Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — FY2020 Earnings Presentation
27 slides from Alumasc's earnings presentation, Jun 30, 2020
Slide 1: The Alumasc Group plc Annual Results to 30 June 2020
The Alumasc Group plc Annual Results to 30 June 2020 Levolux Limited – Nicad Building, Newcastle
Slide 2: Contents
Contents 01 02 Overview of FY2020 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 FY2020
01 Overview of FY2020 Alumasc Water Management Solutions - Steel Rainwater - Conningbrook Lakes
Slide 4: Overview
Overview Resilient performance against a difficult, COVID-19 affected, economic backdrop: • Revenues from continuing operations: £76.0m (2018/19: £90.1m) -16% • Underlying operating margin: 5.5% (2018/19 : 6.5%) • Net Debt of £4.3m at year end compared to PY of £5.1m. Headroom of nearly £19m • Deliv
Slide 5: Immediate March post-lockdown actions
Immediate March post-lockdown actions: • Within days after 23 March Timloc, AWMS Burton Latimer and AWMS Halstead closed and furloughed employees while Levolux, Roofing and Rainclear furloughed some employees. 276 (64%) of employees were furloughed, 109 (25%) worked from home • The management teams
Slide 6: Strategic Delivery
02 Strategic Delivery Roof-Pro – PP3 Riser Penetration Units
Slide 7: Strategic delivery – Levolux business improvement plan
Strategic delivery – Levolux business improvement plan Levolux – Birmingham University Targets • Return business to sustainable profit as soon as possible • Incorporate Levolux into the new Building Envelope division • Focus on design & supply activities (install only where it adds value) • Accelera
Slide 8: Strategic delivery – Creation of Building Envelope Division
Strategic delivery – Creation of Building Envelope Division • Effective from 1 July 2019 • Specification cross selling to developers and architects • Building Envelope offer differentiates Alumasc in marketplace • Roofing, Walling (incl. Levolux) & integrated aluminium detailing • 40 strong Alumasc
Slide 9: Strategic delivery – A cost-efficient operating structure
Strategic delivery – A cost-efficient operating structure • Reduce from 10 operating sites in 2018 to 6 by 30 June 2020, delivering £2.4m of cost savings versus a targeted £2.0m • Sharing common overhead structures across the Group • The two legacy defined benefit pension schemes were merged in the
Slide 10: 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 • Investment in sales reach for Building Envelope • An inve
Slide 11: Strategic delivery – Pro-active portfolio management
Strategic delivery – Pro-active portfolio management • Bolt-on acquisitions will continue to be sought. There are no plans to make divestments Wade – Victoria & Albert Museum, London 11 www.alumasc.co.uk
Slide 12: Strategic delivery – Closely aligned with sustainability agenda
Strategic delivery – Closely aligned with sustainability agenda • Strong position in energy management through Levolux’s solar shading and Timloc with its sealed ventilation systems • Strong position in water management assists in the management of the scarce resource of water • BluRoofs, including
Slide 13: Financial Review
03 Financial Review Wade – Slot Channel - 190 The Strand
Slide 14: Income statement summary (£m)
Income statement summary (£m) 12 months to 30 June 2020 2019 Change £m £m % Continuing operations: Revenue 76.0 90.1 -16 Gross profit 22.6 26.8 Gross margin % 29.7% 29.8% Sales, general & administration overheads (18.4) (21.0) Underlying operating profit* 4.2 5.9 -29 Underlying operating margin % 5.
Slide 15: Revenue analysis
Revenue analysis Year on year change as a percentage of total group revenues % change 2019/20 versus 2018/19 UK Export Total (c.85% of Group (c.15% of Group Revenues) Revenues) Water Management -20% +23% -13% Building Envelope -19% +14% -17% Housebuilding Products -20% -22% -20% Total Group -20% +19
Slide 16: Cash flow statement summary
Cash flow statement summary 12 months to 30 June 2020 2019 Change £m £m £m EBITDA 6.2 7.4 (1.2) Change in working capital 2.5 (1.2) 3.7 Operating cash flow 8.7 6.2 2.5 Capital expenditure (1.7) (2.4) 0.7 Interest (0.3) (0.2) (0.1) Tax (0.1) (0.6) 0.5 Pension deficit funding (2.3) (3.2) 0.9 Finance l
Slide 17: Balance sheet summary (£m)
Balance sheet summary (£m) at 30 June 2020 2019 Change £m £m £m Property, plant & equipment 16.9 11.7 5.2 Intangible assets 22.1 22.1 - Working capital 8.7 9.7 (1.0) Other net liabilities (2.1) (2.3) 0.2 Capital invested 45.6 41.2 4.4 p) Net debt – cash (4.3) (5.1) 0.8 Net debt - lease (5.9) - (5.9)
Slide 18: Business Review
04 Business Review Alumasc Roofing – Waitrose, High Wycombe, Bucks
Slide 19: Water Management
Water Management 2019/20 2018/19 Revenue (£m) 33.7 38.9 Underlying operating profit (£m) 4.8 4.3 Underlying operating margin (%) 14.3% 10.9% • Despite the COVID-19/lockdown challenges in Q4, this division produced a profit which was £567k (13%) ahead of the prior year. • Whilst revenue reduced by £5
Slide 20: Building Envelope
Building Envelope 2019/20 2018/19 Revenue (£m) 33.2 39.8 Underlying operating (loss) / profit (£m) (0.9) 0.6 Underlying operating margin (%) (2.8)% 1.4% • Sells principally into the UK commercial new build construction market which, following the previous year, continued to experience falling demand
Slide 21: Housebuilding Products (Timloc)
Housebuilding Products (Timloc) 2019/20 2018/19 Revenue (£m) 9.1 11.4 Operating profit (£m) 1.2 1.7 Operating margin (%) 13.7% 15.2% • Timloc continued to perform well up until the lockdown bolstered by additional operational improvements, in turn benefitting margins. • The impact of lockdown on thi
Slide 22: Outlook
05 Outlook Levolux – Edwardian Hotel, London
Slide 23: Outlook
Outlook • In light of the COVID-19 impact on construction activity the Board is taking a cautious view on 2020/21 • Encouragingly, positive recovery momentum witnessed through the period end has continued with Alumasc having a strong start to the new financial year for both profit and cash • £2.4m o
Slide 24: Thank you
Thank you www.alumasc.co.uk Levolux Limited – Nicad Building, Newcastle
Slide 25: Appendices
Alumasc Water Management Solutions – Cast Aluminium - Oak Cottage 06 Appendices
Slide 26: Appendix 1: Underlying To Statutory Profit Reconciliation (£m)
Appendix 1 : Underlying To Statutory Profit Reconciliation (£m) 2019/20 2018/19 Operating Profit Operating Profit Profit Before Tax Profit Before Tax £’000 £’000 £’000 £’000 Underlying operating profit / profit before tax 4.2 3.7 5.9 5.6 Brand amortisation (0.2) (0.2) (0.2) (0.2) IAS19 costs - (0.3)
Slide 27: Appendix 2: UK end use analysis 2019/20
Appendix 2 : UK end use analysis 2019/20 27 www.alumasc.co.uk