Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — H1 2015 Earnings Presentation
20 slides from Alumasc's earnings presentation, February 2015
Slide 1: The Alumasc Group plc Interim Results to December 2014
The Alumasc Group plc Interim Results to 31 December 2014 1
Slide 2: Contents
Contents Overview Strategic Development Financial Review Business Review Outlook Paul Hooper Chief Executive Andrew Magson Finance Director Levolux Ltd – Blackfriars Station, London 2
Slide 3: Overview
Overview Alumasc’s best first half year result since 2008 Continuing Operations • Revenues up 8% to £49.0 million • Underlying PBT up 14% to £4.0 million • Underlying EPS up 17% to 8.9 pence • All growth driven by the Building Products division (revenues up 11% and profit up 22%) Discontinued Operat
Slide 4: Contents
Contents Overview Strategic Development Financial Review Business Review Outlook Paul Hooper Chief Executive Andrew Magson Finance Director Alumasc Façades - Swisslab External Wall Insulation – Boxtree Lane, Harrow 4
Slide 5: Strategic Development
Strategic Development In September 2014 the Board announced that it was refreshing its appraisal of how best to direct the group’s resources in building value for shareholders. Following the review: 1. The group’s strategic focus will be on accelerating the growth of its Building Products business:
Slide 6: Increasing Strategic Focus: Improving earnings and quality of earnings
Increasing Strategic Focus: Improving earnings and quality of earnings 10 years ago Pre-financial crash Last full year Current H1 Commentary 2004/05 2007/08 2013/14 2014/15 H1 (Continuing Operations) 10% • In the last 10 years 24% 10% 27% 8% 8% Alumasc has almost fully transformed from a 33% 40% 24%
Slide 7: Contents
Contents Overview Strategic Development Financial Review Business Review Outlook Paul Hooper Chief Executive Andrew Magson Finance Director Rainwater & Drainage Limited – Harmer SML - Terminal 1, Stansted Airport 7
Slide 8: Income Statement Summary (£m) 6 months to 31 December
Income Statement Summary (£m) 6 months to 31 December Change 2014 2013 % Continuing Operations:* Revenue Building Products 45.2 40.7 +11 Dyson Diecasting 3.8 4.5 -15 49.0 45.2 +8 Underlying Operating Profit Building Products 4.6 3.7 +22 Dyson Diecasting 0.3 0.8 -56 Unallocated Costs (0.6) (0.7) 4.3
Slide 9: Cash Flow Summary (£m) 6 months to 31 December
Cash Flow Summary (£m) 6 months to 31 December 2014 2013 Change EBITDA - continuing operations 4.9 4.5 0.4 Underlying change in working capital (0.5) (0.5) - Short-term changes in working capital on large construction contracts (1.7) 0.1 (1.8) Operating cash flow 2.7 4.1 (1.4) Capital expenditure (0
Slide 10: Balance Sheet Summary (£m)
Balance Sheet Summary (£m) 31 Dec 2014 30 June 2014 31 Dec 2013 Tangible fixed assets 7.4 12.0 12.6 Intangible fixed assets 19.3 19.3 19.3 Working capital 8.8 10.0 8.3 Other net liabilities (2.2) (2.3) (2.0) Capital invested 33.3 39.0 38.2 Current assets available for sale (APC) 6.5 - - Net debt (7.
Slide 11: Contents
Contents Overview Strategic Development Financial Review Business Review Outlook Paul Hooper Chief Executive Andrew Magson Finance Director Rainwater & Drainage – Apex Heritage Cast Iron Rainwater – Duke Street, London W1 11
Slide 12: Building Products Division – Continuing to Outperform the UK Construction Market
Building Products Division – Continuing to Outperform the UK Construction Market Revenue UK Construction Output £bn Excluding £12m Canadian Kitimat project (2012 – 2014) (at 2011 Constant Prices - Source : Experian) – Half Year to 31 December (£m) Growth % Growth % 2014 45.1 +14% 2014 (E) +6% 2013 3
Slide 13: Building Products Division – Energy Management
Building Products Division – Energy Management Solar Shading Roofing Energy Solar & Management Shading Walling Total • Enquiries and orders improving but UK new build commercial market still over 30% below 2008 peak. Revenue (£m) H1 2014/15 8.2 16.9 25.1 • H1 benefited from final Chiswick Park contr
Slide 14: Building Products Division – Water Management & Other
Building Products Division – Water Management & Other Rainwater, Construction Products Drainage & Water Construction Housebuilding Management Products Products & Other Total • Satisfactory performance from Gatic in absence of any large UK contract so far this year. Revenue (£m) H1 2014/15 8.1 12.0 2
Slide 15: Engineering Products
Engineering Products Alumasc Precision Components Dyson Diecasting • Discussions ongoing with a number of potential trade • Solid H1 performance, but unable to match record prior buyers to sell the business. first half which had benefited from initial stocking of some new product lines. • The busine
Slide 16: Contents
Contents Overview Strategic Development Financial Review Business Review Outlook Paul Hooper Chief Executive Andrew Magson Finance Director Rainclear Systems Limited – Cast Iron Rainwater Goods – Kings Cross Station, London 16
Slide 17: Outlook
Outlook • The traditional bias in Alumasc’s results towards H2 is expected to be offset this financial year by timing of large projects which are anticipated to make a more significant contribution to the first half. • This is reflected in Building Products’ order books: • H1 order intake was up by
Slide 18: Appendix 1 Underlying to Statutory Profit Reconciliation
Appendix 1 Underlying to Statutory Profit Reconciliation H1 2014/15 H1 2013/14 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total Underlying profit before tax 4.0 - 4.0 3.5 - 3.5 IAS19 pension costs (0.7) - (0.7) (0.5) - (0.5) Brand amortisation (
Slide 19: Appendix 2 Pensions
Appendix 2 Pensions Interim Accounting Valuation Actions Being Taken to Address the Deficit • The pre-tax deficit of £21.4m at 31 December 2014 (a) Reducing liabilities reflects close to record low AA bond yields used to • Offer to buy-out small pension “pots” <£30k. discount pension liabilities to
Slide 20: The Alumasc Group plc Interim Results to December 2014
The Alumasc Group plc Interim Results to 31 December 2014 20