Slide 1: Results for half year ended 30 September 2014
Results for half year ended 30 September 2014 Presentation to Analysts 18 November 2014 1
Slide 2: Strong revenue and profit growth across principal divisions
Carclo is a leading global manufacturer of fine tolerance parts for the Medical, Industrial, Aerospace and Luxury and Supercar Lighting markets Global contract manufacturer to medical market Leading designer and manufacturer for Luxury and Supercar LED Lighting Leading supplier of control cables in
Slide 3: Highlights
Highlights HALF YEAR RESULTS • Strong growth across key Technical Plastics and LED operations • Strategic review of CIT Technology business underway FINANCIAL HIGHLIGHTS • Revenue growth of 7.4% to £48.8m (6.8% excluding CIT) • Operating profit excluding CIT up by 29.7% • Underlying profit before ta
Slide 4: CTP and LED divisions drive strong group performance
CTP and LED divisions drive strong group performance H2 Revenue Initiatives Margin Initiatives • Expanded CTP sales resources • Closed loss making Harthill facility • Implemented standardised CTP • Increased equipment utilisation global systems • Medical focus through cleanroom • Factory expansions
Slide 5: CIT Strategic Review
HIGHLIGHTS CIT Strategic Review • Increased pressure on touch sensor pricing • Aggressive competition from two key Asian metal mesh suppliers • ITO sensor prices and low cost ITO solutions limiting growth of metal mesh • Touch sensor module manufacturers in unstable position • Business model results
Slide 6: Financial Highlights
HIGHLIGHTS Financial Highlights Six months ended Six months ended 30 September 30 September 2014 2013 £000 £000 Revenue Technical Plastics 29,995 28,026 LED Technologies 14,340 12,111 Precision Engineering 2,719 3,923 CIT Technology 1,742 1,374 Total 48,786 45,434 Operating profit before exceptional
Slide 7: Divisional Analysis
Divisional Analysis CTP 40 2.5 Revenue change 2 • Strong sales growth in USA, Czech 30 1.5 Profit* +7% and China regions Sales £m 20 1 £m 10 Operating profit* • Improved press utilisation 0.5 0 0 • 4 new global medical customers Sep Sep Sep Sep +31% 13 14 13 14 LED 20 2 Revenue change • First design
Slide 8: Income Statement Comparative
I Income Statement Comparative Revenue 48.8 45.4 • Group turnover from continuing operations increased Operating profit 7% to £48.8 million Divisional operating profit 3.6 3.4 Central costs (1.0) (0.6) • Divisional operating profit increased 8% to £3.6million Underlying operating profit from continu
Slide 9: Exceptional Costs
Exceptional Costs HIGHLIGHTS Six months ended Six months ended 30 September 30 September 2014 2013 £m £m Impairment review of CIT Technology (21.3) - Harthill rationalisation costs (2.2) - Litigation costs - (0.4) Total (23.5) (0.4) Impairment review of CIT Technology £21.3m impairment loss has been
Slide 10: Financial Position – Cash Flow
FINANCIAL POSITION – CASH FLOW Financial Position – Cash Flow £million £million Net debt at start of period (17.7) • Cash generation from operations of £5.3 million Underlying cash from operations 5.3 • Increase in working capital mainly due to unwind of $10 Exceptional cash flows (0.5) million Atme
Slide 11: Financial Position – Debt & Facilities
Financial Position – Debt & Facilities Net Debt • £22.4 million at 30 September 2014 (gearing of 39.5%, excluding net pension deficit) • Increase since 31 March 2014 due to planned capital investment programme and unwinding of the $10 million Atmel prepayment • Expected to peak at around £28 million
Slide 12: Financial Position – Pensions
Financial Position – Pensions Pensions • IAS 19 pension deficit has increased to £9.5 million net of deferred tax at 30 September 2014, after the group reported a small surplus as at 31 March 2014 • Scheme assets have decreased by £3.5 million since 31 March 2014 and scheme liabilities have increase
Slide 13: Markets & Strategy Actions
OUTLOOK Markets & Strategy Actions Technical Plastics LED Technologies Precision Engineering CDS CIT 13
Slide 14: Technical Plastics
OUTLOOK Technical Plastics Sep-14 Sep-13 £m £m Revenue 30.0 28.0 Profit* 2.3 1.7 Diagnostics Medical disposables Industrial Margin 7.5% 6.2% • Technical Plastic sales grew just ahead of medical market growth (6% CAGR Source : Lucintel) • Commissioned new cleanroom and white manufacturing space in US
Slide 15: LED Technologies
LED OUTLOOK Sep-14 Sep-13 £m £m Revenue 14.3 12.1 Profit* 1.7 0.9 OEM Lighting Aftermarket Optics Margin 11.7% 7.6% • Front LED headlights now being adopted alongside rear LEDs lamps in this segment • Size of attainable market increasing through special vehicles / faster replacement cycles / expande
Slide 16: Precision Engineering
Precision Engineering Sep-14 Sep-13† £m £m Revenue 2.7 3.1 Profit* 0.7 0.7 Margin 26.6% 21.4% • Divestment of non-core Birkett Cutmaster has created focused Aerospace specialist in UK and France • Focus of growth in customer service spares business for OEMs and Tier 1s • Core aircraft control busine
Slide 17: CIT Technology
CIT Technology • CIT generated coated film sales of £1.7 million in the first half • £1.0 million underlying operating loss due to increased amortisation and reduced capitalisation of development costs versus last year • Product innovation continued which has benefitted supply chain efficiencies • T
Slide 18: Diagnostic Solutions
Diagnostic Solutions • Carclo Overall Diagnostic programme Solutions has continued on-time against 31st March 2014 plan • New leadership team in place with relevant medical diagnostic industry expertise • Significant progress on fundamental microfluidic designs required for high sensitivity device •
Slide 19: Outlook
OUTLOOK Outlook • The group’s two main manufacturing divisions have produced excellent results in the first half of the year and both Technical Plastics and LED Technologies are expected to enjoy an even stronger second half. • The increase in global medical markets and new customer wins and expande
Slide 20: End
OUTLOOK End Forward looking statements - Certain statements made in this presentation are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events to differ materially from any expected future