23 slides from Chesterfield Special Cylinders's earnings presentation, Dec 9, 2014
Slide 1: Preliminary Results Presentation
Preliminary Results Presentation Year Ended 27 September 2014 Presented by John Hayward, CEO, and James Lister, FD
Slide 2: Agenda
Agenda Highlights 3 Financials 4-7 Summary results 8 Timeline 9 New divisional structure for 2015 10 Precision Machined Components 11 Engineered Products 12 Cylinders 13 Alternative Energy: Organisation and Markets 14-15 Outlook 16 Appendices 17-22 Disclaimer 23 2
Slide 3: Highlights
Highlights Another year of growth Revenue £54.0 million +57% Underlying operating profit £7.8 million +138% Operating profit £5.6 million +93% Net funds £5.8 million +£1.8 million EPS (basic) 28.5p +9.1p EPS (adjusted) 44.9p +22.3p Dividend 8.4p +8% Record revenue and profits with all divisions grow
Slide 4: Revenue increased by 57%
Revenue increased by 57% £m 54.0 7.3 8.4 34.4 8.1 0.2 One completed 4.0 biogas upgrader 1.1 Alternative Energy project and 24.1 three partially Growth in Little change in Growth at complete as BtG deepwater oil rig the market as Hydratron and market in the UK Engineered Products 16.0 and drillship i
Slide 5: Operating profit increased by 93%
Operating profit increased by 93% 2013 2014 £m £m 1.2 1.6 Cylinders 3.6 3.8 0.7 0.3 Engineered Products 1.6 4.7 Alternative Energy (0.5) 1.1 3.1 Acquisition and amortisation costs (0.4) (1.6) 0.2 5.6 KGTM provision - (0.7) 2.9 Unallocated central costs (1.4) (1.7) Operating profit 2.9 5.6 5
Slide 6: Strong balance sheet
Strong balance sheet 28 Sep 27 Sep 2013 2014 £m £m Intangible assets 3.2 14.1 Fixed assets 4.8 7.9 Inventories 7.2 8.8 Receivables 8.9 22.1 Payables (9.8) (19.3) Working capital 6.3 11.6 Tax provisions (0.8) (2.9) Net funds 4.0 5.8 Net assets 17.5 36.5 6
Slide 7: Increased net funds
Increased net funds Operating cash flow £1.1m (2013: £2.8m) 7.6 0.9 Acquisition 16.2 Roota 2.4 costs 3.8 acquisition 2014 (net) closing £m 8.0 net Investment 2.8 funds 2014 Increased in KGTM opening 2.2 working net capital funds 1.0 Greenlane Cap Ex advance Dividends 1.7 Group paid 5.8 4.0 EBITDA Ta
Slide 8: Summary results
Summary results 28 Sep 27 Sep 2013 2014 Revenue (£m) 34.4 54.0 +57% Underlying operating profit (£m) 3.3 7.8 +138% Operating profit (£m) 2.9 5.6 +93% PBT (£m) 2.9 5.3 +86% EPS basic (pence) 19.4p 28.5p +47% EPS adjusted (pence) 22.6p 44.9p +99% Dividend (pence) 7.8p 8.4p +8% Operating cash flow (£m)
Slide 9: Timeline
Timeline 10 years of progress Management buy Floated on the AIM Acquisition of Kelley GTM Acquisition of out of the Special market Al-Met & Hydratron strategic investment Greenlane Biogas Products Division of to form the and Quadscot Chesterfield Engineered Cylinders Products Division 2004 2007 2010
Slide 10: New divisional structure for 2015
New divisional structure for 2015 Blank Precision Machined Engineered Products Cylinders Alternative Energy Components MD: 2015 MD: Findlay Beveridge MD: Mick Pinder MD: 2015 FD: Kathy Van Hee FD: John Melia FD: Paul Stanger FD: John Caldwell 10
Slide 11: Precision Machined Components
Precision Machined Components Al-Met Record order intake in October 2014 Night shift established to meet customer demand Capital expenditure plan approved to improve efficiency and productivity Roota Acquired March 2014 Expansion of night shift operation underway to satisfy customer orders Capital e
Slide 12: Engineered Products
Engineered Products Hydratron Sales team expanded to increase market presence in Aberdeen and overseas Additional business unit to be rented to make space for manufacturing of large test systems Top end of the market showing signs of tightening as oil and gas customers cut back on capital spend Ongo
Slide 13: Cylinders
Cylinders Chesterfield Special Cylinders Solid order load entering new financial year but significant weakening of oil and gas market orders expected to impact H2 results Major marketing exercise for Integrity Management service carried out in Q1 Prototype trials underway for the UK Trident submarin
Slide 14: Alternative Energy: Organisation
Alternative Energy: Organisation Key senior management from PT Biogas Holdings Holding Company Greenlane retained Ltd 100% subsidiary of Pressure Technologies Sheffield, UK plc FD appointed, MD to be appointed during the year Intellectual Property Management of R&D PT Biogas Technologies Ltd Operati
Slide 15: Alternative Energy: Markets
Alternative Energy: Markets New Zealand Sales and marketing plan underway for biogas upgrading sales into Australasia and South East Asia JV negotiations underway with a Chinese corporate for access to specific markets in China Expanded Heat Exchanger sales team to underpin cash flow North America T
Slide 16: Outlook
Outlook Underlying order book at start of the new financial year 14% higher than equivalent position last year Oil price reduction affects large capital expenditure projects in the oil and gas sector and creates short-term uncertainty Medium-term outlook for the oil and gas sector remains strong Div
Slide 17: Appendices
Appendices AL Pressure “Jf Technologies 17
Slide 18: Divisional performance 2014
Divisional performance 2014 Engineered Products Cylinders Alternative Energy Revenue Operating profit Revenue Operating profit Revenue Operating profit £24.1m £4.7m £21.5m £3.8m £8.4m £1.1m (2013: £16.0m) (2013: £1.6m) (2013: £17.3m) (2013: £3.6m) (2013: £1.1m) (2013: £(0.5)m) 18
Slide 19: A better balanced group
A better balanced group Designing products and services to satisfy specific customer needs in: Oil and Gas Defence Industrial Gases Alternative Energy Sales % of Group Revenue Sales % of Group Revenue Sales % of Group Revenue Sales % of Group Revenue £39.6m 73% £3.5m 7% £2.3m 4% £8.6m 16% (2013: £27
Slide 20: Engineered Products 2014
Engineered Products 2014 Became the largest division of the Group during the year as a result of record order intake in H1 Revenue £24.1m H2 order intake more subdued but the underlying order book at year end was at +51% the same level as the prior year. Operating profit Hydratron and Al-Met, purcha
Slide 21: Cylinders 2014
Cylinders 2014 Strong demand for deep water oil & gas platforms drove revenue and profit Revenue Price reductions conceded for 2014 to maintain market share Continued growth of Integrity Management service £21.5m +24% Naval market down slightly due to phasing of submarine build programmes Operating
Slide 22: Alternative Energy 2014
Alternative Energy 2014 Biogas to Grid (“BtG”) market opened up following the agreement of permitted levels of O2 by the HSE in 2013 Revenue £8.4m Chesterfield BioGas made the expected breakthrough with 4 projects completed +£7.3m or partially completed in the year Operating profit Year end order bo
Slide 23: Disclaimer
Disclaimer This presentation has been prepared by Pressure Technologies plc (the “Company“ or “Pressure Technology”) 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 or