Norcros Plc · LSE:NXR
Norcros — H1 2010/11 Earnings Presentation
20 slides from Norcros's earnings presentation, November 2010
Slide 1: Norcros plc - Interim Results, Six months to 30th September 2010
Norcros plc - Interim Results Six months to 30th September, 2010
Slide 2: Introduction
Page 2 Introduction John Brown Chairman
Slide 3: 2010 H1: Highlights
2010 H1 : Highlights Page 3 Revenue growth +6.8% (LFL¹ at constant currency) Trading profit of £6.4m (2009: £3.5m) Resilient performance from UK operations and SA Adhesive business Significant turnaround in SA tile manufacturing and retail Benchmark PBT² of £5.6m (2009: £1.2m) Disposal o
Slide 4: Financial Review
Page 4 Financial Review Nick Kelsall Group Chief Executive- Designate
Slide 5: Financial Highlights
Financial Highlights Page 5 Revenue and profit • Revenue of £97.3m, +17.2% (2009: £83.0m) – as reported • Revenue of £93.7m, +6.8% (2009: £87.7m) – LFL at constant currency • Trading profit of £6.4m, +82.9% (2009: £3.5m) • Benchmark PBT of £5.6m, +366.7% (2009: £1.2m) Cash • Cash generated from
Slide 6: Summary Income Statement
Summary Income Statement Page 6 6 months 6 months Change 6 months Change September September % March % 2010 2009 2010 £m £m £m Revenue 97.3 83.0 +17.2 86.6 +12.4 Group trading profit 6.4 3.5 +82.9 3.8 +68.4 Other operating income / costs - 0.1 - Group operating profit 6.4 3.6 +77.8 3.8 +68.4 Finance
Slide 7: Revenue by Geographic Segment
Revenue by Geographic Segment Page 7 At constant currency, like for like basis¹ +6.8% LFL revenue growth in constant currency in SA £36.0m (£33.6m) RoW £4.8m (£4.4m) all segments • Group +£6.0m; +6.8% UK £52.9m • UK +£3.2m; +6.4% (£49.7m) • SA +£2.4m; +7.1% • RoW +£0.4m; +9.1% Reconciliation to
Slide 8: Summary Cash Flow
Summary Cash Flow Page 8 6 months 6 months 6 months 12 months September September March March 2010 2009 2010 2010 £m £m £m £m Cash generated from operations 3.8 4.8 5.8 10.6 Capex (2.0) (2.1) (1.8) (3.9) Disposal of businesses 4.4 - - - Dividends received - 0.1 - 0.1 Free cash flow, pre financing 6.
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights Page 9 6 months 6 months 6 months 12 months September September March March 2010 2009 2010 2010 Capex (£m) 2.0 2.1 1.8 3.9 Depreciation (£m) 3.2 3.3 3.4 6.7 Capex / Depreciation 0.6x 0.6x 0.5x 0.6x Net bank debt - before prepaid 13.0 48.9 18.9 18.9 finance costs (£m) Net ban
Slide 10: Operating Review
Page 10 Operating Review Joe Matthews Group Chief Executive
Slide 11: Market Environment
Market Environment Page 11 UK Shower Market • Slow recovery • YoY overall market +3.9% • Market still c. -20% from peak • Electric showers +5%; Mixers +2% • Electric outperformance driven by replacement activity UK Tile Market • Total market c. -5% • Market c. -25% from peak • Independent Retail
Slide 12: UK Operations – Revenue growth reflecting market share gains
UK Operations – Revenue growth reflecting market share gains Page 12 +6.4%¹ Triton • Overall revenues +9.1%¹ - UK +9.8%¹; Exports +5.3%¹ • Strong growth in retail; share gains in key accounts • Solid performance in UK Trade (National and Independent Merchants) • Safeguard thermostatic electric – g
Slide 13: UK Operations – Resilient performance; Trading profit maintained
UK Operations – Resilient performance; Trading profit maintained Page 13 6m 6m 6m Triton Sept March Sept • Revenue growth in challenging markets 2010 2009 2010 • Resilient profits and margins despite - Customer & product mix changes - Higher input & freight costs Trading Profit 5.9 5.7 5.9 (£m) -
Slide 14: South Africa - Revenue growth driven by improved customer proposition
South Africa - Revenue growth driven by improved customer proposition Page 14 +7.1%¹ TAF revenues +6.1%¹ • LFL retail sales +15.0% • Increased ‘supply & fit’ projects • 18 stores now upgraded to Lifestyle format; closure of one underperforming store in H1 JTSA revenue +3.4%¹ TAF TAF • Improved p
Slide 15: South Africa – Substantial turnaround in performance
South Africa – Substantial turnaround in performance Page 15 6m 6m 6m TAF Sept March Sept • Small trading loss v substantial loss LY 2009 2010 2010 - Benefit of operational leverage from higher revenues Trading (2.4) (1.3) 0.5 - Unprofitable store closures – 4 LY, 1 H1 Profit (£m) - Tight overhead
Slide 16: Operational Initiatives
Operational Initiatives Page 16 • Continue to drive share gains across all product segments + customer channels • Comprehensive new product programme in Trade + Retail Triton • Deliver benefits of new Customer Service IT system • Continue to drive benefit from value analysis + engineering programme
Slide 17: Summary & Outlook
Summary & Outlook Page 17 Significant improvement in trading performance Strong financial position Return to dividends Focus on - Market share gains in UK businesses - Realising opportunities for Triton + UK tiles in Specification sector - Improving profitability in UK tiles and UK adhesives
Slide 18: Appendices
Appendices iit “ANCASTER GATE |
Slide 19: UK Pension Scheme
UK Pension Scheme Page 19 • Mature and well funded scheme; 11,000 members £m • Pensioners (61%), Deferred (35%), Actives 20 (4%) • Average age of pensioners is 75 13.4 • Investment Strategy 10 10.0 6.6 • Low risk asset allocation; 35% equities, 32.5% gilts, 32.5% corporate bonds 2.3 • Pensioner liab
Slide 20: Net Debt Reconciliation
Net Debt Reconciliation Page 20 September September March £m 2010 2009 2010 £m £m £m Net debt – statutory (10.6) (45.3) (15.9) Prepaid finance costs (2.4) (3.6) (3.0) Net debt before prepaid finance costs (13.0) (48.9) (18.9)