IGNITE LIMITED — AGM Information 2020

Nov 23, 2020

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IGNITE LIMITED

Annual General Meeting 24 November 2020

Agenda

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Overview

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Strategy Update
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FY20 Year in Review

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FY21 Trading Update

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Octavium General Meeting

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Q&A

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1 | Overview

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Operations Across Australia & New Zealand

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Business Divisions
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>$125 million

Revenues

Quality clients

Diversified by size and sector (Government, corporates and SME)

5

Offices

75

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Specialist Recruitment
1
▪ Contingent labour
▪ Permanent recruitment
On Demand IT Services
2
▪ Delivery of IT skills
People Services
3
▪ Outsourced recruitment
▪ Human Resource consulting services
Office Operations
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Employees

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2 | Strategy Update

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	Having so far survived COVID-19 by managing costs and maintaining stability, we have a renewed focus on:	Having so far survived COVID-19 by managing costs and maintaining stability, we have a renewed focus on:
	▪	Retainingexisting clients and growing our share of “customer wallet”.
	▪	Acquisitionof commercially viable new customers.
Strategic Focus	▪	Identifyingviable bolt-on acquisitions created by COVID-19.
	▪	Operatingour Australian and New Zealand businesses.
	▪	Engaging and developingour staff - our KEY asset in a challenging environment.
	▪	Leadership restructureincluding the entire General Manager team (5 in total).
	▪	Operational restructureresulting in material headcount and cost reductions.
	▪	Managed throughCOVID-19 to restructure and right-size the business for resilience and growth.
Highlights of Key Initiatives	▪	Protectedclient base and continued to drive growth in State and Federal government clients.
	▪	Maintainedfocus on sustaining culture, sales and service delivery through COVID-19.
	▪	Focusedon retaining and motivating a committed team for expected growth.
	▪	Searchfor an industry experienced CEO recommenced following completion of restructure.

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(1 of 2) 3 | FY20 Year in Review

Profit and Loss and Cashflow Metrics

For consolidated continuing operations:

• Revenue decreased 13.7% to $125,958k (2019: $145,924k)

• Gross profit decreased 18.6% to $15,267k (2019: $18,753k)

• Gross profit margin reduced to 12.1% from 12.9%

• After tax loss decreased 21.8% to $3,777k (2019: $4,827k loss)

For consolidated ordinary activities:

• Net operating cash inflow improved 183.8% to $4,581k (2019: $5,466k net outflow)

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Balance Sheet Metrics

Group consolidated:

• Net assets decreased 67.1% to $2,916k from $8,872k

• Cash balance declined 68.3% to $408k (2019: $1,287k)

• Debtor finance facility drawdown decreased 79.5% to $1,187k (2019: $5,798k)

• Reduction in net trade receivables by 44.3%

• Best trade receivables ageing in 10 years with 8.0% past due

• Reduction in trade and other payables 6.0%

• No JobKeeper received in FY20

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(2 of 2) 3 | FY20 Year in Review

Specialist Recruitment

On Demand IT Services

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People Services

ACT

• Very strong performance with FY20 profit (before corporate overheads) down 1.0% on FY19.

• Momentum continuing into FY21 despite delayed Federal Government budget.

NSW

• Significant team restructure with 15+ consultants removed; now looking to grow headcount.

• Growth strategy impacted by COVID-19 and underperformed to budget.

• VIC ▪ Headcount reduced due to removal of underperforming consultants. ▪ Growth strategy severely impacted by COVID-19. QLD ▪ Integrated into ACT operations. ▪ Plan to grow when opportunity arises. WA ▪ Trading profitably with small team. ▪ Integrated into VIC operations. ▪ Plan to grow when opportunity arises.

• New General Manager ▪ Profit (before corporate appointed August 2020. overheads) down 12.1% on the

• ▪ FY20 revenue fell 15.1%. prior year. ▪

• ▪ Pipeline severely impacted by Profit (before corporate COVID-19 and delayed Federal

• overheads) was down 61.4% on Government budget.

• the prior year.

• ▪ Revenues impacted by COVID▪ Post Federal Government budget pipeline of

• 1. Existing contracts stalled opportunities now building in

• and/or postponed. H2.

• ▪ Tier 1 and Tier 2 clients impacted by COVID-19.

• ▪ Starting to see confidence return in the client base and pipeline building for FY21.

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4 | FY21 Trading Update

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• ACT – exposure to predominantly Federal Government clients underpinning continuing strong performance.

• ▪ NSW – post COVID-19 now profitable and focus on rebuilding team.

• Specialist Recruitment ▪ VIC – post COVID-19 now profitable and focus on rebuilding team. ▪ QLD – integrated into ACT operations with any expansion to be driven by market opportunities. ▪ WA – small but profitable. ▪ Under new leadership. ▪ Profitable.

• On Demand ▪ Post COVID-19 starting to see improved pipeline of opportunities with improved client

• IT Services confidence.

• ▪ A core focus on rebuilding the pipeline and converting sales opportunities. ▪ Profitable. ▪

• People Services Post COVID-19 and delayed Federal Government budget the pipeline of opportunities is now growing.

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5 | Octavium General Meeting

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• Various letters, statements and claims made to shareholders addressed by the Board letter attached to the Notice of Meeting dated 16 November 2020.

• The Board is concerned about the timing and expense of holding a second meeting of shareholders when the matters raised should have been addressed at the AGM.

• The Board STRONGLY recommends shareholders vote AGAINST the resolutions to elect 2 new Directors.

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Thank you. Questions?

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