Avon Technologies Plc · LSE:AVON
Avon Technologies — Avon Rubber p.l.c. — H1 2018 Earnings Presentation
25 slides from Avon Technologies's earnings presentation, 2018
Slide 1: Interim Results 2018
INTERIM RESULTS 2018
Slide 2: Forward-looking information
Forward-looking information Avon Rubber p.l.c. (the ‘Group’) is providing the following cautionary statement: This document contains certain statements that are or may be forward-looking with respect to the financial condition, results or operations and business of the Group. These statements are so
Slide 3: Agenda
Agenda Financial Future Highlights Review Outlook INTERIM RESULTS 2018 3 Building a brighter future
Slide 4: Highlights
Highlights Paul McDonald Chief Executive Officer INTERIM RESULTS 2018 4 Building a brighter future
Slide 5: 6 months of strategic progress
6 months of strategic progress Strong financial performance and momentum Closing order book Revenue and order growth ahead of underlying markets £40.6m Maintained high levels of profitability and cash generation £10.6m In H1 2018 Effective delivery of the strategy to enhance core business Progress m
Slide 6: Strategic initiatives driving performance and future prospects
Strategic initiatives driving performance and future prospects MILITARY LAW ENFORCEMENT & FIRE MILKRITE | INTERPULS • Positive order intake and • Strong performance with growth • Strong growth in Farm Services underlying revenues across all product lines within Law Enforcement • Precision, Control a
Slide 7: Strong progress against investor proposition
Strong progress against investor proposition +5.9% AEF Divestment 19.9% 123.9% +30% AT CONSTANT FOCUS ON +20 BPS £39.1M NET INCREASE OVER CURRENCY GROWTH AT CONSTANT CASH PRIOR YEAR OPPORTUNITIES CURRENCY INTERIM RESULTS 2018 7 Building a brighter future
Slide 8: Financial Review
Financial Review Nick Keveth Chief Financial Officer INTERIM RESULTS 2018 8 Building a brighter future
Slide 9: Strong financial momentum continues
Strong financial momentum continues FINANCIALS1 REVENUE SPLIT BY BUSINESS 2018 % Change % Constant Currency Orders received £88.3m (2.7%) 5.0% Closing order book £40.6m 17.7% 29.6% 2018 2017 £77.7m £78.9m Revenue £77.7m (1.5%) 5.9% Adjusted EBITDA £15.5m (3.1%) 6.6% Adjusted EBITDA margin 19.9% (0.4
Slide 10: 5.9% revenue growth at constant currency
5.9% revenue growth at constant currency £5.5m (£0.5m) £0.2m £0.6m (£5.3m) (£0.2m) (6.3%) (1.1%) 5.3% 28.7% (£1.5m) (5.5%) 42.1% (6.7%) milkrite | InterPuls Avon Protection £0.6m £3.5m 0.8% £78.9m 8.4% £77.7m 2017 H1 Military Law Fire Interface PCI Farm Services FX 2018 H1 Revenue Enforcement Revenu
Slide 11: 18.9% adjusted operating profit growth at constant currency
18.9% adjusted operating profit growth at constant currency £2.1m £0.2m (£0.5m) (£1.1m) 2.3% (15.8%) (10.1%) 25.1% £10.9m £11.6m 2017 Ytd Adjusted H1 Adjusted Avon Protection milkrite | InterPuls Corporate costs FX 2018 2018 Ytd Adjusted H1 Adjusted Operating operatingProfit profit Operating operati
Slide 12: £14.4m increase in net cash
£14.4m increase in net cash £2.3m (£4.0m) £15.5m £6.5m (£2.0m) (£2.5m) (£1.2m) (£0.8m) £0.6m Cash conversion £39.1m 123.9% £32.6m £24.7m 2017 Net EBITDA Adjusted Working Capex Tax/Interest Dividends Purchase of Pension Other (non Other Disposal 2018 Net cash EBITDA capital own shares cash) cash INTE
Slide 13: Avon Protection
Avon Protection FINANCIALS REVENUE SPLIT BY MARKET 2018 % Change % Constant Currency Orders received £64.2m (2.4%) 6.6% Closing order book £37.5m 17.9% 30.8% 2018 2017 £53.1m £53.7m Revenue £53.1m (1.1%) 8.4% Adjusted EBITDA £11.7m 0.8% 7.1% Adjusted EBITDA margin 22.0% 0.4% - Military Law Enforceme
Slide 14: milkrite | InterPuls
milkrite | InterPuls FINANCIALS REVENUE SPLIT BY MARKET 2018 % Change % Constant Currency Orders received £24.1m (3.6%) 1.0% Closing order book £3.1m 14.8% 16.1% 2018 2017 £24.6m £25.2m Revenue £24.6m (2.4%) 0.8% Adjusted EBITDA £5.0m (9.1%) 0.2% Adjusted EBITDA margin 20.3% (1.5%) (0.5%) Interface
Slide 15: Future Outlook
Future Outlook Paul McDonald Chief Executive Officer INTERIM RESULTS 2018 15 Building a brighter future
Slide 16: Confident of achieving expectations
Confident of achieving expectations MILITARY LAW ENFORCEMENT & FIRE MILKRITE | INTERPULS • M50 order book visibility • Continued growth in Law • Continued growth in for FY18 and FY19 Enforcement expected Farm Services and • Additional DoD orders • Newly launched Precision, Control anticipated in H2
Slide 17: Questions & Answers
Questions & Answers INTERIM RESULTS 2018 17 Building a brighter future
Slide 18: Appendices
Appendices INTERIM RESULTS 2018 18 Building a brighter future
Slide 19: Group income statement
Group income statement 2018 2017 £m £m Revenue 77.7 78.9 EBITDA 15.5 16.0 Depreciation and amortisation (3.9) (5.1) Operating profit before amortisation of acquired intangibles, exceptional items and defined benefit 11.6 10.9 pension costs Amortisation of acquired intangibles, exceptional items and
Slide 20: Reported to adjusted reconciliation
Reported to adjusted reconciliation 2018 2017 £m £m Operating profit 9.9 9.6 Amortisation of acquired intangible assets 1.5 1.4 Post-acquisition working capital adjustment - (0.3) Defined benefit pension scheme administration costs 0.2 0.2 Adjusted operating profit 11.6 10.9 INTERIM RESULTS 2018 20
Slide 21: Revenue by line of business
Revenue by line of business 2018 H1 2017 H1 2017 Military £27.3m £32.9m £64.2m Law Enforcement & Civil £18.6m £12.5m £29.0m Fire £7.2m £8.3m £16.6m Avon Protection £53.1m £53.7m £109.8m Interface £17.2m £18.3m £34.5m Precision, Control & Intelligence £4.8m £4.8m £10.4m Farm Services £2.6m £2.1m £4.5
Slide 22: Balance sheet
Balance sheet 2018 2017 £m £m Intangible assets 39.1 45.4 Property, plant and equipment 21.9 29.1 Current assets 41.0 41.6 Current liabilities (36.0) (37.0) Non-current liabilities (0.7) (3.0) 65.3 76.1 Net cash 39.1 12.6 104.4 88.7 Retirement benefit scheme (42.5) (40.7) Net assets 61.9 48.0 INTERI
Slide 23: Cash flow
Cash flow 2018 £m 2017 £m Cash flows from continuing operations 19.2 16.8 Cash impact of exceptions - 0.3 Cash flows from discontinued operations (0.2) 0.2 Cash generated from operations 19.0 17.3 Interest paid/received - (0.1) Payments to pension scheme (0.8) (0.4) Tax paid (2.0) (0.7) Disposal of
Slide 24: Foreign exchange and H1 sensitivities
Foreign exchange and H1 sensitivities Average Closing Average Average rate rate rate Closing rate rate Closing rate H1 2018 H1 2018 H1 2017 H1 2017 FY2017 FY2017 US Dollar 1.359 1.408 1.240 1.250 1.267 1.339 Euro 1.130 1.143 1.157 1.169 1.147 1.134 1$ cent 1€ cent movement movement £m £m Revenue 0.4
Slide 25: 2017 Restatements
2017 Restatements H1 2017 FY 2017 As previously Share based AEF discontinued As previously AEF discontinued Adjusted reported payments operations Restated reported operations Restated £m £m £m £m £m £m £m Orders received 90.7 - - 90.7 173.9 (7.9) 166.0 Closing order book 35.0 - (0.5) 34.5 34.0 (4.0)