Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — FY2016 Earnings Presentation
27 slides from Alumasc's earnings presentation, Oct 19, 2016
Slide 1: The Alumasc Group plc Annual Results to 30 June 2016
The Alumasc Group plc Annual Results to 30 June 2016
Slide 2: Contents
Contents 01 02 Overview Strategy 03 04 Financial Review Operational Review 05 Outlook Paul Hooper Chief Executive Andrew Magson Finance Director Levolux – Cubric Building, Cardiff
Slide 3: Overview
01 Overview Alumasc Roofing – BluRoof, Bristol_- image credit to: Madeleine.McEwan for Feilden Clegg Bradley Studios
Slide 4: Overview
Overview Strategic focus on Premium Building Products, Systems and Solutions achieved Alumasc’s fifth year in succession of profit growth Order books are now at record levels of over £30m, with continued growth since the year end Continuing Operations: ● Group revenues up by 2% to £92.2m – “underlyi
Slide 5: High quality of earnings in 2015/16
High quality of earnings in 2015/16 More even distribution of profit Strong underlying revenue growth, impact Operating cash flow 115% across business segments of large projects less significant of EBITDA in 2015/16 2015/16 £m 14% 10% 40% 36% 12 9 2008/09 9.7 11.2 1% 6 33% 3 53% 0 13% EBITDA Operati
Slide 6: Strategy
02 Strategy Gatic – CastSlot
Slide 7: Strategy
Strategy Alumasc’s strategy is to supply premium building products, systems and solutions with the objectives of: ● Building leading positions in niche markets where specifiers and customers recognise the value added by our products and services ● Growing group revenues at a faster rate than the UK
Slide 8: Alumasc's business model for growth and value creation
Alumasc’s business model for growth and value creation + = Operate only in Manage these Success “fast flowing streams” opportunities well Strong strategic Market leading positions Growth opportunities exploited by Targeting outperformance relative to the UK positioning in niches in each niche talent
Slide 9: Focus in niche segments with long term growth drivers
Focus in niche segments with long term growth drivers 9 www.alumasc.co.uk
Slide 10: Market leading positions in each niche
Market leading positions in each niche Typically UK market share no.s 1-3 ● Levolux − No. 1 ● Alumasc Roofing − No. 2 ● Alumasc Facades − No. 2/3 in EWI ● Alumasc Water Management Solutions − No.’s 1-3 depending on product group ● Gatic − No. 1 for engineered access covers, no. 2 for line drainage ●
Slide 11: Alumasc's management framework
Alumasc’s management framework People & Culture Management Disciplines Exploiting Growth Opportunities • Recruitment & development of talented • Set clear objectives & strategic goals • Expanding our geographical reach people including internationally • Prioritised capital and resource • Dedicated m
Slide 12: Outperforming the UK construction market (1 of 2)
Outperforming the UK construction market (1 of 2) Alumasc’s revenues are growing c.2% pa faster than the UK construction sector: − Alumasc revenue CAGR 7% pa incl. inflation, 4% excl. inflation* − Construction market growth CAGR 2% pa Operating margins are improving and now approaching 10% Return on
Slide 13: Outperforming the UK construction market (2 of 2)
Outperforming the UK construction market (2 of 2) Underlying PBT has more than trebled over the last five years We continually invest in new resources to grow the business and in new, innovative products This investment now exceeds £1m pa and is charged against profits each year 13 www.alumasc.co.uk
Slide 14: Financial Review
03 Financial Review EuroRoof – Caltech Liquid Roofing Membrane
Slide 15: Income Statement Summary (£m)
Income Statement Summary (£m) 12 months to 30 June 2016 2015 Change £m £m % Continuing* Operations: Revenue 92.2 90.3 +2 Underlying Operating Profit 8.5 8.3 +2 Interest on borrowings (0.2) (0.6) Underlying PBT 8.3 7.7 +7 IAS19 pension costs (1.2) (1.2) Brand amortisation (0.3) (0.3) PBT – continuing
Slide 16: Cash Flow Summary (£m)
Cash Flow Summary (£m) 12 months to 30 June 2016 2015 Change £m £m Continuing Operations: EBITDA 9.7 9.6 0.1 Underlying change in working capital (0.3) 0.2 (0.5) Short-term changes in working capital on large construction contracts 1.8 (0.5) 2.3 Operating cash flow 11.2 9.3 1.9 Capital expenditure (
Slide 17: Balance Sheet Summary (£m)
Balance Sheet Summary (£m) at 30 June 2016 2015 £m £m Property, plant & equipment 5.3 7.5 Intangible assets 19.1 19.3 Working capital 4.0 6.8 Other net liabilities (1.8) (1.9) Capital invested 26.6 31.7 Net cash 8.6 0.9 Pension obligations (1) (18.6) (16.7) Net assets 16.6 15.9 ROI – continuing oper
Slide 18: Continuing Operations: Segmental Analysis of Results
Continuing Operations : Segmental Analysis of Results 12 months to 30 June 2016 2015 2016 2015 Underlying Underlying Operating Operating Underlying Revenue Profit (1) Revenue Profit (1) Operating Margin £m £m £m £m % % Building Products: Solar Shading & Screening 17.4 1.0 16.0 0.9 5.5 5.8 Roofing &
Slide 19: Operational Review
04 Operational Review Rainclear – Galvanised Steel Gutters & Downpipes
Slide 20: Solar Shading & Screening
Solar Shading & Screening Nature of business ● Bespoke louvres and blinds to shade/screen buildings ● Bespoke balcony and balustrading solutions Growth drivers ● Energy management ● Bespoke architectural solutions ● International potential (esp. North America & Middle East) ● Building Regulations 20
Slide 21: Roofing & Walling
Roofing & Walling Nature of business ● Premium waterproofing systems for flat roofs (inc. Green & Blu roofs) ● Exterior wall insulation (EWI) systems ● Modern/innovative façade systems Growth drivers ● Water and energy management ● New product introductions and range expansion ● Expansion of geograp
Slide 22: Water Management
Water Management “Rain to Drain” Brand Synergies Nature of business ● Metal rainwater systems ● Metal drainage systems ● Civil drainage systems ● Engineered access covers Growth drivers ● Water and flood management ● Bespoke solutions/manufacturing capability ● Building Regulations (incl. UK Flood &
Slide 23: Housebuilding Products & Ancillaries
Housebuilding Products & Ancillaries Nature of business ● Premium house building products (e.g. ventilation products, cavity wall products, access panels, loft doors, dry roof verge products) Growth drivers ● UK house building demand ● Product range expansion (e.g. “Above the Roofline” range) ● Cons
Slide 24: Outlook
05 Outlook Alumasc Facades
Slide 25: Order Book Development (£m)
Order Book Development (£m) Building Products Order Book by Segment £m 35 30 25 20 Water Management Roofing & Walling 15 Solar Shading & Screening 10 5 - Mar 14 June 14 Sept 14 Dec 14 Mar 15 June 15 Sept 15 Dec 15 Mar 16 Jun 16 Jul 16 Aug 16 We have record ever Building Product order books 25 www.al
Slide 26: Outlook
Outlook • We ended the year to June 2016 with positive momentum and rising order books • There are signs of recovery in the scheduling of larger construction projects following a quieter period in 2015/16, which will benefit the latter part of our new financial year and beyond • It is still too earl
Slide 27: Thank you for your time
Thank you for your time www.alumasc.co.uk