Chesterfield Special Cylinders Holdings Plc · LSE:CSC
Chesterfield Special Cylinders — Pressure Technologies — H1 2017 Earnings Presentation
17 slides from Chesterfield Special Cylinders's earnings presentation, Jun 13, 2017
Slide 1: Interim Results Presentation
Interim Results Presentation Half Year Ended 1 April 2017 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 Manufacturing AE Central Group Group Divisions* Division H117 H116** Sales (continuing operations) £9.7m £8.0m n/a £17.7m £16.2m Adjusted Operating Profit/(Loss) £0.0m £0.1m £(0.8)m £(0.8)m £(0.7)m Gross Profit Margin 27.9% 19.1% n/a 24.2% 29.5% Return on sales (0.0)% 1.1% n/a (4.5)% (4.
Slide 4: O&G revenues have shown some positive signs in the period and momentum in AE
O&G revenues have shown some positive signs in the period and momentum in AE has continued • Signs of improvement in the oil and gas market with revenues from this sector 8.4% higher than the H216 low point • Oil & Gas Order book stronger by 4.4% • Defence contract phasing weighted to the second hal
Slide 5: Manufacturing Divisions emerging from a sustained period of retrenchment and reorganisation
Manufacturing Divisions emerging from a sustained period of retrenchment and reorganisation • PMC has delivered an impressive first-half operating profit, despite the continued low market volumes, as the benefits of high operational gearing and some positive signs in the market are felt • CSC posted
Slide 6: Improvements in O&G volumes and benefits of restructuring is seen in margin improvement
Improvements in O&G volumes and benefits of restructuring is seen in margin improvement • The individual OP bridges highlight the different factors impacting the Manufacturing result over the last 12 months: • PMC has benefited from both volume and margin increases in H117 along with the significant
Slide 7: The enlarged Alternative Energy Division recorded its first profit
The enlarged Alternative Energy Division recorded its first profit • Margins improved in the first-half of 2017 as legacy contract issues experienced in previous years and lower margins on first of type contracts have not been as significant • Division reorganised on functional lines rather than by
Slide 8: Cash generated from operations before cost of redundancy £2.2m (H116: £2.4m)
Cash generated from operations before cost of redundancy £2.2m (H116: £2.4m) • The Group continued to be operationally cash generative in the first-half of 2016 • The cost of redundancies and reorganisation made in the period was £0.4m • Most significant non-trading item was the net cash outflow of
Slide 9: Summary balance sheet
Summary balance sheet • Goodwill and intangible assets have increased by £3.6m from the last balance sheet date reflecting the net of amortisation charged H117 FY16 H116 and recognition of the intangible assets arising from the £m £m £m acquisition of Martract in December 2016. The acquired intangib
Slide 10: Summary results
Summary results H117 H116 • Exceptional items in the period relate to: • Amortisation of intangible assets of £1.3m Revenue (£m) 17.7 16.2 • Reorganisation and redundancy costs of £0.4m Adjusted operating loss (£m) (0.8) (0.7) • In H116 the Greenlane deferred consideration of £3.3m was written back
Slide 11: Precision Machined Components Division
Precision Machined Components Division Sales revenue, excluding Martract acquisition, 1.7% higher than H216 low point Revenue with signs of improvement in the oil and gas market, particularly at Al-Met and Roota, underpinned by the order book development £5.0m H116: £6.6m Latent capacity created thr
Slide 12: Engineered Products Division
Engineered Products Division Business still impacted by cuts in capital expenditure and discretionary service spend in the oil and gas market Revenue £1.7m Cost reductions and “lean” management implemented during 2016 and the early H116: £2.1m part of 2017 limited losses in first-half which experien
Slide 13: Cylinders Division
Cylinders Division Revenue Defence now the mainstay of the business with a solid order book through to £3.1m H116: £4.8m 2020 and further orders anticipated for the Dreadnought class submarine build (Trident replacement) Adjusted operating loss First-half loss due to sales orders heavily skewed to H
Slide 14: Alternative Energy Division
Alternative Energy Division Revenue Momentum from 2016 year-end biogas upgrader order book of £14.2 million £8.0m H116: £3.2m resulted in a profitable first-half for the division Margins improved in the first-half compared to second half 2016 as legacy Adjusted operating profit contract issues exper
Slide 15: Summary & Outlook
Summary & Outlook Improvements in markets and the restructuring of the Group now showing in the results Manufacturing Divisions showing a positive trajectory led by PMC in H1, with significant momentum in Cylinders and Engineered Products set to come through in H2 Alternative Energy Division is reap
Slide 16: Keep up to date with our news
Keep up to date with our news Please join us on LinkedIn https://www.linkedin.com/company-beta/17971399/ And keep up to date with news from around the Group http://www.pressuretechnologies.com/news 16
Slide 17: 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
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