Slide 1: Results for half year ended 30 September 2016
Results for half year ended 30 September 2016 Presentation to Analysts 15 November 2016
Slide 2: Carclo is a leading global manufacturer of fine tolerance parts
2 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 of luxury and supercar LED Lighting Leading supplier of aviation control
Slide 3: Results and Summary
3 Results and Summary • Group revenue increased by 10.7% to £63.3 million (2015 - £57.2 million), reflecting excellent sales progression across our businesses • Underlying operating profit increased by 19.0% to £5.6 million with underlying operating margin increasing 60 bps to 8.8% • Underlying prof
Slide 4: Strategic KPIs
4 Strategic KPIs Revenue growth – first half 2016 £63.3m The revenue growth seen year on year is a strong indicator of success in delivering the Group’s strategy – up 10.7% on 2015. 2015 £57.2m N.B. Technical Plastics division derives the majority of its revenues from outside the UK and, therefore,
Slide 5: CTP and LED divisions drive strong Group performance
5 CTP and LED divisions drive strong Group performance H2 CTP & LED Underlying operating CTP & LED Revenue £m H2 profit £m H1 H1 110.9 11.6 98.3 86.2 9.8 58.3 7.2 6.3 54.0 H2 46.1 5.9 4.5 52.6 59.8 6.4 40.1 44.3 5.3 3.9 2.7 13/14 14/15 15/16 16/17 13/14 14/15 15/16 16/17 Revenue Operating margin • T
Slide 6: Financial Highlights
6 Financial Highlights HY ended HY ended 30 September 30 September 2016 2015 £000 £000 Revenue Technical Plastics 39,240 31,468 LED Technologies 20,559 21,172 Aerospace 3,485 3,063 CIT Technology - 1,483 Total 63,284 57,186 Underlying* operating profit 5,575 4,683 Exceptional items (18) 17 Operating
Slide 7: Divisional Analysis
7 Divisional Analysis Strong growth in UK sales including new CTP 40 4 Revenue change Becton Dickinson program 35 30 3 +24.7% US efficiencies improved as multiple new 25 programmes matured in recently expanded Sales £m 20 2 Profit* Operating profit* 15 £m Latrobe site. Expansion of Tuscon site also
Slide 8: Income Statement Comparative
8 Income Statement Comparative 30-Sep-16 30-Sep-15 Operating profit Divisional operating profit 7.1 5.9 Central costs (1.5) (1.2) • Group revenue increased by 10.7% to £63.3 million Underlying operating profit from continuing ops 5.6 4.7 Exceptional Items - - • Underlying divisional operating profit
Slide 9: Financial Position – Cash Flow
9 Financial Position – Cash Flow • Strong underlying cash generation from £million £million operations of £8.1 million Net debt at start of period (24.8) • Net capital expenditure of £3.2 million, the Underlying cash from operations 8.1 majority of this relates to investment in Working capital (4.5)
Slide 10: Financial Position – Debt & Facilities
10 Financial Position – Debt & Facilities Net Debt • Net debt of £27.6 million at 30 September 2016 • Increased since 31 March 2016 due to continued investment in the Group’s manufacturing capacity and higher working capital to support growth • Additional funds raised from the recent share placing h
Slide 11: Financial Position – Pensions
11 Financial Position – Pensions • Since the EU Referendum result on 23 June 2016, corporate bond yields have decreased materially in the UK and as this yield is used to discount the Group's IAS 19 pension liability the deficit has increased to £42.6 million net of deferred tax at 30 September 2016
Slide 12: Markets & Strategy Actions
12 Markets & Strategy Actions Technical Plastics LED Technologies Aerospace
Slide 13: Technical Plastics
13 Technical Plastics Sep-16 Sep-15 £m £m Revenue 39.2 31.5 Profit* 3.5 2.5 Margin 8.8% 8.0% Diagnostics Medical disposables Industrial • Technical Plastics reported a significant turnover increase of 24.7% on the comparative period last year. Divisional operating profits were up by 36.7% to £3.5 mi
Slide 14: LED
14 LED Sep-16 Sep-15 £m £m Revenue 20.6 21.2 Profit 2.9 2.8 OEM Lighting Aftermarket Optics Margin 14.2% 13.1% • Performance in the first half was ahead of the comparative period last year despite turnover being slightly lower mainly due to the phasing of design, development and tooling contracts •
Slide 15: Aerospace
15 Aerospace Sep-16 Sep-15 £m £m Revenue 3.5 3.1 Profit 0.7 0.6 Margin 20.5% 20.6% • Good first half performance, operating profit and revenue up on prior comparative period • Strong order book as we enter the second half • Continues to be a high margin, highly cash generative business
Slide 16: Group Strategy
18 GroupStrategy • Continue to focus on organic expansion of our facilities to grow our revenues and to look for small bolt on acquisitions that can accelerate our growth and provide additional technical capabilities • Addition of Precision Tool and Die enhances our CTP product offering by adding Pr
Slide 17: Outlook
17 Outlook • The Group has enjoyed a strong first half trading performance with all divisions performing well and showing solid progress over the comparative period last year • In particular, our strategy to invest in increased capacity in our Technical Plastics division is continuing to facilitate
Slide 18: End
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 events o