Transformed Social Interaction 1 Transformed Social Interaction
A BUSINESS TRANSFORMED
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Transcript of A BUSINESS TRANSFORMED
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A BUSINESS A BUSINESS TRANSFORMEDTRANSFORMED
May 2006May 2006
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Financial HighlightsFinancial Highlights▬ Turnover up 76% to £6.91m (2005: £3.92m)
▬ Operating profit up 30% to £1.00m (2005: £0.77m)
▬ Profit before tax up 20% £0.94m (2005: £0.78m)
▬ Net profit up 117% to £1.70m (2005: £0.78m)
▬ Strong organic growth of 29% from continuing operations ▬ Acquisitions: £0.53m turnover and £0.15m operating profit
▬ Strong cash generation of £0.95m▬ Earnings per share up 64% to 16.39p (2005: 10.02p)
▬ Maiden dividend of 0.75p
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Corporate HighlightsCorporate Highlights▬ £4.0m acquisition of Mount Lane: November 2005
▬ £1.0m acquisition of Customer Projects: February 2006
▬ Group reorganised into one Best Practice operating unit
▬ Growing market share• PRINCE2 95% up. Market growth of 30%• ITIL 157% up. Market growth of c.100%
▬ ILX Group unique offering:• computer based training, • classroom based training • project management implementation consultancy services
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The ILX GroupThe ILX Group▬ Vocational Education & Training Specialists▬ Business transformed over past four years▬ Five successful acquisitions since February 2004: -
1. Key Skills (PRINCE2 & ITIL Computer based training)2. Computa-Friendly (IT Classroom training)3. Mindscope (PRINCE2 & ITIL classroom training)4. Mount Lane (Desktop migration projects)5. Customer Projects (Project Management consultancy)
▬ Strong organic growth ▬ 30% pa in past 2 years
▬ Now reorganised around Best Practice market
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Key Markets ServedKey Markets ServedBEST PRACTICE
▬ PRINCE2 project management industry standard: -• Market for training worth over £100m • Growing at 25-30% p.a.• Main markets UK, Europe, Asia Pacific & Australasia• Classroom training currently dominates market
▬ ITIL (IT Infrastructure Library) industry standard for service management: -
• Market for training larger globally than PRINCE2• Market virtually doubled in 2005• Major demand from Europe, North America, Asia Pacific,
Australasia• Classroom training still predominant
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ILX Current ActivitiesILX Current ActivitiesBest Practice
• PRINCE2 & ITIL computer-based training
• PRINCE2 & ITIL classroom training
• Project Management implementation consultancy
• Desktop Migration Projects & Helpdesk Support
Finance• Financial awareness e-learning• Global demand driven by competitive pressures &
regulation
Bespoke Training Solutions• Built to order e-Learning & classroom training
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Ministry of DefenceMinistry of Defence
ILX – Leading ClientsILX – Leading ClientsOver 2,000 customers served in last financial year
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ILX Group ResultsILX Group ResultsIncome Statement£000s
Year ended March 2004
(UK GAAP)
Year ended March 2005
(IFRS – As restated)
Year ended March 2006
(IFRS)
Revenue 1,606 3,924 6,913
Cost of sales (299) (957) (2,336)
Gross profit 1,307 2,967 4,578
% sales 81% 76% 66%
Distribution and administration costs (1,336) (2,122) (3,577)
Profit from operations (29) 725 1,001
Interest (63) 57 (59)
Profit before yax (92) 782 942
Tax - - 758
Profit for the period (257) 782 1,699
Earnings per share (basic) (2.7)p 10.0p 16.4p
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ILX Group FinancialsILX Group FinancialsBalance Sheet£000s
As At EndMarch 2004
(UK GAAP)
As At EndMarch 2005
(IFRS as restated)
As At EndMarch 2006
(IFRS)
Tangible assets 220 262 133
Intangible assets 4,790 6,817 12,386
Fixed assets 5,010 7,079 12,519
Deferred tax asset - - 789
Trade and other receivables 558 1,059 2,031
Cash and cash equivalents 544 672 646
Trade and other payables (756) (674) (1,735)
Deferred consideration - (305) (237)
Debt due in 1 year (221) (449) (146)
Net current assets 125 303 1,348
Debt due after 1 year (1,543) (921) (677)
Contingent consideration - - (270)
Net Assets 3,592 6,461 12,920
Share capital & other reserves 9,107 11,238 10,857
Retained earnings (5,515) (4,777) 2,063
Total Equity 3,592 6,461 12,920
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ILX Group FinancialsILX Group FinancialsCash Flow£000s
Year ended March 2004
(UK GAAP)
Year ended March 2005
(IFRS as restated)
Year ended March 2006
(IFRS)
Cash from operating activities (298) 646 953
Interest and tax (63) (159) (246)
Capital expenditure (2) (28) (90)
Product development - (198) (474)
Sale of fixed assets - - 206
Acquisitions (1,759) (3) (840)
Net proceeds of share issues 1,589 465 721
Increase in / (repayment of) borrowings 893 (595) (255)
Change in cash 360 128 (25)
Net Debt£000s
As At EndMarch 2004
As At EndMarch 2005
As At EndMarch 2006
Closing cash 544 672 646
Closing debt (1,771) (1,076) (821)
Closing net debt (1,227) (404) (175)
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ILX Group StrategyILX Group Strategy▬ Build market leading presence in vocational training
• High end trainingHigh end training• well defined marketswell defined markets
▬ Fragmented market; numerous acquisition opportunities
▬ Best Practice markets offer major potential for growth
▬ Reputation for delivery, helping to drive market share gains
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Strategic Driver 1 - Organic Strategic Driver 1 - Organic GrowthGrowth▬ Keep pedal on organic growth
• Organic Growth 30% pa over past two years• PRINCE2 and ITIL market growth high and sustained• Continue investing in higher growth areas
▬ Innovate to stay ahead• Product & proposition • Thinking bigger and broader; not just another training supplier • Delivery and after sales crucial to reputation and credibility
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Strategic Driver 2 - Strategic Driver 2 - AcquisitionsAcquisitions▬ Vocational Training Sector
• Highly fragmented• Many players struggling with legacy business models• Successful business owners often have no natural exit route
▬ Options include: -• Continue consolidating in Best Practice activities• Open new front with divergent acquisition• Look for weightier targets
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FSA ComplianceFSA Compliance
HR ComplianceHR Compliance
Best PracticeBest PracticeGov’t backedGov’t backedSkills InitiativesSkills Initiatives
Banking & Banking & FinanceFinance
The ILX Target Market – The ILX Target Market – Vocational TrainingVocational Training • High end trainingHigh end training
• well defined marketswell defined markets
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Current trading and outlookCurrent trading and outlook
▬ First two months of trading very encouraging
▬ Significant organic growth on like-for-like figures
▬ Outlook very positive