Tasmea (TEA) Roadshow Presentation summary

Business highlights

• Operates 22 interdependent specialist trade skill services businesses across Australia, focusing on maintenance, shutdown, breakdown, and brownfield upgrades for essential asset owners in sectors like electrification, renewables, iron ore, copper, and gold.

• Outperformed prospectus NPAT guidance by 10%, with high ROCE (29.5%) and ROE (45.3%), and strong earnings-to-cash conversion.

• Achieved industry-leading margins, exceeding peers by 300 basis points, and maintains a high level of recurring income through long-term customer relationships and MSAs.

• Founder-led executive team with significant ownership (circa 60%) and a demonstrated track record of organic and acquisitive growth.

• Attractive valuation metrics supported by consistent financial outperformance and growth outlook.

Financial performance

• FY24 pro forma revenue reached $407.4m, up 10.8% from FY23, with pro forma EBIT of $54.8m (up 27.3%) and NPAT of $36.9m (up 29.9%).

• Statutory revenue grew 25% to $400m, and statutory EBIT increased 53.2% to $46.4m.

• Demonstrated 24% CAGR in revenue and 23% CAGR in EBIT from FY21 to FY24.

• Outperformed prospectus forecasts for both EBIT and NPAT, with EBIT margin at 13.5%.

• Strong cash conversion, with FY24 operating cash flow (before interest and tax) at $49.8m and a four-year average OCF/EBIT conversion of 104.3%.

Investment and performance metrics

• Return on capital employed (ROCE) at 29.5% and return on equity (ROE) at 45.3% for FY24.

• Reported earnings per share increased to 18.4 cents.

• Over 73% of FY25F revenue is secured or recurring, underpinned by long-term MSAs and FMAs.