Slide 1: Preliminary Full Year Results
Preliminary Full Year Results Year to 31 December 2014
Slide 2: The Business
The Business 2014 sales by n Well-established international specialist technology and services group division – high performance instrumentation, machinery and analytical services Tobacco – market-leading expertise Machinery Scientific Services – reputation for high service levels £24.6m £24.8m n Th
Slide 3: Results: Operational Key Points
Results: Operational Key Points n Results in line with market expectations n Improved profitability in both the Scientific Services and Packaging Machinery divisions n Tobacco Machinery impacted by geopolitical environment and weak market conditions n Continuing product development across the divisi
Slide 4: Results: Financial Key Points
Results: Financial Key Points n Sales of £89.9m (2013: £105.2m) n Underlying PBT of £3.3m (2013: £5.4) n Underlying EPS of 11.9p (2013: 23.9p) n Net debt of £2.1m (Dec 2013: £5.2m net funds) n Proposed final dividend of 3.0p per share, taking total to 5.5p per share (2013: 5.5p) 3 >>
Slide 5: Financial Results
Financial Results Sales (£m) Underlying PBT (£m) 105.2 5.4 93.0 4.9 86.4 89.9 89.9 4.5 3.6 3.3 47.8 40.3 38.8 39.9 40.0 1.7 1.5 0.8 H2 0.8 0.6 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 H1 Underlying EPS (p) Dividend per share (p) 23.9 21.8 5.5 5.5 5.5 5.25 5.0 18.3 13.9 11.9 2.5 2.5 2.5 2.5
Slide 6: Financial Review: Income Statement
Financial Review: Income Statement 2011 £m 2014 2013 £m £m n Sales affected mainly by challenges in the tobacco Sales 89.9 105.2 sector (Tobacco Machinery sales down by £9.8m) and Underlying operating profit* 3.4 5.5 strength of sterling (reduced reported sales by £4.0m) Non-underlying items (2.8) (
Slide 7: Financial Review: Cash Flows
Financial Review: Cash Flows 2014 2013 £m £m Cash flows from operating activities (0.5) 4.1 n Cash flows from operating activities: – £3.7m working capital increase reflecting lower Cash flows from investing activities (4.8) (4.4) customer deposits and trade creditors (due to Cash flows from financi
Slide 8: Financial Review: Balance Sheet
Financial Review: Balance Sheet 2014 2013 Net assets £m £m Intangible Goodwill 8.6 10.0 n Goodwill comprises amounts in respect assets: of Scientific Services businesses (Cerulean £7.3m and Product development 7.1 5.2 Arista £1.3m after impairment of £1.6m in year) Property, plant & equipment 12.1 1
Slide 9: Divisional Trading Results
Divisional Trading Results 2014 2013 Sales £m £m Scientific Services 24.8 26.5 Packaging Machinery 40.5 44.3 Tobacco Machinery 24.6 34.4 Total 89.9 105.2 Underlying operating profit/(loss)* Scientific Services 1.8 1.1 Packaging Machinery 1.8 1.5 Tobacco Machinery (0.2) 2.9 Total 3.4 5.5 * Before non
Slide 10: Scientific Services: Business Overview
Scientific Services: Business Overview Quality & Process Control Instrumentation n Market-leading testing/measuring instrumentation and machines – quality control instrumentation and smoke capture machines – carton testing, air sampling, pack seal testing n International sales & service operations –
Slide 11: Scientific Services: Operating Performance
Scientific Services: Operating Performance 2014 2013 Sales £24.8m £26.5m Operating profit* £1.8m £1.1m Return on sales* 7.2% 4.2% * Before reorganisation costs of £0.1m (2013: £0.1m) Quality & Process Control Instrumentation n Sales strong but marginally down on previous year which benefited from la
Slide 12: Scientific Services: New Products
Scientific Services: New Products n E-cigarette testing machine – allows e-cigarette manufacturers to verify product designs and ensure compliance with market regulations as they develop – enables segregated testing of e-cigarettes, avoiding risk of contamination from tobacco products n Lower capita
Slide 13: Packaging Machinery: Business Overview
Packaging Machinery: Business Overview n Leading supplier of complex high-speed packaging & processing equipment and technical consultancy n Innovative technology tailored for specific niches within the following sectors – nutrition – beverages – healthcare – pharmaceutical – tobacco n Key supplier
Slide 14: Packaging Machinery: Operating Performance
Packaging Machinery: Operating Performance 2014 2013 Sales £40.5m £44.3m Operating profit £1.8m £1.5m Return on sales 4.4% 3.4% n Order intake increased by more than 20% in local currencies, with Asian region contributing strongly n Sales in local currencies broadly flat n Margins improved with stra
Slide 15: Packaging Machinery: New Products
Packaging Machinery: New Products n New Vento high-speed cartoning machine n Incorporates a range of hygienic design features that reduce the risk of microbial contamination n Strong interest from a number of current and prospective customers n First orders delivered 14 >>
Slide 16: Tobacco Machinery: Business Overview
Tobacco Machinery: Business Overview n Major supplier of machinery and aftermarket services to tobacco industry worldwide n Global presence – UK, USA, Brazil, Singapore, Czech Republic, Russia & Egypt n Fully developed lower cost supply chain, with manufacturing facilities in Czech Republic and Braz
Slide 17: Tobacco Machinery: Operating Performance
Tobacco Machinery: Operating Performance 2014 2013 Sales £24.6m £34.4m Operating (loss)/profit* £(0.2)m £2.9m Return on sales* (0.8)% 8.4% * Before reorganisation costs of £0.4m (2013: £nil) n Trading conditions toughened after promising start to year – mix of geopolitical issues and widespread mark
Slide 18: Tobacco Machinery: New Products
Tobacco Machinery: New Products n Alto - 10,000 cigarettes per minute making machine – field trial expected to conclude in Q1 2015 n Incorporates new wider tobacco hopper and gentler product handling features leading to reduced tobacco degradation n Initial market interest positive 17 >>
Slide 19: Summary & Outlook
Summary & Outlook n Performance in line with market expectations n Challenges in tobacco machinery market and strategic review of analytical services business underway n Improved profitability in both Scientific Services and Packaging Machinery n Acquisition opportunities being sought n Good progres
Slide 20: Supplementary Information
Supplementary Information 19
Slide 21: Business Overview: Business Model
Business Overview: Business Model We apply our technological know-how to delivering high performance instrumentation and machinery, aftermarket support and analytical services to a range of markets around the world. 20 >>
Slide 22: Financial Appendices: Guidance 2015
Financial Appendices Guidance 2015 n Underlying taxation rate expected to be similar to that of 2014 (31%) n Net financing expense on pension scheme balances will increase from £0.2m in 2014 to £0.7m in 2015, following an increase in the valuations of the deficits at 1 January 2015 compared with twe
Slide 23: Taxation & EPS
Taxation & EPS Taxation Earnings per share 2014 2013 2014 2013 £m £m Underlying tax charge 0.9 0.8 Underlying EPS 11.9p 23.9p Tax credit on pension (0.1) (0.5) Profit before non-underlying items £2.4m £4.6m scheme balances Basic EPS (1.3)p 18.0p Tax credit on (0.2) - (Loss)/profit for the period £(0
Slide 24: Cash Flow
Cash Flow 2014 2013 2014 2013 £m £m £m £m Underlying operating profit* 3.4 5.5 Interest received 0.2 0.2 Depreciation & amortisation 3.0 3.2 Capital expenditure (net) (1.9) (2.4) Other non-cash items 0.1 0.2 Development expenditure (3.1) (2.2) Pension payments (ex. reorganisation) (1.8) (1.5) Net ca
Slide 25: Working Capital
Working Capital 2014 2013 £m £m Inventories increase (0.7) (1.0) Receivables increase (1.9) (3.4) Payables (decrease)/increase (0.9) 2.4 Provisions (decrease)/increase (0.2) 0.4 Net working capital increase (3.7) (1.6) 24 >>
Slide 26: Banking Facilities
Banking Facilities n UK committed borrowing facilities of £13.0m renewed in October 2013, committed to September 2018, secured on the Group’s assets n In addition, ancillary facilities in place to cover Group’s bonding, guarantees and foreign exchange requirements 25 >>
Slide 27: Pensions
Pensions 2014 2013 £m £m Value of assets UK 347.9 337.9 n Accounting deficit increased mainly as a result of reduced real interest rates; net US 15.4 14.3 discount rate: Total 363.3 352.2 – UK valuation: 1.5% (2013: 1.9%) – USA valuations: 0.7% (2013: 1.5%) Net deficit UK (14.1) (2.5) n Funding of U
Slide 28: Disclaimer
Disclaimer This presentation is being made only to and directed at: (a) persons who events and circumstances that are beyond the control of Molins, have professional experience in matters relating to investments falling including amongst other things, Molins’ future profitability, within Article 19
Slide 29: Dick Hunter Chief Executive David Cowen
Dick Hunter Chief Executive David Cowen Group Finance Director Rockingham Drive Linford Wood East Milton Keynes MK14 6LY Tel: +44 (0)1908 246870 Fax: +44 (0)1908 234224