Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — H1 2023/24 Earnings Presentation
31 slides from Alumasc's earnings presentation, March 2024
Slide 1: Interim Results – Creating a stronger platform for growth
The Alumasc Group plc Interim Results Six months ending 31 December 2023 Creating a stronger platform for growth Alumasc Roofing – Hydrotech Blue Inverted Roof and Blackdown Green Roof – The Residences, Birmingham
Slide 2: Contents
Contents 01 02 Introducing Alumasc Operational Performance H1 2023/24 03 04 Financial Performance Accelerating our Growth 05 06 Outlook Appendices Paul Hooper Chief Executive Simon Dray Group Finance Director Alumasc Water Management – Copings and bespoke fascia system – St Aubin, Jersey
Slide 3: Introducing Alumasc
Alumasc Water Management: • AX half-round gutters/swaged downpipes • Skyline Architectural Aluminium fascia and soffits Bentley Amateur Rugby League Football Club, Doncaster 01 Introducing Alumasc
Slide 4: Introducing Alumasc: its market leadership
Introducing Alumasc: its market leadership FY18-FY23 CAGR: Revenue +6.5% Underlying OP +17.5% Long-term structural growth drivers • High quality sustainable building products, systems and solutions • 80% of portfolio specified to deliver environmental solutions Diversified portfolio • Resilience and
Slide 5: Operational overview
Operational overview WATER MANAGEMENT BUILDING ENVELOPE HOUSEBUILDING PRODUCTS Integrated “Rain to Drain” solutions Premium roofline waterproofing/insulation systems Premium housebuilding products and green and landscaped garden roofing • Solutions that manage and attenuate water inside and • At the
Slide 6: Operational Performance H1 2023/24
02 Operational Performance H1 2023/24 Timloc Building Products: InVentive Plain Roof Tile Vent (launched January 2024)
Slide 7: Overview
Overview Encouraging performance against a challenging market £m H1 H1 backdrop Continuing operations FY24 FY23 Change Revenue £47.8m £45.0m +6.4% • Revenue* £47.8m (H1 FY23: £45.0m) Underlying profit before tax £6.3m £5.6m +12.4% • Underlying PBT* £6.3m (H1 FY23: £5.6m) Underling operating margin 1
Slide 8: Water Management
Water Management H1 H1 FY24 FY23 Revenue (£m) 22.0 19.6 Underlying operating profit (£m) 3.5 2.5 Underlying operating margin (%) 16.0% 12.8% Operating profit (£m) 3.2 2.5 • Strong performance: 12% revenue growth, 40% profit growth • Excellent export performance • Investment in overseas sales resourc
Slide 9: Building Envelope (Roofing)
Building Envelope (Roofing) H1 H1 Continuing operations FY24 FY23 Revenue (£m) 18.7 18.3 Underlying operating profit (£m) 2.4 2.6 Underlying operating margin (%) 12.8% 14.1% Operating profit (£m) 2.4 2.6 • Revenue growth in challenging market conditions • Market share gains • New product launches •
Slide 10: Housebuilding Products (Timloc)
Housebuilding Products (Timloc) H1 H1 FY24 FY23 Revenue (£m) 7.1 7.0 Underlying operating profit (£m) 1.7 1.6 Underlying operating margin (%) 24.5% 23.0% Operating profit (£m) 1.7 1.4 • Revenue growth despite >17% decline in UK housebuilding • 23% decline in UK private housing starts • Market share
Slide 11: Financial Review
03 Financial Review Alumasc Roofing – Alkorplan by Alumasc Warm Roof – Vernon Street, Ashton-Under-Lyne
Slide 12: Income statement summary
Income statement summary 6 months to 31 December H1 FY24 H1 FY23 Change £m £m % Revenue +6.4% Revenue from continuing operations 47.8 45.0 +6.4% • Negligible impact from inflation Gross profit 17.9 16.5 • Overseas sales helped offset UK demand headwinds Gross margin % 37.5% 36.7% Gross margin +80bps
Slide 13: Revenue and Profit Bridge
Revenue and Profit Bridge Inflation: • Materials: broadly stable/declining • Gross margin +80bps ahead • Wages/energy rates still high • Mitigation in H2 by cost reductions/ efficiencies Organic growth: • Sales +£2.7m • Profit +£1.1m 17 www.alumasc.co.uk 13
Slide 14: Cash flow statement summary
Cash flow statement summary 6 months to 31 December H1 FY24 H1 FY23 Change £m £m £m Strong inflow from working capital: operating EBITDA from continuing operations* 8.3 7.4 +0.9 cashflow £4.5m above H1 FY23 Change in working capital 1.7 (1.9) +3.6 Capex at 115% of depreciation (H1 FY23: 111%) Underl
Slide 15: Balance sheet summary
Balance sheet summary at 31 December 2023 2022 Change £m £m £m £25m bank facility (+£20m accordion) expires Property, plant & equipment 19.1 17.2 +1.9 August 2026, extendable to August 2027 Intangible assets 18.8 10.6 +8.2 Net bank debt £7.4m: Working capital 8.7 13.0 (4.3) • 0.5x gearing (covenant
Slide 16: Accelerating our growth
04 Accelerating our growth Alumasc Roofing – Hydrotech Inverted Roof – Prospect Place, Battersea Power Station
Slide 17: Strategic Priority – Accelerating Sales Growth
Strategic Priority – Accelerating Sales Growth H1 revenue growth +6.4% UK sales (1.6)% Outperformed challenging UK market (estimated >6% decline) Attractive positions in markets supported by long-term growth drivers: • 80% of product portfolio subject to regulations/legislation • 80% of turnover der
Slide 18: Strategic Priority – Driving Margin Improvement
Strategic Priority – Driving Margin Improvement H1 operating margin 14.1% (+70bps) Continual focus on costs, margins and efficiency Supported by NPD H1 Restructuring of Water Management sales/commercial team • Annualised saving of £0.8m from H2 Double Pantile Profiled InVentive Roof Tile Vent - Iso
Slide 19: Strategic delivery – Championing Sustainable Building Products
Strategic delivery – Championing Sustainable Building Products Durable, low-maintenance products High quality products – robust and long-lived Lower ongoing maintenance needs Lower lifetime cost (financial and carbon) Embracing the circular economy 27% of material inputs from recycled sources 80% of
Slide 20: Strategic delivery – Value Enhancing Investment
Strategic delivery – Value Enhancing Investment Investment for long term growth Targeted investments in capability: • Sales coverage in Building Envelope • Overseas sales resource in Water Management • New product development in Housebuilding Products Acquisition of ARP Group • Completed in December
Slide 21: Strategic delivery – ARP acquisition
Strategic delivery – ARP acquisition • Well-regarded manufacturer and supplier of rainwater goods and architectural aluminium products • 47k sq ft site in Leicester, UK; 70 staff • FY23: £1.3m adjusted EBITDA on £10.8m sales • Good cultural fit – emphasis on product quality and customer service • St
Slide 22: Strategic delivery – ARP strategic fit
Strategic delivery – ARP strategic fit M&A target characteristics ARP Bolt-on ✓ Maximum £10m EV Operating in Alumasc markets/close adjacents ✓ Rainwater management and architectural aluminium Consistent with Group margin and cash Cash generative; pre-synergy returns in line with generation targets ✓
Slide 23: Outlook
05 Outlook ARP – Mustang® 125mm Seamless Guttering & Colonnade Swaged Aluminium Rainwater Pipes, Langton Homes, Leicestershire
Slide 24: Outlook – medium/long term structural growth drivers
Outlook – medium/long term structural growth drivers Growth drivers Building Water Housebuilding Envelope Management Products Under-supply of new housing ✓ ✓✓ ✓✓✓ Ageing building stock ✓✓✓ ✓✓✓ ✓ Demand for more sustainable materials ✓✓✓ ✓✓✓ ✓✓ Energy efficient buildings ✓✓✓ ✓ ✓✓✓ Urban drainage/wast
Slide 25: Outlook
Outlook • After excellent H1: • UK demand headwinds expected to persist into H2 • H2 export growth likely to slow, with delay of £7m CLK order • Proven resilience of business model: • Diversity of end markets • Export potential • Environmental solutions • Product innovation, experienced management t
Slide 26: Thank you
Thank you www.alumasc.co.uk Alumasc Roofing – Derbigum Blue Inverted Roof – The Residences, Birmingham
Slide 27: Appendices
06 Appendices ARP – Bespoke Legacy cast aluminium guttering system– Oaklands Round House, Yorkshire
Slide 28: Underlying To Statutory Profit Reconciliation (£m)
Underlying To Statutory Profit Reconciliation (£m) H1 FY24 H1 FY23 Operating Profit/(loss) Operating Profit/(loss) Profit Before Tax Profit Before Tax £’000 £’000 £’000 £’000 Underlying profit from continuing operations 6.7 6.3 6.0 5.6 Brand amortisation - - - - Net IAS 19 defined benefit pension sc
Slide 29: Diversified end markets
Diversified end markets Housebuilding Water Management Building Envelope Group Products % of Group revenue >80% revenue derived from environmental products >80% revenue supported by specification/regulation % of Group profit Export sales ~15% of total Private vs Public Housebuilding vs Non-residenti
Slide 30: Industry forecasts
Industry forecasts 30 Source: CPA Winter 2023/24 forecasts www.alumasc.co.uk
Slide 31: History
History 31 www.alumasc.co.uk