES:
The financial report is in the process of being audited.
NOTE 14 - DESCRIPTION OF ANY LIKELY AUDIT DISPUTE OR QUALIFICATION:
The financial report is not likely to contain an independent audit report that is subject to a
modified opinion, emphasis of matter or other matter paragraph.