AJ Lucas Group annual report 2007-08
AJ Lucas Group annual report 2007-08
AJ Lucas Group annual report 2007-08
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2.5<br />
+220%<br />
8.0<br />
Construction &<br />
infrastructure<br />
28%<br />
drilling and coal<br />
seam gas<br />
21%<br />
Pipelines<br />
51%<br />
highlights<br />
• Revenue growth of 460% over<br />
four years from $75m to $424m<br />
• Change in business mix<br />
• Improved systems and<br />
management controls<br />
• Better contract conditions<br />
• Balanced business growth across<br />
different sectors<br />
• Strong cash flow supports growth<br />
without requirement for equity<br />
• Drilling technology leadership<br />
enhances demand for services<br />
• Acquisition of Mitchell Drilling<br />
• Rapidly maturing CSG portfolio<br />
cash flow and<br />
balance sheet<br />
• Operating cash flow<br />
increased 421% to $50m<br />
• Interest cover very high (6.7¹)<br />
due to strong cash generation<br />
• Gearing ratio reduced<br />
from 61.1% to 52.2%<br />
• All borrowing facilities<br />
renegotiated in August 20<strong>08</strong> –<br />
repayment profile extended<br />
• Match debt finance maturity<br />
profile with cash flow<br />
• Coal seam gas assets<br />
are at book value<br />
Dividend per share<br />
(¢ per share)<br />
Segment revenue<br />
Drilling<br />
highlights<br />
• Focus on coal & CSG, both<br />
sectors growing strongly<br />
• Innovative drilling techniques<br />
leading commercialisation of CSG<br />
• Strong market conditions<br />
• Contract terms and duration improve<br />
• Diversified and long-term<br />
customer relationships<br />
• Major focus on training<br />
and retention of staff<br />
• Acquisition of Mitchell Drilling<br />
<strong>2007</strong><br />
$67.6m<br />
20<strong>08</strong><br />
$88.4m<br />
14.6<br />
Revenue ($ m) EbitDA ($ m)<br />
18.1<br />
(2.2) 6.1<br />
Non-recurring/<br />
Non-operational<br />
items ($ m)<br />
12.4<br />
24.2<br />
Underlying Ebitda<br />
($ m)<br />
18.3<br />
27.4<br />
Underlying Ebitda<br />
margin (%)<br />
Construction & infrastructure<br />
highlights<br />
• Targeted change in business mix<br />
to improve margins<br />
• Expansion into NSW North Coast<br />
civil and infrastructure markets<br />
• Construction market is tight, but<br />
civil and infrastructure opportunities<br />
in mining and municipal work<br />
remain strong<br />
<strong>2007</strong><br />
$75.5m<br />
20<strong>08</strong><br />
$117.3m<br />
0.5<br />
Revenue ($ m) EbitDA ($ m)<br />
3.2<br />
1.5 1.0<br />
Non-recurring/<br />
Non-operational<br />
items ($ m)<br />
2.0 4.2<br />
Underlying Ebitda<br />
($ m)<br />
3.6<br />
2.6<br />
Underlying Ebitda<br />
margin (%)<br />
a year of milestones 5
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