Slide 1: Carclo plc Preliminary Results for FY22/23
Joe Oatley – Chairman Frank Doorenbosch – CEO David Bedford – CFO Unaudited Carclo plc Preliminary Results for FY22/23 Unaudited Preliminary Results for FY22/23
Slide 2: Disclaimer
Disclaimer • This presentation may include certain forward-looking statements, beliefs or opinions, including statements with respect to Carclo plc’s business, financial condition and results of operations. These forward-looking statements can be identified by the use of forward-looking terminology,
Slide 3: Index
Index Introduction Page 4 Business and CEO highlights Page 5 Financial Overview Page 7 Business Performance Page 17 Markets & Regions Page 22 Strategy Page 24 Sustainability Page 25 Summary and Outlook Page 26 Carclo plc Unaudited Preliminary Results for FY22/23 3
Slide 4: Company Overview
Company Overview £143.4m Total Revenue Last year £138.2m* * At constant exchange rates Markets we serve 13 sites 1,116 employees Design & Engineering Manufacturing Solutions Aerospace Innovative solutions and strategic Streamlined, specialised Delivering superior, high precision partnerships for end
Slide 5: Business Highlights
Business Highlights New Strategy and Team Financial Health 84% Revitalised strategy, team, and operations in We are rebuilding margins and implemented Cash H2 to overcome rising debt costs, input stricter working capital and capex expenses, and market shifts. Positioned for management in H2 to enhan
Slide 6: CEO Highlights
CEO Highlights Health & Safety #1 Regional Focus 1.47 Championed an uncompromising Drove stronger margins, especially in the Incident Frequency commitment to health & safety, EMEA region through successful strategic emphasising its importance at every level realignment. Regional reset in the US is R
Slide 7: Financial Overview & Business Performance
Financial Overview & Business Performance David Bedford - CFO Carclo plc Unaudited Preliminary Results for FY22/23 7
Slide 8: Financial Overview – KPIs (1/2)
Financial Overview – KPIs (1/2) Revenue (£m) Underlying Operating Profits (£m) 143.4 6.1 5.9 128.6 107.6 4.8 71.2 2.4 2.3 69.9 57.6 3.3 72.2 3.7 3.6 50.0 58.7 1.5 FY20/21 FY21/22 FY22/23 FY20/21 FY21/22 FY22/23 Return on Sales Underlying Earnings per Share (pence) 3.1 4.5% 4.7% 2.4 4.1% 0.4 FY20/21
Slide 9: Financial Overview – KPIs (2/2)
Financial Overview – KPIs (2/2) Cash Conversion rate (%)* Net Debt (£m) 100 32.4 36.8 34.4 29.4 27.6 28.4 13.1 11.9 4.9 6.8 10.9 7.1 50 81.3 84.0 42.6 24.5 20.5 21.6 21.5 23.7 22.5 0 FY20/21 FY21/22 FY22/23 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 * Cash generated from operations /EBITDA Net debt e
Slide 10: Income Statement
Income Statement £000 Continuing operations: FY22/23 FY21/22 Revenue 143,445 128,576 Underlying operating profit 5,939 6,096 COVID-related US government grant income 0 2,087 Operating profit before exceptional items 5,939 8,183 Exceptional items (4,710) 721 Operating profit 1,229 8,904 Finance reven
Slide 11: Exceptional Charges
Exceptional Charges £'000 FY22/23 FY21/22 One off cash Continuing Operations Net effect of: Rationalisation costs (3,404) (133) • Sales Proceeds of Building Tucson £2.8m inflow • Exceptional cash cost FY22/23 £2.2m outflow Cancellation of future supply agreement (877) - Doubtful debt and related inv
Slide 12: Financial Position
Financial Position Post Year End Debt Reduction Since March 31, 2023, the Group has repaid £3.7 million of term loans ahead of schedule and reduced its RCF balance from £3.5 million to £2 million, leaving £1.5 million undrawn as at the end of June. Carclo plc Unaudited Preliminary Results for FY22/2
Slide 13: Cashflow
Cashflow Carclo plc Unaudited Preliminary Results for FY22/23 13
Slide 14: Net Debt including IFRS16 Leasing Liabilities
Net Debt movement FY21/22 to FY22/23 Net Debt Bridge (£m) Net Debt including IFRS16 Leasing Liabilities One off cash Net effect of: • Sales Proceeds of Building Tucson £2.8m inflow • Exceptional cash cost FY22/23 £2.2m outflow Carclo plc Unaudited Preliminary Results for FY22/23 14
Slide 15: Net Debt Bridge – Half Year Movements
Net Debt Bridge – Half Year Movements First Half 22/23 Second Half 22/23 Net Debt including IFRS16 Leasing Liabilities Carclo plc 15 Unaudited Preliminary Results for FY22/23
Slide 16: Pension
Pension £m FY22/23 FY21/22 Market Volatility The year saw significant market volatility, with bond and gilt yields spiking after the September 2022 "mini budget," impacting the value of pension Deficit b/f (26.0) (37.3) assets. Net interest cost (0.7) (0.7) Liability Hedge Impact The pension fund, w
Slide 17: Business Review & Outlook
Business Review & Outlook Frank Doorenbosch - CEO Carclo plc Unaudited Preliminary Results for FY22/23 17
Slide 18: Business Performance – CTP Design & Engineering
Business Performance – CTP Design & Engineering CTP Focus Value Revenue £m 20 Global Innovation, 10 Projects Automation, Validation & Education 0 Design & Engineering H1 H2 H1 H2 H1 H2 H1 H2 19/20 20/21 21/22 22/23 Strong Revenue Performance State of the Art Training Facility Achieved robust revenue
Slide 19: Business Performance – CTP Manufacturing Solutions
Business Performance – CTP Manufacturing Solutions CTP Focus Value Revenue £m 80 60 Global standards 40 Process Operational excellence 20 Manufacturing Asset utilisation 0 Solutions H1 H2 H1 H2 H1 H2 H1 H2 19/20 20/21 21/22 22/23 Stable Revenue Performance Strategic Investment in Automated Processes
Slide 20: Business Performance – Aerospace
Business Performance – Aerospace Speciality Focus Value Revenue £m 6 Short series, high precision 4 Niche wire cable and safety 2 market systems Aerospace 0 H1 H2 H1 H2 H1 H2 H1 H2 19/20 20/21 21/22 22/23 Impressive Revenue Growth Supply Chain Challenges Achieved impressive revenue growth in FY22/23
Slide 21: Engineering Plastics: Navigating Cost Challenges
Navigating Cost Challenges Raw material prices Margin pressure Electricity prices UK Monthly Averages GBP / tonne Weekly Forward Delivery Contracts – GBP/MWh • Time delay in passing on raw material increases 2,500 5,000 600 • Higher energy costs 2,000 4,000 500 • Inflation of labour cost Engineering
Slide 22: Market Dynamics Across Our Segments
Market Dynamics Across Our Segments As the growth related to COVID-19 testing is fading, our focus remains on capitalising on the sustained expansion of the life % Revenue science market, particularly in the APAC region. As the market for traditional ATMs experiences a gradual shift, our precision-e
Slide 23: Regional development
Regional development Revenue FY22/23 vs FY21/22 CTP EMEA Streamlined factory specialisation amplifies operational efficiency and regional synergy, bolstering sustainable % Revenue profitability. CTP Americas Factory specialisation strategy in progress, primed to seize dynamic market opportunities an
Slide 24: Strategy
Strategy Safety & Wellbeing Operational Excellence Prioritise the health and safety of our Maximise utilisation and efficiency through colleagues – a cornerstone of our process and equipment standardisation. operational DNA. Product Focus Factory Strengthening the Balance Sheet Specialisation Enhanc
Slide 25: Embracing Sustainability
Embracing Sustainability Setting Targets Regularly setting and refining sustainability targets. Our Commitment Refining Strategies Taking Actions Proactively acting and sharing transparent updates on our achievements, challenges, and future steps. Tracking Progress Material waste 50% Driving waste r
Slide 26: Navigating Transformation: Summary and Outlook
Navigating Transformation Summary: Outlook • Strategy and Team Transformation • Harnessing Potential We have implemented a new strategy, formed a diverse and We firmly believe in the potential of our new strategy and dynamic leadership team, and reenergised our focus on leadership team to overcome c
Slide 27: When Precision Matters
When Precision Matters Carclo plc Unaudited Preliminary Results for FY22/23 27