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MAD - MADER GROUP LIMITED


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Change of company..... no longer Maverick Drilling and Exploration

 

Mader Group Limited (MAD) listed on the ASX late Sept 2019. The company provides specialised contract labour for maintenance of heavy mobile equipment in the resources industry from an in house pool of skilled employees. The services provided include maintenance labour, field support (onsite labour with support vehicles and tools), shutdown maintenance teams (for major overhauls), maintenance workshops, training of maintenance teams, and a range of other ancillary services.

 

The Mader Group generates the majority of its revenue by providing various types of contract labour services at an hourly rate per tradesperson provided. These payments are either made under service agreements, at previously agreed hourly rates or, in a minority of cases, on an ad hoc basis.

 

Market cap of $180million. Earnings per share 9c, RoE of 35. Some debt.

 

Covid has restricted the operations of the company but it has identified pathways to growth:

Growth opportunities:

• Increasing forecast mining maintenance expenditure

• Ongoing production growth in key commodities

• An industry trend for equipment to be used longer before replacement

• Significant capital investment in 2011 through to 2012 has resulted in an aging mining equipment fleet for many mining companies

 

Outlook

Australia

  • Targeting significant levels of unfilled customer demand throughout Western Australia as border restrictions continue to ease
  • Large addressable markets remain for ancillary maintenance services with continued scaling and a dedicated focus on fixed plant, port and rail maintenance
  • Strong recruitment environments in New South Wales and Queensland presents headcount growth opportunities
  • Labour mobility expected to improve as state border restrictions ease
North America

  • Strong growth trends expected to continue in a large remaining addressable market
  • Strategy to be operational in Canada by Q4 FY2021
Rest of World

  • Developing plans for bolt-on acquisitions that add strategic value to the Mader business
  • Continuing to assess ancillary service and related industry opportunities
  • Global travel restrictions have temporarily limited our Rest of World operations however demand remains strong and we expect that activity levels will normalise when international travel resumes
Strategic Diversification

  • Strong levels of customer demand throughout target regions. Continuing to assess risks to health and safety prior to entering new jurisdictions.
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Half Yearly OVERVIEW:

 

â–ª Revenue increased by 6.4% versus the previous corresponding period (PCP), driven by strong customer demand for our specialist heavy equipment maintenance services. Revenue growth excluding the Rest of World business unit was up 12.0% on PCP.

â–ª The Group continues to adapt to and proactively manage workforce readiness and mobility, which positively impacted margins, particularly throughout Q2 of FY2021.

â–ª Total Recordable Injury Frequency Rate (TRIFR) improved by 6% vs PCP.

â–ª The Australian business continues to experience high levels of customer demand, partially unfilled due to ongoing labour mobility challenges.

â–ª To mitigate the labour challenges in the Australian operations, the Company has implemented a number of initiatives, including an expansion of its Trade Upgrade Apprenticeship Program and established an integrated national recruitment program.

 

â–ª The North American market continues to deliver significant revenue growth, up 166% on the PCP and an advanced due diligence program is in place to enter Canada by the end of FY2021.

â–ª Our Rest of World segment experienced a 75% fall in revenue vs PCP due to international travel restrictions as a result of COVID-19, pleasingly this business unit saw a rebound in operational delivery with quarter on quarter revenue growth of 157%.

â–ª 1.5 cent fully franked interim dividend confirmed for the period ending 31 December 2020, record date of 3 March 2021 and scheduled for payment on 17 March 2021.

â–ª Net debt is currently $19.9m, up marginally from $18.5m at 30 June 2020.

â–ª Mader invested significantly in its personnel, operational fleet and workforce readiness capabilities. This has laid a solid foundation from which to capitalise on substantial unfilled global customer demand

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  • 6 months later...

from more than a year, MAD has been trading close to 90c, a bit above, a bit below. Then last month, it started breaking clear, first on the operational update and again today on the FY results. Now at an all time high of $1.15

 

FY21 HIGHLIGHTS:

â–ª Record revenue of $304.3m delivered, up 11.2% from $273.5m in FY20.

â–ª EBITDA of $35.7m delivered, up 8.2% from $33.0m in FY20.

â–ª NPAT of $19.3m delivered, up 10.5% from $17.5m in FY20.

â–ª 3.4m hours of specialised equipment maintenance delivered to over 240 customers across 370 sites, up from 2.7m hours in FY20.

â–ª Net debt of $23.9m, equating to net leverage of ~0.7x.

â–ª A final full franked dividend of 1.5 cents per share, taking the total dividend relating to FY21 to 3.0 cents per share.

 

FY22 OUTLOOK:

â–ª Continued growth in activity levels across the global mining industry underpin a positive outlook for the business in all markets and geographies in FY22.

â–ª Expecting strong growth in FY22, with forecast revenue of between $355m to $365m delivering a forecast NPAT of between $23m to $25m.

 

High demand for our services and enhanced internal systems contributed to our performance, as we delivered flexible, fit for purpose and cost effective maintenance solutions to our customers across seven countries.

 

We placed a dedicated focus on expanding our ancillary and infrastructure maintenance divisions, delivering strong growth across both service lines. We also introduced several new services, including specialist drill and excavator services, power generation support, marine vessel support and professional support roles for maintenance planning and scheduling.

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  • 2 months later...

and doing well. Third Quarter results;
OVERVIEW

▪ Third consecutive quarter of record revenue growth. Quarterly revenue of $91.1m achieved, up 31% on the prior corresponding period, and up 5.4% on the previous quarter. 

▪ Australia generated $79.7m in revenue, up 26% vs PCP, largely driven by its continued focus on service offering diversification. 

▪ Mader expanded its operations across North America to generate $8.7m in quarterly revenue, up 61% vs PCP excluding foreign exchange movements (57% on an A$ basis). North American management team bolstered during the quarter with senior managers relocated to the US and repositioned into Canada to maintain strong growth.

▪ Rest of World operations generated $2.7m in quarterly revenue, up 307% vs PCP. Activity levels remain impacted by mobility and health restrictions.

▪ Trade Upgrade Apprenticeship Program recognised with a Training Excellence Award at the 2021 Australian Business Awards.

▪ National strategic support alliance established with Austin Engineering Ltd  (ASX:ANG); a market leader in the design and manufacture of load and haul solutions.

▪ Net debt closed at $18.8m, down from $23.9m in Q4 FY21.

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  • 2 weeks later...
On 8/24/2021 at 3:36 PM, nipper said:

from more than a year, MAD has been trading close to 90c, a bit above, a bit below. Then last month, it started breaking clear, first on the operational update and again today on the FY results. Now at an all time high of $1.15

the MAD shareprice has been surging up.

September FY results saw it surge to $1.55 and the Quarterly update last week had strong numbers. revenue up 31%, EBITDA up 47%, margins lifting from 10.5% to 12.1% and Net debt falling from $19M to $13M (on Q1 pcp numbers);


SP has lifted to $2.20 and it is a $450 million market cap company

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