Chesterfield Special Cylinders Holdings Plc · LSE:CSC
Chesterfield Special Cylinders — FY2024 Earnings Presentation
31 slides from Chesterfield Special Cylinders's earnings presentation, Feb 5, 2025
Slide 1: FY24 Full-Year Results
FY24 Full-Year Results Investor Presentation Chris Walters, Chief Executive Sally Millen, Director of Finance Chris Webster, Chief Operating Officer 5 February 2025
Slide 2: Disclaimer
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 United Kingdom. This presentation does not constitute o
Slide 3: Transformation
Transformation ● Sale of PMC focuses Group and strengthens balance sheet ● FY25 significant revenue growth, return to Adjusted EBITDA profitability ● First order received to supply the US Navy submarine programme ● Visible hydrogen energy growth programme, orders expected H1 2025 ● High-value Integrit
Slide 4: Agenda
Agenda • FY24 highlights • Financial results • Sale of PMC • Strategy • Market sectors • Strategic progress • Operational readiness • FY28 targets • FY25 outlook • Summary
Slide 5: Financial highlights (combined continuing & discontinued operations)
Financial highlights (combined continuing & discontinued operations) Revenue Gross Profit £31.9m £7.5m (2023: £32.0m) (2023: £8.9m) Adjusted EBITDA* Loss before taxation £0.6m £2.3m (2023: £2.1m) (2023: £1.1m loss) Continuing operations include CSC and Group central costs Operating cash inflow** Net
Slide 6: P&L (combined continuing & discontinued operations)
P&L (combined continuing & discontinued operations) FY24 FY23 £m £m Revenue 31.9 32.0 Chesterfield Special Cylinders 14.8 20.7 Precision Machined Components 17.1 11.2 Gross profit 7.5 8.9 Adjusted EBITDA 0.6 2.1 Chesterfield Special Cylinders 0.8 3.9 Precision Machined Components 1.5 0.1 Central costs
Slide 7: Balance sheet
Balance sheet FY24 FY23 £m £m Tangible Assets 6.8 10.3 Tangible fixed assets 6.5 9.5 Right of use assets (ROUA) 0.3 0.8 Net Working Capital 1.8 5.6 Assets held for sale (PMC) 3.9 - Tax Provisions 0.1 0.1 Net borrowings (0.9) - Cash 0.1 0.9 Term loan / RCF (1.0) (0.9) Finance leases & ROUA liabilities
Slide 8: Financial highlights (continuing operations only)
Financial highlights (continuing operations only) Revenue Gross Profit £14.8m £3.7m (2023: £20.7m) (2023: £7.0m) Adjusted EBITDA* Loss before taxation £0.9m loss £2.7m (2023: £2.0m profit) (2023: £0.3m loss) Operating cash inflow** Net borrowings*** Continuing operations include CSC and Group central
Slide 9: P&L (continuing operations only)
P&L (continuing operations only) FY24 FY23 £m £m Revenue 14.8 20.7 Gross profit 3.7 7.0 Adjusted EBITDA (0.9) 2.0 Chesterfield Special Cylinders 0.8 3.9 Central costs (1.7) (1.9) Depreciation (0.8) (0.8) Exceptional Items (0.7) (1.2) Operating loss (2.4) (0.0) Loss after tax (2.3) (0.0) Loss per share
Slide 10: Sale of PMC
Sale of PMC ● The sale of non-core PMC division to Raghu Vamsi Initial enterprise value Machine Tools completed on 8 October 2024 £6.2m ● PMC complements existing Raghu Vamsi engineering Potential £1.5m additional payment based on PMC FY25 performance, payable Q1 FY26 businesses, with operational an
Slide 11: Strategy
Strategy • Market sectors • Strategic progress • Operational readiness
Slide 12: Strategy
Strategy Delivery of shareholder value through the development and growth of Chesterfield Special Cylinders, realising opportunities in established and emerging markets Defence Hydrogen Trusted supplier of safety-critical pressure systems to World-leading reputation for the supply and lifecycle navie
Slide 13: Defence
Defence NW chesterfield
Slide 14: Key supplier to NATO navies, UK and overseas builders
Key supplier to NATO navies, UK and overseas builders Trusted supplier of safety-critical pressure systems via defence prime contractors worldwide to NATO navies for their newbuild and refit programmes Long-term key supplier to >25 navies worldwide 14
Slide 15: Long-term outlook for UK & overseas defence market
Long-term outlook for UK & overseas defence market Long-term naval newbuild programme visibility to 2040, with revenue opportunity of c.£140m ● Backdrop of geopolitical tensions, increasing global defence budgets ● Established long-term and sole supplier relationships with OEMs supports early projec
Slide 16: Hydrogen
Hydrogen a ay = _
Slide 17: Key role to play in emerging hydrogen economy
Key role to play in emerging hydrogen economy World-leading reputation and over 100 years experience in the design, manufacture and lifecycle support of safety-critical high-pressure hydrogen storage systems ● Newbuild hydrogen storage and transportation solutions: ○ Core business in proven, Type 1
Slide 18: Exciting outlook for hydrogen energy in UK & Europe
Exciting outlook for hydrogen energy in UK & Europe Global hydrogen energy market developing quickly, supporting decarbonisation of transport, power and industrial applications ● Strong commitment from UK government to ambitious decarbonisation targets, aiming to increase green hydrogen production t
Slide 19: Increasing demand for hydrogen transportation
Increasing demand for hydrogen transportation Decades of experience in mandatory testing and recertification of hydrogen road trailers. Recent strong ramp up in enquiries for new fleets driven by hydrogen growth in UK and Europe ● Mandatory testing and recertification at 10-year (Type 1) and 5-year (T
Slide 20: Integrity Management
Integrity Management
Slide 21: Expanding high-value lifecycle support services
Expanding high-value lifecycle support services Lifecycle support services from trusted OEM providing mandatory retesting and recertification through in-factory processes and expert in-situ Integrity Management operations ● Repeat high-value revenue stream from extensive installed fleets across regul
Slide 22: Strategic progress
Strategic progress Progress throughout FY24 and in FY25, securing overseas defence contracts, positioning for major UK hydrogen contract awards, ramping up Integrity Management naval deployments Defence Hydrogen ● Delivery of key milestones on major UK and ● Doubled trailer inspection and testing Fr
Slide 23: Operational readiness
Operational readiness
Slide 24: Operational improvement underpins growth
Operational improvement underpins growth Efficiency improvements to increase capacity and grow margins without major capex 2022 2025 2028 Do the basics Systematic change Accelerate performance ● “Debottleneck” the factory ● Focussed improvement on ● Visual factory Operational ● Quality hold points co
Slide 25: FY28 targets / FY25 Outlook
FY28 targets FY25 Outlook (| Chesterfield | Special Cylinders
Slide 26: FY28 targets
FY28 targets To create value for our customers, shareholders and other stakeholders as a leading supplier of gas storage and transportation systems and services to customers who operate globally in demanding, safety-critical environments. Grow hydrogen sales to Deliver revenue Double >£30m high-valu
Slide 27: FY25 outlook
FY25 outlook ● Deliver significant revenue growth over FY24 from increased hydrogen business, return to Adjusted EBITDA profitability ● Group structure aligned to support CSC growth plans, reduced central cost of £0.9m (FY24: £1.7m) ● Deliver UK and overseas defence projects, including manufacture for
Slide 28: Summary
Summary With a simplified Group structure and stronger balance sheet, the Board remains focused on positioning Chesterfield Special Cylinders in established and emerging markets to maximise shareholder value ● Transformational year in FY25 ● Clear ambition and targets set for FY28 ● Exciting medium-te
Slide 29: FY24 Full-Year Results Q&A
FY24 Full-Year Results Investor Presentation Q&A
Slide 30: FY24 Full-Year Results Additional Information
FY24 Full-Year Results Investor Presentation Additional Information 30
Slide 31: Exceptional items summary
Exceptional items summary Continuing Discontinued £m £m Costs in relation to the sale of PMC 627 - Recharges in relation to sale of PMC (131) 131 Arrangement of term loan 111 - Debt advisory services 15 - Write-down of historical fixed assets 33 54 Reorganisation costs 17 14 Other 40 33 Total excepti
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