24 slides from Chesterfield Special Cylinders's earnings presentation, Dec 11, 2018
Slide 1: Pressure Technologies - 2018 Full Year Results
Pressure Technologies - 2018 Full Year Results
Slide 2: Key messages and highlights
Pressure Technologies plc Key messages and highlights Manufacturing revenue up 13% YOY PMC closing order book up 54% on with second-half 32% up on the first-half 2017, with highest intake levels in as the businesses experience an uplift October 2018 since April 2014. in activity from core markets CS
Slide 3: Summary Group results
Pressure Technologies plc Summary Group results 2018 2017 Revenue down Revenue (£m) 32.2 34.6 -7% Manufacturing Divisions 21.2 18.8 To £32.6m (2017: £34.9m) Alternative Energy Division 11.1 15.8 Gross margin up 2 ppt to Gross profit (£m) 9.6 9.7 +30% Adjusted operating profit (£m) 0.5 1.6 (2017: 28.
Slide 4: Revenue and profits impacted by fewer renewable energy projects and losses in AE
Pressure Technologies plc Revenue and profits impacted by fewer renewable energy projects and losses in AE, mix of work in Manufacturing Divisions and investment in people • • • • 4
Slide 5: Summary Group balance sheet
Pressure Technologies plc Summary Group balance sheet 2018 2017 £m £m Closing Net Debt down Goodwill & Intangible assets 25.8 29.7 £4.3m to £6.7m (2018: £11.1m) Tangible Assets 12.0 12.6 Inventories 4.4 5.0 Measured leverage covenant ratio Trade & other receivables 10.9 10.1 2.3x Trade & other Payab
Slide 6: Summary Group cash flow
Pressure Technologies plc Summary Group cash flow - 12 months to September 2018 Operating cash inflow* £1.6m (2017: £1.9m) Net investment in working capital* £nil (2017: increase of £1.5m) £1.6m operating cash inflow Net fundraising in 2018 £4.7m (2017: nil) Repayment of RCF facility £3.2m (2017: in
Slide 7: Manufacturing financial highlights
Pressure Technologies plc Manufacturing financial highlights Revenue up 13% to Gross Profit margin down 3.2ppt to Operating Profit* £21m 34% £2.6m (2017: £18.8m) (2017: 37%) (2017: £2.9m) Return on Revenue Net investment in working capital Operating cash inflow/(outflow)*** 12% £1.1m £1.6m (2017: (1
Slide 8: Alternative Energy financial highlights
Pressure Technologies plc Alternative Energy financial highlights Revenue Gross Profit margin Operating Loss* £11.1m 22% £(0.5)m (2017: £15.8m) (2017: 17%) (2017: £0.0m) Return on Revenue Revenue per employee down 5% to Operating cash inflow/(outflow)*** -5% £344k** £1.5m (2017: 0%) (2017: £362k) (2
Slide 9: Performance
INVESTOR PRESENTATION Performance
Slide 10: Oil and gas sector
Pressure Technologies plc Oil and gas sector ● ● ● ● ● 10
Slide 11: Defence sector
Pressure Technologies plc Defence sector ● ● ● ● ● ● ● 11
Slide 12: Industrial gas sector
Pressure Technologies plc Industrial gas sector ● 12
Slide 13: Renewable energy sector
Pressure Technologies plc Renewable energy sector ● ● ● ● 13
Slide 14: Strategy and Outlook
Strategy and Outlook 14
Slide 15: PMC strategy and outlook
Pressure Technologies plc PMC strategy and outlook Delivery of high-quality, safety-critical components for the oil and gas industry remains the predominant focus for PMC in the medium-term ● Tendering activity increased sharply towards the end of the year and has continued to Increase in Revenue ri
Slide 16: Cylinder's strategy and outlook
Pressure Technologies plc Cylinder’s strategy and outlook Cylinders divisional strategy remains firmly on course to achieve greater inroads in target markets, the diversification into global defence markets from 2014 has Revenue up proved highly successful ● The defence sector remains the organic gr
Slide 17: Alternative Energy
Pressure Technologies plc Alternative Energy Conditional sale of the Division to Creation Capital Corp (TSX-V: CRN.P) a capital pool company listed on the TSX Venture Exchange (“TSX-V”) announced on 10 December 2018 ● The strategic decision to centre the Division in Vancouver positions Greenlane Rev
Slide 18: People
Pressure Technologies plc People The success of the Group comes from our people ● Recruitment to meet the growing workload and new skill requirements has progressed successfully and we have invested further in apprenticeships across the Group. ● Earlier this year, we carried out a Group-wide engagem
Slide 19: Group outlook
Pressure Technologies plc Group outlook ● Recent trading performance, order intake and general bidding activity indicates that we’re seeing a period of increased market activity, particularly for oil and gas, so the Board expects a much better trading performance from the Group this year ● Increase
Slide 20: Supporting Information
Supporting Information INVESTOR PRESENTATION 20
Slide 21: Oil and Gas sector revenue improving from H216 low point
Pressure Technologies plc Oil and Gas sector revenue improving from H216 low point across the Manufacturing divisions 21
Slide 22: The Group's £15m RCF facility was £11.8m drawn
Pressure Technologies plc The Group’s £15m RCF facility* was £11.8m drawn at the half year date. Leverage has continued to fluctuate with volatility in the AE performance and timing of large project work in both AE and CSC. FY18 FY17 Net debt: EBITDA leverage FY18 FY17 Adjusted Net Debt £m £m Report
Slide 23: Keep up to date with our news
Pressure Technologies plc Keep up to date with our news Please join us on LinkedIn And keep up to date with news from around the Group 23
Slide 24: Disclaimer
Pressure Technologies plc Disclaimer 24