Slide 1: 2017 H1 Results
2017 H1 Results Volution Group plc Half year results to 31 January 2017 Excellence in ventilation
Slide 2: Introduction
Introduction >> Highlights >> Financial Review >> Business Update and Outlook Ronnie George Ian Dew >> Q&A Chief Executive Officer Chief Financial Officer Volution Group plc Half year results to 31 January 2017 2
Slide 3: Volution Group plc Snapshot
Volution Group plc Snapshot Brands A leading supplier of ventilation products to Ventilation Group the residential and commercial construction 87.8% of revenue markets in the UK and northern Europe. A leader in: >> the UK residential ventilation products market; Operating through two segments: >> th
Slide 4: Our Locations
Our Locations Volution Group plc is a leading supplier of ventilation products to the residential and commercial construction markets in the UK and northern Europe. Locations Acquisition in FY 2017 Volution Group plc Half year results to 31 January 2017 4
Slide 5: Our Strategy
Our Strategy Strong results with revenue growth of 26% and adjusted EPS up 14%. Three strategic pillars Organic growth in Growth through a disciplined Development of OEM our core markets and value‑adding (Torin-Sifan) range and acquisition strategy customer base >> 2.3% constant currency (cc). >> On
Slide 6: 2017 Half Year Highlights
2017 Half Year Highlights Revenue £m Adjusted operating profit £m Adjusted operating profit margin % £88.5m £17.1m 19.4% 88.5 17.1 22.5 21.7 21.7 15.2 19.4 70.1 14.0 64.3 13.1 58.2 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 >> Strong revenue growth in the period >> Adjusted operatin
Slide 7: 2017 Half Year Highlights continued
2017 Half Year Highlights continued Adjusted EPS p Adjusted operating cash flow £m Net debt £m 6.54p £16.4m £40.6m 6.5 16.4 39.0 40.6 5.7 5.0 4.6 11.6 11.8 11.4 21.4 21.4 2014 2015 2016 2017 2014 2015 2016 2017 July January July January 2015 2016 2016 2017 >> Improved EPS from increased >> Adjusted
Slide 8: Financial Review
Financial Review Ian Dew – CFO
Slide 9: Financial Highlights
Financial Highlights Half year results to 31 January 2017 Organic growth and an acquisition in the period. Revenue, adjusted earnings and >> Sales growth of 19.3% at cc. operating cash flow all improved significantly in the half year to 31 January 2017. >> Adjusted PBT grew by 13.3% (8.0% cc). Movem
Slide 10: Income Statement Summary
Income Statement Summary Half year results to 31 January 2017 Six months to Six months to >> Revenue growth of 26.1% (+£18.4m) (19.3% at cc). January January Movement Movement 2017 2016 £m % >> Revenue growth would have been £4.8m lower at cc. Revenue (£m) 88.5 70.1 18.4 26.1 Revenue (£m) cc 83.7 70
Slide 11: 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 2017 H1 2017 H1 2016 Movement Adjustments for exceptional items £m £m £m >> Exceptional items: Adjusted profit before tax 16.5 14.6 1.9 >> H1 2017 acquisition related costs of £0.6m and Adjustments fa
Slide 12: Consolidated Statement of Financial Position Summary
Consolidated Statement of Financial Position Summary Half year results to 31 January 2017 31 January 2017 31 July 2016 >> Non-current assets increased by £5.7m, mainly as a £m £m consequence of acquisitions and currency offset by Property, plant and equipment 19.0 19.1 depreciation and amortisation.
Slide 13: Cash Flow Summary and Net Debt Bridge
Cash Flow Summary and Net Debt Bridge Half year results to 31 January 2017 Six months to Six months to >> Net debt increased to £40.6m: one acquisition January January 2017 2016 in the period. Opening net debt (36.1) (21.2) >> Adjusted operating cash flow of £16.4m (H1 2016: £11.4m): Movements from
Slide 14: Business Update and Outlook
Business Update and Outlook Ronnie George – CEO
Slide 15: Growth by Market Segment
Growth by Market Segment H1 2017 H1 2017 H1 2016 Growth Growth £m £m (cc) £m % % (cc) Ventilation Group revenue 77.7 73.5 59.7 30.2 23.2 OEM (Torin-Sifan) revenue 10.8 10.2 10.4 3.0 (2.7) Total Volution Group revenue 88.5 83.7 70.1 26.1 19.3 Revenue growth Revenue £m The total Group grew by 26.1% (1
Slide 16: Market Sector Review: UK Residential RMI
Market Sector Review UK Residential RMI Like-for-like H1 2017 H1 2016 organic Inorganic Total £m £m % % % UK Residential RMI revenue 18.9 17.0 (4.5) 15.8 11.3 UK Residential RMI Private RMI >> Organic decline with retail performing better than the trade market. >> Continuing success in upselling to
Slide 17: Market Sector Review: UK Residential New Build
Market Sector Review UK Residential New Build Like-for-like H1 2017 H1 2016 organic Inorganic Total £m £m % % % UK Residential New Build revenue 10.2 8.3 7.7 15.0 22.7 UK Residential New Build >> Organic growth of 7.7%. >> Kinetic Advance sales and new specifications gaining traction in the market.
Slide 18: Market Sector Review: UK Commercial
Market Sector Review UK Commercial Like-for-like H1 2017 H1 2016 organic Inorganic Total £m £m % % % UK Commercial revenue 15.0 8.3 (0.1) 82.5 82.4 UK Commercial >> 82.4% growth mainly due to the acquisition of Diffusion with organic revenues now broadly flat, versus a decline in FY 2016. >> Breathi
Slide 19: Market Sector Review: UK Export
Market Sector Review UK Export Like-for-like H1 2017 H1 2016 organic Inorganic Total £m (cc) £m % % % UK Export revenue 4.3 2.8 22.5 29.6 52.1 UK Export >> Very strong growth in Eire for sales of heat recovery systems with several project orders secured. >> Margins expanding as a result of the ongoi
Slide 20: Market Sector Review: International: Nordics
Market Sector Review International: Nordics Like-for-like H1 2017 H1 2016 organic Inorganic Total £m (cc) £m % % % Nordics revenue 13.5 12.4 3.8 4.5 8.3 Nordics >> Organic growth of 3.8% (cc). >> Substantial increase in operating margin, continuing the trend from 2016. >> Introduction of new product
Slide 21: Market Sector Review: International: Central Europe
Market Sector Review International: Central Europe Like-for-like H1 2017 H1 2016 organic Inorganic Total £m (cc) £m % % % Central Europe revenue 11.6 10.9 6.7 — 6.7 Central Europe >> Strong organic growth of 6.7% (cc). >> New product introductions in Germany including the “sMove” wall mounted contro
Slide 22: Market Sector Review: OEM (Torin-Sifan)
Market Sector Review OEM (Torin-Sifan) Like-for-like H1 2017 H1 2016 organic Inorganic Total £m (cc) £m % % % OEM (Torin-Sifan) revenue 10.2 10.4 (2.7) – (2.7) OEM (Torin-Sifan) >> Organic decline of 2.7% (cc) mainly due to weaker sales of boiler spares and alternating current (AC) technology produc
Slide 23: Summary and Outlook
Summary and Outlook >> Inorganic growth of 17.0% (cc) as a result of the acquisitions of Diffusion, NVA Services and Breathing Buildings with margin expansion in each of the acquired businesses. >> On track to deliver the expected synergies from the NVA services acquisition during FY 2017/2018. >> O
Slide 24: Thank you Q&A
Thank you Q&A
Slide 25: 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