Slide 1: Half year results to 31 January 2019
Volution Group plc Half year results to 31 January 2019 Excellence in ventilation
Slide 2: Introduction
Introduction Excellence in ventilation Volution Group plc is a leading supplier of ventilation products to the residential and commercial construction markets in the UK, the Nordics, Central Europe and Australasia. >> Introduction to Volution >> Highlights >> Financial Review >> Business Update and
Slide 3: Volution Group plc Snapshot
Volution Group plc Snapshot 90+10+M Brands Excelling in both the residential % of Volution Group revenue and commercial markets. Ventilation Group 89.5% OEM (Torin-Sifan) 10.5% We operate through two segments: Ventilation Group >> 89.5% of Group revenue (H1 2018: 88.5%). >> The Ventilation Group
Slide 4: Our Locations
Our Locations We aim for our products to enhance our UK Nordics customers’ experience of ventilation by reducing energy consumption, improving indoor air quality and design and making them easier to use. Central Europe Geographical diversification continues, to build scale, product range and access
Slide 5: Execution of Our Strategy
Execution of Our Strategy Further good progress with revenue growth of 16.3% and adjusted operating profit up 10.7%. Three strategic pillars Organic growth Growth through a Development of OEM in our core markets disciplined and value-adding (Torin-Sifan) range and >> Organic revenue growth of 1.9% a
Slide 6: Operations – Reading Factory Update
Volution Group plc: Operations – Reading Factory Update >> Operational difficulties at our Reading facility adversely impacted on profitability in the period. >> The project took six months longer and cost more than anticipated to complete. >> The project is now complete and we now have the capacity
Slide 7: Post Period Event – Acquisition of Ventair Pty Limited
Post Period Event – Acquisition of Ventair Pty Limited >> On 1 March 2019 Volution Group plc acquired Ventair Pty Limited, in Australia. >> Ventair is a leading specialist supplier of high quality air movement products to the Australian residential ventilation market. >> Initial consideration was AU
Slide 8: 2019 Half Year Highlights
2019 Half Year Highlights Revenue £m Adjusted operating profit £m Adjusted operating profit margin % £114.8m £20.2m 17.6% 114.8 20.2 22.5 21.7 21.7 18.3 98.7 17.1 19.4 18.5 15.2 17.6 88.5 14.0 13.1 70.1 64.3 58.2 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 20
Slide 9: 2019 Half Year Highlights continued
2019 Half Year Highlights continued Adjusted EPS p Adjusted operating cash flow £m Net debt £m 7.7p £15.5m £74.4m 7.7 16.4 77.2 7.1 15.5 74.4 6.5 5.7 11.8 11.8 11.6 11.4 4.6 5.0 40.6 36.1 37.0 34.9 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 FY16 HY17 FY17 HY18 FY18 HY19 >> Adjusted
Slide 10: Financial Review
Ian Dew – CFO Financial Review Half year results to 31 January 2019
Slide 11: Financial Highlights
Financial Highlights Half year results to 31 January 2019 Six months Six months Key highlights to to >> Revenue growth of 16.3% (17.8% at cc). Organic revenue 31 January 31 January Movement growth of 1.9% (3.2% at cc). 2019 2018 Movement % >> Adjusted operating profit increased by 10.7%, assisted Re
Slide 12: Income Statement Summary
Income Statement Summary Half year results to 31 January 2019 Six months Six months >> Revenue growth of 16.3% (+£16.1 million) (17.8% at cc). to January to January Movement Movement >> Revenue growth would have been £1.6 million higher 2019 2018 £m % at cc. Revenue (£m) 114.8 98.7 16.1 16.3% >> 1.9
Slide 13: Adjusted Profit Before Tax Reconciled to Reported Profit Before Tax
Adjusted Profit Before Tax Reconciled to Reported Profit Before Tax Half year results to 31 January 2019 Six months Six months Adjustments to January to January >> Exceptional items: 2019 2018 Movement £m £m £m >> acquisition related costs of £0.1 million (H1 2018: £0.3 million) and factory relocati
Slide 14: Consolidated Statement of Financial Position Summary
Consolidated Statement of Financial Position Summary Half year results to 31 January 2019 31 January 31 July >> Non-current assets decreased by £7.4 million, 2019 2018 as a consequence of depreciation and amortisation £m £m of PPE and acquired intangible assets – others. Property, plant and equipmen
Slide 15: Cash Flow Summary and Net Debt Bridge
Cash Flow Summary and Net Debt Bridge Half year results to 31 January 2019 Six months Six months >> Net debt increased by £39.5 million from £34.9 million at to January to January January 2018 after four acquisitions in H2 2018. 2019 2018 £m £m >> Improved adjusted operating cash flow of £15.5 milli
Slide 16: Business Update and Outlook
Ronnie George – CEO Business Update and Outlook
Slide 17: Growth by Market Segment
Growth by Market Segment H1 2019 H1 2019 H1 2018 Growth Growth (cc) % of Volution Group revenue £m £m (cc) £m % % Ventilation Group 89.5% 90+10+M Ventilation Group revenue 102.8 104.3 87.4 17.6% 19.3% OEM (Torin-Sifan) 10.5% OEM (Torin-Sifan) revenue 12.0 12.1 11.3 6.2% 6.3% Total Volution Group
Slide 18: Market Sector Review: UK Ventilation Group
Market Sector Review: UK Ventilation Group % of Volution Group 52+48 Organic Inorganic Total growth revenue H1 2019 H1 2019 H1 2018 Total growth growth (cc) growth (cc) (cc) £m £m (cc) £m % % % % UK Ventilation Group revenue 54.6 54.6 52.7 3.8% 3.8% 0.0% 3.8% UK Residential New Build revenue 13.1 13
Slide 19: Market Sector Review: Nordics
Market Sector Review: Nordics % of Volution Group 78+22 Total Organic Inorganic Total revenue H1 2019 H1 2019 (cc) H1 2018 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % Nordics revenue 25.4 26.5 19.6 29.0% 0.2% 34.7% 34.9% 22.1% Nordics >> Sales in the Nordics sector increased by £5.7
Slide 20: Market Sector Review: Central Europe
Market Sector Review: Central Europe % of Volution Group 86+14 Total Organic Inorganic Total revenue H1 2019 H1 2019 (cc) H1 2018 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % Central Europe revenue 14.6 14.6 14.3 2.2% 2.5% 0.0% 2.5% 12.7% Central Europe >> Organic revenue growth of 2.
Slide 21: Market Sector Review: Australasia
Market Sector Review: Australasia % of Volution Group 93+7 Total Organic Inorganic Total revenue H1 2019 H1 2019 (cc) H1 2018 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % 7.2% Australasia revenue 8.2 8.5 0.0 n/a n/a n/a n/a Australasia >> Sales in Australasia were £8.2 million during
Slide 22: Market Sector Review: OEM (Torin-Sifan)
Market Sector Review: OEM (Torin-Sifan) % of Volution Group 89+11 Total Organic Inorganic Total revenue H1 2019 H1 2019 (cc) H1 2018 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % 10.5% OEM (Torin-Sifan) revenue 12.0 12.1 11.3 6.2% 6.3% 0.0% 6.3% OEM (Torin-Sifan) >> Revenue was £12.0 m
Slide 23: Operations Update
Volution Group plc: Operations Update Reading >> Significant operational improvement achieved by the end of the period. >> Project completed. >> Ongoing focus on operational excellence. New product development >> Xenion fan introduced in Germany. >> Ongoing in-sourcing of fan portfolio. >> Soft laun
Slide 24: Summary and Outlook
Summary and Outlook Brands >> Revenue growth of 17.8% at cc (CAGR of 15% since 2014). >> Organic revenue growth of 3.2% at cc. >> UK Residential Public RMI returned to growth. >> Relocation to our new Reading factory now complete. >> Adjusted EPS CAGR of 11% since 2014. >> The ventilation market in
Slide 25: Thank You Q&A
Thank You Q&A
Slide 26: Disclaimer
Disclaimer This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such words as