Genuit Group Plc · LSE:GEN
Genuit — H1 2021 Earnings Presentation
25 slides from Genuit's earnings presentation, Aug 17, 2021
Slide 1: Interim Results 2021
Interim Results 2021 17 August 2021 Genuit Group Plc
Slide 2: Agenda
Agenda 1 INTRODUCTION 2 FINANCIAL SUMMARY 3 BUSINESS REVIEW 4 SUMMARY & OUTLOOK
Slide 3: Introduction
Introduction ❑ Continue to prioritise the health, safety and wellbeing of our colleagues with backdrop of volume increases ❑ Strong H1 performance despite COVID-19, supply constraints and cost inflation ❑ Revenue 32.4% higher than H1 2019 and 13.8% higher like-for-like ❑ All three acquisitions made
Slide 4: Agenda
Agenda 1 INTRODUCTION 2 FINANCIAL SUMMARY 3 BUSINESS REVIEW 4 SUMMARY & OUTLOOK
Slide 5: Financial highlights
Financial highlights ❑ Net revenue 32.4% ahead of H1 2019 ❑ On a like-for-like basis, net revenue 13.8% higher than H1 2019 ❑ Underlying operating profit of £48.6m 23.7% above H1 2019 ❑ Underlying operating margin of 16.4% ❑ Profit before tax of £33.8m 7.6% above H1 2019 ❑ Net debt of 1.5 times pro
Slide 6: Underlying results summary
Underlying results summary Change vs Change vs £m H1 2021 H1 2020 H1 2020 H1 2019 H1 2019 Revenue 295.6 173.6 70.3% 223.3 32.4% Cost of sales (173.6) (110.3) 57.4% (127.9) 35.7% Gross profit 122.0 63.3 92.7% 95.4 27.9% Gross margin 41.3% 36.5% 480bps 42.7% (140)bps Selling, distribution and administ
Slide 7: Revenue and underlying operating profit bridge
Revenue and underlying operating profit bridge Revenue (£m) +41.8 -0.4 ++14.5 ❑ Profitability affected by ++16.4 normal lag in price 295.6 increases 295.6 223.3 239.7 254.2 223.3 ❑ Drop through on H1 2019 Selling price Volume Acquisitions Currency H1 2021 volumes at 35.2% Underlying operating profit
Slide 8: Operating segment review – Residential Systems
Operating segment review – Residential Systems H1 H1 Growth vs H1 Growth vs 2021 2020 H1 2020 2019 H1 2019 LTM to June 2021 demand drivers Revenue £183.8m £92.8m 98.1% £129.0m 42.5% UK Infrastructure 1% Underlying operating profit £35.8m £7.4m 383.8% £26.6m 34.6% UK Commercial - Public 5% Underlying
Slide 9: Operating segment review – Commercial and Infrastructure Systems
Operating segment review – Commercial and Infrastructure Systems H1 H1 Growth vs H1 Growth vs 2021 2020 H1 2020 2019 H1 2019 LTM to June 2021 demand drivers Revenue £111.8m £80.8m 38.4% £94.3m 18.6% UK RMI 5% UK Infrastructure Underlying operating profit £12.8m £3.1m 312.9% £12.7m 0.8% 15% UK New Bu
Slide 10: Statutory results
Statutory results £m H1 2021 H1 2020 H1 2019 31 December 2020 Underlying profit after tax 38.3 5.5 29.3 29.4 Non-underlying items: - Amortisation of intangible assets (6.6) (4.0) (3.7) (7.8) - Acquisition costs and contingent consideration (4.4) (0.3) (0.5) (3.0) - Restructuring costs - - - (1.1) -
Slide 11: Cash flows
Cash flows 31 December £m H1 2021 H1 2020 vs H1 2020 H1 2019 vs H1 2019 2020 EBITDA (before non-underlying items) 60.1 20.2 39.9 49.2 10.9 60.9 Capex (15.0) (8.3) (6.7) (8.7) (6.3) (24.5) Working capital (31.1) (35.2) 4.1 (27.8) (3.3) 1.5 Share-based payments 1.0 0.6 0.4 0.8 0.2 1.4 Operating cash f
Slide 12: Net working capital
Net working capital H1 2021 H1 2021 vs H1 2020 £m As reported Acquisitions (excl. acquisitions) H1 2020 (excl. acquisitions) Inventories 64.4 12.1 52.3 55.8 (3.5) Trade and other receivables 99.4 11.7 87.7 60.2 27.5 Trade and other payables (129.0) (17.5) (111.5) (78.1) (33.4) Net working capital 34
Slide 13: Banking facilities
Banking facilities £m Drawn as at H1 2021 Facility Headroom Bank loan 198.0 300.0 102.0 Cash and cash equivalents (27.6) - 27.6 Net debt excluding unamortised debt issue costs 170.4 300.0 129.6 Unamortised debt issue costs (0.8) Net debt including unamortised debt issue costs 169.6 Lease liabilities
Slide 14: Agenda
Agenda 1 INTRODUCTION 2 FINANCIAL SUMMARY 3 BUSINESS REVIEW 4 SUMMARY & OUTLOOK
Slide 15: Demand drivers
Demand drivers LTM to June 2021 demand drivers ❑ 90% revenue derived from UK market UK Infrastructure 6.0% UK Commercial - Public 9.0% ❑ Balanced exposure to different segments of UK Construction market UK RMI 30.0% UK Commercial - Private 13.0% UK 90.0% ❑ Provides resilience through the cycle ❑ Inc
Slide 16: UK Construction Market
UK Construction Market Total UK Construction (excluding Infrastructure CPA) 155 149.2 149.5 150 145 141.5 140 135 130 126.3 125 120 115 110 2019 2020 2021 2022 £bn Construction Market Overview ❑ Recovery seen during the second half of 2020 has continued into 2021 ❑ Market excluding infrastructure gr
Slide 17: UK Construction Market – Residential
UK Construction Market – Residential New Housebuilding 50 44.9 44.6 41.2 ❑ New Housebuilding 40 33.5 30 - Momentum seen in H2 2020 has carried through into 2021 20 - H1 2021 biased toward starts to rebuild WIP 10 - Extension of HtB and Stamp Duty schemes helps activity, 0 along with a move away from
Slide 18: UK Construction Market – Commercial and Infrastructure
UK Construction Market – Commercial and Infrastructure ❑ Commercial Commercial Sector Output Trends - The commercial new build sector remains subdued, continuing 35 29.4 the pre-pandemic trends 30 24.8 25.7 25 23.5 - Mid term structural issues around retail space, and office working apply downward p
Slide 19: Update on acquisitions
Update on acquisitions ❑ UK leading provider of magnetic filters, chemicals and related products ❑ 100 day plan implemented, no issues - performance ahead of plans ❑ Customer reaction positive ❑ Overseas growth better than expected ❑ Leading provider of sustainable underfloor heating solutions ❑ 100
Slide 20: Sustainability Performance Update
Sustainability Performance Update ❑ Carbon intensity (target 66% reduction by 2025) - Reduced by 53% in H1; renewable energy sources - Signed Pledge to Net Zero; Science Based Targets in 2022 ❑ Recycled materials (target 62% by 2025) - H1 47.6% (2020: 49.2%) of total tonnage from recycled materials
Slide 21: Strategy
Strategy ❑ Strategy will deliver growth ahead of the UK construction market over the cycle by focusing on segments driven by four sustainability and environmental factors: - The increasing demand for resilient drainage - The trend toward green urbanisation - The requirement for clean, fresh, healthy
Slide 22: Agenda
Agenda 1 INTRODUCTION 2 FINANCIAL SUMMARY 3 BUSINESS REVIEW 4 SUMMARY & OUTLOOK
Slide 23: Summary
Summary ❑ Strong revenue and underlying operating profit despite COVID-19, material supply constraints and cost inflation ❑ The three acquisitions made in the period are performing well, with Adey exceeding expectations ❑ The medium-term fundamentals in our markets remain as strong as ever ❑ Group h
Slide 24: Q&A
Q&A To ask a question, please use the below conference call line: United Kingdom (Local): 020 3936 2999 All other locations: +44 20 3936 2999 Access Code: 928454 To register a question, press *1 on phone keypad. To remove the question, press *2 GENUIT © 2021 | 24
Slide 25: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and this presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “growing”, “scope