28 slides from Chesterfield Special Cylinders's earnings presentation, Jun 12, 2012
Slide 1: Pressure Technologies plc Interim Results
Pressure Technologies plc Pressure Technologies plc John Hayward, Chief Executive Interim Results James Lister, Finance Director 12 June 2012
Slide 2: Safe Harbour Statement
Pressure Technologies plc Safe Harbour Statement This presentation and the subsequent question and answer session may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. There are risk factors that could cause our actual r
Slide 3: A leading designer and manufacturer of high pressure engineering systems
Pressure Technologies plc A leading designer and manufacturer of high pressure engineering systems, serving the global energy, defence and industrial gases markets and the UK alternative energy market 3
Slide 4: Pressure Technologies plc
Pressure Technologies plc This page blank 4
Slide 5: Agenda
Pressure Technologies plc Agenda • Highlights • Financial Performance • Business Update • Summary and Outlook • Appendix: Business Strategy 5
Slide 6: Highlights
Pressure Technologies plc Highlights • Revenue of £12.6 million (2011: £10.3 million) • Operating profit at £0.45 million (2011: loss of £0.31 million) • Pre-tax profit of £0.46 million (2011: loss of £0.31 million) • Basic earnings per share 3.1p (2011: loss of 1.9p) • Strong balance sheet maintain
Slide 7: Highlights
Pressure Technologies plc Highlights • Return to H1 profitability achieved • Group order book significantly strengthened, as a result of strong demand from the Oil & Gas market • Defence sales, as predicted, lower than 2011 due to phasing of projects • Improving market visibility in Cylinder Divisio
Slide 8: Financial Performance
Pressure Technologies plc Financial Performance James Lister Group Finance Director 8
Slide 9: Financial Performance
Pressure Technologies plc Financial Performance 1st half 1st half 2012 2011 Sales (£m) 12.6 10.3 Operating Profit (£m) 0.45 (0.31) Operating Margin (%) 3.5% (3.0)% EBITDA (£m) 0.9 0.2 PBT (£m) 0.46 (0.31) EPS Basic (pence) 3.1p (1.9)p Dividend (pence) 2.5p 2.4p Cash Flow (£m) 0.6 (3.8) Net Funds (£m
Slide 10: Sales Analysis
Pressure Technologies plc Sales Analysis £m 12.6 0.8 0.1 0.3 1.4 10.3 2.0 0.9 6.5 5.1 2.2 2.5 3.8 1.8 2011 Cylinders - Oil & Gas Cylinders - Other Engineered Products Chesterfield BioGas 2012 Cylinders - Oil & Gas Cylinders - Other Engineered Products Alternative Energy 10
Slide 11: Operating Profit
Pressure Technologies plc Operating Profit 2012 2011 Half Year Half Year £m £m £m 0.1 Cylinders 0.7 0.3 0.2 0.1 0.5 Engineered Products 0.5 0.3 0.2 Chesterfield BioGas (0.2) (0.1) 0.4 -0.3 Acquisition and (0.1) (0.3) Amortisation Costs Central Costs (0.4) (0.5) (unallocated) Operating profit/(loss)
Slide 12: Balance Sheet
Pressure Technologies plc Balance Sheet 31 Mar 02 Apr 01 Oct 2012 2011 2011 £m £m £m Intangible assets 3.8 4.0 3.9 Fixed assets 4.5 4.5 4.6 Inventories 6.0 5.8 5.0 Receivables 6.4 7.1 6.8 Payables (8.2) (8.4) (7.0) Working capital 4.2 4.5 4.8 Tax provisions (0.6) (0.5) (0.7) Net funds 3.5 2.7 2.9 Ne
Slide 13: Cash Flow
Pressure Technologies plc Cash Flow Operating cash flow £1.8m (2011 First Half: £0.3m ) £m 0.1 0.4 1.0 0.5 0.3 0.9 3.5 2.9 2012 Opening Net EBITDA Decrease in Working Capex Net of Deferred Purchase Dividends Tax 2012 Half Year Funds Capital Disposals Consideration Closing Net Funds 13
Slide 14: Business Update
Pressure Technologies plc Business Update John Hayward Chief Executive 14
Slide 15: Business Overview
Pressure Technologies plc Business Overview Cylinders Engineered Alternative Products Energy 15
Slide 16: Business Overview
Pressure Technologies plc Business Overview Oil & Gas Defence Industrial Alternative Gases Energy Chesterfield Special Chesterfield Special Chesterfield Special Chesterfield BioGas Cylinders Cylinders Cylinders Chesterfield Special Hydratron UK and US Hydratron UK Cylinders Al-Met APV systems for Su
Slide 17: Markets
Pressure Technologies plc Markets Alternative Energy Oil & Gas Engineered Products Chesterfield BioGas Hydratron Al-Met Chesterfield Special Cylinders Industrial Gases Defence 17
Slide 18: Markets – Oil & Gas: Cylinders
Pressure Technologies plc Markets – Oil & Gas Cylinders • Main market deepwater Oil & Gas platforms • Strong recovery in the market has continued and visibility now 12 months – 2011 – 3 drillship projects supplied – 2012 – 9 drillship projects to be supplied – 2013 – 5 drillship projects won to date
Slide 19: Markets – Oil & Gas: Engineered Products
Pressure Technologies plc Markets – Oil & Gas Engineered Products Al-Met – valve and flow control wear parts • As predicted, demand flat in first half • Orders and customer feedback in Q2 and Q3 indicate that expected growth is occurring • Business restructured to improve efficiency and support grow
Slide 20: Markets – Defence
Pressure Technologies plc Markets – Defence Cylinders • As predicted, 2012 sales will show a reduction compared to 2011 due to phasing of naval projects • Next major deliveries for UK and France forecast for 2013 • Contract won with MoD to provide “through life” support for the Royal Navy’s stock of
Slide 21: Markets – Industrial Gases
Pressure Technologies plc Markets – Industrial Gases Cylinders • Progress maintained in high pressure trailers with addition of a Germany based sales manager with good contacts into the European gas majors • Design function strengthened by recruitment of a specialist high pressure trailer designer •
Slide 22: Markets – Alternative Energy
Pressure Technologies plc Markets – Alternative Energy Market for biomethane to grid (“BtG”) • Stockport project due for delivery September 2012 • Market slow to develop due to delay in RHI, complexity of the structure of projects and the planning system • RHI review 2014/15 now driving market CNG v
Slide 23: Summary and Outlook
Pressure Technologies plc Summary and Outlook • Main market, Oil & Gas, experiencing a sustained upturn • Cylinder and Engineered Products divisions expecting solid growth in 2012 • H2 growth supported by order intake and level of outstanding quotations and further growth anticipated for 2013 • Alte
Slide 24: Pressure Technologies plc
Pressure Technologies plc This page blank 24
Slide 25: Appendix: Business Strategy
Pressure Technologies plc Appendix Business Strategy 25
Slide 26: Appendix – Business Strategy
Pressure Technologies plc Appendix – Business Strategy The vision is to build a highly profitable group of companies specialising in the containment and control of liquids and gases in pressure systems in four main areas • Oil & Gas • Defence • Industrial Gases • Alternative Energy Five pronged stra
Slide 27: Appendix – Acquisition Criteria
Pressure Technologies plc Appendix – Business Strategy Acquisition Criteria • Target companies in niche areas of pressure containment and control • Profitable with significant growth potential • Management teams must be stable and capable of developing the business • There should be overlap in core
Slide 28: Slide 28