Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — FY2015 Earnings Presentation
25 slides from Alumasc's earnings presentation, September 2015
Slide 1: Annual Results to 30 June 2015
The Alumasc Group plc Annual Results to 30 June 2015 1
Slide 2: Contents
Contents 1. Performance Overview 2. Strategic Development 3. Financial Review 4. Operational Review 5. Outlook Paul Hooper Chief Executive Andrew Magson Finance Director Levolux Limited – Whitworth Art Gallery 2
Slide 3: Performance Overview
Performance Overview Continuing Operations: The group’s best performance since 2007/08 Revenues up 10% to £98.1m Underlying PBT up 16% to £8.4m and underlying EPS up 19% to 18.4p All of the growth driven by Building Products - all operating segments delivering increased profits Continuing
Slide 4: Contents
Contents 1. Performance Overview 2. Strategic Development 3. Financial Review 4. Operational Review 5. Outlook Paul Hooper Chief Executive Andrew Magson Finance Director Blackdown Green Roofs – University of Greenwich 4
Slide 5: Strategic Development
Strategic Development The conclusions of the Board’s recent strategic review were: the group’s strategy for profitable growth is focused on building products numerous exciting organic and synergistic growth opportunities have been identified to capitalise on market leading positions in niche seg
Slide 6: Increasing Strategic Focus
Increasing Strategic Focus: Improving earnings, quality of earnings and operating margins 10 years ago Continuing Operations 2004/05 2014/15 • Alumasc has transformed from a diversified group into a focused niche 8% building products business 33% 8% 40% • The building products business has nearly do
Slide 7: Building Products' Strategic Development
Building Products’ Strategic Development Source: Experian Source: Experian Note: In order to illustrate underlying trends, the impact of the abnormally large Kitimat export project has been excluded from the divisional data in the years 2012-15 This is a clear demonstration of Alumasc's success in t
Slide 8: Why Alumasc is Outperforming the UK Construction Market
Why Alumasc is Outperforming the UK Construction Market Strong strategic positioning in sustainable building product niches − particularly energy and water management Consistent revenue investment of approaching £1m pa in: − high quality managerial, sales and commercial resources − innovation an
Slide 9: Alumasc's Business Model for Continued Profitable Growth
Alumasc’s Business Model for Continued Profitable Growth Our strategic positioning, initiatives and investments in people and innovation should enable continued outperformance of the UK construction market We see further opportunities to leverage this growth into improved profitability: − Manage
Slide 10: Contents
Contents Contents 1. Performance Overview 2. Strategic Development 3. Financial Review 4. Operational Review 5. Outlook Paul Hooper Chief Executive Andrew Magson Finance Director Alumasc Rainwater & Drainage – Harmer Floor Drains 10
Slide 11: Income Statement Summary (£m)
Income Statement Summary (£m) 12 months to 30 June Continuing Operations*: 2014/15 2013/14 Change % Revenue Building Products 90.3 80.4 +12 Dyson Diecastings 7.8 8.5 -9 98.1 88.9 +10 Underlying Operating Profit Building Products 9.8 8.0 +23 Dyson Diecastings 0.7 1.1 -37 Unallocated Costs (1.5) (1.3)
Slide 12: Cash Flow Summary (£m)
Cash Flow Summary (£m) 12 months to 30 June 2014/15 2013/14 Change Continuing operations: EBITDA 10.6 9.1 1.5 Underlying change in working capital 0.1 (0.3) 0.4 Short-term changes in working capital on large construction contracts (0.5) (1.1) 0.6 Operating cash flow 10.2 7.7 2.5 Capital expenditure
Slide 13: Balance Sheet Summary (£m)
Balance Sheet Summary (£m) 30 June 2015 30 June 2014 Property, plant & equipment 7.5 12.0 Intangible assets 19.3 19.2 Working capital 6.8 10.0 Other net liabilities (1.8) (2.2) Capital invested 31.8 39.0 Net cash/(debt) 0.9 (7.7) Pension obligations (1) (16.8) (14.3) Net assets 15.9 17.0 ROI – conti
Slide 14: Continuing Operations: Segmental Analysis of Results
Continuing Operations : Segmental Analysis of Results 12 months to 30 June 2014/2015 2013/2014 2014/2015 2013/2014 Underlying Underlying Operating Operating Underlying Revenue Profit(1) Revenue Profit(1) Operating Margin £m £m £m £m % % Building Products: Solar Shading & Screening 16.0 0.9 16.3 0.5
Slide 15: Contents
Contents 1. Performance Overview 2. Strategic Development 3. Financial Review 4. Operational Review 5. Outlook Paul Hooper Chief Executive Andrew Magson Finance Director Alumasc Roofing – Belfast University 15
Slide 16: Building Products – Energy Management
Building Products – Energy Management Solar Shading & Screening Roofing & Walling Levolux is a late cycle business The best performing operating segment in the year Order books up 19% on PY at £15.6m of which £2.1m Roofing has transformed from a loss making business expected to convert into
Slide 17: Building Products – Water Management & Other
Building Products – Water Management & Other Rainwater & Drainage Gatic A good year for both rainwater and drainage A strong year for Gatic including a multi-million contract at Doha Port (access covers) and buoyant H2 Alumasc Rainwater, Skyline soffit copings, Harmer demand for Slotdrain buil
Slide 18: Engineering Products & Pendock Profiles
Engineering Products & Pendock Profiles Dyson Diecastings Discontinued Operations A year of transition - a number of senior APC management retirements / new senior team being established Sold on 26 June 2015 for £5.8m Non-recurrence of some prior year revenues related Overall pre-tax losses
Slide 19: Contents
Contents 1. Performance Overview 2. Strategic Development 3. Financial Review 4. Operational Review 5. Outlook Paul Hooper Chief Executive Andrew Magson Finance Director Levolux Limited – University of East Anglia 19
Slide 20: Building Products Division – Order Book (£m)
Building Products Division – Order Book (£m) Building Products (excluding Kitimat) Order Book by Operating Segment (£m) 30 25 20 Rainwater, Drainage & House Building Products 15 Construction Products Roofing & Walling Solar Shading & Screening 10 5 - Dec 13 Mar 14 June 14 Sept 14 Dec 14 Mar 15 June
Slide 21: Outlook
Outlook The group’s order books at 30 June 2015 closed at £26.5m, some 27% ahead of 30 June 2014 Whilst the timing of larger construction contracts can impact the outcome in any one year, Alumasc is increasingly well positioned to benefit from the current forecast growth in both the UK economy a
Slide 22: Appendix
Appendix 22 Levolux Limited – Merrion Centre Car Park
Slide 23: Appendix I: Reconciliation of Underlying PBT to Profit for the Year
Appendix I - Reconciliation of Underlying Profit Before Tax to Profit for the Year (£m) 2014/15 2013/14 Underlying profit before tax from continuing operations 8.4 7.2 IAS19 pension costs (1.1) (0.9) Brand amortisation (0.3) (0.3) Profit before tax from continuing operations 7.0 6.0 Discontinued ope
Slide 24: Appendix II: End User Market Analysis
Appendix II - End User Market Analysis 2007/08 2014/15 11% 11% 29% 9% Private Commercial 11% Public Housing R&M 4% Other R&M 46% 4% Private Housing 3% 9% Public non-residential Private Industrial 10% Infrastructure 15% 10% 28% 24
Slide 25: The Alumasc Group plc
The Alumasc Group plc Annual Results to 30 June 2015 25