On behalf of the Board of the Company, it is my pleasure to invite you to read this Prospectus
and consider the opportunity to become a Shareholder in the Company.
The business of the Mader Group is to provide skilled tradespeople on flexible terms to support
and improve the mobile equipment maintenance programs of mining companies, leading to
improved mobile equipment availability. The tradespeople are provided by the Mader Group as
specialised contract labour from an in-house pool of skilled employees.
The Mader Group is the largest independent maintenance labour service provider for heavy
mobile equipment in Australia (outside of the original equipment manufacturers). It first began
operating in 2005 and in 14 years has grown to over 1,100 employees and approximately
$220 million in revenue in FY2019.
The Mader Group’s well established and leading position in the maintenance services sector
allows it to service a broad and expanding global network of customers. It now operates in
over 15 regions across 8 countries. In FY2019 it provided approximately 2.3 million hours of
maintenance labour services to over 200 customers.
The Mader Group has long standing, recurring relationships with its top tier customer base.
These relationships are built on quality of service and a focus by the Mader Group on its people,
culture and reputation. The Mader Group offers a transparent, flexible and inclusive workplace
environment enabling it to attract and retain high-quality tradespeople.
Many years of investment by the Mader Group in its people and culture, scheduling systems,
recruiting and retention systems, training systems and other business infrastructure lays the
foundation for future organic growth and underpins its competitive advantages.
The Mader Group has a demonstrated history of sustained revenue and earnings growth. Over
the last 6 years to the end of FY2019, through organic growth alone, revenue increased an
average of 37% per year and NPAT an average of 28% per year.
The relatively low capital intensity of the business has enabled the payment of dividends at
the same time as achieving growth. Up until 31 December 2018, the Mader Group generated
approximately $54.3 million of earnings and paid out approximately $19 million of dividends,
representing a pay out ratio of approximately 35%. Over this time no external equity capital has
Positive industry thematics support the future demand for the Mader Group’s services, including
a trend for mining equipment to be used longer, the aging of mining equipment purchased during
the last boom, and an economy-wide growth trend in labour outsourcing services.
The Mader Group’s core leadership team, led by the founder Luke Mader, comprises former
tradespeople who know the industry well and have long standing customer relationships.
They are complemented by senior executives experienced in business and financial
The Offer under this Prospectus is a secondary sale by Existing Shareholders (through SaleCo)
of 50 million Shares. The Existing Shareholders are selling a portion of their Shares to partly
realise their investment in the Company and to ensure an adequate free float, shareholder
spread and liquidity after the listing on ASX. The Mader Group is not seeking to, and does not
need to, raise capital to meet the stated objectives in this Prospectus.
The Shares being sold under the Offer represent 25% of the total of 200 million Shares on
issue on completion of the Offer. The remaining 150 million Shares on issue will be subject to
voluntary escrow restrictions until 31 October 2020.
The Offer comprises the Retail Offer, Institutional Offer and Employee Offer. The Offer Price for
the Retail Offer and the Institutional Offer is $1.00 per Share. There is a smaller Employee Offer
which is designed to encourage share ownership by the Mader Group’s leadership team and
employees. The Employee Offer Price is $0.90 per Share.
This Prospectus contains detailed information about the Offer, the industry in which the Mader
Group operates, its business operations, and its historical and forecast financial performance.
The Mader Group is subject to a range of risks both within and outside of its control, including
risks associated with the Mader Group’s culture, quality of work and delivery and reputation,
OH&S, a downturn in the resources industry, loss of key personnel, and Mader’s large casual
workforce and changes in industrial relations policy or labour laws which are discussed in
detail in Section 10. Before making your decision to invest, I ask that you carefully read this
Prospectus and seek professional advice if required.
I am very pleased to be working as Chairman of the Mader Group, an established, well-run
business with strong growth prospects and industry thematics. On behalf of my fellow directors
and the Mader Group team we look forward to welcoming you as a Shareholder.