Coventry Group (CYG) AGM 2024 summary

Opening remarks and agenda

• Chairman welcomed attendees to a hybrid AGM, introduced board members, executives, auditors, and share registry representatives.

• Voting and question procedures for both in-person and online participants were outlined, with Computershare facilitating voting.

• Meeting was declared open with quorum confirmed and notice taken as read.

• Outlined agenda included strategy, growth opportunity, growth strategy, FY25 Q1 update, summary, and appendix.

Financial performance review

• Seven years of continuous sales and profit growth achieved despite challenging periods, including structural repair, acquisitions, and COVID disruptions.

• FY24 revenue increased 3.4% to A$370.8m, with EBITDA up 22.4% to A$20.8m and EBIT up 26.9% to A$19.8m.

• Cash conversion remained strong at 112.1%, and net assets rose to A$143.1m.

• Net debt increased to A$47.3m, impacted by ERP upgrade, Steelmasters acquisition, and capex.

• Margin improvement initiatives in FY2024 led to higher trading gross margins, positioning for high-margin sales growth in FY2025.

Strategic initiatives and plans

• Targeting AUD 500 million turnover and 10% EBITDA on a sustainable basis, with strategies in place to achieve this.

• Aggressive Greenfield store rollout planned, targeting 100 stores nationally over five years, especially in NSW and Victoria.

• ERP upgrade project on track for December 2024 completion, expected to enhance productivity and customer service.

• Continued investment in digitalisation, e-commerce, and marketing to improve omnichannel experience.

• Ongoing capital allocation to highest growth opportunities, especially Konnect and Fluids businesses.