27 slides from Chesterfield Special Cylinders's earnings presentation, December 2019
Slide 1: Full Year Results 2019
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Slide 2: Contents
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Contents Page 1. Introducing Pressure Technologies plc - Our Group & Our Mission 3 2. Group Highlights 4 ● Key Figures 5 ● Summary Profit & Loss 6 ● Balance Sheet 7 ● Operating Cash Flow 8 ● Group RCF 9 3. Divisional Highlights 11-17 ● Precision Ma
Slide 3: Our Group and Our Mission
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Our Group Leading UK designers and manufacturers of high-integrity, safety-critical components and systems serving global supply chains in oil and gas, defence, industrial gases and hydrogen energy markets. Our Mission To create value for our cust
Slide 4: Group Highlights
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Group Highlights ● Improved trading performance and results, driven by defence contracts and increasing momentum in the oil and gas market ● Strategic progress made with the divestment of non-core operations, recovery of profitability and organic g
Slide 5: Group Key Figures
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Group Key Figures Revenue* 34% up to Operating profit* more than doubled to Return on Revenue up to £28.3m (2018*: £21.2m) £2.2m (2018*: £1.0m) 7.9% (2018: 5.0%) Operating cash inflow** Working capital % LTM revenue Disposal of Alternative Energy Di
Slide 6: Summary Profit & Loss
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Summary Profit & Loss 2019* 2018* Revenue up Revenue (£m) 28.3 21.2 Precision Machined Components Division 14.4 11.2 +34% Chesterfield Special Cylinders Division 13.9 10.0 Gross margin down 2 ppt to Gross profit (£m) 9.2 7.2 Adjusted operating profit
Slide 7: Summary Balance Sheet
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Summary Balance Sheet 2019 2018 £m £m As reported As reported Goodwill & Intangible assets 16.1 25.8 Goodwill & Intangibles % Net Assets Tangible Assets 14.0 12.0 Other long-term financial asset** 7.4 0.0 50.2% (2018:77.2%) Inventories 5.1 4.4 Meas
Slide 8: Summary Cash Flow
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Summary Cash Flow Adjusted operating cash inflow* £2.0m Adjusted operating cash inflow £2.0m Net investment in working capital £2.2m Operating cash outflow of AE division prior to disposal £2.5m Repayment of RCF facility £1.0m *before cash outflow for
Slide 9: Reconciliation of measured leverage covenant
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Reconciliation of measured leverage covenant 2019 2018 Net debt: EBITDA leverage 2019 2018 Adjusted Net Debt £m £m Reported last 12m EBITDA £3.6m £2.3m Reported Net Debt 11.4 6.7 Reported Net Debt £11.4m £6.7m Less: Non-BoS finance lease debt (2.8)
Slide 10: Precision Machined Components
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 PRECISION MACHINED COMPONENTS
Slide 11: Precision Machined Components - Products and Customers
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Precision Machined Components - Products and Customers Products: Major Oil & Gas Customers: ● Components supplied to OEMs for onshore & offshore capex and opex projects: ○ Drilling systems ○ Completions ○ Production systems ○ Flow control ○ Fishin
Slide 12: PMC in numbers
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 PMC in numbers Revenue 30% up to Gross profit margin Operating profit £14.4m (2018: £11.2m) 29% £1.9m (2018: 33%) (2018: £1.5m) Return on revenue Percentage of revenue from new customers Closing order book up 13% (2018: 13%) 11% +70% at November 201
Slide 13: PMC - Strategic Focus for Organic Growth
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 PMC - Strategic Focus for Organic Growth Oil & Gas Capex and Opex Components Key initiatives to support organic growth plan ● Sales and margin growth, new customer acquisition: Existing OEM New OEM customers customers for capex for capex and opex
Slide 14: Chesterfield Special Cylinders
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 CHESTERFIELD SPECIAL CYLINDERS
Slide 15: CSC - Products, Markets and Customers
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 CSC - Products, Markets and Customers Products and Markets: Defence Market Customers: ● Ultra Large Cylinders ○ Defence - Naval UK ○ Defence - Naval Overseas ○ Oil & Gas - Exploration & Production ○ Oil & Gas - Diving Support Oil & Gas Market Cust
Slide 16: CSC in numbers
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 CSC in numbers Revenue 39% up to Gross profit margin Operating profit more than doubled to £13.9m (2018: £9.9m) 36% £2.1m (2018: 35%) (2018: £1.0m) Return on revenue up 4ppt Integrity Management Services Revenue up Revenue from emerging hydrogen ene
Slide 17: CSC - Strategic Focus for Organic Growth
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 CSC - Strategic Focus for Organic Growth Ultra-Large Cylinder Supply UK naval submarine Overseas naval Global hydrogen Oil and gas projects Storage for space, and surface ship submarine and surface energy projects for drilling, production industri
Slide 18: Strategic Progress & Outlook
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Strategic Progress & Outlook
Slide 19: Vision for growth
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Vision for growth Creating value for investors, customers, ● Quality of our products and services ● Financial Performance - revenue, operating profit, EPS, dividend colleagues and the communities we ● Customer Preference - market share, repeat busi
Slide 20: Strategic Progress in 2019
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Strategic Progress in 2019 ● sale of Engineered Products division in June 2018 and Alternative Energy division in June 2019. Group now focussed on two core divisions ● increase in operating profit and return on revenue delivered in 2019 ● Divestmen
Slide 21: Conclusion and outlook
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Conclusion and outlook “I am pleased with the significant improvement ● Non-core divestments complete and refocused Group returned in trading performance this year. We have made to profitability important management and operational changes within th
Slide 22: Supporting Information
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 SUPPORTING INFORMATION
Slide 23: Executive Management Team
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Executive Management Team Chris Walters Joanna Allen Chief Executive Chief Financial Officer Appointed - September 2018 Appointed - July 2015 Relevant strengths Relevant strengths ● Business regeneration and growth ● IFRS financial reporting for AIM
Slide 24: Independent Non-Executive Directors
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Independent Non-Executive Directors Neil MacDonald Brian Newman Independent SID Chair Appointed - June 2013 Appointed - September 2015 Relevant strengths Relevant strengths ● M&A expertise ● Engineering expertise ● Growing businesses ● Knowledge o
Slide 25: Major Shareholders
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Major Shareholders Name of Shareholder No. of Shares Holding Gresham House Asset Management 3,650,000 19.63% Artemis Investment Management LLP 3,598,648 19.35% Schroder Investment Management 1,232,304 6.63% James Sharp 1,171,067 6.30% J.T.S. Haywa
Slide 26: Keep up to date with our news
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Keep up to date with our news Please join us on LinkedIn https://www.linkedin.com/company/17971399/ And keep up to date with news from around the Group http://www.pressuretechnologies.com/news Contact us pressure@investor-focus.co.uk FULL YEAR RES
Slide 27: Disclaimer
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION 2019 Disclaimer 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 Un