Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — FY2018 Earnings Presentation
27 slides from Alumasc's earnings presentation, September 2018
Slide 1: The Alumasc Group plc Annual Results to 30 June 2018
The Alumasc Group plc Annual Results to 30 June 2018 Levolux – Bangor University
Slide 2: Contents
Contents 01 02 Overview Strategic Development 03 04 Financial Review Business Review 05 06 Outlook Appendices Paul Hooper Chief Executive Andrew Magson Finance Director Alumasc Water Management Solutions - Bespoke Fascia and Soffit System – Guardian Site, Jersey
Slide 3: Overview
01 Overview Levolux – Eastleigh College, Hampshire
Slide 4: Overview
Overview An important year for strategic development: 1. Continued investment in capacity for growth 2. Improving quality of earnings through proactive portfolio management 3. Leveraging further synergies between group businesses 4. Implementation of a simpler and more cost efficient operating struc
Slide 5: Strategic Development
02 Strategic Development Levolux – Remington Office & Labs
Slide 6: Strategic development
Strategic development 1. Continued investment in capacity for growth: ● Commissioning of 88,000 sq. ft factory for Timloc in January 2018 ● Investment of £0.3m in commercial resources to drive and support growth – with particular focus on Levolux Balconies & North America business development Wade I
Slide 7: Strategic development
Strategic development 1. Continued investment in capacity for growth: ● Commissioning of 88,000 sq. ft factory for Timloc in January 2018 ● Investment of £0.3m in commercial resources to drive and support growth – with particular focus on Levolux North America & Balconies business development 2. Imp
Slide 8: Strategic development
Strategic development 3. Leveraging further synergy between group businesses: ● Wade acquisition complements Harmer and Gatic drainage brands ● Including Alumasc Roofing, some 60% of the group revenue now contributes to Alumasc’s “Rain to Drain” strategy ● “Building envelope” specification selling o
Slide 9: Strategic development
Strategic development 3. Leveraging further synergy between group businesses: ● Wade acquisition complements Harmer and Gatic drainage brands ● Including Alumasc Roofing, some 60% of the group revenue now contributes to Alumasc’s “Rain to Drain” strategy ● “Building envelope” specification selling o
Slide 10: Strategic development
Strategic development 1. Continued investment in capacity for growth: 3. Leveraging further synergy between group businesses: ● Commissioning of 88,000 sq. ft factory for Timloc in January 2018 ● Wade acquisition complements Harmer and Gatic drainage brands ● Investment of £0.3m in commercial resour
Slide 11: Financial Review
03 Financial Review Gatic Slotdrain – Tesco Head Office, Welwyn Garden City
Slide 12: Income statement summary (£m)
Income statement summary (£m) 12 months to 30 June 2018 2017/18 2016/17 Change Headline revenue 98.4 104.8 -6.4 Like-for-like revenue 95.9 100.5 -4.6 Contribution margin % 38.7% 38.7% Gross margin % 30.6% 31.3% Underlying operating profit 6.7 9.1 -2.4 Operating margin % 6.8% 8.7% Bank interest (0.2)
Slide 13: Revenue analysis
Revenue analysis 2016/17 to 2017/18 Year on year change as a percentage of total group revenues UK Export Total Large (>£500k revenue) projects 1% (6%) (5%) All except large projects (1%) 1% - Like-for-like - (5%) (5%) Acquisitions / disposals (1%) Total (6%) 13 www.alumasc.co.uk
Slide 14: Cash flow statement summary
Cash flow statement summary 12 months to 30 June 2018 2017 Change £m £m £m EBITDA 8.2 10.5 (2.3) Change in working capital – large construction contracts 0.7 (1.7) 2.4 Change in working capital - other (2.7) (3.7) 1.1 Operating cash flow 6.2 5.1 1.2 Replacement capital expenditure (1.3) (0.9) (0.5)
Slide 15: Balance sheet summary (£m)
Balance sheet summary (£m) at 30 June 2018 2017 Change £m £m £m Property, plant & equipment 10.7 5.3 5.4 Intangible assets 22.6 18.9 3.7 Working capital 10.8 8.8 2.0 Other net liabilities (2.3) (1.5) (0.8) Capital invested 41.8 31.5 10.3 Net (debt) / cash (4.8) 6.1 (10.9) Pension obligations (net of
Slide 16: Pro-active legacy pensions deficit management
Pro-active legacy pensions deficit management • IAS19 deficit 30 June 2018 £15.1m (2017: £20.6m) • Intention to merge the group’s two pension schemes in 2019 • Saving a six figure sum in administrative costs each year – present value of future benefit £1m+ • Enables a significant simplification in t
Slide 17: Business Review
Alumasc Water Management Solutions – Skyline - Convent Lane, Hampshire 04 Business Review
Slide 18: Architectural Screening, Solar Shading & Balconies
Architectural Screening, Solar Shading & Balconies 2017/18 2016/17 Revenue (£m) 22.0 24.4 Underlying operating profit (£m) 0.8 2.0 Underlying operating margin (%) 3.6% 8.2% ● Performance in year reflected a lower level of sales in the period from large (> £0.5m) projects and project delays ● Signifi
Slide 19: Roofing & Walling
Roofing & Walling 2017/18 2016/17 Revenue (£m) 31.2 34.0 Underlying operating profit (£m) 1.8 2.8 Underlying operating margin (%) 5.8% 8.2% Roofing ● Challenging year with project delays and weaker than expected demand in the UK new build construction market ● This is a dynamic sales-led business th
Slide 20: Alumasc Water Management Solutions
Alumasc Water Management Solutions 2017/18 2016/17 Revenue (£m) 34.5 32.6 Underlying operating profit (£m) 3.6 4.1 Underlying operating margin (%) 10.3% 12.6% ● Wade was a key strategic acquisition for our “Rain to Drain” strategy, linking Harmer’s roof & building drainage range and with Gatic’s hig
Slide 21: Housebuilding & Ancillary Products
Housebuilding & Ancillary Products 2017/18 2016/17 Revenue (£m) 10.5 9.6 Underlying operating profit (£m) 1.7 1.6 Underlying operating margin (%) 15.8% 16.5% ● A key year for Timloc’s development, with successful commissioning of 88k sq. ft. factory in January 2018 ● Continued outperformance of the
Slide 22: Outlook
05 Outlook Alumasc Roofing – Elephant & Castle, London
Slide 23: Outlook
Outlook Against an uncertain UK and economic political background and with UK construction activity forecast to contract by 1-2% in 2018 with modest growth thereafter, Alumasc remains well positioned to outperform the UK market over the medium / longer term given its robust business model and strong
Slide 24: Thank you
Thank you www.alumasc.co.uk
Slide 25: Appendices
Alumasc Water Management Solutions – Cast Aluminium - Oak Cottage 06 Appendices
Slide 26: Underlying To Statutory Profit Reconciliation (£m)
Appendix 1 : Underlying To Statutory Profit Reconciliation (£m) at 30 June 2017/18 2016/17 Operating Profit Operating Profit Profit Before Tax Profit Before Tax £’000 £’000 £’000 £’000 Underlying profit 6.7 6.5 9.1 9.0 Brand amortisation (0.2) (0.2) (0.3) (0.3) IAS 19 net pension scheme finance cost
Slide 27: UK end user market analysis 2017/18
Appendix 2 : UK end user market analysis 2017/18 Architectural Screening, Solar Total Group Shading & Balconies 7% 24% 12% Roofing & Walling 12% Water Management 7% 22% 1% 9% Housebuilding 2% 4% Products & Ancillaries 27 www.alumasc.co.uk