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September 2010

1. Presentation to the JSE / PSG. September 2010. 2. Agenda. Introduction. Results to 28 February 2010. Outlook. Introduction. 3. What does Protech do?. Protech is a bulk earthworks and civil engineering group that offers fast-track contracting. Its business offering includes:.

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September 2010

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  1. 1 Presentation to the JSE / PSG September 2010

  2. 2 Agenda Introduction Results to 28 February 2010 Outlook Introduction

  3. 3 What does Protech do? Protech is a bulk earthworks and civil engineering group that offers fast-track contracting. Its business offering includes: Bulk earthworks Roads and civil works Mining • Site clearance • Demolitions • Fast-track bulk earthworks • Basement excavation • Canal/river rehabilitation • Earthworks for commercial, industrial and retail developments • Crushing and screening • Road construction • Community infrastructure services • Dams and attenuation ponds • Airports and airfields • Harbour and reclamation works • Mine infrastructure development • Earthworks • Topsoil and overburden removal • Rehabilitation • Slime dams • Dump reclamation • Materials handling • Contract mining Introduction Plant hire and logistics Geotechnical laboratory and survey services Impact compaction Readymix concrete and pumping services

  4. 4 What gives Protech the edge? A focused producer of efficiency Above average margins Proven quality assurance Margins underpinned by: Cherry-picking work Plant renewal policy Fast trackspecialists Compete on reputation, not price • Reputation as fastest in sector • Guaranteed to be onsite in 24-48 hrs • 100% track record for finishing in time or before time • Proactively manage adversities to improve completion dates • Expertise & experience (21 yrs) Introduction

  5. 5 Quality client base Protech Offices in Botswana, Zambia, Zimbabwe, Namibia and Tanzania • Blue chip client base: bad debts < 1% of revenue Introduction

  6. 6 5-year Performance: Profit Before Tax Rm PBT remainswell above F2008 levels following the peak of the construction cycle in F2009 Note: PBT used as a measure as it includes all historic acquisition funding costs Introduction

  7. 7 Agenda Introduction Results to 28 February 2010 Outlook Results to 28 February 2010

  8. 8 Results to 28 Feb 2010 24% 18% • Pleasing in light of results from most other construction sector players 18% 7% 6 p.p. * HEPS of 20,2cps declined by 22% as it excludes profit on sale of plant & equipment (i.t.o. plant replacement policy) ** As at 31 August 2010 Results to 28 February 2010

  9. 9 Results to 28 Feb 2010 • Affected by 3 main factors • Excessive rainfall • Areas of geographic operation much more concentrated than usual due to new coal focus • Rainfall exceed the last 60 years avg by > 100% • Disrupted operations and delayed start-ups on new contracts • Worsening market conditions • The recession’s negative impact was even more powerful in H2 2010 • Private & public infrastructure spending decimated • Increased competition • Public sector infrastructure spending paralysis 50% 30% 20% Results to 28 February 2010

  10. 10 Results to 28 Feb 2010 • Earnings decline limited through unique business model Results to 28 February 2010

  11. 11 Results to 28 Feb 2010 • Statement of financial position • Strong cash flow • Capital intensive business, thereforetraditionally high gearing • Net gearing reduced to 57% • Net interest cover of 7,6x vs. minimum target of 5x–6x • However, gearing will increase in line with capex requirements for specific contracts won • There is sufficient equity in plant & equipment to cover the debt (carrying value of PPE: R374m vs debt of R265m) Results to 28 February 2010

  12. 12 Agenda Introduction Results to 28 February 2010 Outlook Outlook

  13. 13 Divisional contributions to revenue & operating profit F2010 R769,3m F2009 R708,7m * Before eliminations Revenue* Contracting Geotechnical F2010 R117,6m F2009 R150,6m Readymix Operating Profit* Readymix = R5,4m loss in F2010 Outlook

  14. 14 Outlook: Contracting Sector preferences based on margins 1st • Private sector • Non mining work has dried up; unlikely to show much improvement in H1 F2011 2nd • Mining sector • Protech’s short term pipeline = 90% of work is on the mines • Immediate focus remains coal – sustained activity due to global energy demand • Will broaden when other mining capex increases • Owned fleet will grow to service 3-yrR340m blue-chip mining contract 3rd • Public sector • Spend unlikely to increase meaningfully until government, provincial and municipal management structures, processes & capacity improve • Will continue to be selective in choosing contracts Outlook

  15. 15 Outlook: Contracting (contd) • Starting F2011 with 99% of F2010 Group revenue already secured Outlook

  16. 16 Outlook: Contracting (contd) * Note: Of the R300m imminent work list at interim results, R263m (88%) was secured # Not included in pipeline See appendix for breakdown of the pipeline and work in progress Outlook

  17. 17 Outlook: Geotechnical • State of the art laboratories & SANAS* accreditation: • Improves credibility with existing clients • Servicing of a wider selection of external clients in future • Increased turnover on existing cost base * SANAS: South African National Accreditation Systems Outlook

  18. 18 Outlook: Readymix • Protech culture now entrenched • Successful shift out of Residential • Pro-active management ensures that payments from RDP Housing remain strictly under control Outlook

  19. 19 Outlook: Group H1 F2010 H2 F2010 H1 F2011 H2 F2011 H1 F2012 • Includes initial effects of market downturn • Brunt of the downturn • Excessive rainfall • Pre-contract costs (largely once-off) on mining work • Longer duration of mining contracts means H2 F2010 margins will impact 12 months + • However, full benefit of mining contracts realised as pre-contract mine costs already sunk • Strong pipeline allows us to be more selective on the new margins we accept on new shorter duration work • Benefits of shorter term contracts won in H1 at higher margins • Slight improvement expected in Private Residential building sector • Improved market conditions Outlook

  20. 20 Forward looking statements Certain statements in this release that are neither reported financial results nor other historical information are forward looking statements including but not limited to predictions of or indications of future earnings. Undue reliance should not be placed on such statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and company plans and objectives to differ materially from those expressed or implied in the forward looking statements. The information in this presentation has not been reviewed or reported on by Protech’s auditors. Group outlook

  21. Questions & answers

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