16 slides from Chesterfield Special Cylinders's earnings presentation, Dec 15, 2015
Slide 1: Preliminary Results Presentation
Preliminary Results Presentation Year Ended 03 October 2015 John Hayward, Chief Executive Officer Joanna Allen, Group Finance Director
Slide 2: Results slightly ahead of forecast, reorganisation complete, revenue base increasingly diversified
Results slightly ahead of forecast, reorganisation complete, revenue base increasingly diversified with further synergies to come Revenue £55.6 million (2014: £54.0 million) Adjusted operating profit* £3.3 million (2014: £7.8 million) Adjusted EBITDA* £4.7 million (2014: 8.7 million) Adjusted earnin
Slide 3: 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 2015 - Revenue £55.6m Adjusted Operating Profit £3.3m Precision Machined Engineered Products Cylinders Alternative Energy Components Revenu
Slide 4: Since IPO the group has delivered on its medium/long-term strategy
Since IPO the group has delivered on its medium/long-term strategy to widen the range of activities • At IPO the Company’s medium and long-term strategy was defined as: “..widening the range of the Company’s activities, as well as enhancing the profit margin by introducing better working practices.
Slide 5: The divisional structure and diversification through acquisition is de-risking the Group
The divisional structure and diversification through acquisition is de-risking the Group • Return on sales is higher in the PMC division than the rest of the group • AE losses were integration costs and high fixed costs carried in the first half, both of which are non-recurring • CSC is performing a
Slide 6: As forecast revenue was lower second half as market conditions became more challenging
As forecast revenue was lower second half as market conditions became more challenging • A strong first half at PMC helped the full year and although sales fell the division continued in H2 to contribute the most operating profit to the Group • CSC remained a stable profit contributor throughout the
Slide 7: Cash generated from operations increased significantly to £7.9m
Cash generated from operations increased significantly to £7.9m, a cash conversion ratio of 2.41x adj. operating profit • Cash generated from operations was £7.9m, £3.8m in H1 and £4.1.m in H2. • The acquisitions of Quadscot and Greenlane, the deferred consideration payments in respect of Roota and
Slide 8: Summary results
Summary results 2015 2014 • Significant exceptional items to note in the year: £m £m • Write back of deferred consideration in respect of Quadscot of £1.7m (2014: nil) Revenue (£m) 55.6 54.0 • Amortisation of intangible assets £2.3m (2014: Adjusted operating profit (£m) 3.3 7.8 £0.7m) Operating prof
Slide 9: Summary balance sheet
Summary balance sheet 2015 2014 • Increase in intangible assets following the £m £m acquisitions of Quadscot and Greenlane. The balance comprises: Intangible assets 28.5 14.1 • £15.0m goodwill Fixed assets 14.3 7.8 • £8.8m customer relationships Inventories 7.4 8.8 • £4.6m technology • Significantly
Slide 10: Oil and gas will remain the Group's largest market but it is not the whole story
Oil and gas will remain the Group’s largest market but it is not the whole story 120 Brent Crude Price Customers forecasting no recovery in the oil and gas market 110 before 2017 unless there is a major change in Saudi policy or 100 US$ per barrel a significant middle-east conflict threatening outpu
Slide 11: Precision Machined Components Division
Precision Machined Components Division Good first half-performance for the division but demand weakened in the second half Revenue Ability to give high quality, short lead time deliveries giving some measure of protection £18.8m to the order book and margins +45% Adjusted operating profit Major cape
Slide 12: Engineered Products Division
Engineered Products Division Project execution delays impacted first-half results in the UK followed by a substantial weakening in demand in the second-half Revenue £8.5m US operation experienced slow conversion of order pipeline as customers delayed -23% then postponed capital equipment purchases A
Slide 13: Cylinders Division
Cylinders Division CSC performed ahead of expectations as major successes in securing defence orders Revenue reduced the effects of a fall in orders from the oil and gas market Revenues from defence and integrity management continue to strengthen £14.3m -33% British Standard created by CSC now appro
Slide 14: Alternative Energy Division
Alternative Energy Division Greenlane, the Group’s technology provider for biogas upgrading purchased in Revenue October 2014 to form a world wide business Integration of Greenlane into the Group is proceeding well and restructuring £14.0m +£66% complete Chesterfield BioGas rebranded as Greenlane Bi
Slide 15: Summary & Outlook
Summary & Outlook Oil and gas market remain challenging but underlying medium to long-term prospects for the Group remain very positive Market conditions mask the Group’s strengths in product and service quality and strong customer relationships Major restructuring carried out across the Group to cu
Slide 16: 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