Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — FY2021 Earnings Presentation
27 slides from Alumasc's earnings presentation, Jun 30, 2021
Slide 1: The Alumasc Group plc Annual Results to 30 June 2021
The Alumasc Group plc Annual Results to 30 June 2021 Building Envelope/Water Management – Surfability
Slide 2: Contents
Contents 01 02 Overview of FY2021 Strategic Delivery 03 04 Financial Review Business Review 05 06 Outlook Appendices Paul Hooper Simon Dray Chief Executive Group Finance Director Alumasc Water Management Solutions – Skyline vertical panels with cut out for light signs, also fascia and soffit to ceil
Slide 3: Overview of FY2021
01 Overview of FY2021 Levolux Limited – Infiniti Aluminium Aerofoil Fins & Triniti Brackets - Les Quennevais School, Jersey
Slide 4: Overview
Overview Very strong performance in all divisions, against a COVID-19 affected prior year: • Revenues from continuing operations: £90.5m (2019/20 : £76.0m) : +19.0% • Underlying operating profit £11.0m (2019/20 £4.2m) : +162% • Underlying operating margin: 12.2% (2019/20 : 5.5%) • Net Bank Debt of £
Slide 5: Strategic Delivery
02 Strategic Delivery Blackdown Greenroofs – NatureMat® - Whitechapel Station
Slide 6: Strategic delivery – Levolux business improvement plan
Strategic delivery – Levolux business improvement plan Targets • Return business to sustainable profit as soon as possible • Incorporate Levolux into the new Building Envelope division • Focus on design & supply activities (install only where it adds value) • Accelerate profitable growth in North Am
Slide 7: Strategic delivery – A cost-efficient operating structure
Strategic delivery – A cost-efficient operating structure • Reduction in operating sites from 10 to 6 • £3.1m annualised profit saving vs FY19 ‒ £2.4m recognised in FY20 ‒ Further £0.7m delivered in FY21 • Further Group synergies being explored Gatic – UltraSlot Slotdrain - Dover Docks 7 www.alumasc
Slide 8: Strategic delivery – Investment and innovation to drive profitable growth
Strategic delivery – Investment and innovation to drive profitable growth • Focus on key manufacturing businesses: Timloc, Wade, AWMS • Timloc: capacity, machinery upgrade & automation • Ongoing innovation with numerous new product launches • Tooling investment in Water Management suppliers: ‒ Impro
Slide 9: Strategic delivery – Closely aligned with sustainability agenda
Strategic delivery – Closely aligned with sustainability agenda • Portfolio aligned to environmental growth drivers ‒ c.80% of sales driven by building regulations ‒ c.80% of sales from environmental solutions • Energy management (Building Envelope, Housebuilding Products) ‒ Solar shading ‒ Insulati
Slide 10: Environment Social Governance
Sustainability framework Embedding sustainability into our business and strategy Key focus areas 2021 achievements Next steps 13% reduction in CO2e in FY21, Net zero plan in GHG emissions 100% renewable electricity development Environment Sustainable materials c. 33% materials recycled, c. 75% recyc
Slide 11: Financial Review
03 Financial Review Alumasc Water Management Solutions – Harmer SML Cast Iron and Wade Gullies and Linear Drainage - Newfoundland Tower, London
Slide 12: Income statement summary
Income statement summary 12 months to 30 June 2021 2020 Change £m £m % Continuing operations: Revenue 90.5 76.0 +19% Gross profit 32.5 22.6 Gross margin % 35.9% 29.7% Sales, general & administration overheads (21.5) (18.4) Underlying operating profit* 11.0 4.2 +164% Underlying operating margin % 12.
Slide 13: Revenue analysis
Revenue analysis Year on year change as a percentage of total group revenues % change 2020/21 versus 2019/20 UK Export Total (c.85% of Group (c.15% of Group Revenues) Revenues) Water Management +18% -2% +14% Building Envelope +23% +30% +24% Housebuilding Products +22% +38% +22% Total Group +21% +10%
Slide 14: Revenue and Profit Bridge – FY20 to FY21 (£m)
Revenue and Profit Bridge – FY20 to FY21 (£m) • Raw material and cost inflation passed through successfully • Organic growth: Revenue Profit Levolux -£(3.0)m +£0.6m Others +£16.4m +£5.3m • Restructuring delivered further £0.7m of cost reductions 14 www.alumasc.co.uk
Slide 15: Revenue and Profit Bridge – FY19 to FY21 (£m)
Revenue and Profit Bridge – FY19 to FY21 (£m) • Raw material and cost inflation passed through successfully • Organic growth: Revenue Profit Levolux -£(6.0)m -£(1.0)m Others +£5.1m +£2.7m • Annualised restructuring benefit £3.1m 15 www.alumasc.co.uk
Slide 16: Cash flow statement summary
Cash flow statement summary 12 months to 30 June 2021 2020 Change £m £m £m EBITDA* 13.8 6.2 7.6 Change in working capital (0.7) 0.7 (1.4) VAT (repayment)/deferral (1.1) 1.8 (2.9) Operating cash flow 12.0 8.7 3.3 Capital expenditure (2.0) (1.7) (0.3) Interest (0.2) (0.3) 0.1 Tax (0.2) (0.1) (0.1) Pen
Slide 17: Balance sheet summary
Balance sheet summary at 30 June 2021 2020 Change £m £m £m Property, plant & equipment 17.2 16.9 0.3 Intangible assets 22.0 22.1 (0.1) Working capital 9.4 8.7 0.7 Other net liabilities (2.6) (2.1) (0.5) Capital invested 46.0 45.6 0.4 p) Net debt – bank (0.9) (4.3) 3.4 Net debt - lease (5.6) (5.9) 0.
Slide 18: Business Review
04 Business Review Alumasc Roofing – Boat Blocks, Birmingham
Slide 19: Water Management
Water Management 2020/21 2019/20 Revenue (£m) 38.4 33.7 Underlying operating profit (£m) 6.1 4.8 Underlying operating margin (%) 15.9% 14.3% • Broad exposure to housing and commercial markets • Record £6.1m operating profit (16% ROS), £1.3m (27%) higher than PY • Revenue growth of £4.7m (14%), with
Slide 20: Building Envelope
Building Envelope 2020/21 2019/20 Revenue (£m) 41.0 33.2 Underlying operating profit / (loss) (£m) 4.3 (0.9) Underlying operating margin (%) 10.4% (2.8)% • Sells principally into the high end UK commercial new build construction market with an increasing RMI sector • Significant revenue increase of
Slide 21: Housebuilding Products (Timloc)
Housebuilding Products (Timloc) 2020/21 2019/20 Revenue (£m) 11.1 9.1 Operating profit (£m) 2.6 1.2 Operating margin (%) 23.0% 13.7% • Timloc, our Housebuilding products Division, had an outstanding year growing its Revenue by 22% and its PBIT by 105% versus a COVID affected prior year • New product
Slide 22: Outlook
05 Outlook Rainclear Systems – Galvanised Steel
Slide 23: Outlook
Outlook The Board believes Alumasc remains well positioned to deliver sustainable earnings progression, underpinned by a clear strategy and strong market positions: • Water Management benefiting from both its UK and export-focussed strategy, and a growing online offering • Building Envelope entered
Slide 24: Thank you
Thank you www.alumasc.co.uk Levolux – Surfability
Slide 25: Appendices
06 Appendices Rainclear Systems – Galvanised Steel – Forest House
Slide 26: Appendix 1: Underlying To Statutory Profit Reconciliation
Appendix 1 : Underlying To Statutory Profit Reconciliation 2020/21 2019/20 Operating Profit Operating Profit Profit Before Tax Profit Before Tax £m £m £m £m Underlying operating profit / profit before tax 11.0 10.5 4.2 3.7 Brand amortisation (0.2) (0.2) (0.2) (0.2) IAS19 costs (0.2) (0.4) - (0.3) Re
Slide 27: Appendix 2: UK end user analysis 2020/21
Appendix 2 : UK end user analysis 2020/21 27 www.alumasc.co.uk