SERVCORP LIMITED Servcorp | |
onlyuse | Limited |
Annual General Meeting | |
ersonal |
Wednesday 10 November 2021
Presented by: Mr. Alf Moufarrige, Chief Executive Officer
This presentation is approved and authorised by the Boa d of Directors of Servcorp Limited.
1
ersonal use only
Disclaimer
Important Information
Servcorp Limited (ABN 97 089 222 506) ("Servcorp") is the parent entity of the Servcorp Group and is responsible for all information contained in this presentation.
Not an offer nor investment advice
This presentation is not an offer or invitation for subscription or purchase of or a recommendation of securities. It does not take into account the investment objectives, financial situation and particular needs of the investor. Before making an investment in Servcorp, the investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances and consult an investment adviser if necessary. It does not contain all the information necessary to fully evaluate any transaction or investment and, as such, no reliance should be placed on its contents. Any investment decision should be made based solely upon appropriate due diligence and, if applicable, upon receipt and careful review of relevant offering documents. Recipients of this presentation should neither treat nor rely on its contents as advice relating to legal, taxation or investment matters and are advised to consult their own professional advisers.
Capital returns not guaranteed
Investment is subject to significant risks of loss of income and capital. To the maximum extent permitted by law, none of Servcorp, its directors, employees or agents, accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including, without limitation, any liability arising from fault or negligence on the part of Servcorp or its directors, employees or agents. Information, including forecast financial information, in this presentation should not be considered as a recommendation in relation to holding purchasing or selling, securities or other instruments in Servcorp Group.
Forecasts and forward-looking statements
Due care and attention has been used in the preparation of forecast information and forward-looking statements made in this presentation. However, actual results may vary from forecasts and any variation may be materially positive or negative. Forecasts by their very nature, are subject to uncertainty and contingencies many of which are outside the control of Servcorp Group. Past performance is not a reliable indication of future performance.
Dividend Guidance
Servcorp's dividend guidance and related statements in this presentation are subject to Servcorp's forecast assumptions being met.
Policies
This presentation has been prepared using policies adopted by the directors of Servcorp and, unless stated otherwise, these policies have been consistently applied to all periods presented in this presentation. Parts of this presentation have therefore been prepared on a different basis to the Financial Report of Servcorp. Certain information contained within this presentation does not, and cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of Servcorp Group as in the Financial Report. This presentation should be read in conjunction with the Financial Report of Servcorp Group, which can be found on the Servcorp website at www.servcorp.com.au
© Servcorp Group
2
Servcorp's Aim
ersonal use only
To be the world's finest Workspace Solutions provider, by:
- providing IT and commercial services second to none;
- giving our clients a commercial advantage;
- paying our people reasonable wages; and
- giving our shareholders an acceptable return on the funds they invest.
3
FY21 in Review
ersonal use only
The impact of COVID-19 on the flexible workspace industry has been unprecedented. Servcorp's response to the existing global environment has been swift and we continue to manage through the pandemic and post-pandemic world by prioritising:
-
A strong liquidity position
Current cash balances in excess of $105.0m and no external debt. - Tightly controlled operating expenditure
Cost reduction initiatives across our operations lowered our FY21 operating cost base by 24% compared to pcp. - Strict capital expenditure allocation
All capital expenditure programs were temporarily suspended through FY21. However looking to the medium term and opportunities for growth, particularly in mature markets with proven management performance, there is allocation of capital for some growth in FY22. - Unique technology platforms
Servcorp's technology platforms are market-unique and well placed to attract new clients this post COVID-19 environment. In particular, our best-in-market virtual product makes working from home seamless. - Vaccination of the team
Encouraging team members to be vaccinated by allowing paid time off and, where necessary, paying for vaccinations.
Occupancy levels through FY21 have been relatively stable, MatureA floor occupancy finishing the year at 73%. While the COVID-19 pandemic had a significant impact on coworking initially, our investment pre-COVID in refurbishing reception areas has played a substantial part in our ability to hold serviced office occupancy above 70%.
The restructuring of coworking and virtual office has allowed us to operate globally and ensure adherence to social distancing requirements. We continue to see higher enquiries across all our products where vaccination rates are above 60%.
A. Mature means floors that were open in both the current and comparative reporting periods. A floor is categorised as Mature at the earlier of 24 months from the date it becomes operational or 3 months consecutive operating profit. For the avoidance of doubt, Mature excludes closed floors.
4
FY21 Headline
Reasonable underlying FY21 performance despite difficult COVID-19
only | trading conditions | |
| Underlying Free Cash $49.9m (down 25%) | |
| Revenue and other incomeA down 22% | |
| Mature revenue down 17% (constant currency down 10%) | |
| UnderlyingB NPBT down 20% | |
| Statutory NPBT up 83% | |
| FY21 final dividend of 9.0 cps (paid 7th October), unfranked, 100% conduit foreign income | |
Balance sheet | ||
use | | Cash balances at 30 June 2021 of $97.0m, down $4.4m on 30 June 2020 driven substantially |
by a strong Australian dollar and $8.0m downward cash balance revaluations | ||
ersonal | | Cash balances currently in excess of $105.0m |
| Underlying Free Cash 166% of Underlying FY21 NPBT, providing some buffer to navigate | |
through COVID-19, supporting maintenance capital expenditure and dividends | ||
| No external net debt | |
| Strong cash generation enabling a FY21 final dividend of 9.0 cps (paid 7th October), unfranked |
A. Excluding $2.4m (FY20: $1.1m) JobKeeper subsidy revenue and other income was down 22%; JobKeeper is disclosed in the 30 June 2021 Financial Report as revenue. B. "Underlying" is a non-statutory measure and is the primary reporting measure used by the CEO, CFO, COO & Board of Directors for assessing the performance of our
business.
5
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Servcorp Limited published this content on 09 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2021 22:42:47 UTC.
