Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — FY2023 Earnings Presentation
26 slides from Alumasc's earnings presentation, 2023
Slide 1: The Alumasc Group plc Annual Results to 30 June 2023
The Alumasc Group plc Annual Results to 30 June 2023 Alumasc Water Management Solutions Soffit, Fascia, Sloping Coping, Rainwater Goods including GX Joggle Box Gutters and flush joint pipe, Bespoke Box Ends and Bespoke Dormer Window Surrounds Dukeries Homes, Lake View, Mansfield
Slide 2: Contents
Contents 01 02 FY23 Overview Strategic Delivery 03 04 Business Review Financial Review 05 06 Outlook Appendices Paul Hooper Chief Executive Simon Dray Group Finance Director Rainclear Systems – BS200 Canopy in Side Panel
Slide 3: FY23 Overview
01 FY23 Overview Alumasc Water Management – Skyline Architectural Aluminium – Highwood Lodge
Slide 4: Overview
Overview Resilient performance against challenging market backdrop and a comparative which included a significant contribution from export contracts Continuing operations FY23 FY22 Change • Revenue £89.1m (FY22: £89.4m) Revenue £89.1m £89.4m -0.3% • Underlying PBT* £11.2m (FY22: £12.7m) • Resilient
Slide 5: Strategic Delivery
02 Strategic Delivery Alumasc Water Management – Wade Linear – Wembley Steps
Slide 6: Strategic Overview
Strategic Overview FY18-FY23 CAGR: Revenue +6.5%; Underlying Operating Profit +17.5% Execution of strategic priorities Accelerating sales growth • Long term structural growth drivers underpinned by building standards/legislation • Maintain/grow share through market-leading customer service and cross
Slide 7: Strategic Delivery – Accelerating Sales Growth
Strategic Delivery – Accelerating Sales Growth • Target UK construction sector growth outperformance • FY18-23 CAGR: Alumasc +6.5% UK construction +4.4%* • Strong positions in niche markets supported by long term growth drivers: • 80% provide environmental solutions • 80% supported by building regul
Slide 8: Strategic Delivery – Driving margin improvement
Strategic Delivery – Driving margin improvement • Cost-effective and adaptable structure • Small centre, agile and empowered businesses • Flexible and agile production capacity across Group • Underlying operating profit CAGR FY18-FY23 +17.5% • Building Envelope +24.0% • Water Management +10.0% • Hou
Slide 9: Strategic Delivery – Championing Sustainable Building Products
Strategic Delivery – Championing Sustainable Building Products • Durable, low maintenance and environmentally-efficient products • Demand supported by long term environmental drivers: • Building decarbonisation (construction and in use) • Water management • Occupant wellbeing / urban biodiversity •
Slide 10: Strategic Delivery – Value-Enhancing Investment
Strategic Delivery – Value-Enhancing Investment Organic • Further targeted investment in capabilities • Capital expenditure; operational, R&D/NPD, sales/marketing capability Inorganic • Acquisition of ARP Group announced July 2023 • Subject to CMA approval (anticipated in Autumn) • Maximum £10m cons
Slide 11: Business Review
03 Business Review Alumasc Roofing – Hydrotech - Nucleus Building, Edinburgh
Slide 12: Water Management
Water Management FY23 FY22 Revenue (£m) 39.8 47.6 Underlying operating profit (£m) 5.8 8.8 Underlying operating margin (%) 14.5% 18.4% Operating profit (£m) 5.6 8.7 • 3 years of growth FY19-FY22 • FY23 more subdued: • UK sales resilient, supported by new product launches • Export sales reduced, as e
Slide 13: Building Envelope (Roofing)
Building Envelope (Roofing) Continuing operations FY23 FY22 Revenue (£m) 34.6 29.4 Underlying operating profit (£m) 4.1 3.6 Underlying operating margin (%) 11.8% 12.2% Operating profit (£m) 4.1 3.1 • 18% revenue increase driven by market share gains • Strengthened sales force • New product launches
Slide 14: Housebuilding Products (Timloc)
Housebuilding Products (Timloc) FY23 FY22 Revenue (£m) 14.7 12.4 Underlying operating profit (£m) 3.5 2.4 Underlying operating margin (%) 23.9% 19.7% Operating profit (£m) 3.3 2.4 • Excellent performance in challenging market conditions • Continued customer focus • Lower housebuilding volumes offset
Slide 15: Financial Review
04 Financial Review Alumasc Roofing Built-up Derbigum system, Alumasc BGT PIR insulation, CFC and HCFC free rigid urethane thermal insulation board, Roof-Pro accessories, and Caltech QC terminations Haven Green Court, London
Slide 16: Income statement summary
Income statement summary Year ended 30 June FY23 FY22 Change Continuing operations £m £m % Gross margin 60bp below FY22 Revenue 89.1 89.4 -0.3% • Stabilising material prices but inflation still high Gross profit 32.7 33.4 • Pass-through where necessary Gross margin % 36.7% 37.3% Sales, general & adm
Slide 17: Revenue and Profit Bridge
Revenue and Profit Bridge Cost prices passed through, some margin dilution £6.6m lower sales/£2.8m lower profit from: • Significant export contract timing (notably Chek Lap Kok airport) projects; and • Longer term operational investments Organic growth (excluding inflation, export contracts): £m Rev
Slide 18: Cash flow statement summary
Cash flow statement summary Year ended 30 June FY23 FY22 Change £m £m £m Improved operating cashflow: 117% of underlying EBITDA from continuing operations* 15.2 16.1 (0.9) operating profit (FY22: 84%) Change in working capital (1.0) (4.9) 3.9 • £1.8m inflow from inventory Operating cash flow – conti
Slide 19: Balance sheet summary
Balance sheet summary at 30 June 2023 2022 Change £m £m £m £25m bank facility (+£20m accordion) extended to Property, plant & equipment 18.2 17.5 +0.7 August 2026 Intangible assets 10.6 10.7 -0.1 • Second option available to extend to August 2027 Working capital 11.0 11.5 -0.5 Pension deficit increa
Slide 20: Outlook
05 Outlook Alumasc Water Management Solutions – Gatic F900 Recessed Duct Covers and Frames, Kai Tak Cruise Terminal in Hong Kong
Slide 21: Outlook – industry forecasts
Outlook – industry forecasts +2.0% -1.8% -7.6% +2.6% Further demand headwinds anticipated over remainder of 2023 but expected to be mitigated by: • Export market growth • UK share growth, NPD and entry into adjacent markets • Demand resilience for products assisting energy efficiency and water manag
Slide 22: Outlook
Outlook • Despite short-term market challenges, Board confident of further progress • Proven resilience of business model • First call-offs from delayed £7m Chek Lap Kok project in early FY24 • Completion of ARP acquisition subject to CMA approval; expected in Autumn 2023 • Current trading in line w
Slide 23: Thank You
Thank You www.alumasc.co.uk Alumasc Water Management Solutions Soffit, Fascia, Sloping Coping, Rainwater Goods including GX Joggle Box Gutters and flush joint pipe, Bespoke Box Ends and Bespoke Dormer Window Surrounds Dukeries Homes, Lake View, Mansfield
Slide 24: Appendices
06 Appendices Rainclear Systems – 115mm Half Round Copper Gutters and 80mm Round Copper Downpipes – Surrey Copper Renovation Project
Slide 25: Underlying To Statutory Profit Reconciliation (£m)
Underlying To Statutory Profit Reconciliation (£m) FY23 FY22 Operating Profit Operating Profit Profit Before Tax Profit Before Tax £’000 £’000 £’000 £’000 Underlying profit from continuing operations 12.1 11.2 13.3 12.7 Brand amortisation (0.1) (0.1) (0.1) (0.1) Net IAS 19 defined benefit pension sc
Slide 26: Diversified end markets
Diversified end markets Housebuilding Water Management Building Envelope Group Products >80% revenue derived from % of Group revenue environmental products >80% revenue supported by specification/regulation Export sales FY23: % of Group profit 6% of total (goal >15%) Private vs Public Housebuilding