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Investor Presentaiton

FY 13/14 Balance Sheet & Cash Flow • An increase in working capital over the period due to high inventories in South America and a reduction in Payables Increased fixed asset base arising from the acquisition of Servigrut and further investment in Chilean, Peruvian and Indonesian facilities Net Assets have increased 8% over the period An increase in Debt as bank facilities were drawn down for: - - the Servigrut acquisition & leases the funding of capital expenditure, and operational cash flow Net Gearing % within covenant requirements Negative operating cash flow due to: - Advance payment from customers in prior periods for work done in this period Higher than optimal inventories Reduced operating results The Servigrut acquisition and further investment in Chile, Peru and Indonesia have caused the Investing cash-flows to increase The positive financing cash flows stem from the equity raisings undertaken plus new borrowings for expansion in South America less dividends Jun-13 Jun-14 $m $m Working Capital 26.7 33.9 Property, Plant & Equipment 106.6 131.8 Total Assets 278.2 305.4 Total Liabilities 124.8 139.8 153.4 165.6 Cash 6.3 7.4 Debt 67.3 97.7 Net Debt 61.0 90.3 Net Gearing %* 30.9% 35.7% Net Assets Jun-13 Jun-14 $m $m Operating cash flow 21.6 -6.5 Investing cash flow -18.0 -40.5 Financing cash flow -13.5 48.4 Total cash flows -9.9 1.4 I net debt/net debt plus equity austinengineering LTD www.austineng.com.au
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