AI assistant
SMART PARKING LIMITED Earnings Release 2017
65850_rns_2017-08-20_6c75f977-def7-4845-b785-750ef2e96a11.pdf
Earnings Release
Open in viewerOpens in your device viewer
ASX ANNOUNCEMENT | Monday 21st August 2017
Smart Parking Limited (ASX: SPZ) New Contract Wins Support Strong FY17 Results
Financial Highlights
| (000's) | FY17 | FY17 at FY16exchange rates | FY16 | FY17 at FY16exchangerates versusFY16 |
|---|---|---|---|---|
| Total RevenueNPBT | 24,841(1,067) | 29,045(658) | 31,805(2,210) | Down 8.7%Up 70.2% |
| Group - EBITDA | 1,314 | 2,071 | 1,351 | Up 53.3% |
| Group - AdjustedEBITDA beforenon-recurringitems1 | 2,203 | 3,151 | 2,182 | Up 44.4% |
| Group - AdjustedEBITDA marginbefore nonrecurring items 1 | 8.9% | 10.8% | 6.9% | Up 3.9% |
Operational Highlights
- The UK Parking Management business continues to deliver earnings growth
- New technology wins in the UK, New Zealand and Australia
- Migration of systems to the cloud improves reliability and scalability
- Development of new Parking App for Cardiff City Council
- Successful capital raising of $11.1 million positions the Group for future growth
Monday 21st August, 2017 - Global parking business Smart Parking Limited (ASX:SPZ) ('Smart Parking' or 'the Company') Smart Parking is pleased to announce a successful 2017 financial year supported by earnings growth in the Parking Management division and new contract wins in the Technology Division.
On a constant currency basis, Smart Parking achieved $29 million revenue with Adjusted Group EBITDA before non-recurring items increasing 44% to $3.2 million and Adjusted Group EBITDA margin before non-recurring items1 improving 4% to 10.8%. The statutory results were significantly impacted by the weaker GBP relative to the prior corresponding period, substantially reducing the translated contribution from the UK business which constitutes approximately 88% of total revenue to the Group.
1The Board assesses the underlying performance of the Group based on a measure of adjusted EBITDA which takes into account costs incurred in the current period but not expected to occur in the future.
Auckland New Zealand
Smart Parking Limited ABN 45 119 327 169 854 Lorimer Street, Port Melbourne VIC 3207 Australia Phone: +61 (03) 8644 4021
Birmingham United Kingdom
Despite the loss of Asda, Smart Parking's largest client contributing 29% of FY16 revenues, the FY17 EBITDA margin before non-recurring items in the Parking Management division improved 12% to 31% (in constant currency) as a result of new higher margin business.
During the financial year, Smart Parking continued to invest in new technology including a "Smart Cities" platform that will allow the company to expand its global reach as more cities adopt strategies that leverage the Internet of Things (IoT). The company was awarded contracts from Wilson Parking New Zealand, City of Cardiff Council and Hamilton City Council.
The company successfully completed an underwritten capital raising for $11.1m (net of costs) comprising a 1 for 7 accelerated non-renounceable pro rata entitlement offer and share placement allowing the Group to be well positioned for future growth initiatives.
Parking Management FY17 Performance
Smart Parking's FY17 performance was strongly supported by significant margin growth in its Parking Management business.
The reduction in revenue in the Parking Management division from $28.4m in FY16 to $25.4m (in constant currency) in FY17 was in large part due to the loss of the Asda contract in FY16 and the loss of Matalan in Q3 FY17. This was partially offset by growth in new higher margin sites and the continued deployment of technology, resulting in a 21% increase in EBITDA before non-recurring items. Continued cost control discipline also contributed to the strong performance at the EBITDA level.
EBITDA before non-recurring items (in constant currency) of $7.9 million was up 47% on FY16 ($5.3m). Excluding Asda, Parking Breach notices increased 60% and receipts from Parking Breach notices grew 83%. Earnings growth in the third and fourth quarter was impacted by the cessation of the contract with Matalan.
Technology FY17 Performance
The Technology division saw new wins in the UK, New Zealand and Australia. New customers include Coles Supermarkets, Cardiff City Council, Leeds City Council and Wilson Parking New Zealand. Smart Parking continues to invest in the Technology business, which recorded an Adjusted EBITDA loss of $2.7m. The Adjusted EBITDA margin in the Technology division was impacted by product mix and the increased spend on product development which is expected to benefit the future.
Auckland New Zealand
Smart Parking Limited ABN 45 119 327 169 854 Lorimer Street, Port Melbourne VIC 3207 Australia Phone: +61 (03) 8644 4021
Birmingham United Kingdom
Ongoing technological investments will facilitate more rapid deployment of solutions and lower maintenance costs. Migration of systems to the cloud has resulted in improved reliability and scalability and will streamline further development requirements. Smart Parking also developed a new Parking App for Cardiff City Council, which delivers real-time on-street parking data. Consistent with previous periods the company's policy is to treat all technology development expenses in the period in which it is incurred.
Looking forward, the recent wins with Hamilton City Council, Hobart City Council and additional Wilson Parking sites will be reflected in FY18 revenue. While the lead time for closing deals remains lengthy, the level of enquiry and activity is increasing.
Provision for VAT
The Company is aware of an Upper Tier Tribunal Ruling in the UK impacting the treatment of input VAT incurred on expenditure relating to the administration of Parking Breach Notice activities. The company has sought independent expert advice on the facts involved in this case and the potential implications of this tribunal decision on Smart Parking Limited (UK). As at 30 June 2017 the company has booked an appropriate provision for VAT of $1.3m based on an assessment of probability adjusted outcomes as required under the accounting rules. Refer to Note 20 in the Preliminary Annual Report for additional information.
CEO Commentary
Smart Parking CEO Paul Gillespie: "We are pleased to announce that we have managed to increase Adjusted EBITDA before non-recurring items (in constant currency) for the 2017 financial year. Smart Parking is moving forward and we are making significant investment in the technology that will support our future growth. Parking Management earnings growth, contract wins in the Technology division, and capital raising of $11.1 million are providing significant momentum heading into FY18."
Ends.
| (000's) | FY17 | FY17 at FY16exchange rates | FY16 | FY17 at FY16exchangerates versusFY16 |
|---|---|---|---|---|
| Total RevenueNPBT | 24,841(1,067) | 29,045(658) | 31,805(2,210) | Down 8.7%Up 70.2% |
| Group - EBITDAAdjustments: | 1,314 | 2,071 | 1,351 | Up 53.3% |
| Professional fees | 0 | 0 | 831 | |
| Dispute Settlement | (339) | (407) | 0 | |
| Onerous LeaseReversal | (110) | (132) | 0 | |
| Provision for VAT1 | 1,338 | 1,619 | 0 | |
| Group - AdjustedEBITDA beforenon-recurringitems 2 | 2,203 | 3,151 | 2,182 | Up 44.4% |
| Group - AdjustedEBITDA marginbefore nonrecurring items | 8.9% | 10.8% | 6.9% | Up 3.9% |
| ParkingManagement | ||||
| Revenue | 20,964 | 25,388 | 28,379 | Down 10.5% |
| EBITDA | 6,485 | 7,865 | 5,347 | Up 47.1% |
| EBITDA Margin | 30.9% | 31.0% | 18.8% | Up 12.2% |
|---|---|---|---|---|
| TechnologyDivision | ||||
| RevenueEBITDA | 5,146(2,734) | 5,228(3,067) | 5,580(2,520) | Down 6.3%Down 21.7% |
EBITDA Margin (53.3%) (58.7%) (45.2%) Down 13.5%
1Refer to the Preliminary Annual Report for details related to the Provision for VAT.
2The Board assesses the underlying performance of the Group based on a measure of adjusted EBITDA which takes into account costs incurred in the current period but not expected to occur in the future.
CONTACT SMART PARKING
Smart Parking Paul Gillespie Chief Executive Officer [email protected]
Richard Ludbrook Chief Financial Officer [email protected]
Media & Investor Enquiries Julia Maguire T: +61 419 815 386 [email protected]
|--|--|--|
Smart Parking Limited (ASX:SPZ) | A Global Parking Technology Business
Smart Parking Limited (ASX:SPZ) is a global car parking technology business providing effective parking management solutions around the world. Our world leading technology for parking design, development and management is deployed across two core divisions.
Parking Management operates exclusively in the United Kingdom, specialises in managing car parks on behalf of retail customers, land owners and managing agents and currently generates 88% of Smart Parking's revenue. Technology has a global presence and designs, develops and specialises in on-street and off-street bay sensor technology and data communication software, enabling clients to manage parking efficiently and cost effectively.
Smart Parking is a global company with offices in the UK, New Zealand and Australia and listed on the Australian Securities Exchange. To learn more please visit: www.smartparking.com
Auckland New Zealand
Smart Parking Limited ABN 45 119 327 169 854 Lorimer Street, Port Melbourne VIC 3207 Australia Phone: +61 (03) 8644 4021
Birmingham United Kingdom