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STRAKER LIMITED AGM Information 2022

Aug 23, 2022

65867_rns_2022-08-23_0cdb8902-15b4-4848-92e4-ccfc37d15606.pdf

AGM Information

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TIMELINE

Straker Translations Annual Meeting 24 August 2022

1

Disclosure Statement

Information in this presentation:

  • Is for general information purposes only, and is not an offer or invitation for purchase, or recommendation of securities in Straker Translations Limited (Straker)
  • Should be read in conjunction with, and is subject to, Straker's latest and prior interim and annual reports, including Straker's Final Report for the period FY22 ended 31 March 2022, and Straker's market releases on the ASX
  • Includes forward-looking statements about Straker and the environment in which Straker operates, which are subject to uncertainties and contingencies outside of Straker's control - Straker's actual results or performance may differ materially from these statements
  • Includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance
  • May contain information from third parties believed to be reliable; however, no representations or warranties are made as to the accuracy or completeness of such information, and

All information in this presentation is current at 31 March 2022, unless otherwise stated. All currency amounts are in NZ dollars, unless otherwise stated.

This presentation is given on behalf of Straker Translations Limited ASX:STG (Company number NZ: 1008867 / AU: ARBN 628 707 399)

Phil Norman Chairman

Directors

Grant Straker Amanda Cribb Steve Donovan Tim Williams Paul Wilson

Chief Executive

Officer and

Managing

Director

Independent

Non-Executive

Director

Non-Executive

Director

Independent

Non-Executive

Director

Non-Executive

Director

Chairman's address

$55.9m*

Revenue up 78.5% on FY2021 lifted by acquisitions and strong organic growth

$0.2m

Adjusted EBITDA of $0.2m up 194% on FY 2021 and now steadily positive

54.3%

Gross margin, increase of 90 basis points compared to prior year

$15.1m ($11.4m 30 June 2022) Strong cash balance following A$25m capital raising in Q1 2022

*All figures are in $NZ unless otherwise stated

A year of growth and consolidation

Straker has transitioned to quarter-on-quarter positive earnings as revenue grows faster than operating expenses

We have a focus on being a good corporate citizen and ensuring that our Environmental,

Social and Governance foundations are strong. We are working towards B-Corp accreditation.

Environmental Social Governance
More than half of all staff female 2 Indigenous Directors
1/3 of the executive female 1 Female Director
Living wage
ISO 27001 Data Security Executive pay market rates with anyupside linked to company
Embraced and facilitated remote working High customer satisfaction scores performance
Anti-bribery and corruption policy
Invested in regional offices to support theregional communities All Board charters and policies freely
Support local communities throughsponsorships available on our website

Once borders fully reopen we expect travel to be around 40% of the FY20 level

Embraced and facilitated remote working long before Covid

90% reduction in travel carbon

emissions in FY22 from FY19

Ensured our head office was next to a major public transport hub

A focus on sustainability

Board transition as Straker evolves

Heith Mackay-Cruise Steve Bayliss

Experienced professional director with 25 years in media, education and technology.

Experienced marketing professional in FMCG transport and media

  • next target

Summary

  • Well positioned to deliver on strategic goals - strong sales pipeline of enterprise and governance organisations and latent opportunities still to be realised from recent acquisitions
  • Targeting earnings accretive growth for FY23 of 20% with gross margins exceeding 54% achieved in FY22
  • Thanks to my fellow directors past and present, our hard-working staff across the globe and to our loyal shareholders for your ongoing support

Managing Director's address

Automate content inflows with technology

Use the data assets to train our machines for further improvements

Our enterprise translation management platforms to manage the process

Market & Industry

In a tough market cycle, we have held up well against our peers. Directors, Executive and Management control around 25% of the company stock and there is strong alignment in delivering results for shareholders

Revenue Growth and Scale

12 years of consistent growth

Revenue Growth mix of Acquired and Organic

Exiting Q4 run-rate of 63m driven by higher organic revenue

Operating leverage delivered from our technology

People

Sales: 78% improvement

  • $0.73m per sales person Q4 FY21
  • $1.3m per sales person Q4 FY22
  • 8 IBM
  • 8 New Business

  • $340k per prod person Q4 FY21
  • $470k per prod person Q4 FY22
  • 15 IDEST
  • 14 IBM

Revenue outstripping headcount as we get operating leverage and still invest in growth teams

Infrastructure

Data SaaS & Finance System

Global expansion of data centres for customers needing GDPR and redundancy

ISO 27001 expanded to Lingotek platform

B Corp

Upgrade finance stack to Netsuite

Increased security systems and processes

The leading global ESG standard

Built out the SaaS billing model and engine for RAY

Integration of RAY/ Lingotek

We have had a focus on being a good corporate citizen and ensuring that our Environmental, Social and Governance foundations are strong.

Opens us to a range of new investors with ESG focus

B-corp in FY24

Systems and platform investments for growth and product led delivery

Workplace superapps development

Phases of Growth and Innovation

Internal

External

Work on our internal platform and systems to bring improved margins, streamline systems and integration of acquired companies

Work on customer facing apps, tools and features to drive new sales by bring added value directly to customers

Focus back on customer facing innovation for FY23

R&D Focused on revenue growth and higher margins

Huge opportunity in the "new workplace"

Covid lockdowns have accelerated workplace app usage and have significantly changed workplace behaviour

24

Outlook

BUILDING ON A RECORD OF GROWTH

  • Guidance of 20% growth on FY22 full year revenues with margins exceeding 54% achieved in FY22
  • Focus on sustained profitability and high margins through SaaS
  • R&D innovation focused on customer and product centric for the changing tech landscape opportunity
  • Acquisition possibilities as the market adjusts post covid and opportunities arise
  • Well funded with cash reserves at the end of June of $15m and no debt

The end of an era

PHIL NORMAN

Independent Chairman 2014 - 2022

TIM WILLIAMS

Independent Director 2015 - 2022

STG:ASX

CEO - [email protected]

CFO - [email protected]

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