Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — FY2019 Earnings Presentation
28 slides from Alumasc's earnings presentation, Jun 30, 2019
Slide 1: The Alumasc Group plc Annual Results to 30 June 2019
The Alumasc Group plc Annual Results to 30 June 2019 Alumasc Roofing – The Material Store, West London
Slide 2: Contents
Contents 01 02 Overview Acceleration of Strategic Development 03 04 Financial Review Business Review 05 06 Outlook Appendices Paul Hooper Chief Executive Andrew Magson Finance Director Alumasc Water Management Solutions – Mount Road
Slide 3: Overview
01 Overview Alumasc Water Management Solutions – Tottenham Player Accommodation Lodge
Slide 4: Overview
Overview 80% of the Group is significantly outperforming: – plan being executed to recover performance at Levolux 1. Revenues from continuing operations: £90.1m (2017/18: £87.0m) +4% 2. Underlying operating margin: 6.5% (2017/18 : 7.2%) 3. Underlying EPS: 12.4p (2017/18: 13.4p) 4. On track to delive
Slide 5: Acceleration of Strategic Development
02 Acceleration of Strategic Development Levolux – Remington Office & Labs
Slide 6: Acceleration of strategic development: Levolux improvement plan
Acceleration of strategic development 1. Execution of Levolux business improvement plan: ● Return business to sustainable profit as soon as possible ● Incorporate Levolux into the new Building Envelope division (see below) ● Focus on design & supply activities (install only where it adds value) ● Ac
Slide 7: Acceleration of strategic development: Building Envelope division
Acceleration of strategic development 2. Creation of an Alumasc Building Envelope division: ● Effective from 1 July 2019 ● Specification cross selling to developers and architects ● Building Envelope offer differentiates Alumasc in marketplace ● Roofing, Walling (incl. Levolux) & integrated aluminiu
Slide 8: Acceleration of strategic development: cost efficient operating structure
Acceleration of strategic development 3. Implement a more cost efficient operating structure: ● Reduce from 10 operating sites in 2018 to 6 by 30 June 2020 ● Sharing common overhead structures ● The two legacy defined benefit pension schemes were merged in March 2019 ● Simplification of the group’s
Slide 9: Acceleration of strategic development: investment and innovation
Acceleration of strategic development 4. Focusing investment and innovation to drive profitable growth: ● Focus on key manufacturing businesses: Timloc, Wade, AWMS ● Capex has exceeded depreciation by £2.7m in last 2 years – Timloc: capacity, machinery upgrade & automation – Wade: relocation of Slot
Slide 10: Acceleration of strategic development: portfolio management
Acceleration of strategic development 5. Improving quality of earnings through pro-active portfolio management: ● Pro-forma pre-tax ROI of 28% from purchase of Wade and disposals of Alumasc Facades and SCP in the last 2 years Alumasc Roofing – Aga Khan Centre, Kings Cross, London 10 www.alumasc.co.u
Slide 11: Acceleration of strategic development
Acceleration of strategic development 1. Execution of Levolux business improvement plan: 3. Implement a more cost efficient operating structure: ● Return business to sustainable profit as soon as possible ● Reduce from 10 operating sites in 2018 to 6 by 30 June 2020 ● Incorporate Levolux into the ne
Slide 12: Financial Review
03 Financial Review Gatic Slotdrain – Tesco Head Office, Welwyn Garden City
Slide 13: Income statement summary (£m)
Income statement summary (£m) 12 months to 30 June 2019 2018 Change £m £m % Continuing operations: Revenue 90.1 87.0 +4 Gross profit 26.8 26.9 Gross margin % 29.8% 31.0% Sales, general & administration overheads (21.0) (20.7) Underlying operating profit* 5.9 6.2 -6 Underlying operating margin % 6.5%
Slide 14: Revenue analysis
Revenue analysis Year on year change – continuing operations % change 2018/19 versus 2017/18 Roofing & Water Management +10% Housebuilding Products +9% Sub-total +10% Architectural Screening, Solar Shading & Balconies -15% Total Group (headline) +4% Note: Roofing & Water Management like-for-like* +5
Slide 15: 80% of Alumasc is significantly outperforming UK construction
80% of Alumasc is significantly outperforming UK construction % Change 2018/19 2017/18 % Change Excl. Wade Roofing & Water Management and Housebuilding Products segments: £m £m Headline Acquisition Revenue 71.3 65.1 +10% +5% Underlying operating profit 7.7 6.6 +16% +7% Underlying operating profit ma
Slide 16: Cash flow statement summary
Cash flow statement summary 12 months to 30 June 2019 2018 Change £m £m £m EBITDA* 7.4 7.6 (0.2) Change in working capital (1.2) (1.6) 0.4 Operating cash flow 6.2 6.0 0.2 Capital expenditure (2.4) (3.3) 0.9 Interest (0.2) (0.2) - Tax (0.6) (0.7) 0.1 Pension deficit funding (3.2) (3.2) - Dividend (2.
Slide 17: Balance sheet summary (£m)
Balance sheet summary (£m) at 30 June 2019 2018 Change £m £m £m Property, plant & equipment 11.7 10.7 1.0 Intangible assets 22.1 22.6 (0.5) Working capital 9.7 10.8 (1.1) Other net liabilities (2.2) (2.3) 0.1 Capital invested 41.3 41.8 (0.5) p) Net debt (5.1) (4.8) (0.3) Pension obligations (net of
Slide 18: Business Review
04 Business Review Alumasc Roofing – Waitrose, High Wycombe, Bucks
Slide 19: Roofing & Water Management
Roofing & Water Management ALUMASC’S “RAIN TO DRAIN” SYSTEM 2018/19 2017/18 Revenue (£m) 59.9 54.6 Underlying operating profit (£m) 5.9 4.9 Underlying operating margin (%) 9.9% 9.0% ● Drivers of growth in revenue and profit: – Full year of Wade acquisition (strongly earnings enhancing) – Good year f
Slide 20: Architectural Screening, Solar Shading & Balconies
Architectural Screening, Solar Shading & Balconies 2018/19 2017/18 Revenue (£m) 18.8 22.0 Underlying operating profit (£m) (1.1) 0.8 Underlying operating margin (%) (5.9)% 3.6% ● A major restructuring of Levolux was announced in June 2019 in view of operating losses incurred ● Issues affecting perfo
Slide 21: Housebuilding Products
Housebuilding Products 2018/19 2017/18 Revenue (£m) 11.4 10.5 Operating profit (£m) 1.7 1.7 Operating margin (%) 15.2% 15.8% ● Timloc continues to outperform growth in the UK new housing sector with revenues up 9% ● Incremental annualised property costs of £0.3m offset by profitable growth in first
Slide 22: Outlook
05 Outlook Levolux – Birmingham University
Slide 23: Outlook
Outlook • In light of the uncertain economic and construction market backdrop, including Brexit, the Board is taking a cautious view of revenue development in 2019/20 • Restructuring actions taken should yield £2m of fixed cost savings in 2019/20 • Alumasc’s strong market positions, together with: –
Slide 24: Thank you
Thank you www.alumasc.co.uk Alumasc Roofing – The Material Store, West London
Slide 25: Appendices
Alumasc Water Management Solutions – Cast Aluminium - Oak Cottage 06 Appendices
Slide 26: Appendix 1: Underlying To Statutory Profit Reconciliation (£m)
Appendix 1 : Underlying To Statutory Profit Reconciliation (£m) 2018/19 2017/18 Operating Profit Operating Profit Profit Before Tax Profit Before Tax £’000 £’000 £’000 £’000 Underlying profit 5.9 5.6 6.2 6.0 Brand amortisation (0.2) (0.2) (0.2) (0.2) Net IAS 19 defined benefit pension scheme costs (
Slide 27: Appendix 2: UK end use analysis 2018/19
Appendix 2 : UK end use analysis 2018/19 Total Group 3% 7% Architectural Private Commercial Screening, Solar Shading & Balconies 8% Private Housing 29% Public Non-Residential Infrastructure Public Housing Roofing & Water Management 13% Private Industrial Public Non-Residential RMI 1% Private Housing
Slide 28: Appendix 3: Divisional segmentation of results
Appendix 3 : Divisional segmentation of results Current 2018/19 Key Brands Proposed 2019/20 1. Architectural Screening etc Levolux 1. Building Envelope Alumasc Roofing Alumasc Water Management Solutions 2. Roofing & Water Management 2. Water Management Rainclear Wade Gatic 3. Housebuilding Products