Chesterfield Special Cylinders Holdings Plc · LSE:CSC
Chesterfield Special Cylinders — Pressure Technologies — H1 2019 Earnings Presentation
26 slides from Chesterfield Special Cylinders's earnings presentation, June 2019
Slide 1: Pressure Technologies Interim Results for the period to 30 March 2019
Pressure Technologies Interim Results for the period to 30 March 2019
Slide 2: Contents
Pressure Technologies plc Interim Results 2019 Contents Page 1. Introducing Pressure Technologies plc 4 2. 2019 - A Significant Period of Transition and Refocus 5 3. Business Highlights 6 ● Key Highlights 7 ● Summary Group Results 8 ● Balance Sheet 9 ● Operating Cash Flow 11 4. Vision and Strategy 14
Slide 3: Executive Management Team
Pressure Technologies plc Interim Results 2019 Executive Management Team Chris Walters Joanna Allen Chief Executive Chief Financial Officer Appointed - September 2018 Appointed - July 2015 Relevant strengths Relevant strengths ● Business regeneration and growth ● IFRS financial reporting for AIM compan
Slide 4: Introducing Pressure Technologies plc
Pressure Technologies plc Interim Results 2019 Introducing Pressure Technologies plc Who we are: Leading UK designers and manufacturers of high-integrity, safety-critical components and systems serving global supply chains in oil and gas, defence, industrial gases and hydrogen energy markets. Our Mi
Slide 5: 2019 - A Significant Period of Transition and Refocus
Pressure Technologies plc Interim Results 2019 2019 - A Significant Period of Transition and Refocus ● Period of transition following the appointment of new Chief Executive, including operational management changes and progress made with organisational development and culture. ● Alternative Energy di
Slide 6: Business Highlights
INVESTOR PRESENTATION
Slide 7: Key Highlights for the Period Ended March 2019
Pressure Technologies plc Interim Results 2019 Key Highlights for the Period Ended 30 March 2019 ● Group revenue up 59% to £14.5 million ● Gross profit up 73% to £5.0 million ● Adjusted operating profit* of £1.3 million ● Order book 83% up from March 2018 in the Oil & Gas focused Precision Machined Co
Slide 8: Summary Group results
Pressure Technologies plc Interim Results 2019 Summary Group results H119 H118* FY18* Revenue up Revenue (£m) 14.5 9.1 21.2 Precision Machined Components Division 6.8 5.3 11.2 +59% To £14.5m (2018: £9.1m) Chesterfield Special Cylinders Division 7.7 3.8 10.0 Gross margin up 2.8 ppt to Gross profit (£m)
Slide 9: Summary Group balance sheet
Pressure Technologies plc Interim Results 2019 Summary Group balance sheet H119 H118 FY18 £m £m £m Goodwill & Intangibles % Net Assets Goodwill & Intangible assets 16.8 27.0 25.8 Tangible Assets 12.4 12.2 12.0 54.0% (2018:78.3%) * Asset held for sale 6.8 0.0 0.0 Measured leverage covenant ratio Inve
Slide 10: Steady reduction in leverage which will improve further following the disposal
Pressure Technologies plc Interim Results 2019 Steady reduction in leverage which will improve further following the disposal of the loss making Alternative Energy Division which generated £2.0m cash on completion, £6.1m promissory note and £2.0m in shares Net debt: EBITDA leverage FY19 H1 FY18 H1 R
Slide 11: Operating cash inflow from continuing operations
Pressure Technologies plc Interim Results 2019 Operating cash inflow from continuing operations in the period, however the overall net cash outflow in the period predominantly related to the Alternative Energy Division prior to disposal Adjusted operating cash inflow* £0.7m (2018: £(2.2)m outflow Net in
Slide 12: Chesterfield Special Cylinders highlights
Pressure Technologies plc Interim Results 2019 Chesterfield Special Cylinders highlights ● Total revenue in the first half almost doubled to £7.7 million reflecting the phasing of defence programmes which ramped up during the second half of 2018 ● Operating profit recovered to £1.4 million and return on
Slide 13: Precision Machined Components highlights
Pressure Technologies plc Interim Results 2019 Precision Machined Components highlights ● Total revenue increased by 29% to £6.8 million ● Order intake reached record levels during the period, with the order book 83% higher than in March 2018 ● Operating profit increased by 24% to £0.8 million ● The
Slide 14: Vision and Strategy
INVESTOR PRESENTATION
Slide 15: Vision for Growth
Pressure Technologies plc Interim Results 2019 Vision for Growth Creating value for investors, customers, colleagues and the communities we operate in through: ● Quality of our products and services ● Financial Performance - revenue, operating profit, EPS, dividend ● Customer Preference - market shar
Slide 16: Chesterfield Special Cylinders - Products, Sectors and Customers
Pressure Technologies plc Interim Results 2019 Chesterfield Special Cylinders - Products, Sectors and Customers Products and Sectors: Defence Sector Customers: ● Ultra Large Cylinders ○ Defence - Naval UK ○ Defence - Naval Overseas ○ Oil & Gas - Exploration & Production ○ Oil & Gas - Diving Support ○
Slide 17: Chesterfield Special Cylinders - Strategic Focus for Organic Growth
Pressure Technologies plc Interim Results 2019 Chesterfield Special Cylinders - Strategic Focus for Organic Growth Ultra-Large Cylinder Supply UK naval submarine Overseas naval Global hydrogen Oil and gas projects Storage for space, and surface ship submarine and surface energy projects for drilling,
Slide 18: Precision Machined Components - Products and Customers
Pressure Technologies plc Interim Results 2019 Precision Machined Components - Products and Customers Products: Major Oil & Gas Customers: ● Components supplied to OEMs for onshore & offshore capex and opex projects: ○ Drilling systems ○ Completions ○ Production systems ○ Flow control ○ Fishing syst
Slide 19: Precision Machined Components - Strategic Focus for Organic Growth
Pressure Technologies plc Interim Results 2019 Precision Machined Components - Strategic Focus for Organic Growth Oil & Gas Capex and Opex Components Key initiatives to support organic growth plan ● Sales and margin growth, new customer acquisition: Existing OEM New OEM customers customers for capex
Slide 20: Conclusion and Outlook
Conclusion and Outlook INVESTOR PRESENTATION 20
Slide 21: Conclusion and outlook
Pressure Technologies plc Interim Results 2019 Conclusion and outlook ● Strategic divestments complete and refocused Group “I am pleased with the progress we have made returned to profitability over the past six months in what has proved a very busy period, one that signals a return to ● Robust CSC o
Slide 22: Keep up to date with our news
Pressure Technologies plc Interim Results 2019 Keep up to date with our news Please join us on LinkedIn https://www.linkedin.com/company/17971399/ And keep up to date with news from around the Group http://www.pressuretechnologies.com/news Contact us pressure@investor-focus.co.uk 22
Slide 23: Appendix
INVESTOR PRESENTATION 23
Slide 24: Independent Non-Executive Directors
Pressure Technologies plc Interim Results 2019 Independent Non-Executive Directors Neil MacDonald Brian Newman Chair SID Appointed - June 2013 Appointed - September 2015 Relevant strengths Relevant strengths ● M&A expertise ● Engineering expertise ● Growing businesses ● Knowledge of global industria
Slide 25: Major Shareholders
Pressure Technologies plc Interim Results 2019 Major Shareholders Name of Shareholder No. of Shares Holding Gresham House Asset Management 3,650,000 19.63% Artemis Investment Management LLP 3,598,648 19.35% Schroder Investment Management 1,232,304 6.63% James Sharp 1,200,025 6.45% J.T.S. Hayward 1,0
Slide 26: Disclaimer
Pressure Technologies plc Interim Results 2019 Disclaimer 26
Pressure Technologies — H1 2019 Earnings Presentation on 6ix