FY21 Results Highlights
Group operating EBITDA of $238m, at the higher end of guidance range ($235-238m)
Strong free cash flows of $87m before growth capex (cash conversion of 102%)
Return on capital (17%) - This is lower than the last year number of 21%
Operating EBITDA margin - 38% - again lower than last year number 47%
NPAT - 57 mil - again lower than last eyar 61 mil
Good signs:
Refinancing of US notes bringing intrest down to 6.25% from approx 8% now
15% revenue growth with increased services revenue and full year Pit N Portal
contribution
fully franked dividend of 1.25 cents and on-market share buyback of ~$4m starting 1st Sep
Emeco continues to be lost-time injury (LTI) free for another year, extending
the LTI free period to over 5 years
Leverage reduced from 1.58x to 0.93x
Cashflow:
Continued strong cash conversion in the period of 102% (FY20: 92%)
$10m benefit from debt repayment in 2H21, further interest savings in FY22 onwards
No cash tax payable over the next several years ($315m in carried forward losses)
$A notes issue and refinancing reduces annual interest costs by $28m, or 64%, compared to FY20,
maintaining net leverage below 1.0x post capital management
Outlook:
Strong growth in earnings expected in the Rental division in FY22
