Smiths News Plc · LSE:SNWS
Smiths News — H1 2024 Earnings Presentation
20 slides from Smiths News's earnings presentation, May 2, 2024
Slide 1: Interim Results
Interim Results 2 May 2024
Slide 2: Headlines
Headlines Jon Bunting Chief Executive Officer
Slide 3: Headlines
Headlines Debt refinancing underpins strong financial position Core operations trading as expected • Adjusted operating profit of £18.8m against strong comparative period in • Driving operational efficiencies and optimising network infrastructure, with cost savings plan on track to deliver H1 2023 r
Slide 4: Financial Performance
Financial Performance Paul Baker Chief Financial Officer
Slide 5: Financial summary
Financial summary Revenue Adjusted (£m) H1 2024 H1 2023 Variance Reduced by 1.9% period on Revenue 539.8 550.1 (10.3) period Adjusted operating profit 18.8 20.4 (1.6) Adjusted earnings per share 4.9p 5.6p (0.7p) Average bank net debt Reduced by £13.8m period on period Free cash flow 4.2 (0.2) 4.4 Av
Slide 6: Adjusted income statement
Adjusted income statement Adjusted (£m) H1 2024 H1 2023 Operating profit £1.6m lower Revenue 539.8 550.1 Driven by £1.2m World Cup and Royal Succession Operating profit 18.8 20.4 Operating margin 3.5% 3.7% Net finance charges (2.9) (3.3) Net finance charges £0.4m lower Profit before tax 15.9 17.1 Lo
Slide 7: Free cash flow
Free cash flow £m H1 2024 H1 2023 Free cash flow £4.2m inflow Operating profit 18.8 20.4 Underlying cash flow is consistent Depreciation and amortisation 4.0 4.8 with previous years EBITDA 22.8 25.2 Working capital (7.3) (13.6) Capital expenditure £1.9m Capital expenditure (1.9) (2.1) Lower than pri
Slide 8: 12 month rolling cash flow
12 month rolling cash flow Net debt : EBITDA reducing H1 2022 0.9x H1 2023 0.5x H1 2024 0.3x 22.4 Average net debt reduced by 52.5% 22.9 22.9 21.5 10.0 10.0 H1 2022 £59m H1 2023 £26m 1.4 10.0 10.0 H1 2024 £13m Cashflow c£22m (H1 2023: £23m) Rolling 12 months basis. 8
Slide 9: Refinancing successfully completed
Refinancing successfully completed New Previous £40m RCF £26.5m Term Facility £10m accordion [uncommitted] £20m RCF Term 3 years with option to extend Matures Aug-25 Margin 2.45% 4.00% Distribution limit None £10m per annum 9
Slide 10: Revised capital allocation policy
Revised capital allocation policy • Maintaining a strong balance sheet with a Bank Net Debt: adjusted EBITDA ratio of less than 1.0x • Continued investment in both core business and organic growth • Payment of sustainable ordinary dividend, maintaining 2x dividend cover • Disciplined approach to ino
Slide 11: Strategic priorities
Strategic priorities Jon Bunting Chief Executive Officer
Slide 12: Ongoing progress on growth strategy
Strong headline results Refinancing delivers immediate shareholder benefits Ongoing Inflation, which impacts operations, in line with internal forecasts progress on Continued focus on operational efficiencies and leveraging existing infrastructure growth strategy Growth strategy continues to progres
Slide 13: Delivering on strategic priorities
Delivering on strategic priorities Value creation Enhancing our Leveraging our Delivering for core operations capabilities all stakeholders 13
Slide 14: Enhancing our core operations
Enhancing our core operations 26% Circa 74% of contractual revenues re-secured to at least 2029 ongoing agreements Extended network through additional national and regional contract awards 74% Provides stability and greater visibility over re-secured to future cash flows 2029 Investment in core busi
Slide 15: Leveraging our capabilities
Leveraging our capabilities Maintaining positive momentum and capitalising on existing infrastructure Continuation of our methodology of trial, learn, revise and invest e.g. Smiths News recycle launched in February 2023 continues to generate solid traction with customer numbers increasing by c.25% C
Slide 16: Delivering for all stakeholders
Delivering for all stakeholders New financing agreement and revised capital allocation policy enables continued delivery of value for stakeholders Increased investment in core business to improve the quality and efficiency of service for clients and customers Disciplined approach to inorganic growth
Slide 17: On track to deliver full year
Summary and outlook H2 to be boosted by men’s UEFA European On track Championships Markets remaining resilient and predictable, with to deliver inflation tracking in line with internal forecasts full year Continued focus on business growth expectations Investment in operational infrastructure to sup
Slide 18: Any questions?
Any questions? 18
Slide 19: Cautionary statement
Cautionary statement This document contains certain forward-looking statements with respect to Smiths News plc’s financial condition, its results of operations and businesses, strategy, plans, objectives and performance. Words such as ‘anticipates’, ‘expects’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’
Slide 20: Smiths
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