Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — H1 2020/21 Earnings Presentation
25 slides from Alumasc's earnings presentation, March 2021
Slide 1: The Alumasc Group plc Interim Results
The Alumasc Group plc Interim Results For the Six Months Ending 31 December 2020 Alumasc Roofing-Blackdown Green Roofs hard and soft landscape installation – luxury apartments at Wardian, London
Slide 2: Contents
Contents 01 02 Overview of HI: 2020/21 Strategic Delivery 03 04 Financial Review Business Review 05 06 Outlook Appendices Paul Hooper Chief Executive Sarah Lee Group Financial Controller Alumasc Roofing – Derbigum BluRoof – Redcliff Quarter, Bristol
Slide 3: Overview of H1: 2020/21
01 Overview of H1: 2020/21 Alumasc Water Management Solutions - Steel Rainwater - Conningbrook Lakes
Slide 4: Overview
Overview Very strong performance in all Divisions against a difficult, Covid-19 affected, economic backdrop: • Revenues from continuing operations: £45.6m (2019: £41.1m); +11% • Underlying operating margin: 13.6% (2019 : 6.1%) • Underlying PBT £6.0m (2019 : £2.3m) • Material reduction in Net Debt to
Slide 5: Strategic Delivery
02 Strategic Delivery Roof-Pro – PP3 Riser Penetration Units
Slide 6: Strategic delivery – Levolux business improvement plan
Strategic delivery – Levolux business improvement plan Building Envelope – Department of Work and Pensions, Welsh Valleys Targets • Return business to sustainable profit as soon as possible • Incorporate Levolux into the newly formed (2019/20) Building Envelope Division • Focus on design & supply ac
Slide 7: Strategic delivery – A cost-efficient operating structure
Strategic delivery – A cost-efficient operating structure • Successful reduction from 10 operating sites to 6 in prior year, delivering £2.4m of savings. This delivered clear benefits in H1/FY2021 • Sharing common overhead structures across the Group Alumasc Water Management – Rushden Lakes - Gatic
Slide 8: Strategic delivery – Investment and innovation to drive profitable growth
Strategic delivery – Investment and innovation to drive profitable growth • Focus on key manufacturing businesses: Timloc, Wade, AWMS • Timloc: capacity, machinery upgrade & automation • Ongoing innovation with numerous new product launches throughout the period, despite Covid disruption • Key inves
Slide 9: Strategic delivery – Pro-active portfolio management
Strategic delivery – Pro-active portfolio management • Bolt-on acquisitions continue to be sought. There are no plans to make divestments Wade – Victoria & Albert Museum, London 9 www.alumasc.co.uk
Slide 10: Alumasc Group – ESG Strategy
Alumasc Group – ESG Strategy Planning our ESG roadmap Environmental: ▪ 10% reduction in energy consumption by 2022 ▪ 5% YoY reduction in landfill (100% achieved already by Timloc) ▪ Reducing plastic packaging and using recyclable packaging ▪ Working with our suppliers to reduce carbon footprint acro
Slide 11: Alumasc Group – ESG Strategy
Alumasc Group – ESG Strategy Strategic delivery of the sustainability agenda Alumasc Roofing - Conwy Cultural Centre – Derbigum Waterproofing and Blackdown Green Roof Alumasc Group: ▪ Excellent alignment to ESG ▪ All Divisions are totally committed to, and insist on, the use of recycled material whe
Slide 12: Financial Review
03 Financial Review Wade – Slot Channel - 190 The Strand
Slide 13: Income statement summary (£m)
Income statement summary (£m) 6 months to 31 December 2020 2019 Change £m £m % Revenue 45.6 41.1 +11% Gross profit 16.7 12.2 Gross margin % 36.7% 29.8% Sales, general & administration overheads (10.5) (9.7) Underlying operating profit* 6.2 2.5 +100% Underlying operating margin % 13.6% 6.1% Interest
Slide 14: Cash flow statement summary
Cash flow statement summary 6 months to 31 December 2020 2019 Change £m £m £m EBITDA* 7.4 3.5 3.9 Change in working capital 0.3 - 0.3 Operating cash flow 7.7 3.5 4.2 Capital expenditure (1.0) (0.9) (0.1) IFRS16: Property lease cash flows (0.4) (0.2) (0.2) Interest (0.2) (0.2) - Tax 0.4 - 0.4 Pension
Slide 15: Balance sheet summary (£m)
Balance sheet summary (£m) at 31 December 2020 2019 Change £m £m £m Property, plant & equipment 11.2 11.7 (0.5) IFRS16: Leased assets 5.5 4.8 0.7 Intangible assets 22.1 22.0 0.1 Working capital 8.2 10.1 (1.9) Other net liabilities (3.2) (2.1) (1.1) Capital invested 43.8 46.5 (2.7) p) Net debt (0.2)
Slide 16: Business Review
04 Business Review Alumasc Roofing – Waitrose, High Wycombe, Bucks
Slide 17: Water Management
Water Management ALUMASC’S “RAIN TO DRAIN” SYSTEM H1 2020/21 H1 2019/20 also showing Levolux and Alumasc Roofing Revenue (£m) 19.2 17.6 Underlying operating profit (£m) 3.5 2.4 Underlying operating margin (%) 18.3% 13.8% • The Division represents circa 42% of Group revenues and its revenue increased
Slide 18: Building Envelope
Building Envelope H1 2020/21 H1 2019/20 Revenue (£m) 21.1 18.2 Underlying operating profit / (loss) (£m) 2.5 (0.3) Underlying operating margin (%) 12.0% (1.5%) Operating profit / (loss) (£m) 2.4 (0.4) • Significant turnaround in H1 with a double digit operating margin versus a small loss in PY based
Slide 19: Housebuilding Products (Timloc)
Housebuilding Products (Timloc) H1 2020/21 H1 2019/20 Revenue (£m) 5.3 5.3 Underlying operating profit (£m) 1.2 0.9 Operating margin (%) 22.2% 17.3% Operating profit (£m) 1.1 0.9 • Excellent performance achieving a 22% operating margin driven by the continued benefit of new product initiatives such
Slide 20: Outlook
05 Outlook Levolux – Edwardian Hotel, London
Slide 21: Outlook
Outlook • Entering H2 with good momentum, a healthy forward sales position and a well capitalised balance sheet gives the potential to deliver a strong result for the year. • We are mindful of the continuing economic uncertainties, particularly the risks to markets in the near-term from Covid-19 and
Slide 22: Thank you
Thank you www.alumasc.co.uk Alumasc Roofing-Blackdown Green Roofs hard and soft landscape installation – luxury apartments at Wardian, London
Slide 23: Appendices
Alumasc Water Management Solutions – Cast Aluminium - Oak Cottage 06 Appendices
Slide 24: Underlying To Statutory Profit Reconciliation (£m)
Underlying To Statutory Profit Reconciliation (£m) H1 2020/21 H1 2019/20 Operating Profit Operating Profit Profit Before Tax Profit Before Tax £’000 £’000 £’000 £’000 Underlying profit 6.2 6.0 2.5 2.3 Brand amortisation (0.1) (0.1) (0.1) (0.1) Net IAS 19 defined benefit pension scheme costs - (0.2)
Slide 25: Diversified End Markets
Diversified End Markets 3% 7% 8% Private Commercial Private Housing 29% Public Non-Residential Infrastructure Building Envelope Public Housing 13% Water Management Private Industrial Public Non-Residential RMI Private Housing RMI 1% Housebuilding Products Private Non-Residential RMI 2% Public Housin