Slide 1: Results for half year ended 30 September 2015
Results for half year ended 30 September 2015 Presentation to Analysts 17 November 2015
Slide 2: Carclo is a leading global manufacturer of fine tolerance parts
Carclo is a leading global manufacturer of fine tolerance parts for the Medical, Industrial, Aerospace and Luxury and Supercar Lighting markets Global contract manufacturer to medical market Leading designer and manufacturer of luxury and supercar LED Lighting Leading supplier of aviation control ca
Slide 3: Results and Summary
Results and Summary • Strong growth in group turnover and underlying operating profit driven by Technical Plastics and LED divisions • Revenue increased by 17.2% to £57.2 million, reflecting excellent sales progression across our businesses • Underlying operating profit increased by 82.2% to £4.7 mi
Slide 4: Strategic KPIs
Strategic KPIs Revenue Growth – first half 2015 £57.2m The revenue growth seen year on year is a strong 2014 £48.8m indicator of success in delivering the group’s strategy – up 17.2% on 2014. 2013 £45.4m Underlying Operating Profit Margin – first half 2015 8.2% 2014 5.3% Margin strengthened from 5.3
Slide 5: CTP and LED divisions drive strong group performance
CTP and LED divisions drive strong group performance CTP & LED Revenue £m CTP & LED Underlying Operating Profit £m 98.9 98.3 86.2 78.3 9.8 54.0 46.1 H2 7.2 42.6 6.1 H2 H2 5.9 H1 4.5 H1 3.9 44.3 52.6 35.7 40.1 5.3 3.9 2.2 2.7 12/13 13/14 14/15 15/16 12/13 13/14 14/15 15/16 Revenue Margin • Existing g
Slide 6: Financial Highlights
Financial Highlights HY ended HY ended 30 September 30 September 2015 2014 £000 £000 Revenue Technical Plastics 31,468 29,995 LED Technologies 21,172 14,340 Precision Engineering 3,063 2,719 CIT Technology 1,483 1,742 Total 57,186 48,796 Operating profit before exceptional items 4,683 2,570 Exceptio
Slide 7: Divisional Analysis
Divisional Analysis CTP 35 3 30 Revenue change •Revenue growth in H1 came from most 25 2 sites (excluding China) 20 Profit* +4.9% •Site expansion and efficiency Sales £m 15 £m 1 Operating profit* improvements leading to better returns 10 5 •Further revenue and margin growth +11.5% expected in H2 0 0
Slide 8: Income Statement Comparative
Income Statement Comparative 30-Sep-15 30-Sep-14 Operating profit • Group revenue increased by 17.2% to Divisional operating profit 5.9 3.6 £57.2 million Central costs (1.2) (1.0) • Underlying divisional operating profit Underlying operating profit from continuing ops 4.7 2.6 increased 62.8% to £5.9
Slide 9: Financial Position – Cash Flow
Financial Position – Cash Flow • Strong underlying cash generation from operations £million £million • In CIT a royalty payment of £3 million was received from UniPixel in respect of the deal to license CIT's Net debt at start of period (24.5) fine line technology Underlying cash from operations 6.7
Slide 10: Financial Position – Debt & Facilities
Financial Position – Debt & Facilities Net Debt • £27.3 million at 30 September 2015 • Increase since 31 March 2015 due to continued investment in the group’s manufacturing capacity and higher working capital to support growth • Expected to reduce slightly by the financial year end with more signifi
Slide 11: Financial Position – Pensions
Financial Position – Pensions • IAS 19 pension deficit has increased to £15.0 million net of deferred tax at 30 September 2015, in comparison to the prior year deficit of £9.7 million at 31 March 2015 • Scheme assets have decreased by £13.5 million since 31 March 2015 and scheme liabilities have dec
Slide 12: Markets & Strategy Actions
Markets & Strategy Actions Technical Plastics LED Technologies Aerospace CDS 12
Slide 13: Technical Plastics
Technical Plastics Sep-15 Sep-14 £m £m Revenue 31.5 30.0 Profit* 2.5 2.3 Margin 8.0% 7.5% Diagnostics Medical disposables Industrial • Underlying operating profit margin increased from 7.5% to 8.0% . Further margin increase anticipated in the second half as the US business moves into a more efficien
Slide 14: Technical Plastics – Next Phase Strategy
Technical Plastics – Next Phase Strategy • Customer feedback analysis has confirmed that further ‘added value’ opportunities exist for CTP • Detailed investigations into the available markets, key technologies and players has continued • The board is committed to enhancing CTP’s product offering to
Slide 15: LED
LED Sep-15 Sep-14 £m £m Revenue 21.2 14.3 Profit* 2.8 1.7 OEM Lighting Aftermarket Optics Margin 13.1% 11.7% • Performance substantially stronger than the comparative period last year; turnover increasing significantly by 47.6% and underlying operating profit increasing 64.6% • Performance driven by
Slide 16: LED – Market and Positioning
LED – Market and Positioning • Growth in the number of luxury and supercar vehicles planned for release over the medium term has continued • Wipac’s successful management of multiple new lighting programmes over recent months has continued to enhance it’s reputation • Strong market position is creat
Slide 17: Precision Engineering
Precision Engineering Sep-15 Sep-14 £m £m Revenue 3.1 2.7 Profit* 0.6 0.7 Margin 20.6% 26.6% • Focus of growth in OEM cables and machined spares business for both the same OEMs and Tier 1s • Challenging period in the first half, mainly due to weaker demand impacting the higher-margin OEM spares orde
Slide 18: Carclo Diagnostic Solutions (CDS)
Carclo Diagnostic Solutions (‘‘CDS’’) • CDS has continued to meet its development timelines with phase 2 requirements all due for completion by Dec 15 • During the period we have been able to generate strong technical data on the performance of our Micropoc platform and this will be shown to potenti
Slide 19: CIT
CIT • As previously announced the group agreed to license CIT’s fine line technology to UniPixel Displays Inc. (“UniPixel”) and entered into a short-term coated film supply agreement with a latest expiry date of 31 October 2015 • Supply of coated film took place through to October but it has now cea
Slide 20: Group Strategy
Group Strategy Our targets are consistent and clear - • Focus on year-on-year revenue growth • To continue to improve underlying operating margin • To continue to grow our ROI Our planning has been focused on the medium term and our attention is now moving to longer term objectives where we see oppo
Slide 21: Outlook
Outlook • The momentum built up in our two main manufacturing divisions is expected to continue in the coming years • Within Technical Plastics, the strategy to expand the scale and quality of our manufacturing footprint has resulted in increased turnover, profitability and ROI performance. Further
Slide 22: End
End Forward looking statements - Certain statements made in this presentation are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events to differ materially from any expected future events o