Slide 1: Preliminary Full Year Results
Preliminary Full Year Results Year to 31 December 2015
Slide 2: The Business
The Business 2015 sales by n Well-established international specialist technology and services group division – high performance instrumentation, machinery and aftermarket services – market-leading expertise Packaging Instrumentation Machinery & Tobacco – reputation for high service levels Machinery
Slide 3: Results: Operational Key Points
Results: Operational Key Points n Results in line with management expectations n Disposal of analytical services business completed in May 2015 following strategic review n Instrumentation & Tobacco Machinery division affected by continuing challenging market conditions n Packaging Machinery divisio
Slide 4: Results: Financial Key Points – continuing operations
Results: Financial Key Points – continuing operations n Sales of £87.0m (2014: £87.4m) n Underlying PBT of £3.8m (2014: £5.3m) n Underlying of EPS of 15.1p (2014: 22.4p) n Loss from discontinued operations of £5.8m (2014: £3.6m) n Net debt of £3.2m (Dec 2014: £2.1m) n Proposed final dividend of 1.5p
Slide 5: Financial Review: Income Statement
Financial Review: Income Statement 2011 £m 2015 2014 £m £m n Sales within Packaging Machinery up 26% supported Sales 87.0 87.4 by strong opening order book; I&TM sales down by Underlying operating profit* 4.0 5.4 23% arising from continued weak market conditions Non-underlying items (1.1) (1.2) n Si
Slide 6: Financial Review: Cash Flows
Financial Review: Cash Flows 2015 2014 £m £m Cash flows from operating activities 3.6 (0.5) n Cash flows from operating activities: – £0.4m working capital decrease Cash flows from investing activities (2.7) (4.8) – £1.9m pension deficit payments Cash flows from financing activities (1.5) (1.5) – £0
Slide 7: Financial Review: Balance Sheet
Financial Review: Balance Sheet 2015 2014 Net assets £m £m Intangible Goodwill 7.4 8.6 n Goodwill at December 2015 relates to Cerulean assets: n Property, plant and equipment includes £0.8m of Product development 7.5 7.1 investment property & other intangibles n Tax balance includes £0.5m (2014: £0.
Slide 8: Divisional Trading Results
Divisional Trading Results 2015 2014 Sales £m £m Packaging Machinery 51.0 40.5 Instrumentation & Tobacco Machinery 36.0 46.9 Total 87.0 87.4 Underlying operating profit* Packaging Machinery 3.9 1.8 Instrumentation & Tobacco Machinery 0.1 3.6 Total 4.0 5.4 * Before non-underlying items 7 >>
Slide 9: Packaging Machinery: Business Overview
Packaging Machinery: Business Overview n Leading supplier of complex highly automated product handling, cartoning and robotic end-of-line packaging and processing equipment n Innovative technology tailored for specific niches within the following sectors – nutrition – beverages – healthcare – pharma
Slide 10: Packaging Machinery: Operating Performance
Packaging Machinery: Operating Performance 2015 2014 Sales £51.0m £40.5m Operating profit £3.9m £1.8m Return on sales 7.6% 4.4% n Sales increased by 26% - supported by strong opening order book at January 2015 – good progress in pharmaceutical and healthcare sectors n Significant improvements in mar
Slide 11: Instrumentation & Tobacco Machinery: Business Overview
Instrumentation & Tobacco Machinery: Business Overview n Supplier of instrumentation, machinery and aftermarket services, predominantly to the tobacco industry n Global presence – UK, USA, Brazil, Singapore, Czech Republic, Russia, Egypt, India and China n Well developed supply chain, with instrumen
Slide 12: Instrumentation & Tobacco Machinery: Operating Performance
Instrumentation & Tobacco Machinery: Operating Performance 2015 2014 Sales £36.0m £46.9m Operating profit* £0.1m £3.6m Operating margin* 0.3% 7.7% *Before reorganisation costs of £0.4m (Dec 2014: £0.5m) n Tobacco sector conditions remain tough with continued contraction in capital investment – incre
Slide 13: Outlook
Outlook n Little sign of an immediate recovery in the tobacco sector, although the order book at the beginning of 2016 for the instrumentation business was strong n More cautious view of trading conditions for the Packaging Machinery division - although there are significant numbers of prospective p
Slide 14: Supplementary Information
Supplementary Information - Taxation and EPS - Cash Flow - Working Capital - Banking Facilities - Pensions - Discontinued Operations 13
Slide 15: Taxation & EPS
Taxation & EPS Taxation Earnings per share 2015 2014 2015 2014 £m £m Underlying tax charge 0.9 0.9 Underlying EPS 15.1p 22.4p Tax credit on pension (0.4) (0.1) Profit before non-underlying items £2.9m £4.4m scheme balances Basic loss per share (20.9)p (1.3)p Tax credit on (0.2) (0.2) Loss for the pe
Slide 16: Cash Flow
Cash Flow 2015 2014 2015 2014 £m £m £m £m Underlying operating profit* 4.0 5.4 Interest received 0.1 0.2 Depreciation & amortisation 2.6 2.4 Capital expenditure (net) (0.9) (1.9) Other non-cash items 0.2 0.1 Development expenditure (1.9) (3.1) Pension payments (ex. reorganisation) (1.9) (1.8) Purcha
Slide 17: Working Capital
Working Capital 2015 2014 £m £m Inventories decrease/(increase) 2.2 (0.6) Receivables decrease/(increase) 6.4 (1.5) Payables decrease (8.1) (0.7) Provisions decrease (0.1) (0.2) Net working capital decrease/(increase) 0.4 (3.0) 16 >>
Slide 18: 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 17 >>
Slide 19: Pensions
Pensions 2015 2014 £m £m n Accounting valuation of the UK scheme improved mainly due to investment income Value of assets UK 346.9 347.9 in excess of actuarial assumptions and US 14.9 15.4 changes in financial and demographic assumptions Total 361.8 363.3 n Funding of UK scheme at £1.8m (+2.1%) per
Slide 20: Discontinued Operations – Arista Laboratories
Discontinued Operations – Arista Laboratories 2015 2014 £m £m Loss from trading activities (0.9) (2.0) Proceeds from disposal 0.3 - Costs incurred on disposal (0.4) - Loss on disposal of net assets (3.5) - Impairment of goodwill (1.3) (1.6) Loss on discontinued operations (5.8) (3.6) Net decrease in
Slide 21: 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 22: Contact details
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