Dialight plc · LSE:DIA
Dialight — The Roxboro Group — FY2004 Earnings Presentation
31 slides from Dialight's earnings presentation, Mar 14, 2005
Slide 1: The Roxboro Group PLC Preliminary Results 2004
The Roxboro Group PLC Preliminary Results 2004 14th March 2005 preliminary results 2004
Slide 2: 2004 – key points (continuing operations)
the roxboro group plc 2004 – key points (continuing operations) y Electronics market good in H1 but weakened H2 y Oil and Gas market saw late pick-up y Strong operational performance at Dialight y Good year-end order book at Solartron y Satisfactory performance despite $ weakness y A number of new p
Slide 3: Financial review (continuing operations)
the roxboro group plc financial review (continuing operations) y Turnover £119m (2003: £122m ) y Turnover in constant currency up 2.5% to £125m y Operating profits up 87% to £10.2m y Cash flow strong at £13.2m – 130% of operating profit y EPS increased by 75% to 22p per share (2003: 12.6p per share)
Slide 4: Financial Review
Financial Review 2004 preliminary results 2004
Slide 5: Group profit and loss account
the roxboro group plc group profit and loss account Continuing £m Operations Total 2004 2003 2003 y Turnover 118.9 122.2 136.8 y Operating Profit 10.2 5.4 8.2 y Interest - (0.3) (0.3) y Profit before goodwill & exceptionals 10.2 5.1 7.9 – Goodwill (1.1) (1.1) (1.2) – Profit on disposal of Weston - -
Slide 6: Group profit and loss account - continued
the roxboro group plc group profit and loss account-continued £m 2004 2003 y Profit before taxation 9.1 22.3 y Tax (3.5) (2.6) 5.6 19.7 Dividends (3.4) (3.0) y Retained Profit 2.2 16.7 Continuing Operations: y Operating Margin* 8.6% 6.0% y Trading Margin ** 8.6% 5.8% * before profit on disposal, goo
Slide 7: Divisional comparisons
the roxboro group plc divisional comparisons £m Full Year Full Year 2004 2003 Sales Profit Sales Profit Dialight 55.3 5.9 57.9 1.0 Solartron 63.6 6.7 64.3 6.6 118.9 12.6 122.2 7.6 Central (2.4) (2.2) 10.2 5.4 Interest - (0.3) 10.2 5.1 preliminary results 2004
Slide 8: First and second half comparison
the roxboro group plc first and second half comparison £m First Half Second Half % Movement Sales Profit Sales Profit Sales Profit Dialight 28.2 2.3 27.1 3.6 (10)% 155% Solartron 31.0 3.3 32.6 3.4 5% - 59.2 5.6 59.7 7.0 1% 23% Central (1.2) (1.2) - 4.4 5.8 29% Interest - - 4.4 5.8 29% preliminary re
Slide 9: Taxation
the roxboro group plc taxation 2004 2003 y Actual rate excluding disposal 38.2% 36.3% y Underlying rate excluding goodwill 34.0% 30.8% preliminary results 2004
Slide 10: Dividends and earnings per share
the roxboro group plc dividends and earnings per share 2004 2003 y Dividends per share 11.0p 10.0p y EPS Basic 18.3p 45.4p Adjusted 22.0p 12.6p y Dividend Cover Basic 1.7x 6.5x Adjusted for profit on disposal 1.7x 1.4x y Continuing Operations 1.7x 0.8x y Cash Cover - continuing operations 2.4x 1.6x
Slide 11: Summarised cash flows
the roxboro group plc summarised cash flows £m 2004 2003 Operating Profit 9.1 7.1 y Depreciation / Goodwill 3.7 4.6 y Working Capital 0.4 (1.1) y Operating Cash Flow 13.2 10.6 y Capital Expenditure (net) (1.3) (1.6) y Interest - (0.3) y Taxation (3.6) (1.9) Free Cash Flow 8.3 6.8 preliminary results
Slide 12: Movement in net debt
the roxboro group plc movement in net debt £m 2004 2003 Free Cash Flow 8.3 6.8 y Disposals - 52.7 y Issue of ordinary shares 0.1 0.1 y Redemption of B shares (0.3) (40.1) y Share issue expenses - (0.5) y Dividends (3.1) (4.9) Net Cash Inflow 5.0 14.1 y Opening Net Debt 2.0 (11.7) y Translation (0.2)
Slide 13: FRS17 pensions
the roxboro group plc FRS17 pensions y Continued to account for pensions under SSAP24 y 3 closed defined benefits schemes in the UK y 1 closed defined benefits schemes in the US y Cost in 2004 under SSAP24 £1.4m (2003: £2.0m) y FRS17: – 2004 charge would be £0.9m (2003: £1.3m) – Movement through STR
Slide 14: International Financial Reporting Standards (IFRS)
the roxboro group plc International Financial Reporting Standards (“I F R S”) y IFRS implemented as at 1st January 2005 – One year’s comparative data y 2004 restated numbers will be reported in May 2005 preliminary results 2004
Slide 15: IFRS - summary
the roxboro group plc I F R S - summary y IAS 19 Pensions y IAS 32/39 Foreign exchange y IFRS 3 Research and development costs y IAS 19 Share based payment I F R S - other y Goodwill y Redeemable shares y Dividends y Tax preliminary results 2004
Slide 16: Operational Review
Operational Review 2004 preliminary results 2004
Slide 17: Overview
Overview z Sales up more than 5% z Trading Profit up over 500% z Contribution margins up by 4.3 points in USA z US Inventories down by 14% z Mexico operations deliver strong performance *All comparisons in constant currency A Roxboro Group Company
Slide 18: Optoelectronics
Optoelectronics z Double digit growth in the year z H1 stronger than H2 due primarily to slowdown in US Distribution - H2 04 POS still stronger than H2 prior year z ASPs held or increased z Continued strong position in major OEMs z Good design wins for proprietary product- Bi-Level Prism z Growth in
Slide 19: Signals
Signals z Steady underlying growth z Strong improvement in margins due to both Labour and Material z Obstruction sales and margins show strong growth z Significant new customers in Europe z First Rail orders from China z Contract with Danish Rail A Roxboro Group Company
Slide 20: Illumination - Situation
Illumination- Situation z LEDs not yet cost effective for General Illumination Market z Niche applications are Colour Mixing for Architectural / “Architainment” and White Light where Maintenance/Safety are important z Many low tech products available with saturated colour and “pixellated” fixtures z
Slide 21: Illumination - Strategy
Illumination-Strategy z Fixture Market is fragmented with convoluted channel z Dialight will partner with OEMs in key niches z Dialight will use proprietary technology to lock in partners/channels z Promote “Dialight Driven” concept A Roxboro Group Company
Slide 22: Illumination - 2005
Illumination-2005 z Agreement with Hydrel for “In Ground and Underwater” Architectural Market z Fully launch Architectural Products at Lightfair in April z Agreement with Rosco Laboratories (Leading supplier of Coloured Gels) for Theatre/Studio/Production Markets z Launch 575 watt Hard Edge Spotligh
Slide 23: New Products 2004
New Products 2004 z Bi-Level Prism z LED Bulb replacements z “Explosion Proof” Obstruction Lights z “Light Out Detection” Rail Signals z Spectramix driven Underwater Light Fixtures A Roxboro Group Company
Slide 24: New Technology 2005
New Technology 2005 z Spectramix – advanced colour mixing algorithm z “X-Cube” Dichroic non-fringing colour mixing optics for focused applications- World’s densest LED light engine z Light Chamber- Non-pixellated colour mixing optics for wallwash/downlight applications z White LED Strobe for Obstruc
Slide 25: Summary
Summary z Effective, low cost operations z Strong Optoelectronic position with potential for extension and growth z Strong Signals position with potential for Traffic growth in Europe/Asia z Leader in burgeoning Obstruction Market with technology driven growth potential z Good position in Rail with
Slide 26: Solartron Overview
Overview y Very steady result in poor currency environment y Strong late burst of orders and new contracts y Slightly disappointing H2 sales as a result y However strong year-end order book y First fruits of 3 year R&D programmes showing preliminary results A Roxboro Group2004 Company
Slide 27: Oil and Gas Sector
Oil and Gas Sector y Good overall performance y Weak market in Americas y Some project slippage into 2005 y Excellent developing market position in China for fluid analysis y Dualstream II contracts for North Sea, China and y First field-bus compatible Dualstream II shipped y ’05 expected to be good
Slide 28: Process Sector
Process Sector y Pricing under pressure in USA because of weak $ y Good new business in China y Second phase of PARS contract in Iran awarded y Growth in France as EdF demand increased y FMCW 2 wire radar product introduced preliminary results A Roxboro Group2004 Company
Slide 29: Metrology Sector
Metrology Sector y Excellent performance with good sales and profits y New products drive growth, particularly in USA y Orbit network being universally accepted as industry standard y Solartron has strong position as metrology market digitises y Growth curve expected to continue preliminary results
Slide 30: Analytical Sector
Analytical Sector y Good performance despite $ weakness y US market depressed y Asia now strongest sales region y Launched new flexible, expandable platform y First deliveries of frequency response analyser modules y Fuel cell impedance module released y Other modules to follow preliminary results A
Slide 31: Summary
the roxboro group plc summary y Satisfactory result in ‘04 y Good year-end order book at Solartron y Signs of gradual improvement at Dialight OE y More new product introductions y Developing position in solid state lighting y Well positioned for reasonable progress in 2005 preliminary results 2004