15 slides from Chesterfield Special Cylinders's earnings presentation, Sep 29, 2012
Slide 1: Delivered Balanced Growing
Delivered Balanced Growing Preliminary Results Presentation Year Ended 29 September 2012 John Hayward, Chief Executive James Lister, Finance Director
Slide 2: Delivered Balanced Growing
Delivered Balanced Growing Delivered Revenue £30.4 million +32% Operating profit £1.8 million +157% Operating cash flow £1.9 million +£1.0 million Dividend 7.5p +4% Balanced Engineered Products Division poised to become largest part of the Group Cylinders showing strong growth in service offerings A
Slide 3: Better balanced group
Better balanced group Engineered Products Cylinders Alternative Energy Designing products and services to satisfy specific customer needs in: Oil and Gas Defence Industrial Gases Alternative Energy 3
Slide 4: Growth drivers
Growth drivers Segment Key growth drivers Growth opportunity Engineered Products: Market growth in deepwater oil ++ and gas production Small in relation to major competitors but more flexible ++ and innovative Low risk product development and acquisitions in closely ++ related technologies Cylinders
Slide 5: Sales increased by 32%
Sales increased by 32% 0.7 30.4 1.3 0.2 2.7 BtG upgrade £m 23.1 6.6 project delayed to Lower sales into Strong growth in Qtr1 2013 due to 0.9 naval defence sales at Hydratron upgrader damage Alternative Energy market due to 13.9 during transit timing of projects Al-Met flat year on year Recovery in
Slide 6: Operating profit increased by 157%
Operating profit increased by 157% 2012 2011 £m £m £m Cylinders 2.3 1.5 0.1 0.2 Engineered Products 1.0 1.0 0.8 Chesterfield BioGas (0.5) (0.5) 1.8 Acquisition and (0.2) (0.4) amortisation costs 0.7 Unallocated central (0.8) (0.9) costs Operating profit 1.8 0.7 6
Slide 7: Strong balance sheet
Strong balance sheet 29 Sep 01 Oct 2012 2011 £m £m Intangible assets 3.4 3.9 Fixed assets 4.7 4.6 Inventories 6.9 5.0 Receivables 7.4 6.8 Payables (8.3) (7.0) Working capital 6.0 4.8 Tax provisions (0.7) (0.7) Net funds 2.7 2.9 Net assets 16.1 15.5 7
Slide 8: Operating cash flow increased by £1.0 million
Operating cash flow increased by £1.0 million Operating cash flow £1.9m (2011: £0.9m) £m 0.4 0.6 Increased working capital to Capital 0.8 2.9 support expenditure increased 2012 activity opening 0.8 2012 Final closing net deferred net funds payments funds Dividends 0.5 for the acquisition paid Group
Slide 9: Everything in the right direction
Everything in the right direction 29 Sep 01 Oct 2012 2011 Sales (£m) 30.4 23.1 Operating profit (£m) 1.8 0.7 EBITDA (£m) 2.9 1.5 PBT (£m) 1.8 0.6 EPS basic (pence) 11.2p 3.5p EPS adjusted (pence) 12.5p 6.2p Dividend (pence) 7.5p 7.2p Cash flow (£m) (0.2) (3.7) Net funds (£m) 2.7 2.9 9
Slide 10: Divisions
Divisions Engineered Products Cylinders Alternative Energy 10
Slide 11: Expanding Engineered Products
Expanding Engineered Products Sales revenues up 24% to £13.9 million Oil and gas market potential high Growing in all areas (eg sub-sea tree market forecast to grow 40% in 2013) Division an order of magnitude smaller than its major competitors Flexible and innovative New markets being actively
Slide 12: Rebalancing Cylinders
Rebalancing Cylinders Strong recovery in traditional main market, deepwater Oil & Gas platforms 2011 - 3 drillship projects supplied 2012 - 10 drillship projects supplied 2013 - 7 drillship projects won to date Continued pressure on manufacturing margins in ultra large cylinders providing cataly
Slide 13: Poised and ready Alternative Energy
Poised and ready Alternative Energy Main market Biogas to Grid Renewable Heat Incentive for BtG confirmed by Government Instilled confidence Major utility companies re-entering market Number and size of potential projects increased Second upgrader project, Stockport, delivered October 2012 2
Slide 14: Summary
Summary Delivered Sales growth from recovery in Cylinders main market and Engineered Products Profit growth from Cylinders; Engineered Products sales growth yet to be reflected in the bottom line Balanced Engineered Products Division poised to become largest part of the Group Cylinders showing growt
Slide 15: Disclaimer
Disclaimer This presentation has been prepared by Pressure Technologies plc (the "Company“ or “Pressure Technology”) solely in connection with providing information on the Company and to certain institutional and professional investors in the United Kingdom. This presentation does not constitute or