Ceps Plc · LSE:CEPS
Ceps — FY2024 Earnings Presentation
23 slides from Ceps's earnings presentation, Jul 1, 2025
Slide 1: Investor Presentation FY 2024
1st July 2025 Investor Presentation FY 2024 1
Slide 2: Contents
Contents 1 4 Introduction Outlook 2 5 Financial Review Appendices 3 Case Studies 2
Slide 3: Overview
Overview 1 Equity value: Acquire growing cash generative companies using vendor & CEPS is a diverse trading company shareholder loan notes with a small amount of equity. Over a combining the benefits of the financial period of time, the underlying companies repay the loan notes structuring of a priv
Slide 4: Value: approach differs from traditional private equity
Our approach differs from the traditional private equity model: • We do not fund acquisitions through excessive debt • The portfolio will not be primed for short term exit strategies The key to our philosophy is our focus on businesses ideally valued at between £2m and £10m > £20m Main Glass • Highe
Slide 5: Portfolio Companies
Portfolio Companies Enhance Grow • Utilise CEPS’ team experience to refine growth strategy • Profitability improvement through organic growth • Provide support to subsidiary company management during transition periods ➢ increase market share within existing markets ➢ cost efficiencies, with a focus
Slide 6: Long term strategy contains six pillars
CEPS Group – long term strategy to provide value to shareholders contains six pillars 1 Increase earnings per share – increase profits of subsidiaries 4 Bolt-on acquisitions – self funded accretive M&A in subsidiaries 2 Increase earnings per share – share buybacks in Plc 5 Increase equity ownership
Slide 7: Underlying companies are regional businesses spread across the UK
Underlying companies are regional businesses spread across the UK Morgan Lambert & Qualitas Milano Pro-Sport (part of ICA Group) (part of Signature Fabrics) Escrick, North Yorkshire Preston, Lancashire Acquired: March 2021 Acquired: October 2019 Hickton Quality Control (part of ICA Group) Elsecar, S
Slide 8: Subsidiary summaries as at 31/12/2024
Location Maidstone, Kent Employees 44 Aford Awards Business Activities Sports trophies, promotional goods and engravings Revenue £3.7m EBITDA £0.6m Location Altringham & Preston AS AT 31/12/2024 Employees 55 Signature Fabrics Convertor and distributor of specialist lycra; a designer and manufacturer
Slide 9: Key financial highlights FY24 vs FY23
FY23: £29.7m (+6%) FY23: £12.5m (+6%) FY23: £3.7m (+2%) FY23: £1.8m (-3%) FY23: 108% (+1%) FY23: 2.65p (+4%) FY23: £113,697 (+0.2%) FY23: 115% (-39%) 9
Slide 10: Revenue and trading operating profit history
£35m £3.5m 1. 2017 Exceptional profits from Friedman’s 2. 2018 Administration of Sunline £30m £3.0m 3. 2019 Administration of CEM and Travelfast £25m £2.5m 4. 2020 COVID 19 £20m £2.0m 5. 2021 Recovery, no write-offs 6. 2021 Acquisitions during the year £15m £1.5m 7. 2022 Impact acquisition by Aford
Slide 11: Debt and loans due to CEPS
Altonover Enterprises £2,000,000 Debt as at Chelverton Asset Management £2,950,000 31 December 2024 Total £4,950,000 Aford Awards Group £1,235,000 Loans due to CEPS as at ICA Group £1,864,360 31 December 2024 Signature Fabrics £3,387,737 Total £6,487,097 Ratio (loans due to CEPS/debt) 1.31 11
Slide 12: Average Share Price by month
Average Share Price (pence) by month 55 • No share issuance since September 2021 50 45 • Total shares in issue 21,000,000 40 • Nominal value of shares reduced from 10 Share Price (pence) pence to 0.3 pence in May 2024 as oart of 35 Capital Reconstruction 30 • In process of setting up an ESOT to acqu
Slide 13: Phase I: Acquisition of Hickton Consultants
Phase I: Acquisition of Hickton Consultants (now known as Hickton 52.4% Quality Control): A ‘Clerk of Works’ Business Hickton Holdings • Established in 1991 • Vendor Tony Hickton sells to Tony Mobbs, MD 100% • Fragmented market Hickton • EBITDA £433,000 Quality Control • Price £1.825m: EBITDA multip
Slide 14: Phase II: Acquisition of Cook Brown Building Control
54.7% Phase II: Acquisition of Cook Brown Building Control: A ‘Building Compliance’ Company Hickton Group 100% • Established in 2013, fast growing, two principals aged 45 Hickton • March 2020: Hickton Group, a new company set up to buy Hickton Holdings and Cook Brown Building Control Holdings 100% 1
Slide 15: Phase III: Acquisition of Millington Lord
52.4% Phase III: Acquisition of Millington Lord: A ‘Gas & Electrical Safety Consultancy, providing Auditing, Consulting and Training Services’ Company Hickton Group • Maximum purchase price: £1,100,000 100% On completion: £700,000 Deferred: £300,000 Hickton Subject to performance: £100,000 Holdings
Slide 16: Phase IV: Purchase of Additional Shares and Loan Stock
53.8% Phase IV: Purchase of Additional Shares and Loan Stock from a Retiring Employee ICA Group • July 2023: CEPS invested another £58,509, made up of £1,625 100% into equity of Hickton Group and £56,884 in loan stock Hickton • CEPS holding in Hickton Group increased to 53.8% Holdings • Hickton Grou
Slide 17: Phase V: Acquisition of Align
53.8% Phase V: Acquisition of Align Building Control Limited and Align Group (UK) ICA Limited (‘Align’), a group of building compliance companies operating Group nationally but with particular reach in the North of England 100% • April 2025: ICA Group purchases Align, with FY24 revenue of £1.25m and
Slide 18: Example of CEPS investment strategy: cashflow and debt profile
Cashflow Increase Decrease Total An example of CEPS’ investment strategy £2,200,000 £2,000,000 is illustrated in the two adjacent graphs: £1,800,000 2021 2022 2023 2024 £1,600,000 • Graph 1 illustrates the high free cash £1,400,000 flow that ICA generates servicing its £1,200,000 existing debts (sho
Slide 19: Outlook: six pillars to increase EPS and value
Increase EPS Loan stock repayment 1 Expected increase in the profits of the three subsidiaries 4 Some CEPS loan stock rank ahead of other vendor loan notes Increase EPS Increase equity ownership in subsidiaries 2 Share buybacks and cancellation 5 Through transactions such as Signature Fabrics acquis
Slide 20: Our team
Our team combines a wealth of experience in small company investments across fund management, corporate finance, equity sales and accounting. The team is dedicated to growing underlying portfolio investments and maxmising CEPS’ shareholder value 20
Slide 21: Group structure
CEPS plc 67.5% 55.6% 75% Signature ICA Aford Awards Fabrics Group Holdings Group Holdings 100% Signature 100% 100% 100% 100% 100% 100% 100% Fabrics Hickton Cook Brown Morgan Qualitas Align Building Align Group Quality Building Aford Awards Lambert Compliance Control UK Control Control 100% 90% Milan
Slide 22: Timeline of key events
Date Event June 2018 Removal of loss-making Sunline by way of Administration October 2019 Acquisition of Milano International by Signature Fabrics, the parent company of Friedman’s January 2020 Removal of the loss making CEM Group of Companies by way of administration Acquisition of Cook Brown Build
Slide 23: Shareholders and % holding
SHAREHOLDER NUMBER OF SHARES % HOLDING DAVID HORNER AND FAMILY 6,299,000 29.99 MARK THISTLETHWAYTE AND FAMILY 3,000,000 14.29 ALTONOVER ENTERPRISES 1,000,000 4.76 IONIC INVESTMENTS SA 968,539 4.61 MARK POLLARD 705,376 3.36 BARNARD NOMINEES 645,000 3.07 12,617,915 60.09 FURTHER 200 SHAREHOLDERS 8,382