Tasmea (TEA) Roadshow Presentation summary

Highlights

• Operates 22 interdependent specialist trade skill services businesses across Australia, focusing on essential shutdown, programmed maintenance, emergency breakdown, and brownfield upgrade services for blue-chip asset owners in six key sectors.

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

• Achieved industry-leading margins, exceeding peers by 300 basis points, driven by focus on maintenance and essential services.

• Founder-led executive team owns about 60% of the company, supporting a strong growth outlook and attractive valuation metrics.

• FY24 pro forma revenue reached $407m (up 10.8%), NPAT $36.9m (up 29.9%), and EBIT $54.8m (up 27.4%).

Business overview

• Provides specialist trade skills to fixed plant owners in mining, defence, infrastructure, power, telecom, retail, waste, and water sectors.

• Expanded service offerings across all four segments since IPO, with recent acquisitions adding $20.6m maintainable EBIT projected for FY25.

• Subsidiaries include Tasman Power, ICE Engineering, Corfield's Electrical, Sigma Power Services, and others, with a national footprint.

• Yura Yarta, a registered supply nation business, is 49% owned, enhancing diversity and reach.

Financial performance

• FY24 pro forma revenue grew 10.8% to $407.4m; EBIT rose 27.3% to $54.8m; NPAT increased 29.9% to $36.9m.

• Statutory revenue up 25% to $400m; EBIT up 53.2% to $46.4m; NPAT up 56.5% to $30.5m.

• 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%, 300bp above industry peers.