Coventry Group Ltd
ABN 37 008 670 102
Roger Flynn
Executive Chairman
Market Update April 2013
“Delivering
the results”
For personal use only
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Coventry Group Ltd: Six-Month Trading Results and Business Overview, April 2013, Slides of Construction
An update on Coventry Group Ltd's six-month trading results, including strong performances in fluids and gaskets businesses, weak results for fasteners and hardware, and elimination of total debt. The document also discusses the company's commitment to shareholders, strategy execution, and key strengths.
What you will learn
- What was the impact of mining peak on Coventry Group Ltd's results?
- What is Coventry Group Ltd's strategy for future growth?
- Which businesses performed strongly and which performed weakly?
- What were the six-month trading results for Coventry Group Ltd?
- What steps did Coventry Group Ltd take to eliminate debt?
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Coventry Group Ltd
ABN 37 008 670 102
Roger Flynn
Executive Chairman
Market Update April 2013
“Delivering
the results”
For personal use only
Our Businesses
Coventry has four well established businesses in
Industrial Distribution and one embryonic
business in the IT services sector
- Coventry Fasteners and Hylton Parker (NZ)
- Cooper Fluid Systems
- Artia (Cabinet Hardware and Furniture)
- AA Gaskets and NZ Gaskets
For personal use only • MSS / Multripro (managed system services)
The Six Months Trading Results
STRONG PERFORMANCE AND RETURNS FOR
SHAREHOLDERS
- 11c fully franked dividend to be paid in March 2013
- EPS for the Group was 10.4c (including profit on property sales)
- NTA/share increased to $3.72 (share price at 31 Dec 2012 $3.00)
- Total debt eliminated - $53M in cash at period end
- Share price increased 13% in the 6 months ended 31 Dec 2012
For personal use only • Strong TSR over the last 12, 24 or 36 month periods
The Commitment to Shareholders
$/Share
NTA HAS INCREASED WHILST REGROWING DIVIDENDS
For personal use only
The Businesses
- Geographic Markets : All states of Australia (QLD/WA largest), New Zealand
- Divisional Office : Melbourne, (51 branches)
- Dimensions : Sales $125m Employees 409 EBIT: before significant items break even
- Cap Employed : $37m
- Key Markets : Infrastructure, construction (non-residential), fabrication
- Key Competitors : Blackwoods and many independents and multi-nationals
- Market Position : Strongest player in specialised fastening products
- Key Economic Drivers : Non-residential construction, infrastructure spend (public & private), general manufacturing activity
COVENTRY FASTENERS & HPF ARE LEADING
PLAYERS WITH STRONG MANAGEMENT
For personal use only
The Businesses (continued)
- Geographic Markets : WA, QLD, SA and small amount of export
- Divisional Office : Brisbane, (8 branches)
- Dimensions : Sales $83m Employees 172 EBIT 13.5%
- Cap Employed : $24m
- Key Markets : Hydraulic hose/fittings and maintenance to the resources industry
- Key Competitors/ : Many – fragmented market Market Position
- Key Economic Drivers : Resource related activity
COOPER FLUID SYSTEMS IS WELL LED &
CONTINUES TO DELIVER STRONG RETURNS
For personal use only
The Businesses (continued)
- Geographic Markets : All states of Australia and New Zealand
- Divisional Office : Melbourne, (8 branches)
- Dimensions : Sales $25m Employees 88 EBIT is currently a loss of around 3%
- Cap Employed : $13m
- Key Markets : Kitchen renovation, office furnishings, hospitality furnishing
- Key Competitors / : Many – fragmented market Market Position
- Key Economic Drivers : General level of domestic activity, house building, tourist related activity
ARTIA (CABINET FURNITURE AND HARDWARE)
HAS GROWTH POTENTIAL
For personal use only
The Businesses (continued)
- Geographic Markets : Australia and New Zealand
- Divisional Office : Melbourne, (2 branches)
- Dimensions : Sales $14m Employees 60 EBIT 17%
- Cap Employees : $10m
- Key Markets : Auto repairers, performance vehicles (after market not OEM)
- Key Competitors / : Market leader Market Position Key competitor is ACL Gaskets (in administration)
- Key Economic Drivers : Level of vehicle repairs, sensitive to fuel price and price of new motor vehicles
GASKETS IS THE MARKET LEADER &
PERFORMING WELL
For personal use only
Pursuing The Strategy
Coventry Group has $52M in cash and therefore the resources to:
- undertake capital management initiatives – dividends and share ‘buy
backs’
- invest in selected areas of current business portfolio to expedite growth
- invest in areas that have strong synergy with the current business portfolio
- invest in new business areas where these call for strengths that the Group
possesses
A DISCIPLINED PATH OF SHAREHOLDER VALUE
CREATION
Board remains disciplined in its scrutiny of
investment opportunities
For personal use only
For personal use only