DOCSLIB.ORG

24. Programmed 2016 Annual Report

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
24. Programmed 2016 Annual Report 2016 ANNUAL REPORT PROGRAMMED 2016 ANNUAL REPORT THE 2016 ANNUAL GENERAL MEETING of shareholders in the company will be held at 10.00am (WST) on Wednesday, 27 July 2016 at the Parmelia Hilton Perth, 14 Mill Street, Perth, Western Australia. ROGRAMMED IS A LEADING P PROVIDER OF STAFFING, MAINTENANCE AND FACILITY MANAGEMENT SERVICES. We employ directly approximately 20,000 people across a broad range of government and private sector businesses. We provide services to more than 10,000 customers, often under long-term contracts. We deliver these services through our network of over 100 branches throughout Australia and New Zealand. Our business model is built around our ability to recruit, deploy, manage and maintain a large directly-employed workforce of professional, skilled and semi-skilled staff with a wide range of capabilities. 2016 CORPORATE GOVERNANCE STATEMENT AND APPENDIX 4G DISCLOSURES Programmed has published its 2016 Corporate Governance Statement and the disclosures required by Appendix 4G of the ASX Listing Rules in the Investor Centre section of its website: www.programmed.com.au/index.php/investor-centre Shareholders are encouraged to read the Corporate Governance Statement and Appendix 4G disclosures. CONTENTS 1 Company Description 21 Directors’ Report 2 The Programmed Difference 59 Financial Statements 3 Results in Brief 63 Notes to the Financial Statements 4 Chairman’s Letter 116 Directors’ Declaration 6 Business Summary 117 Auditor’s Independence Declaration 8 Managing Director’s Review 118 Independent Auditor’s Report of Operations 120 ASX Additional Information 16 Our People 122 Summary of Financial Statistics 19 Caring for Our Community 124 Corporate Directory Programmed Maintenance Services Limited ABN 61 054 742 264 PROGRAMMED 2016 ANNUAL REPORT 1 OUR 3 DIVISIONS STAFFING Recruitment and labour hire services to a range of industries. MAINTENANCE MARINE Maintenance, building and Management, manning and operational services to a range operational services to the offshore of industries. oil and gas industry. 2 PROGRAMMED 2016 ANNUAL REPORT T H E P R O G R A M M E D DIFFERENCE THE PROGRAMMED DIFFERENCE IS OUR ABILITY TO: Recruit Manage industrial relations in Deploy the right person and develop an increasingly difficult with the right competency people environment to each job Deliver operational Manage human resources improvements, flexibility in an increasingly regulated Get safety right and high levels of satisfaction to environment on the ground our customers PERTH-BASED PAINTER JOHN HAYDOCK WORKS WITHIN THE PROPERTY SERVICES TEAM, OFTEN CARRYING OUT SPECIALIST PAINT WORK AT HEIGHTS. PROGRAMMED 2016 ANNUAL REPORT 3 RESULTS IN BRIEF REVENUE: $2.2b (continuing operations) PROFIT AFTER TAX: Reported loss of $98m after amortisation and non-trading items 2,500 40 2,000 20 1,500 0 1,000 (50) 500 0 (100) 12 13 14 15 16 12 13 14 15 16 EARNINGS PER SHARE: 21.8 cps before PROFIT AFTER TAX: $38.8m before amortisation and amortisation and non-trading items non-trading items 35 40 30 25 30 20 20 15 10 10 5 0 0 12 13 14 15 16 12 13 14 15 16 GROSS OPERATING CASH FLOW: $90.9m DIVIDENDS: 11.5 cents per share fully franked 100 % of EBITDA 20 200% 80 16 160% 60 12 120% 40 8 80% 20 4 40% 0 0 0% 12 13 14 15 16 12 13 14 15 16 REVENUE* BY DIVISION NET DEBT: $239m % of Equity 300 45% 41% Staffing 250 40% 200 35% 43% Maintenance 30% 150 25% 16% Marine 100 20% 15% 50 10% 0 5% 0% 12 13 14 15 16 REVENUE* BY STATE/ REVENUE* BY SECTOR COUNTRY 37% 12% 34% WA 6% SA Government & Manufacturing & infrastructure industrial 21% NSW 6% NZ 15% Offshore 10% Onshore 18% VIC 2% TAS oil & gas mining 11% QLD 2% Other 12% Retail & 9% Other commercial * Includes six months contribution from Skilled 5% Transport 4 PROGRAMMED 2016 ANNUAL REPORT CHAIRMAN’S LETTER BRUCE BROOK Chairman 100+ Number of Programmed office locations throughout Australia and New Zealand. he founder of Programmed, Norman Miles, died new business as, over the next 60 years, some customers late last year, some 60 years after he founded our or industry sectors reduce demand or disappear and new company. We recognise and are grateful for his customers and industry sectors grow and develop. T vision and innovation that led to the development of We also believe that we need to be the most effective, long-term painting maintenance programs, a product that has scalable and efficient provider of services in the markets that been highly successful and that we continue to sell today. we serve to ensure we maintain our leading position and Few companies survive 60 years, and we are delivering a retain business. strategy to ensure we are a strong, sustainable company Thus, we concluded the acquisition of Skilled during for the next 60 years and beyond. This involves creating the past year, in order to benefit from greater scale new opportunities to grow in the coming decade post the and diversification. resources capex boom. It will take a number of years for the benefits of size, scale This is an important point because too often commentators and efficiency to be fully realised as we integrate business focus on daily and monthly movements in share prices, systems and seek growth across our expanded network. We encouraging companies to make short-term decisions, when have a large platform that will allow us to continue to invest the key to creating long-term shareholder value is a clear in technology and lower our unit operating costs for many vision and an effective long-term plan. years to come. At Programmed, we have a clear vision to be a leading Our FY2016 results included revenue and earnings from provider of staffing, maintenance and facility management Skilled for six months and reflect a company adjusting its services, without injury. We have a diverse team; the costs and integrating its operations to deliver the long-term right people; a strong culture built around safety, care and plan for the business. Revenue was $2,209 million, up 54% on the previous year, and profit before amortisation and non-trading items was $38.8 million, up 24.7%. We “ We have a diverse team; the right people; a incurred one-off non-trading expenses totalling $33.9 million strong culture built around safety, care and to complete the Skilled transaction, integrate Programmed empathy for people and good customer service.” and Skilled and secure more than $30 million of ongoing cost savings, and down-size parts of our business facing the resources sector to reflect the significant reduction in demand for services. We have taken a non-cash impairment charge of $102.4 million to the goodwill of our Marine empathy for people and good customer service; and we put division, where activity has reduced significantly following much effort into managing our safety, environmental and the steep fall in oil and gas prices. After amortisation and community obligations. non-trading items, we reported a loss of $98.0 million We believe this is the best way for us to create long-term, compared to a $25.7 million profit in FY2015. sustainable value for our shareholders. Importantly, we are pleased to have maintained very strong We have also determined that our diversity across all industry cash flow. Net debt, which was $302 million on completion sectors, all towns and cities across Australia and New Zealand, of the Skilled acquisition last October, fell to $239.1 million and many thousands of customers is fundamental to our at 31 March 2016. We have announced a final dividend of future success. It will ensure that we can find and attract 5 cents per share, fully franked, payable on 26 July 2016, PROGRAMMED 2016 ANNUAL REPORT 5 OUR ZERO HARM JOURNEY Over the past year, our team has been working • I will get the level of safety I demonstrate I want. hard to deliver our company’s vision to be a leading At Programmed, safety is just how we do things, provider of staffing, maintenance and facility and we live by the statement ‘If you see it, you management services, without injury. own it’. Our people are committed to this vision by We encourage all our employees to take an ensuring they protect the wellbeing of not only active role in visibly demonstrating safety themselves, but their co-workers, the public, and leadership regardless of their organisational positon the environments and communities in which they and location. work and live. We promote the importance of health and Our belief that all injuries can be prevented, wellbeing by providing employees with a combined with the actions we take to achieve program designed to enhance their sense of Zero Harm, ensure that our team members go contribution and appreciation of the role they play home uninjured. in the organisation. We also actively seek team Safety is embedded in our culture and we stand by members to display care and empathy for those four safety beliefs which are: they work with. • All injuries are preventable, including injuries In the coming year, we will continue to strive for at home an injury-free workplace where all employees feel valued and are actively involved in ensuring the • Working safely is a condition of employment safety of themselves and the people around them. • Employee action and involvement are essential bringing dividends for the year to 11.5 cents fully franked. a handful of ASX200 companies that have an equal number The dividend reinvestment plan has been reinstated, with a of male and female non-executive directors on the board, discount of 2.5%. and I thank all my board colleagues for their ongoing support The board works closely with management to monitor our and commitment.
Load more

Recommended publications
  • Staffing 2016 Q2
    Quarterly Industry Update As of June 30, 2016 Industry: Staffing Industry Summary Cogent Valuation identified Staffing publicly traded companies, IPOs, and recent M&A transactions within the Staffing industry, which provides a basis for market and transaction pricing that can be used by your firm in estimating market sentiment and its impact on your firm's value. Over the last year since June 30, 2015, the median 52-week share price return of the Staffing industry was -35.7%. Between June 30, 2014 and June 30, 2016, the median EV/EBITDA multiple decreased from 12.4 to 11.6. Furthermore, the median price-to-earnings multiple decreased from 22.6 to 20.6 over the same period. Comparable Public Company Key Statistics Median 52-Week Return -35.7% Median EV/Revenue Multiple 0.7x Median Price/Earnings Multiple 20.6x Median 3-Year CAGR Return 4.7% Median EV/EBITDA Multiple 11.6x Median EV/Gross CF Multiple 21.0x Comparable Public Company Market Price Returns As of June 30, 2016 YTD 3 Month 1 Year 2 Year 3 Year 5 Year 2011 2012 2013 2014 2015 AMN Healthcare Services Inc. 28.7% 18.9% 26.5% 80.3% 40.8% 36.9% -27.9% 160.7% 27.3% 33.3% 58.4% CDI Corp. -9.8% -2.9% -53.1% -34.9% -24.5% -14.4% -25.7% 24.0% 8.2% -4.4% -61.8% Command Center, Inc. -19.7% 5.3% -37.5% -16.2% 28.2% 0.0% -28.2% -3.6% 66.7% 66.6% -33.6% Computer Task Group Inc.
    [Show full text]
  • II. Staffing: Growth, Profitability and Valuation Relationship Analysis
    DELANCEY STREET DELANCEY STREET PARTNERS CAPITAL PARTNERS HUMAN CAPITAL TECHNOLOGY & SERVICES REVIEW Your Single Source For All Things Human Capital Mergers & Acquisitions Public and Private Financings Strategic Advisory & Growth Capital December 2014 www.delanceystreetpartners.com Five Tower Bridge | Suite 420 | 300 Barr Harbor Drive | West Conshohocken | PA| 19428 DELANCEY STREET DELANCEY STREET PARTNERS CAPITAL PARTNERS Core Focus on the Human Resources Sector The human resources sector is a core focus for Delancey Street Partners and Delancey Street Capital Partners. We are pleased to provide you with this edition of the DSP “Human Capital Technology & Services Quarterly” our informational update of “All Things Human Capital” (trademark pending). Here you will find an overview of select company financial performance, mergers & acquisition activity, venture & private equity activity and general news and relevant information. We possess a unique combination of deep HR Services & Technology knowledge, principal investing/board of directors experience and strategic advisory services. We partner with leading companies in the Human Resources sector to provide strategic M&A advisory services, orchestrate strategic capital raises and advise Boards of Directors on critical company initiatives. Contact DSP today to see how we can play a role in your company’s success. Delancey Street’s Human Capital Sector Contact Information William J. Filip Managing Director Head of Business & Technology Services and Merchant Banking [email protected] 484.533.6312 David K. Allebach Robel Chiappini Vice President Associate [email protected] [email protected] 484.533.6315 484.533.6310 www.delanceystreetpartners.com Five Tower Bridge | Suite 420 | 300 Barr Harbor Drive | West Conshohocken | PA| 19428 Table of Contents: Human Capital & Technology Services Quarterly PAGE 2 Quarterly I.
    [Show full text]
  • Staffing 4Q 2016
    Quarterly Industry Update As of December 31, 2015 Industry: Staffing Industry Summary Cogent Valuation identified Staffing publicly traded companies, IPOs, and recent M&A transactions within the Staffing industry, which provides a basis for market and transaction pricing that can be used by your firm in estimating market sentiment and its impact on your firm's value. Over the last year since December 31, 2014, the median 52-week share price return of the Staffing industry was -23.9%. Between December 31, 2013 and December 31, 2015, the median EV/EBITDA multiple decreased from 12.1 to 10.7. Furthermore, the median price-to-earnings multiple decreased from 23.4 to 18.7 over the same period. Comparable Public Company Key Statistics Median 52-Week Return -23.9% Median EV/Revenue Multiple 0.9x Median Price/Earnings Multiple 18.7x Median 3-Year CAGR Return 19.3% Median EV/EBITDA Multiple 10.7x Median EV/Gross CF Multiple 19.2x Comparable Public Company Market Price Returns As of December 31, 2015 YTD 3 Month 1 Year 2 Year 3 Year 5 Year 2011 2012 2013 2014 2015 AMN Healthcare Services Inc. 58.4% 3.5% 58.4% 45.3% 39.0% 38.3% -27.9% 160.7% 27.3% 33.3% 58.4% CDI Corp. -61.8% -20.9% -61.8% -39.6% -26.7% -18.3% -25.7% 24.0% 8.2% -4.4% -61.8% Command Center, Inc. -33.6% -3.3% -33.6% 5.2% 22.7% 5.0% -28.2% -3.6% 66.7% 66.6% -33.6% Computer Task Group Inc.
    [Show full text]
  • Annual Report
    2017 ANNUAL REPORT 2017 Annual General Meeting Programmed is a leading provider The annual general meeting of shareholders in the company will be held of staffing, maintenance and facility at 9.30am (WST) on Friday 28 July 2017 at Brookfield Tower 2, Ground Floor, management services. 123 St Georges Terrace, Perth WA 6000. We directly employ more than 20,000 people across a broad range of industries, providing services to more than 10,000 customers, often under long-term contracts. Our business model is built around our ability to recruit, deploy, manage and maintain a large directly employed workforce of professional, skilled and semi-skilled staff. We operate through a network of more than 100 branches, often delivering multiple services from across our business. 2017 Corporate Governance Statement and Appendix 4G Contents disclosures Programmed has published its 2017 1 Our Services 54 Financial Statements Corporate Governance Statement and 2 Chairman’s Letter 58 Notes to the Financial Statements the disclosures required by Appendix 4G of the ASX Listing Rules in the Investor 3 Results in Brief 109 Directors’ Declaration Centre section of its website: www. 4 Business Summary 110 Auditor’s Independence programmed.com.au/investors Declaration 6 The Programmed Difference Shareholders are encouraged to read the 111 Independent Auditor’s Report 7 Managing Director’s Review Corporate Governance Statement and of Operations 115 ASX Additional Information Appendix 4G disclosures. 15 Our People 117 Summary of Financial Statistics 17 Caring for Our Community 119 Corporate Directory Programmed Maintenance 19 Directors’ Report Services Limited ABN 61 054 742 264 B Programmed 2017 Annual Report Our Services Staffing Recruitment, staff hire and Pictured: Programmed account manager Clint Boyle works within managed labour services.
    [Show full text]
  • M&A Trends 2017/2018—Japan's New Wave of Investment Into Australia
    M&A trends 2017/2018—Japan’s new wave of investment into Australia MAY 2018 Japan’s diversified investment into Australia over the last 10 years has seen its ranking rise to second spot, behind the United States, in foreign direct investment. Prompted by Australia’s position in Asia, stable economy, strong population growth forecasts, and sound legal system, Japan is now investing in a number of mid-market deals in ‘non-traditional’ consumer-focused sectors. Between January 2017 and February 2018, there were 38 completed M&A deals inbound from Japan into Australia. These deals showcase a distinct ‘second trend’ of direct investment into Australia. This trend of investing in ‘non-traditional’ consumer-focused sectors was initiated in 2007 by the Kirin, Asahi and Dai-Ichi Life deals and has continued at an accelerated pace under Abenomics. The average investment value of the reviewed deals was A$243 million and only 4 transactions exceeded A$500 million. Importantly for Australia, there were 19 new entrants into the market, further strengthening the existing bilateral relationship. Since the 1957 Commerce This growth can be attributed to a distinct Details of the transactions surveyed are set Agreement, the nature of ‘second trend’ of direct investment into out in the Appendix. Japanese investment has evolved Australia in the last 10 years. From major from being primarily focussed on Japanese listed companies to small and Japan’s diversified securing minerals, energy and medium-sized companies, Japanese businesses continue to see Australia as a investments food for export (1960s through to source of opportunity within their investment Based on the total volume by sector Natural the mid-2000s) by minority portfolio.
    [Show full text]
  • 42. Issue of Scheme Booklet
    ASX Release 47 Burswood Road Burswood WA 6100 T (08) 9216 2100 F (08) 9216 2186 31 August 2017 www.programmed.com.au Programmed Maintenance Services Ltd ACN 054 742 264 Issue of Scheme Booklet FIRB condition is satisfied Programmed Maintenance Services Limited (Programmed) (ASX:PRG) refers to its announcement yesterday about the proposed acquisition of Programmed by PERSOL HOLDINGS CO., LTD (PERSOL) by way of scheme of arrangement between Programmed and Programmed shareholders (Scheme), and the Federal Court's orders approving the convening of a meeting of Programmed shareholders to consider and vote on the Scheme (Scheme Meeting). Programmed is pleased to confirm that the Australian Securities & Investments Commission has now registered the notice of Scheme Meeting and explanatory statement to be provided to Programmed shareholders in relation to the Scheme (together, the Scheme Booklet). Attached to this announcement is a copy of the Scheme Booklet, including the Independent Expert’s Report from Lonergan Edwards & Associates Limited, which concludes that the Scheme is fair and reasonable and in the best interests of Programmed shareholders, in the absence of a superior proposal. Programmed is also pleased to announce that the Australian Government's Foreign Investment Review Board (FIRB) has confirmed to PERSOL that the Treasurer has no objection to PERSOL's proposed acquisition (through its wholly owned subsidiary, Autalent Solutions Pty Ltd) of 100% of the issued shares of Programmed under the Scheme. As initially announced by Programmed on 14 July 2017 and set out in the Scheme Booklet attached to this announcement, FIRB approval was a condition to the Scheme.
    [Show full text]
  • Index Contact I. Introduction Industry Update II. Market Update
    Industry Update HUMAN CAPITAL MANAGEMENT September 2018 Index I. Introduction II. Market Update III. Recent Trends IV. M&A Activity V. Private Placements I. Introduction VI. Public Market Valuation The HCM sector has seen strong and consistent activity since we began writing this report five years ago. In our sixth edition, we continue to report on the state of the HCM market, seeing robust M&A activity with 124 M&A transactions in 2018 YTD, and 180 transactions in the last 12 months. In this edition of our annual report, we will highlight some of the most active subsectors in the HCM industry including Recruiting, Employee Engagement, Payroll, and Workforce Solutions. We also look at private equity activity and some of the major transactions which have occurred over the past year. II. Market Update Number of Completed HCM Transactions Private Year Recruiting Consulting Outsourcing Payroll Benefits Training Other Total Equity 2015 23 5 2 5 4 7 25 15 71 2016 59 10 10 13 29 5 35 25 161 2017 70 14 15 16 36 11 29 36 191 2018 31 10 10 11 18 8 36 17 124 LTM 47 18 17 17 30 10 41 24 180 Total 183 39 37 45 87 31 125 93 547 Since last year’s report, there have been a number of transactions across M&A and Private Financings, with some major players continuing to acquire core HCM Contact capabilities. Additionally, Ceridian completed its $462 million IPO in April of 2018. The largest deal in the past 12 months was SAP America acquiring Callidus James Holzer, Managing Partner Software for over $2.5 billion.
    [Show full text]
  • Staffing 1Q 2016
    Quarterly Industry Update As of March 31, 2016 Industry: Staffing Industry Summary Cogent Valuation identified Staffing publicly traded companies, IPOs, and recent M&A transactions within the Staffing industry, which provides a basis for market and transaction pricing that can be used by your firm in estimating market sentiment and its impact on your firm's value. Over the last year since March 31, 2015, the median 52-week share price return of the Staffing industry was -21.6%. Between March 31, 2014 and March 31, 2016, the median EV/EBITDA multiple decreased from 12.0 to 9.0. Furthermore, the median price-to-earnings multiple decreased from 22.5 to 17.9 over the same period. Comparable Public Company Key Statistics Median 52-Week Return -21.6% Median EV/Revenue Multiple 0.9x Median Price/Earnings Multiple 17.9x Median 3-Year CAGR Return 6.2% Median EV/EBITDA Multiple 9.0x Median EV/Gross CF Multiple 16.4x Comparable Public Company Market Price Returns As of March 31, 2016 YTD 3 Month 1 Year 2 Year 3 Year 5 Year 2011 2012 2013 2014 2015 AMN Healthcare Services Inc. 8.2% 8.2% 45.7% 56.4% 28.5% 31.2% -27.9% 160.7% 27.3% 33.3% 58.4% CDI Corp. -7.1% -7.1% -55.3% -39.5% -28.5% -15.7% -25.7% 24.0% 8.2% -4.4% -61.8% Command Center, Inc. -23.7% -23.7% -48.6% -8.1% 15.0% -6.4% -28.2% -3.6% 66.7% 66.6% -33.6% Computer Task Group Inc.
    [Show full text]
  • Annual Report
    For personal use only 2017 ANNUAL REPORT 2017 Annual General Meeting Programmed is a leading provider The annual general meeting of shareholders in the company will be held of staffing, maintenance and facility at 9.30am (WST) on Friday 28 July 2017 at Brookfield Tower 2, Ground Floor, management services. 123 St Georges Terrace, Perth WA 6000. We directly employ more than 20,000 people across a broad range of industries, providing services to more than 10,000 customers, often under long-term contracts. Our business model is built around our ability to recruit, deploy, manage and maintain a large directly employed workforce of professional, skilled and semi-skilled staff. We operate through a network of more than 100 branches, often delivering multiple services from across our business. 2017 Corporate Governance Statement and Appendix 4G Contents disclosures Programmed has published its 2017 1 Our Services 54 Financial Statements Corporate Governance Statement and 2 Chairman’s Letter 58 Notes to the Financial Statements the disclosures required by Appendix 4G of the ASX Listing Rules in the Investor 3 Results in Brief 109 Directors’ Declaration Centre section of its website: www. 4 Business Summary 110 Auditor’s Independence programmed.com.au/investors Declaration 6 The Programmed Difference For personal use only Shareholders are encouraged to read the 111 Independent Auditor’s Report 7 Managing Director’s Review Corporate Governance Statement and of Operations 115 ASX Additional Information Appendix 4G disclosures. 15 Our People 117 Summary of Financial Statistics 17 Caring for Our Community 119 Corporate Directory Programmed Maintenance 19 Directors’ Report Services Limited ABN 61 054 742 264 B Programmed 2017 Annual Report Our Services Staffing Recruitment, staff hire and Pictured: Programmed account manager Clint Boyle works within managed labour services.
    [Show full text]