33 slides from Chesterfield Special Cylinders's earnings presentation, Dec 6, 2011
Slide 1: Preliminary Results 2011
Pressure Technologies plc Pressure Technologies plc John Hayward, Chief Executive Preliminary Results James Lister, Finance Director 6 December 2011
Slide 2: Safe Harbour Statement
Pressure Technologies plc Safe Harbour Statement This presentation and the subsequent question and answer session may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. There are risk factors that could cause our actual r
Slide 3: A leading designer and manufacturer of high pressure engineering systems
Pressure Technologies plc A leading designer and manufacturer of high pressure engineering systems, serving the global energy, defence and industrial gases markets and the UK alternative energy market 3
Slide 4: Pressure Technologies plc
Pressure Technologies plc This page blank 4
Slide 5: Agenda
Pressure Technologies plc Agenda • Highlights • Financial Performance • Business Update and Strategy • Summary and Outlook • Questions and Answers 5
Slide 6: Highlights
Pressure Technologies plc Highlights • Revenue of £23.1 million (2010: £21.7 million) • Operating profit at £0.7 million (2010: £3.5 million) • Pre-tax profit of £0.6 million (2010: £3.5 million) • Basic earnings per share 3.5p (2010: 22.3p) • Year end net funds, after acquisition of the Hydratron G
Slide 7: Highlights
Pressure Technologies plc Highlights • Sound balance sheet maintained and cash management strong • Dividend maintained as Group remains confident in future outlook • Year impacted by low demand for deepwater Oil & Gas platforms in Cylinder division but recovery underway and demand trough behind us •
Slide 8: Financial Performance
Pressure Technologies plc Financial Performance James Lister Group Finance Director 8
Slide 9: Financial Performance
Pressure Technologies plc Financial Performance 01 Oct 11 02 Oct 10 Sales (£m) 23.1 21.7 Operating Profit (£m) 0.7 3.5 Operating Margin (%) 3.0% 16.1% EBITDA (£m) 1.5 4.0 PBT (£m) 0.6 3.5 EPS Basic (pence) 3.5 22.3 Dividend (pence) 7.2 7.2 Cash Flow (£m) (3.7) (1.4) Net Funds (£m) 2.9 6.5 9
Slide 10: Sales Analysis
Pressure Technologies plc Sales Analysis £m 23.1 0.2 21.7 0.9 0.7 2.0 7.5 9.2 11.2 7.2 0.5 6.7 11.8 4.3 2010 Cylinders Oil & Gas Cylinders Other Engineered Products Chesterfield BioGas 2011 Cylinders Oil & Gas Cylinders Other Engineered Products Alternative Energy 10
Slide 11: Operating Profit
Pressure Technologies plc Operating Profit 2011 2010 £m £m £m Cylinders 1.4 4.8 Engineered Products 1.1 0.0 Chesterfield BioGas (0.5) (0.3) 3.5 3.4 0.2 Acquisition costs (0.4) (0.2) 0.2 0.1 1.1 0.7 Central costs (0.9) (0.8) (unallocated) Operating profit 0.7 3.5 11
Slide 12: Balance Sheet
Pressure Technologies plc Balance Sheet 01 Oct 02 Oct Hydratron at 2011 2010 Acquisition £m £m £m Intangible assets 3.9 0.8 2.5 Fixed assets 4.6 3.7 0.3 Inventories 5.0 3.6 1.2 Receivables 6.8 6.9 1.2 Payables (7.0) (4.4) (2.1) Working capital 4.8 6.1 0.3 Tax provisions (0.7) (1.2) (0.3) Net funds 2
Slide 13: Cash Flow
Pressure Technologies plc Cash Flow Operating cash flow £0.9m (2010: £2.8m) £m 1.6 1.4 0.8 1.5 2.8 1.7 6.5 2.9 13
Slide 14: Business Strategy and Update
Pressure Technologies plc Business Strategy and Update John Hayward Chief Executive 14
Slide 15: Strategy
Pressure Technologies plc Strategy • The vision is to build a highly profitable group of companies specialising in the containment and control of liquids and gases in pressure systems • Five pronged strategy to deliver this – Building a balanced Group through complementary acquisitions – Expanding t
Slide 16: Strategy: Building a balanced Group
Pressure Technologies plc Strategy • Building a balanced Group – Target companies in niche areas of pressure containment and control – Profitable with significant growth potential – Management teams should be stable and capable of developing the business – There should be overlap in core skills and/
Slide 17: Strategy: Expanding product portfolio
Pressure Technologies plc Strategy • Expanding product portfolio – Cylinders • in-situ inspection • new trailer designs • light-weight composites – Hydratron • extending range of pumps • automation of test rigs – Al-Met • develop new surface coatings – Setting up Chesterfield BioGas 17
Slide 18: Strategy: Investing in Technology
Pressure Technologies plc Strategy • Investing in Technology – Cylinders • State of the art cleaning technology • Improvement in productivity through investment in automation – Engineered Products • Investment in CMM technology to help meet customer requirements for tighter tolerances in machining •
Slide 19: Strategy: Investing in people and partnerships
Pressure Technologies plc Strategy • Investing in people – Apprenticeships, sponsored degrees and post-graduate study – Multi-skilling – Common terms and conditions of employment – Sharing in the success of the business through bonus and SAYE schemes • Investing in partnerships – Reduced cost of dev
Slide 20: Pressure Technologies plc
Pressure Technologies plc This page blank 20
Slide 21: Business Overview
Pressure Technologies plc Business Overview Cylinders Engineered Alternative Products Energy 21
Slide 22: Business Overview
Pressure Technologies plc Business Overview Oil & Gas Defence Industrial Alternative Gases Energy Chesterfield Special Chesterfield Special Chesterfield Special Chesterfield BioGas Cylinders Cylinders Cylinders Chesterfield Special Hydratron UK and US Hydratron UK Cylinders Al-Met APV systems for Su
Slide 23: Markets
Pressure Technologies plc Markets Alternative Energy Oil & Gas Engineered Products Chesterfield BioGas Hydratron Al-Met Chesterfield Special Cylinders Industrial Gases Defence 23
Slide 24: Markets – Oil & Gas: Cylinders
Pressure Technologies plc Markets – Oil & Gas Cylinders • Main market deepwater Oil & Gas platforms • Year impacted by low demand as market still weak following sinking of Deepwater Horizon • Strong recovery in the market in the final quarter of the year with significant orders booked for second hal
Slide 25: Markets – Oil & Gas: Engineered Products (Al-Met)
Pressure Technologies plc Markets – Oil & Gas Engineered Products • Al-Met – valve and flow control wear parts – Record sales and profits year – Market strong with significant growth forecast 2013 and 2014 – Invested in EDM machinery and machining centre to extend process and size capability – Comme
Slide 26: Markets – Oil & Gas: Engineered Products (Hydratron)
Pressure Technologies plc Markets – Oil & Gas Engineered Products • Hydratron – pumps, boosters, hydraulic control panels, test rigs – Purchased 15 October 2010 for £3.3 million of which £0.8 million deferred to 2012 – First half constrained by relocation of UK part of business onto one integrated s
Slide 27: Markets – Defence: Naval cylinders
Pressure Technologies plc Markets – Defence Naval cylinders – Strong sales performance in the year with projects for BAE, DCN, Navantia and the Canadian Navy – 2012 sales dip due to phasing of projects with next major deliveries for UK and France forecast for 2013 – Good forward visibility of build
Slide 28: Markets – Defence: Aerospace and Engineered Products
Pressure Technologies plc Markets – Defence Aerospace cylinders – Medium term market for steel cylinders to decline as aircraft withdrawn from service and cylinder technology changes – Long term development project underway for light-weight composite cylinder technology to replace steel cylinders En
Slide 29: Markets – Industrial Gases
Pressure Technologies plc Markets – Industrial Gases • Progress maintained in high pressure trailers – Compressed Natural Gas (CNG) trailer supplied to CBG and hydrogen trailer built to new CSC designs – Reconditioning business improved through changed factory layout and strengthening of management
Slide 30: Markets – Alternative Energy
Pressure Technologies plc Markets – Alternative Energy • Long term future of the business secured by extending licence with Greenlane® in perpetuity • Success of Didcot upgrader and published level of the Renewable Heat Incentive (RHI) has firmed up interest in biomethane to grid (“BtG”) – Chesterfi
Slide 31: Pressure Technologies plc
Pressure Technologies plc This page blank 31
Slide 32: Summary and Outlook
Pressure Technologies plc Summary and Outlook • A difficult year but improvement in Cylinder division in second half of the year confirms that the “trough” is behind us • Cylinder and Engineered Products divisions expecting solid growth in 2012 • Alternative Energy slower to reach its potential but
Slide 33: Questions & Answers
Pressure Technologies plc Questions & Answers Pressure Technologies plc Preliminary Results 2011