copyright 2013 rxp services ltd. 1 rxp services limited company overview – november 2013 ross...
TRANSCRIPT
Copyright 2013 RXP Services Ltd. 1
RXP Services LimitedCompany Overview – November 2013
Ross Fielding - Chief Executive OfficerChris Shearer - Chief Financial OfficerPaul Fielding - Group Executive OperationsBen Meek - Group Executive Strategy & InnovationJason Young - Group Executive Sales and Delivery
Copyright 2013 RXP Services Ltd. 2
Introduction
Listed on ASX 28 November 2011
RXP is a provider of ITC Professional Services in Australia and Hong Kong with access to offshore capabilities in Malaysia and Dubai
Business is based on a Practice based model, structured around technology verticals with centralised administration to control and govern the operations
Offices in Melbourne, Sydney, Canberra, Brisbane and Hong Kong
Growth strategy centred on organic and acquisitive growth
Scalable business model led by Ross Fielding and a strengthening management team with extensive ICT consulting and business experience
Copyright 2013 RXP Services Ltd. 3
Sydney Tel: +61 (0) 9 9252 9252
Melbourne (Head Office)Tel: +61 (0) 3 8256 4855
Canberra Tel: 1300 251 165
Brisbane
Our Business
We combine exceptionally talented people with proven methods to deliver solutions that enable our clients to increase revenue, improve customer satisfaction and engagement, and improve EBIT.
We are an ASX listed ICT consulting services company that has provided professional services to S&P / ASX 200 corporations and government bodies in Australia and Asia for over 20 years.
We are a client focussed, practice led organisation.
Our practices:
• group our capabilities in a way that optimises engagement with clients.
• integrate and work as “one rxp” when we engage end to end services
• structured to support optimal delivery while providing our staff with career progression and learning opportunities.
Strategic Advisory Services
Change & Communications
Enterprise Service
Management
Project Services
Infrastructure and Cloud Services
Business Intelligence & Information
Management
Business Process
Optimisation
IntegrationWeb & Mobile Development
Malaysia DubaiOffshore Facility Offshore Facility
Hong Kong Tel: +85 2 2529 2238
Copyright 2013 RXP Services Ltd. 4
Why RXP
Customers choose us because together we unlock and optimise the business value of every client we represent. We have shared values and proven proprietary methods which empower us to achieve great outcomes.We build each delivery team
based on cultural fit, business & technical
domain knowledge, career development, location,
duration and availability. We establish a
collaborative approach that forms real partnerships and
deliver greater results, together.
Large teams can create complexity and overhead. We believe in allocating a
small team of highly skilled professionals to deliver
outstanding results. Our incremental delivery
approach also ensures that value is delivered sooner.
Often the most simple answer to the problem is the best. We consider project challenges from a holistic and multiple perspectives. Our technical depth and insight will ensure clients make the right technology and process choices.
Clever thinking is inherent in our approach. Our proprietary Transpire methods, aligned to leading and emerging industry standards, ensure that we progress down the most optimal route with the right preparation
Unashamedly clever thinkers
Methods that lead
the way to the right outcome
Specialisation always
wins
The right team, at the right time, achieving
value sooner.
Small teams, great
people, guaranteed
Our practices have been established around specialised expertise that are the most important to our clients and gets runs on the board faster.
Copyright 2013 RXP Services Ltd. 5
Our People
Strengthened Executive team with the addition of Jason Young, Ramon Ali, Brad Taylor, Tim Moon and Ben Meek
Continued focus on People & Talent - single framework in place driving “shared leadership”
Staff incentive plans in place based on a “balanced scorecard” approach
Our focus on people remains: clever thinking, great people, great teams, delivering outcomes for clients
Run a balanced resourcing model between permanent and contract staff in line with overall market conditions
The right team, at the right time
Achieving the right outcomes
Copyright 2013 RXP Services Ltd. 6
Our Clients
Banking & Financial Services
CommunicationsMiningRetail &
Consumer Goods
Media & Entertainment
Healthcare
Education
Energy and Utilities
Insurance & Superannuation
Government
Copyright 2013 RXP Services Ltd. 7
Our Partners
Copyright 2013 RXP Services Ltd. 8
Highlights – FY13
Revenue ($M) EBITDA ($M) Staff% EBITDA Margin
12.1
30.2
0.53
4.9
4.3
16.3
116
212
FY12 FY13 FY12 FY13 FY12 FY13 FY12 FY13
Revenue result at upper end of market guidance of $26M - $30M
EBITDA result with market guidance of $4.5M - $6.0M as we continue to aggressively hire staff ahead of the curve
Staff numbers have grown to 280 since 30 June 2013
Zero debt with $7.6M in cash as at 30 Sep 2013 to fund further organic and acquisitive growth
Nov 13
280
Copyright 2013 RXP Services Ltd. 9
Income Statement – FY13
1st Half 2nd Half FY13 $M FY12 $M
Revenue 11,360 18,799 30,159 12,080
REPORTED EBIT 1,253 3,663 4,916 534
Net interest (16) 4 (12) (3)
PROFIT BEFORE TAX 1,237 3,667 4,904 531
Income tax (384) (1,048) (1,419) (160)
NPAT 853 2,619 3,485 371
EBIT margin (%) 11.02 19.48 16.30 4.42
Basic EPS (cents) 5.4 1.2
Strong second half result and strong growth over previous FY
Revenue exceeded top end of market guidance of between $26-30M
EBIT margin within market guidance of between $4.5-6.0M
EBIT margin increased to 16.3%, with room for further improvement
Copyright 2013 RXP Services Ltd. 10
Cash Flow from Operations $’000
Cash Flow
Net cash flow from operations has doubled over the past 18 months
Growth in net operating cash flows expected to continue in FY14
Strong cash position at 30 September $7.6M
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Jun 12Qrt
Jun 13Qrt
Sep 13Qrt
Copyright 2013 RXP Services Ltd. 11
Our Spread of Revenue - by Industry
Banking & Finance 27%
Utilities16%
Health 11%
Government 20%
Transport & Distribution 6%
Retail / Other 10%
Telco & Media 10%
#Note – based on July 2013 actuals
Copyright 2013 RXP Services Ltd. 12
Our Spread of Revenue - by Practice
Business Intelligence & Information
Management 17%
Infrastructure & Cloud 6%
ApplicationsDevelopment 14%
Integration 21%
Business ProcessOptimisation 8%
Project Services 27%
Strategic AdvisoryServices 7%
#Note – based on July 2013 actuals
Copyright 2013 RXP Services Ltd. 13
Our Spread of Revenue - by Geography
Melbourne44%
Sydney 38%
Hong Kong 10%
Canberra 8%
#Note – based on July 2013 actuals
Copyright 2013 RXP Services Ltd. 14
Our Strategic Compass - priorities for the year ahead
Clever thinking is inherent in our approach. Our proprietary Transpire methods, aligned to leading and emerging industry standards, ensure that we progress down the most optimal route with the right preparation
Grow our People & Capabilities1.
Grow RXP Brand Awareness2.
Grow our Client Base3.
Increase Practice Penetration4.
Develop & Expand our Practices5.
Develop & Expand our Partnerships6.
Develop & Expand our Geographies7.
Copyright 2013 RXP Services Ltd. 15
Acquisitions - The Criteria
We have a simple goal when we do an acquisition – zero unplanned staff loss, zero loss of clients and zero loss of partners
We have a simple set of criteriaDo the people in the acquired company fit culturally?1.
Does the acquisition have track record of delivery, is it profitable?
2.
Does the acquisition add “in demand” capabilities/services?
3.
Does the acquisition increase our client footprint?4.
Does the acquisition increase our geographical footprint?5.
Does the acquisition build on our key strategic partnerships?
6.
Does the acquisition build staff loyalty?7.
Does the acquisition help build the RXP brand?8.
Copyright 2013 RXP Services Ltd. 16
Summary & Outlook
Performing strong in a sector that is portrayed as difficult
Aggressive growth strategy to continue by focusing on leveraging the current “in demand” services and Practice “x-sell” while fully leveraging our acquisitions
FY14 Revenue forecast to grow > 40% - (excludes last 3 acquisitions)
Expect FY14 EBITDA margin to continue to grow
With zero debt, $7.6M in cash as at 30 Sep and increasing positive cash-flows from operations, RXP is well positioned to take advantage of strategic acquisition opportunities that are presenting themselves
Completed MethodGroup, Nobel and Integrated value since last market update
Based on forecast cash flow from operations, the company will consider beginning our dividend policy in the first half of calendar 2014
Copyright 2013 RXP Services Ltd. 17
This presentation was not prepared for and should not be relied upon to provide all necessary information for investment decisions. Although great care & diligence has been taken to ensure the accuracy of this presentation, RXP Services Limited gives no warranties in relation to the statements and information contained herein and disclaims all liability arising from persons acting on the information and statements in this presentation.
Due to the dynamics and changing risk profiles of investment markets, RXP Services Limited reserves the right to change its opinion at any time. All investors are strongly advised to consult professional financial advisors whose role it is to provide professional financial advice, taking into account an individual investor’s investment objectives, financial situations and particular needs.
Important notice
Copyright 2013 RXP Services Ltd. 18