28 slides from Chesterfield Special Cylinders's earnings presentation, Jun 27, 2023
Slide 1: Investor Presentation
Investor Presentation Chris Walters, Chief Executive Steve Hammell, CFO Chris Webster, COO 27 June ‘23 1
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: Agenda
Agenda • Group Highlights • Group Financial Results • CSC Division - Highlights & Outlook • PMC Division - Highlights & Outlook • Refinancing & Lloyds Bank Facility • Summary & Outlook • Contact Us • About Us 3
Slide 4: Group Highlights
Group Highlights • Improving trading conditions during H1 FY23 driven by major defence contract placement and continued recovery in the oil and gas market • Group revenue in H1 FY23 of £13.8 million (2022: £9.5 million) up 45% • Gross profit of £3.7 million at 27% margin (2022: £2.1 million at 22% m
Slide 5: Group Financial Results - Profit & Loss
Group Financial Results - Profit & Loss H1 FY23 H1 FY22 FY 22 £m £m £m Revenue 13.8 9.5 24.9 Chesterfield Special Cylinders 8.8 6.3 17.6 Precision Machined Components 4.9 3.2 7.3 Gross profit 3.7 2.1 5.3 Adjusted operating loss (0.5) (2.1) (2.6) Chesterfield Special Cylinders 0.8 (0.3) 0.4 Precision
Slide 6: Group Financial Results - Balance Sheet & Net Debt
Group Financial Results - Balance Sheet & Net Debt • Loss after tax in H1 FY23 of £1.4m H1 23 FY22 H1 22* £m £m £m • Equity issue in Dec ‘22 raised £2.1m (net) Intangible Assets - - 0.2 • Net Assets increased by £0.7m in H1 FY23 Tangible fixed assets 10.1 10.3 11.7 * H1 ‘22 has been re-stated by £1.
Slide 7: CSC Division - Highlights
CSC Division - Highlights • CSC revenue in H1 FY23 of £8.8 million (2022: £6.3 million) up 40% • Driven by Defence work in the second quarter and progress in Hydrogen markets, underpinning improved EBITDA profitability • Defence revenue of £7.0 million (2022: £5.0 million) reflecting strong order bo
Slide 8: CSC Division - Highlights
CSC Division - Highlights • Enquiry levels for Integrity Management services increased sharply during the first half of FY23, driven by growing activity in the offshore and hydrogen energy markets • CSC order intake of £22.3 million in 8m/e May 2023 (May 2022: £12.4 million) supports a current order
Slide 9: CSC Division - Outlook
CSC Division - Outlook • Defence orders provide strong revenue cover for the remainder of FY23 and good visibility into FY24 • CSC also remains well positioned in the emerging market for hydrogen storage and transportation: • Order placement from established and new customers was slower than expecte
Slide 10: CSC Division - Long-term outlook underpinned by Defence
CSC Division - Long-term outlook underpinned by Defence 2022 2050 • Total revenue opportunity U.K. of £100m-£150m over next 2022 2030 15 years France 2022 2042 U.K. • Major programmes include: 2022 Columbia 2042 U.S. • AUKUS £32m 2028 SSNAUKUS 2048 • France £24m AUKUS • US £19m 2026 Triomphant repla
Slide 11: CSC Division - Long-term growth driven by Hydrogen economy
CSC Division - Long-term growth driven by Hydrogen economy Today - 2023 Tomorrow - 2030 • Carbon emission reduction goals • Hydrogen production • EU - 55% reduction by 2030 • Increasingly distributed • UK - 78% reduction by 2035 • Deployment targets set • Energy Security • EU – 10Mt of renewable hyd
Slide 12: PMC Division - Highlights
PMC Division - Highlights • We are seeing the early stages of recovery in oil and gas markets and are encouraged by trading performance in the division • PMC revenue in the first half of FY23 of £4.9 million (2022: £3.2 million) up 53% supporting a return to EBITDA profitability • PMC order intake s
Slide 13: PMC Division - Highlights
PMC Division - Highlights • Roota • The demand for subsea well intervention tools, valve assemblies and control module components has continued to grow during H1 FY23 with a sharp improvement noted in April and May 2023 • Aker, Expro, Halliburton and Schlumberger continue to report a stronger oil an
Slide 14: PMC Division - Highlights
PMC Division - Highlights • Al-Met – recovery of order intake has been particularly strong in H1 FY23 • Demand for production drilling and flow control components, supported by a strong and sustained recovery in subsea tree new build capex, is expected to grow across 2023 • Schlumberger and Baker Hu
Slide 15: PMC Division - Outlook
PMC Division - Outlook • In Nov ‘22, the Board announced that an improved trading environment and outlook created the potential opportunity to divest PMC in order to raise funds to progress strategic priorities in CSC • A number of offers to acquire PMC were received but none were at a level that th
Slide 16: Refinancing
Refinancing • The Refinancing of the existing debt facilities of the Group has the following objectives: • Repay Lloyds Bank in full • Provide working capital to support the strategic development of the Group • We have engaged with a number of prospective providers of asset-backed lending facilities
Slide 17: Lloyds Bank Facility
Lloyds Bank Facility • The Lloyds Bank revolving credit facility has been amended with maturity date brought forward from 31 March 2024 to 31 December 2023 • Lloyds have agreed to waive financial covenant tests on 30 June 2023 • The Group is likely to require additional financing after 31 December 2
Slide 18: Summary & Outlook
Summary & Outlook • The Group is well positioned in the defence and emerging hydrogen energy sectors and expects to benefit from recovery in the oil and gas market during the remainder of FY23 and across FY24 • The order book is robust underpinning stronger performance in H2 FY23 and good visibility
Slide 19: Contact Us
Contact Us Pressure Technologies plc | LinkedIn 0333 015 0710 www.pressuretechnologies.com PressureTechnologies@houston.co.uk 19
Slide 20: About Us
About Us AL Pressure | “4T Technologies 20
Slide 21: Our Company Values
Our Company Values We put We innovate & We work We deliver to the people first create the future together highest standard 21
Slide 22: Introduction to Pressure Technologies
Introduction to Pressure Technologies Our Purpose Our Vision Our Purpose is to advance safety Our Vision is to build a Company and reliability in demanding that is globally recognised within its markets as the leading environments through technology, provider of pressure containment high quality eng
Slide 23: Our Group
Our Group We are leaders in the design and manufacture of safety-critical components and systems serving global supply chains in defence, oil and gas, industrial and hydrogen energy markets [\\\\ chesterfieta Precision Machined Components (PMC) Martract Roota ( al-met + Established in 1897 + Safety-
Slide 24: Chesterfield Special Cylinders
Chesterfield Special Cylinders 24
Slide 25: What makes us unique?
What makes us unique? 125 years in Trusted by One stop shop the making our customers We design, manufacture and maintain world-leading Decades of design, manufacturing Very strong presence in the bespoke pressure gas and supply to worldwide markets hyrdrogen market in Europe containment solutions an
Slide 26: PT Group revenue 2021 £25.3M
1.Chesterfield Special Cylinders and Pressure Technologies Head Office Employees 125 Property Meadowhall Road, Sheffield Specialisms High pressure gas containment cylinders and in-situ inspection and 2. Roota Engineering recertification PT Group Employees 36 revenue 2021 Property Specialisms Rotherh
Slide 27: Fuelling hydrogen storage for over 80 years
Fuelling hydrogen storage for over 80 years Engaged with the world’s leading hydrogen Proven track ● sector players record for the ● Provided Type 1 pressure vessels for many HRSs, cylinders/tubes for commercial vehicles, delivery of trains and small marine vessels many hydrogen ● In excess of 20 pr
Slide 28: Our ground & transportable end-end H2 gas storage solutions
Our ground & transportable end-end H2 gas storage solutions 28