Slide 1: Half-Year Results
Half-Year Results Six months to 30 June 2015
Slide 2: The Business
The Business H1 2015 sales by Well-established international specialist technology and services group division – high performance instrumentation, machinery and aftermarket services – market-leading expertise – reputation for high service levels Packaging Instrumentation Machinery & Tobacco Two oper
Slide 3: H1 Results: Operational Key Points
H1 Results: Operational Key Points Results in line with management expectations Sale of analytical services laboratories business completed in May 2015 Packaging Machinery division orders up 18% and sales up 26% (in local currencies) - solid order book for H2 Instrumentation & Tobacco Machinery divi
Slide 4: H1 Results: Financial Key Points
H1 Results: Financial Key Points Sales of £39.5m (2014: £38.9m) Underlying PBT of £1.3m (2014: £1.7m) Underlying of EPS of 5.1p (2014: 7.5p) Loss from discontinued operations of £5.7m Net debt of £3.9m (Dec 2014: £2.1m) Maintained interim dividend of 2.5p per share (2014: 2.5p) 3 >>
Slide 5: Divisional Trading Results
Divisional Trading Results H1 H1 FY Sales Jun 15 Jun 14 Dec 14 £m £m £m Packaging Machinery 21.8 18.3 40.5 Instrumentation & Tobacco Machinery 17.7 20.6 46.9 Total 39.5 38.9 87.4 Underlying operating profit* Packaging Machinery 1.1 0.1 1.8 Instrumentation & Tobacco Machinery 0.3 1.6 3.6 Total 1.4 1.
Slide 6: Financial Review: Income Statement
Financial Review: Income Statement H1 H1 FY 2011 £m Jun 15 Jun 14 Dec 14 £m £m £m Sales 39.5 38.9 87.4 Strong growth in sales of 19% (26% in local currencies) in Packaging Machinery, offset by Underlying operating profit* 1.4 1.7 5.4 reduced sales within Instrumentation & Tobacco Non-underlying item
Slide 7: Financial Review: Cash Flows
Financial Review: Cash Flows H1 H1 FY Cash flow from operating activities includes: Jun 15 Jun 14 Dec 14 – £0.2m working capital decrease £m £m £m – £0.9m pension payments to UK defined Net cash from operating benefit pension scheme activities 0.5 (3.5) (0.5) – £0.2m reorganisation costs Net cash fr
Slide 8: Financial Review: Balance Sheet
Financial Review: Balance Sheet H1 H1 FY Net assets Jun 15 Jun 14 Dec 14 £m £m £m Intangible Goodwill 7.6 9.9 8.7 Goodwill at June 2015 relates to Cerulean only assets: Property, plant and equipment includes £0.8m Product development 7.4 5.8 7.0 of investment property Property, plant & equipment 8.9
Slide 9: Packaging Machinery: Business Overview
Packaging Machinery: Business Overview Leading supplier of complex highly automated product handling, cartoning and robotic end-of-line packaging and processing equipment Innovative technology tailored for specific niches within the following sectors – nutrition – beverages – healthcare – pharmaceut
Slide 10: Packaging Machinery: Operating Performance
Packaging Machinery: Operating Performance H1 H1 FY Jun 15 Jun 14 Dec 14 Sales £21.8m £18.3m £40.5m Operating profit £1.1m £0.1m £1.8m Operating margin 5.0% 0.5% 4.4% Order intake increased by 18% Sales in local currencies increased by 26%, with strong opening order book Good progress in pharmaceuti
Slide 11: Instrumentation & Tobacco Machinery: Business Overview
Instrumentation & Tobacco Machinery: Business Overview Supplier of instrumentation, machinery and aftermarket services, predominantly to the tobacco industry Global presence – UK, USA, Brazil, Singapore, Czech Republic, Russia, Egypt, India and China Well developed supply chain, with instrumentation
Slide 12: Instrumentation & Tobacco Machinery: Operating Performance
Instrumentation & Tobacco Machinery: Operating Performance H1 H1 FY Jun 15 Jun 14 Dec 14 Sales £17.7m £20.6m £46.9m Operating profit* £0.3m £1.6m £3.6m Operating margin* 1.7% 7.7% 7.7% *Before reorganisation costs of £0.1m (Jun 2014: £0.1m; Dec 2014: £0.4m) Performance impacted by continued contract
Slide 13: Outlook
Outlook Prospects for the Packaging Machinery division continue to be encouraging, with solid order book for H2 Instrumentation & Tobacco Machinery division affected by continuing challenging market conditions Focus on growth initiatives, including both organic and acquisitive development within cor
Slide 14: Supplementary Information
Supplementary Information - Taxation and EPS - Cash Flow - Working Capital - Banking Facilities - Pensions - Discontinued Operations 13
Slide 15: Taxation and EPS
Taxation and EPS Taxation Earnings per share H1 H1 FY H1 H1 FY Jun 15 Jun 14 Dec 14 Jun 15 Jun 14 Dec 14 Underlying tax charge* £0.3m £0.2m £0.9m Underlying EPS 5.1p 7.5p 22.4p Tax credit on pension £(0.3)m £(0.1)m £(0.3)m Profit before non-underlying items £1.0m £1.5m £4.4m scheme balances Basic EP
Slide 16: Cash Flow
Cash Flow H1 H1 FY H1 H1 FY Jun 15 Jun 14 Dec 14 Jun 15 Jun 14 Dec 14 £m £m £m £m £m £m Underlying operating profit 1.4 1.7 5.4 Interest received - 0.1 0.2 Depreciation, amortisation and 1.1 1.3 2.3 Capital expenditure (net) (0.4) (0.9) (1.9) amortisation charge Development expenditure (1.2) (1.3) (
Slide 17: Working Capital
Working Capital H1 H1 FY Jun 15 Jun 14 Dec 14 £m £m £m Inventories increase (2.5) (4.4) (0.6) Receivables decrease/(increase) 2.6 2.0 (1.5) Payables increase/(decrease) 0.2 (0.6) (0.6) Provisions decrease (0.1) (0.2) (0.2) Net working capital decrease/(increase) 0.2 (3.2) (2.9) 16 >>
Slide 18: Banking Facilities
Banking Facilities UK committed borrowing facilities of £13.0m renewed in October 2013, committed to September 2018, secured on the Group’s assets In addition, ancillary facilities in place to cover Group’s bonding, guarantees and foreign exchange requirements 17 >>
Slide 19: Pensions
Pensions H1 H1 FY Jun 15 Jun 14 Dec 14 £m £m £m Value of assets UK 349.3 339.2 347.9 Accounting deficit decreased mainly as a result of improved asset returns US 14.6 14.4 15.4 Net discount rate: Total 363.9 353.6 363.3 – UK valuation: 1.4% (FY 2014: 1.5%) Net deficit UK (7.6) (6.3) (14.1) – USA val
Slide 20: Discontinued Operations – Arista Laboratories
Discontinued Operations – Arista Laboratories H1 H1 FY Jun 15 Jun 14 Dec 14 £m £m £m Loss from trading activities (0.9) (1.1) (2.0) Proceeds from disposal 0.3 - - Costs incurred on disposal (0.4) - - Loss on disposal of net assets (3.4) - - Impairment of goodwill (1.3) - (1.6) Loss on discontinued o
Slide 21: Disclaimer
Disclaimer This presentation is being made only to and directed at: (a) persons who events and circumstances that are beyond the control of Molins, have professional experience in matters relating to investments falling including amongst other things, Molins’ future profitability, within Article 19
Slide 22: Contact details
Dick Hunter Chief Executive David Cowen Group Finance Director Rockingham Drive Linford Wood East Milton Keynes MK14 6LY Tel: +44 (0)1908 246870 Fax: +44 (0)1908 234224