27 slides from Chesterfield Special Cylinders's earnings presentation, Jun 28, 2022
Slide 1: Interim Results 2022
Interim Results 2022 Chris Walters, Chief Executive James Locking, Chief Financial Officer 28 June 2022
Slide 2: Disclaimer
Disclaimer Pg 2 This presentation has been prepared by Pressure Technologies plc (the “Company“ or “Pressure Technologies”) solely in connection with providing information on the Company and to certain institutional and professional investors in the United Kingdom. This presentation does not constit
Slide 3: Agenda
Agenda Pg 3 1 Group Highlights 2 Group Financial Results 3 CSC Division Highlights 4 PMC Division Highlights 5 Outlook and Summary 6 Contact Us 7 Appendix
Slide 4: Group Highlights
|1. Group Highlights 4
Slide 5: Group Highlights
Group Highlights Pg 5 INTERIM RESULTS * Adjusted operating ■ Group: Revenue of £9.5 million (2021: £14.5 million) and adjusted operating loss* of £2.1 (loss)/profit is operating loss million (2021: £1.1 million adjusted operating profit) before amortisation, impairments and other ■ CSC: Revenue of £6.
Slide 6: Group Financial Results
|2. Group Financial Results Chesterfield Special Cylinders Precision Machined Components Banking Facilities & Net Debt Reconciliation 6
Slide 7: Group Financial Highlights
Group Financial Highlights Pg 7 Revenue 34% down Gross profit £9.5m £2.1m 2021: £14.5m 2021: £4.7m Adjusted operating loss* Loss before taxation £(2.1)m £(2.3)m 2021: £1.1m adjusted 2021: profit before taxation operating profit £0.2m Reported basic loss per Net debt** share £5.4m (6.0)p Oct 2021: £4.9m
Slide 8: Group Financial Results - Profit and Loss
Group Financial Results - Profit and Loss Pg 8 H122 H121 FY21 £m £m £m Revenue 9.5 14.5 25.3 Adjusted operating loss for the Chesterfield Special Cylinders Division 6.3 11.3 18.9 period reflects timing of defence contract placement and milestone phasing in CSC and Precision Machined Component Division
Slide 9: Group Financial Results - Balance Sheet
Group Financial Results - Balance Sheet Pg 9 H122 FY21 H121 £m £m £m Intangible Assets 0.2 0.1 0.2 Tangible fixed assets 11.7 12.1 13.8 Right of use assets 0.8 1.0 0.8 Tangible Assets 12.5 13.1 14.6 Assets held for sale - 0.2 0.4 Net Working Capital (NWC) 7.6 8.3 6.0 Long-term Liabilities (0.1) (0.2)
Slide 10: Chesterfield Special Cylinders - Financial Results
Chesterfield Special Cylinders - Financial Results Pg 10 Revenue 44% down to Gross profit £6.3m £1.8m 2021: £11.3m 2021: £4.6m Adjusted operating loss* Gross profit margin £(0.3)m 29% 2021: adjusted operating 2021: 41% profit £3.0m Return on revenue Orderbook at March 2022 -4% £14.6m 2021: 26% March 202
Slide 11: Precision Machined Components - Financial Results
Precision Machined Components - Financial Results Pg 11 Revenue unchanged Gross profit £3.2m £0.3m 2021: £3.2m 2021: £0.1m Adjusted operating loss* Gross profit margin £(0.8)m 8% 2021: adjusted operating 2021: 3% loss £(1.0)m Return on revenue Orderbook at March 2022 -25% £2.2m 2021: -28% March 2021:
Slide 12: Banking Facilities & Net Debt Reconciliation
Banking Facilities & Net Debt Reconciliation Pg 12 LLOYDS BANK REVOLVING CREDIT FACILITY Net Debt £m ■ £4.0 million fully drawn ■ Extended to September 2023 Cash and Cash Equivalents 1.3 FINANCIAL COVENANTS FROM SEPTEMBER 2022: Bank Borrowings (4.0) ■ Leverage test ○ Net Debt to Adjusted EBITDA < 3.
Slide 13: Chesterfield Special Cylinders Highlights
|3. Chesterfield Special Cylinders Highlights Hydrogen Energy Integrity Management Services 13
Slide 14: Chesterfield Special Cylinders | Highlights
Chesterfield Special Cylinders | Highlights Pg 14 First-half performance reflects timing of major defence contract placement and milestone phasing. Strong second-half underpinned by record orderbook and high-value defence contracts FIRST-HALF PERFORMANCE & STRATEGIC PROGRESS ■ Timing of major defence
Slide 15: Hydrogen Energy - Orders, Enquiries, Developments
Hydrogen Energy - Orders, Enquiries, Developments Pg 15 Orders and enquiries for static and mobile hydrogen storage systems growing. Increasing demand for transportation of hydrogen, where CSC is well positioned ORDER PLACEMENT SLOWER IN THE FIRST HALF, STRONGER IN THE SECOND HALF ■ First-half pause
Slide 16: Hydrogen Energy - Refuelling Station Projects
Hydrogen Energy - Refuelling Station Projects Pg 16 First-half developments reflect continued transition to commercial hydrogen refuelling for UK and European mobility projects CUSTOMER & SUPPLIER RELATIONSHIPS, FORECAST VISIBILITY ■ Key customers sharing more detail of longer-term hydrogen refuellin
Slide 17: Hydrogen Energy - Outlook for Green Hydrogen
Hydrogen Energy - Outlook for Green Hydrogen Pg 17 UK and EU Commission announcements drive expectations of accelerated adoption of hydrogen by 2030, supported also by UK BEIS and EU IPCEI competitions for project funding Global Green Hydrogen Market Revenues (USD Million) & INCREASED AMBITIONS FOR
Slide 18: Integrity Management Services
Integrity Management Services Pg 18 Demand for Integrity Management and factory cylinder reconditioning services grew steadily during the period, with increased field deployments scheduled for the second half of the year FOCUS FOR GROWTH OF INTEGRITY MANAGEMENT SERVICES ■ Inspection, testing and rece
Slide 19: Precision Machined Components Highlights
|4. Precision Machined Components Highlights 19
Slide 20: Precision Machined Components | Highlights
Precision Machined Components| Highlights Pg 20 Demand is expected to grow further as all major OEM customers report a strengthening oil and gas market outlook through the second half of 2022 and beyond FIRST-HALF PERFORMANCE & STRATEGIC PROGRESS ■ Revenue of £3.2 million (2021: £3.2 million) reflect
Slide 21: Summary and Outlook
|5. Summary and Outlook 21
Slide 22: Summary & Outlook
Summary & Outlook Pg 22 Strong second-half underpinned by record orderbook in Chesterfield Special Cylinders and recovering oil and gas market in Precision Machined Components CHESTERFIELD SPECIAL CYLINDERS ■ Strong second-half performance expected, with revenue of more than £11.0 million already in
Slide 23: Contact us
|6. Contact us 23
Slide 24: Follow our news and contact us
Follow our news and contact us Pg 24 Pressure Technologies plc | LinkedIn 0333 015 0710 www.pressuretechnologies.co.uk PressureTechnologies@houston.co.uk
Slide 25: Appendix
|7. Appendix Group Overview History & Key Milestones 25
Slide 26: Group Overview
Group Overview Pg 26 Leading UK designer and manufacturer of safety-critical components and systems serving global supply chains in defence, oil and gas, industrial and hydrogen energy markets Chesterfield Special Cylinders (CSC) Precision Machined Components (PMC) • Established in 1897 • Al-Met, Roo
Slide 27: History & Key Milestones
History & Key Milestones Pg 27 Acquisition of Al-Met, specialist in complex flow control parts. Al-Met was the Acquisition of John Hayward (former Chief Executive of Acquisition of founding business of Greenlane Biogas, Pressure Technologies) leads an MBO of Martract, the the PMC division an interna