nd Half Opus International Consultants

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nd Half Opus International Consultants Powered By Docstoc
					Opus International Consultants Limited
                              Kevin Thompson
                             Managing Director

                        Briefing : February 2009
Agenda

1) 2008 Operational Highlights

2) Financial Performance 2008

3) Operations Outlook 2009

4) Strategic Direction

5) Company Overview
1) 2008 Operational Highlights
        2008 Operational Highlights

• Acquisition of the Joynes Pike Group doubling our UK
  staff numbers to 360 and adding 9 offices
• Acquisition of Project Engineering Ltd in Canada
• Secured 55% of New Zealand Transport Agency’s
  fees for the management of state highway networks
• Partner in the Auckland Motorway Alliance
• Won key Auckland City Council contracts for road
  asset management services, pavement structures
  and drainage design
• Transmission Gully new ‘preferred’ route reduces
  projected costs by $200m in Wellington
         2008 Operational Highlights

• Renewed three major highway network asset
  management contracts in NZ
• Roading design for Tillegra Dam in NSW
• Appointed to Perth city’s contracts panel
• Award winning architectural design for Wilson Special
  Needs School in Auckland
• Australian Northern Territory Strategic Indigenous
  Housing and Infrastructure Programme
• Environment Centre for Wales
• Appointed as preferred consultant to Logan City
  Council, QLD
        2008 Operational Highlights

• Developed Asset Management Framework for Ontario
• Appointed sole structural engineering consultant for
  conversion of 1,500 Boots stores in the UK
• Sustainability award winning Oxley Woods housing
  project in the UK
• Won survey work for UK “Decent Homes” housing
  programme
2) Financial Performance 2008



  •   2008 Results
        Financial Performance 2008

Financial Highlights
• Revenue up 25.4% to $372m
• EBITDA up 28.4% to $30.5m
• NPAT up 23.4% to $17.5m
• Profit exceeds forecast by 10.5%
• ROE 24.7% exceeds 22.8% forecast
• Staff numbers increase 327 to 2,563
                         Financial Results

                       Full Year               Variance                      Prospectus Variance

                    2008       2007                                2008
                                              $                                 $
                   Actual     Actual                      %         PFI                    %
                                           ($000)                             ($000)
                   ($000)     ($000)                              ($000)

Total Revenue      371,540    296,332       75,208        25.4%   314,792      56,748     18.0%
Net Revenue        277,973    213,365       64,608        30.3%   251,411      26,562     10.6%
EBITDA              30,530     23,770        6,760        28.4%    27,901       2,629      9.4%
EBIT                24,068     18,882        5,186        27.5%    21,773       2,295     10.5%
Interest               276         1,100     (824)    -74.9%        1,447      (1,171)    -80.9%
Operating Profit    24,344     19,982        4,362        21.8%    23,220       1,124      4.8%
Taxation            (6,848)    (5,808)      (1,040)       17.9%    (7,380)        532      -7.2%
Net Profit After
Tax                 17,496     14,174        3,322        23.4%    15,840       1,656     10.5%
                   Half Year Comparators

                        2008                  2007             2008-2 / 2008-1     2008-2 / 2007-2
                    2nd                   2nd
                             1st Half              1st Half      $                   $
                    Half                  Half                            %                   %
                              ($000)                ($000)     ($000)              ($000)
                   ($000)                ($000)

Total Revenue      193,714   177,826     157,003   139,329     15,888         9%   36,711      23%

Net Revenue        150,806   127,167     117,421     95,944    23,639      19%     33,385      28%

EBITDA              14,516     16,014     12,694     11,076    (1,498)      -9%     1,822      14%

EBIT                11,160     12,908     10,141      8,741    (1,748)    -14%      1,019      10%

Interest              (23)        299       626         474      (322)   -108%       (649)   -104%
Operating
Profit              11,137     13,207     10,767      9,215    (2,070)    -16%        370         3%

Taxation           (2,789)     (4,059)   (3,216)     (2,592)    1,270     -31%        427     -13%
Net Profit After
Tax                  8,348      9,148      7,551      6,623      (800)      -9%       797      11%
               Strong Operating Cash Flow

12 months to 31 December (NZ$m)        2008      2007     Prospectus Forecast
Receipts from Customers               371.9     287.5            310.7
Payments to Suppliers and Employees   (340.0)   (266.1)         (283.9)
Net Interest                           (0.1)     1.2              1.4
Tax Paid                               (7.0)     (5.6)           (7.9)
Net Cash From Operations               24.7      16.9            20.3
Net Purchase of PP&E                   (5.9)     (4.1)           (7.5)
Purchase of Investments               (15.4)     (9.0)             -
Other Investing Cash Flows             0.9       1.8               -
Net Cash from Investing               (20.3)    (11.2)           (7.5)
Net Cash from Financing Activity      (13.5)     1.7            (10.7)
Net Increase in Cash Held              (9.2)     7.4              2.1
Cash at the End of the Year            13.7      23.0            21.5
                    Balance Sheet Strength

31 December 2008 (NZ$m)        2008    2007    Prospectus Forecast
Bank & Start Term Deposits     60.5    53.4           50.3
Other Current Assets           75.5    60.8           68.7
Property Plant and Equipment   14.6    11.0           14.6
Intangible Assets              33.9    23.7           24.5
Other Non-Current Assets       11.2     7.9            8.4
Total Assets                   195.7   156.8          166.5
Bank Overdraft                 46.9    30.3           28.3
Other Current Liabilities      72.0    55.6           58.1
Non-Current Liabilities         5.8     7.2           10.1
Total Equity                   71.0    63.7           69.5
Total Equity and Liabilities   195.7   156.8          166.5
                     Key Ratios
                             2008        2007       2008
                            Actual      Actual       PFI
EPS (diluted)                  $0.12       $0.10      $0.11
DPS                            $0.07       $0.06      $0.07
Revenue Growth               25.38%      17.39%     18.03%
EBIT Growth                  27.47%       4.87%     10.54%
EBITDA Margin                 8.22%       8.02%      8.86%
EBITDA/Net revenue           10.98%       11.14%     11.10%
EBIT Margin                   8.66%       8.85%      8.66%
Effective Tax Rate           28.13%      29.07%     31.78%
ROE                          24.70%      22.30%     22.79%
ROA                           8.94%       9.04%      9.51%
ROCE                         22.79%      19.99%     19.90%
Net Interest Bearing Debt    (10,067)    (19,455)   (15,592)
Net IBD to Equity              (0.14)      (0.31)     (0.22)
Net Interest Cover             87.20       17.17      15.05
                                                                    Trends
                     Company - Total Revenue                                                                Company - EBITDA
                                                                           35,000
400,000
                                                                           30,000
350,000

300,000                                                                    25,000

250,000
                                                                           20,000
200,000
                                                                           15,000
150,000

100,000                                                                    10,000

 50,000
                                                                            5,000
       -
           2004   2005              2006                  2007      2008         -
                                                                                     2004        2005               2006                2007     2008
                    Total Revenue          Linear (Total Revenue)                                       EBITDA              Linear (EBITDA )


                           Company - NPAT                                                                    Company - FTEs
20,000
                                                                           3,000
18,000

16,000
                                                                           2,500
14,000

12,000                                                                     2,000

10,000
                                                                           1,500
 8,000

 6,000                                                                     1,000

 4,000
                                                                            500
 2,000

   -                                                                         -
           2004   2005              2006                 2007       2008             2004        2005                2006                 2007     2008

                         NPAT                 Linear (NPAT)                                 Company Total            Linear (Company Total)
3) Operations Outlook 2009
              Operations Outlook 2009


Global Economy – Implications for A&E Services
Public Sector
•   Every major economy is targeting increased infrastructure
    investment as an economic stimulus
•   Resultant increase in Architecture and Engineering services
    demand will build over 2009
Private Sector
•   Absence of finance and risk appetite have severely depressed
    activity with widespread shelving or cancellation of projects
•   Liquidity of sector increases bad debt risk
•   Recovery of activity levels will be influenced by backlogged
    demand and capital availability
            Operations Outlook 2009


Impact on Opus Markets
NZ             •   Opus revenues dominated by Public Sector Clients
               •   Well placed to benefit from increased infrastructure spend
               •   Every reason to be optimistic

Australia      •   Mix of Public/Private Sector Clients
               •   Some Developer exposure
               •   Reasonably well placed

Canada         •   Clients predominantly Public Sector Clients
               •   Well positioned

United Kingdom •   Mix of Public/Private Sector Clients
               •   Exposure to the House Building Sector
               •   Has impacted significantly on results
               •   Challenges to refocus activity into other sectors
            Operations Outlook 2009


• Tactical Response
   •   Reducing operating costs
           Indirect cost constraints
           Adjusting resource levels
           Conservative approach to growth
   •   Preserving cash
           Improving project management
           Focussed debt collection
           Reduced Capex
           Reduced recruitment
           Tightened liquidity management
   •   Building revenues
           Tracking and capturing increased infrastructure spend
           Diversifying UK business activity
           Increasing international collaboration
   •   Defending margins
           Focus on maintaining existing business
           Identify opportunities to improve margins
           Mitigate unprofitable projects
               Operations Outlook 2009
                         Country Results

                     FTE            Total Revenue          Result
     Country                                                                      Outlook
                 2007     2008      2007      2008      2007      2008
                ($000)   ($000)    ($000)    ($000)    ($000)    ($000)

New Zealand      1,637     1,731   232,073   257,647   19,536    29,613     Improving

Australia          299      358     22,067    53,555    (281)       (382)   Steady / improving

Canada              62       66      8,889    11,730      (22)      1,188   Improving

UK                 199      359     33,055    48,165      773    (5,420)    At risk / negative
4) Strategic Direction
                     Strategic Direction

• Conservative liquidity management
• Acquisition Strategy:
   •   2009
             Prudent to preserve cash, maintain/increase NTA, deal with
              issues in UK
             Continue exploring potential acquisitions, maintain NTA by
              mainly using new equity in any deal completed
             Focus is still Canada
   •   2010 and beyond
             Prepared and alert to opportunities to advance
   •   Short term strategy – grow profits before extending scope
   •   2011 strategy for global footprint is unchanged, but likely to
       be deferred
       Strategic Direction


360 FTEs

                             66 FTEs




                360 FTEs


                     1777 FTEs
       Strategic Direction

                                500 FTEs
700 FTEs




                500 FTEs


                    1850 FTEs
5) Company Overview



  •   Company Description
  •   Locations
  •   Rationale for International Market Presence
  •   Broad Range of Services Provided
  •   Developing Capability across the Globe
  Overview: Company Description

• Infrastructure professional services organisation
• Specialise in
      Buildings
      Water
      Roads
• Creation of new assets, and management of existing assets
• Also work with other infrastructure
      Port / Airport
      Industry
      Energy
      Land Development
      Environmental
      Rail
Overview: Locations



          17 Offices
          360 FTEs
                                                  7 Offices
                                                  66 FTEs




                                    21 Offices
                                    360 FTEs

                                         36 Offices
                                          11 Labs
                                         1777 FTEs

2,563 Employees Across 81 offices and 11 laboratories
Overview:
Rationale for International Market Presence
 •   Global presence
        Spreads opportunity & economic risk
        Broadens skill base
        Provides opportunities for staff
 •   Opus asset management capability provides competitive advantage
        Chosen markets need and want asset management
 •   Also able to provide asset development services in these markets
 •   Growth achieved through acquisitions plus organic growth
 •   Chosen markets have similar
        Infrastructure
        Legal systems
        Culture
        Language
Overview: Broad Range of Services Provided

Majority of Opus employees are technical professionals with skills
in the following areas:
  •   Architecture                             •   Pavement Engineering
  •   Asset Valuation                          •   Pipe Network Reticulation
  •   Bridge Design                            •   Project Management
  •   Building Services Engineering            •   Project Procurement & Construction Management
  •   Civil Engineering                        •   Property Acquisition, Disposal and Management
  •   Infrastructure Economic Evaluation       •   Risk Management
  •   Environmental Planning                   •   Seismic Engineering
  •   Estimating & Cost Management             •   Structural Engineering
  •   Fire Engineering                         •   Traffic Engineering
  •   Geotechnical Engineering                 •   Traffic Modelling
  •   GIS Services                             •   Transportation Asset Management
  •   Graphic Design                           •   Transportation Infrastructure Design
  •   Heritage Conservation Services           •   Transportation Planning and Engineering
  •   Infrastructure Asset Management          •   Travel Demand Management Plans
  •   Land Surveying                           •   Utilities Operator Training
  •   Landscape Architecture                   •   Wastewater Treatment
  •   Maritime Engineering (Marine Services)   •   Water Asset Management
  •   Materials Testing                        •   Water Resource Management
  •   Mechanical & Electrical Engineering      •   Water Treatment
Overview: Broad Range of Services Provided
New train stations on the Epping to Chatswood Railway line, NSW
Overview: Broad Range of Services Provided
Stage 2 development at White Water World, QLD
Overview: Broad Range of Services Provided
Master plan for the development of a new ferry terminal, Nova Scotia
Overview: Broad Range of Services Provided
Safety review of Cobequid Pass,Trans-Canada Highway, Nova Scotia
Overview: Broad Range of Services Provided
Westfield Retail Development at White City
Overview: Broad Range of Services Provided




The Environment
Centre for Wales
Overview: Broad Range of Services Provided
Oxley Woods project, Milton Keynes
Overview: Broad Range of Services Provided




The Wilson
Special Needs
School, Auckland
Overview: Broad Range of Services Provided
Newmarket Station, Auckland
Overview: Broad Range of Services Provided
Mt Grand Raw Water Reservoir, Dunedin
Overview: Broad Range of Services Provided
Hillsborough roundabout overbridge, Auckland
Overview: Broad Range of Services Provided
Air-conditioning system design at Gen-i Data Centre, Auckland
     Strong FTE Growth



Year End FTEs by Country   2002    2003    2004    2005    2006    2007    2008
New Zealand                1,121   1,201   1,350   1,459   1,594   1,677   1,777
Australia                   30      38      46      68      82      299     360
Canada                       -       -      24      29      59      62      66
UK                          32      34      135     154     179     199     360
                           1,183   1,273   1,555   1,710   1,914   2,237   2,563
Annual Increase                    7.6%    22.2%   10.0%   12.0%   16.9%   14.6%

				
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