Matrix Composites & Engineering (MCE) investor relations material

Executive summary

• Revenue for the first half was $26.9m, down 32% year-over-year due to project timing, with major project deliveries and improved margins expected in the second half, and over $50m in 2H work secured.

• Full-year revenue is expected to exceed $80m, underpinned by strong Subsea contracts, with positive EBITDA anticipated and profitability weighted to the second half.

• Net loss after tax was $9.4m for the half, compared to a $1.0m profit in the prior period, driven by lower revenue and fixed costs.

• Diversification continues into Advanced Materials, Coating Technologies, Defence, Energy, and Mining, leveraging the Henderson Defence Precinct.

• No interim dividend declared for the period.

Financial highlights

• First-half revenue was $26.9m, down from $39.4m year-over-year, with an underlying EBITDA loss of $4.1m and net loss after tax of $9.4m.

• Operating cash inflow was $1.4m, reversing a $4.7m outflow in the prior period.

• Cash on hand at period end was $18.0m, with net cash of $10.4m.

• CapEx and intangibles spending totaled $1.2m, with $0.8m in capex for the period.

• Net tangible assets per share fell to $0.08 from $0.14 year-over-year.

Outlook and guidance

• Full-year revenue is forecast to exceed $80m, with positive EBITDA expected and profitability heavily weighted to the second half.

• Revenue mix will remain heavily weighted to subsea, with increased drilling activity and advanced materials growth expected.

• $300m in competitive quotations submitted for future SURF projects, with $120m in outstanding drilling sector quotes.

• Defence sector opportunities are gaining momentum, leveraging the Henderson Defence Precinct.

• Growth targeted through new customer conversions and expansion in Australia and New Zealand.