For personal use only
TIMELINE
Straker STG:ASX
H1 FY22 Presentation
25 Nov 2021
1
use only
H1 Financial Highlights
1H: A period of strong organic growth and margin expansion has set a strong platform as we head towards our aspirational $100m revenue target
For personal
57%
Revenue Growth
24 | $23.3m | |
18 | ||
12 | $14.8m | |
6 | ||
0 | ||
H1 FY21 | H1 FY22 |
73%
Gross Profit Growth
14 | ||
10.5 | $13.1m | |
7 | $7.5m | |
3.5 | ||
0 | ||
H1 FY21 | H1 FY22 |
$18m
Cash at bank
20 | ||
15 | $18.2m | |
10 | ||
5 | $7.7m | |
0 | ||
H1 FY21 | H1 FY22 |
+500bp
Gross Margin Growth
56 | 56% |
54.5 | |
53 | |
51.5 | |
51% | |
50 | |
H1 FY21 | H1 FY22 |
60% | ||
FY22 Revenue Growth* | ||
50 | $50m | |
37.5 | ||
25 | $31.3m | |
12.5 | ||
0 | ||
FY21 | FY22E |
Growth & scale on par with the leading tech stocks on the ASX
*guidance for FY22
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Business now set to scale | ||||
only | Revenue and staff | |||
use | ||||
50 | ||||
37.5 | ||||
Millions) | ||||
Staff | ||||
(NZD | 25 | |||
Revenue | 12.5 | |||
0 | ||||
personal | ||||
FY19 | FY20 | FY21 | FY22 | |
For | ||||
• Historically staff numbers have risen in-line with revenue growth | ||||
as we built to critical mass and to deliver a $75m revenue business | ||||
• We are at inflection point where revenue can accelerate faster | ||||
than headcount positively impacting margins | ||||
• Sales team has increased by 80% compared to the same period in | ||||
the previous year and has built a significant pipeline of Enterprise | ||||
leads set to be harvested | ||||
• Delivering efficiencies in our production team - sales on track to | ||||
grow 60% to our guidance of $50m for FY22E, and production |
As we head towards our aspirational goal of $100m in revenue we do not expect our headcount or operating costs to increase at the same rate as our revenue.
Revenue aspirational target
100 | |||||
Revenue (NZD Millions) | 75 | 300 | Number**ff Sta | ||
50 | 250 | ||||
25 | 200 | ||||
0 | 75 | 100 | |||
50 | |||||
Milestones* | |||||
EBITDA | Vendor Costs | Opex | Staff** |
* These are milestones for revenue - for clarity there are no dates attached to these milestones
team only forecast to grow by 17% |
** Staff numbers as modelled by Straker's management based on current and projected productivity metrics
3
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M&A
To date Straker has made 8 successful acquisitions, when you take a portfolio approach and look at all 8 acquisitions in total the strategy has been a very successful one for growth and contribution back to the Group
For personal
16%
Revenue Growth
Revenue across all 8 acquisitions combined has increased by 16% compared to the total revenue at time of purchase
0.57x
Revenue Multiple
0.57x revenue including earn-outs
15% lower than the headline rate at purchase of 0.67x revenue
270bp
Margin uplift
The translation margin has increased from 54.1% in FY21 to 56.8% in H1 FY22 (excludes Lingotek as still integrating)
Eurotext | Elanex | MSS | EULE | COM | On Global | NZTC | Lingotek |
Ireland | USA | Spain | Germany | Spain/USA | Spain | NZ | USA |
2016 | 2017 | 2018 | 2018 | 2019 | 2019 | 2020 | 2021 |
4
M&A
For personal use only
- The market remains very active for M&A and we are in advanced discussion with several opportunities.
- We remain confident we will close at least one more M&A this financial year and we have a strong balance sheet to support our negotiations.
Our M&A Criteria
- Material revenue contribution towards achieving the $100m aspirational target
- Transferable value underpinned by technology or key customer relationships
- Profitable
- EBITDA / Cashflow accretive
- Only acquire business at a discount to our own revenue multiple, consistent with historical prices paid on a revenue and EBITDA basis
5
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Straker Translations Ltd. published this content on 24 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2021 22:19:04 UTC.