Slide 1: Interim Results Presentation
Interim Results Presentation Period ended 2 April 2016 John Hayward, Chief Executive Officer Joanna Allen, Group Finance Director
Slide 2: A specialist engineering group supplying niche products & services
A specialist engineering group supplying niche products & services to the global oil and gas, defence, industrial gases and AE markets Pressure Technologies plc Precision Machined Engineered Products Cylinders Alternative Energy Components Manufacturing Divisions Contracting Division 2
Slide 3: Key metrics
Key metrics H116 H115 FY15 Full Year Sales £17.0m £32.1m £55.6m Adjusted Operating (Loss)/Profit £(0.9)m £2.6m £3.3m Gross Profit Margin 31.9% 30.1% 28.2% Return on sales – manufacturing divisions 5.1% 18.4% 15.1% AE Upgrader orders taken in period* 5 1 4 Exceptional credits/(costs) £1.9m £(1.3)m £(
Slide 4: Impact of the unprecedented drop in oil price
The impact of unprecedented drop in oil price has been significant, O&G revenues fell 49.2% from H115 Customers forecasting no recovery in the oil and gas market before 2017 Devastating effect on the wider industry Total investment over next 30 years should be unaffected - changes to oil prices only
Slide 5: O&G volume decline is the most significant factor in reduction in operating profit
This O&G volume decline is the most significant factor in reduction in operating profit across the Group since H115 Gross Margin • The fundamental shift in the O&G market volumes combined with the phasing of sales in AE division saw an adverse variance in volumes across the Group • This has been off
Slide 6: Impact of the O&G decline on Manufacturing divisions sales and operating profit
The impact of the O&G decline can be seen in Manufacturing divisions sales and operating profit performance • Compared to the first half of 2015 financial year, Group revenues from the oil and gas market fell by 49.2% continuing the decline experienced in the second half of 2015 financial year, whic
Slide 7: Full benefit of reorganisation and efficiencies only realised when volume improves
The full benefit of reorganisation, synergies and production efficiencies will only be realised when volume improves • Payroll costs have progressively declined as action has been taken to align headcount to market conditions • Across the Manufacturing divisions overtime has been largely eliminated
Slide 8: Cash generated from operations before exceptional costs was £2.4m
Cash generated from operations before exceptional costs was £2.4m • Cash generated from operations before exceptional reorganisation costs was £2.4m, compared to £3.8m in H115. • PMC continues to be the most significant contributor of operating cash flows • In H116, the majority of cash flows relate
Slide 9: Summary results
Summary results H116 H115 FY15 • Significant exceptional items to note in the period: Revenue (£m) 17.0 32.1 55.6 • Write back of deferred consideration in respect of Greenlane of £3.3m Adjusted operating profit (£m) (0.9) 2.6 3.3 • Amortisation of intangible assets £1.1m Operating profit (£m) 0.9 1
Slide 10: Summary balance sheet
Summary balance sheet Mar16 Sep15 • A provision for deferred consideration of £3.3 million £m £m relating to Greenlane has been released. The £2.5m remaining relates to Roota and is due to be paid in Intangible assets 27.4 28.5 full by early Q4. Fixed assets 14.0 14.3 • Whilst the Alternative Energy
Slide 11: Precision Machined Components Division
Precision Machined Components Division Division remains profitable despite trading conditions in the oil and gas market Revenue Forecasting difficult due to low market activity and unpredictable customer ordering £6.6m patterns 2015: £11.6m Adjusted operating profit AL-Met and Roota gaining market s
Slide 12: Engineered Products Division
Engineered Products Division Business restructured over the last 12 months as cuts in capital expenditure and discretionary service spend in the oil and gas market continue to impact sales Revenue revenues and profitability £2.9m 2015: £4.7m Headcount reduced by a third whilst at the same time senio
Slide 13: Cylinders Division
Cylinders Division Division remains profitable despite major reduction in orders fro the oil and gas Revenue market £4.8m Defence market continues to provide a firm base load of orders with naval defence 2015: £7.8m orders of £10 million through to 2020 already secured Adjusted operating profit Pote
Slide 14: Alternative Energy Division
Alternative Energy Division Sales order phasing and strong immediate pipeline should give strong second-half Revenue performance Good momentum building with six contracts secured to date this year worth £10 £3.2m 2015: £8.0m million o Two repeat orders with existing customers in the UK Adjusted oper
Slide 15: Summary & Outlook
Summary & Outlook Oil and gas market continues to be difficult but the Group is in good shape to weather these conditions and more importantly is well placed to take advantage when they improve Alternative Energy Division which is not driven by the oil price, is showing solid momentum and the pipeli
Slide 16: 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