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On behalf of the Board of Directors, it is my pleasure to offer you the opportunity to become a shareholder in GenusPlus Group Ltd (GenusPlus or
GenusPlus is a leading end-to-end specialist service provider for essential power and telecommunications infrastructure. GenusPlus is a unique
Western Australian business majority owned by its founder and current Managing Director, David Riches. Mr Riches (a third-generation electrical
contractor) established the platform Powerlines Plus business in 2009, specialising in constructing and maintaining electrical transmission and
distribution powerlines in remote Australia. Over the past 11 years, Powerlines Plus has grown (organically and through acquisitions) to become
one of the leading providers of infrastructure services to both mining, public utilities and private utilities sectors across Australia, and has
demonstrated a history of strong profitability and returns on capital.
In May 2018, GenusPlus was established as the Group’s parent entity, which now has four key business segments being Powerlines Plus,
Diamond, ECM and Proton Power. Genus has strong long-term relationships with Tier 1 customers including global miners and Government
owned utility companies, developed through a strong culture focussed on on-time delivery of high quality service.
Powerlines Plus is still the core platform business of GenusPlus and the majority contributor of its earnings and growth. The Powerlines
Plus business has recently been bolstered by strategic bolt-on acquisitions to expand geographically into the Queensland and New South
Wales markets for future growth. Whilst GenusPlus has expanded its capacity and capability into underground services, telecommunication
infrastructure services and E&I with the acquisition of the other businesses (including Diamond and ECM among others), these businesses are
still in their infancy and have yet to contribute in a significant way to GenusPlus’ earnings.
Unique to a family owned private business, the Board of GenusPlus was formed in 2017 and over the past 3 years has been involved in the
development and implementation of GenusPlus’ growth strategy, corporate governance procedures and policies, as well as in strengthening the
Company’s senior leadership team and balance sheet in order to support the growth of the Company.
In FY20, GenusPlus had over 500 employees and achieved revenue of approximately $170 million (representing a 70% growth from FY19),
normalised EBITDA of $19.6 million, normalised EBIT of $14.4 million, normalised NPAT of $10.2 million, and normalised return on capital
employed of 33%.
For FY21, GenusPlus is forecasting significant growth with revenue of approximately $303.3 million, normalised EBITDA of $32.3 million,
normalised EBIT of $25.5 million and normalised NPAT of $17.3 million. This forecast growth is underpinned by GenusPlus’ existing contracted
work, anticipated revenue from GenusPlus’ panel clients, and anticipated risked revenue from its existing tender pipeline of works. 70% of
GenusPlus’ forecast revenue is based on revenue earned to date and existing contracted works. In addition, GenusPlus has approximately
$75 million of contracted revenues already secured for FY22 which, when combined with its history of repeat panel revenues and its current
$884 million tender pipeline, provides a strong platform for continued growth.
Further details including on details of the normalisations are detailed in Sections 3.3 and 6 of this Prospectus.
GenusPlus’ future growth prospects for its core Powerlines Plus business are supported by positive thematics in its key industry of electrical
transmission and distribution infrastructure in Australia, driven by:
– the need to grow networks to cater for rising electricity demand;
– regional investment in new energy generation or energy intensive assets such as mining and associated downstream processing facilities
creating demand for upgraded or new transmission lines;
– the ageing assets of the electrical distribution network infrastructure in Australia driving requirement for continuous spending on network
anticipated investment in the construction of a number of big interconnectors such as the $1.5 billion Project Energy Connect (New South
Wales/South Australia), $1 billion Marinus Link (Victoria/Tasmania), $1.5 billion VNI West (Victoria/New South Wales), and $1.1 billion QNI
Medium (Queensland/New South Wales); and
– the large pipeline of proposed renewable generation projects (in order to meet Australia’s Renewable Energy Target) which tend to be much
more geographically diverse and located in parts of the grid requiring further network investment.
Construction and maintenance spending in the electricity transmission and distribution sectors alone is forecast to average $9.8 billion per
annum over the next five years (in FY18 constant prices), up 8% on the annual average over the five years to FY20. Around 14% of this work
is expected to take place in Western Australia, with 75% of work expected to take place in the East Coast markets (New South Wales, Victoria
For further details, please refer to the BIS Oxford Economics independent market report in Section 2 of this Prospectus.
The Company’s growth strategy for its core Powerlines Plus business includes maintaining its position in the Western Australian market
capitalising on the growing thematic, whilst implementing its strategy of penetrating into the much larger East Coast markets. As stated, the
Company has recently entered the Queensland and New South Wales markets through bolt on acquisitions and whilst the Company currently
only generates a relatively small proportion of its revenue from these markets, it is focussed on replicating its successful business model into the
larger east coast markets.
In addition, the Diamond and ECM businesses form an important part of GenusPlus’ future strategy to leverage the Powerlines Plus platform to
sustainably grow these businesses to provide a source of diversified earnings for the Group.
The Offer under this Prospectus is a secondary sale by the Selling Shareholder, David Riches (through SaleCo) of 34.18 million Shares. The Selling
Shareholder is selling a portion of his Shares to partly realise his investment in the Company and to ensure an adequate free float, shareholder
spread and liquidity after the listing on ASX. The Company is not seeking to, and does not need to, raise capital to meet the stated objectives in
The Shares being sold under the Offer represent 22.1% of the total 154.75 million Shares on issue on completion of the Offer. On Listing,
85.3 million Shares will be subject to voluntary escrow restrictions as further described in Sections 8.11 and 10.4.
The Offer comprises the Retail Offer and Institutional Offer. The Offer price for all of the Offer components is $0.96 per Share.
This Prospectus contains detailed information about the Offer, the industry in which the Company and its businesses operate, the Company’s
growth strategy, and its financial and operating performance.
Key risks associated with an investment in the Company are set out in Section 4.
It is important that you read this Prospectus in its entirety before deciding whether to invest in the Company.
On behalf of the Directors, I look forward to welcoming you as a Shareholder in the Company during this exciting time of growth for the Company.