Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — FY2022 Earnings Presentation
29 slides from Alumasc's earnings presentation, 2022
Slide 1: The Alumasc Group plc Annual Results to 30 June 2022
The Alumasc Group plc Annual Results to 30 June 2022 Alumasc Building Products – Derbigum Black, Caltech QC and Blackdown Brownroof - Jersey
Slide 2: Contents
Contents 01 02 Overview of FY22 Strategic Delivery 03 04 Financial Review Business Review 05 06 Outlook Appendices Paul Hooper Simon Dray Chief Executive Group Finance Director Rainclear Systems – BS200 Canopy in Side Panel
Slide 3: Overview of FY22
01 Overview of FY22 Alumasc Water Management – Skyline Fascia and Soffit
Slide 4: Overview
Overview Very strong performance from continuing operations: • Revenue: £89.4m (FY21 £77.8m): +14.9% • Underlying operating margin: 14.9% (FY21 13.5%): +140bps • Underlying PBT £12.7m (FY21 £10.0m): +27.0% • Net Bank Debt of £4.7m (FY21 £0.9m). Bank facilities £29m • Underlying EPS: 28.6p (FY21 22.5
Slide 5: Alumasc today
Alumasc today: Re-shaped portfolio provides platform for acceleration of strategy Markets supported by long term environmental growth drivers Premium products/brands with strong market positions Entrepreneurial decentralised model: efficient and agile Strengthened financial position with c
Slide 6: Strategic Delivery
02 Strategic Delivery Alumasc Water Management – Skyline Fascia, Soffits, Copings and Alumasc Rainwater Products – Willow Bank, Northamptonshire
Slide 7: Strategic delivery – Levolux disposal
Strategic delivery – Levolux disposal • Divestment decision in H2 FY22 • £2.0m underlying loss in FY22 (FY21: £0.5m profit) • Levolux unlikely to generate required returns • Strategic move away from installation activities • Disposal by share sale on 26 August 2022 after extensive marketing process
Slide 8: Strategic delivery – cost-efficient operating structure
Strategic delivery – cost-efficient operating structure • Management of cost base supporting improving underlying operating margins • Continuing to review opportunities to improve operating efficiency Gatic – UltraSlot Slotdrain - Dover Docks 8 www.alumasc.co.uk
Slide 9: Strategic delivery – investment and innovation to drive profitable growth
Strategic delivery – investment and innovation to drive profitable growth • Water Management • Tooling investments providing: • Improved manufacturing efficiency • Lower energy consumption/greenhouse gas emissions • Support supply continuity and near-sourcing • Building Envelope • Sales and Marketin
Slide 10: Strategic delivery – export sales
Strategic delivery – export sales • Exports represented 15% of total sales in FY22 • Further growth opportunities in selected markets • Asia and Australasia • Latin and South America • Middle East • Key brands: • Gatic covers • Gatic Slotdrain • Wade drainage 10 www.alumasc.co.uk
Slide 11: Strategic delivery – pension deficit
Strategic delivery – pension deficit • IAS 19 pension deficit reduced to £2.1m at 30 June 2022 • Triennial funding review concluded with trustees • Future contribution rate reducing to £1.2m pa (from £2.3m) from 1 October 2022 • Further scheme de-risking as deficit narrows • Self-sufficient position
Slide 12: Strategic delivery – Focus on sustainability
Strategic delivery – Focus on sustainability Building products for a better future: Environmental focus • Products supported by long term environmental growth drivers • Carbon footprint reduction Sustainable materials • Durable, recycled and recyclable • Ethically sourced Responsible business • Code
Slide 13: Strategic delivery – environmental sustainability
Strategic delivery – environmental sustainability FY22 position Targets Environmental challenges facing built • 80% of portfolio aimed at • Sales growth/market share gains environment provide long term growth environmental solutions drivers • Increased capability through new • Demand outperforming U
Slide 14: Financial Review
03 Financial Review Alumasc Roofing – Hydrotech – One Chamberlain Square, Birmingham
Slide 15: Income statement summary
Income statement summary 12 months to 30 June 2022 2021 Change £m £m % Continuing operations: Revenue 89.4 77.8 +14.9% Gross profit 33.4 29.4 Gross margin % 37.3% 37.8% Sales, general & administration overheads (20.0) (18.9) Underlying operating profit* 13.3 10.5 +26.9% Underlying operating margin %
Slide 16: Revenue and Profit Bridge – FY21 to FY22 (£m)
Revenue and Profit Bridge – FY21 to FY22 (£m) • £2.5m sales/£0.9m profit delayed into prior year by Covid • Significant cost inflation over period: strength of brands, and active management of suppliers and prices, allowed pass-through • Strong organic growth across continuing group: £m Sales UPBT W
Slide 17: Cash flow statement summary
Cash flow statement summary 12 months to 30 June 2022 2021 Change £m £m £m • Operating cashflow from continuing operations EBITDA from continuing operations* 16.0 13.2 2.8 at 85% of underlying operating profit (FY21: 121%) Change in working capital (4.0) 0.6 (4.6) VAT (repayment)/deferral (0.7) (1.1
Slide 18: Balance sheet summary
Balance sheet summary at 30 June 2022 2021 Change £m £m £m • Capital invested reduced by Levolux impairment Property, plant & equipment 17.5 17.2 0.3 • Net bank debt £4.7m, gearing 0.4x (covenant <2.5x) Intangible assets 10.7 22.0 (11.3) Working capital 11.5 9.4 2.1 • Revolving credit facility amend
Slide 19: Business Review
04 Business Review Alumasc Roofing – Haven Green Court
Slide 20: Water Management
Water Management 2021/22 2020/21 Revenue (£m) 47.6 38.4 Underlying operating profit (£m) 8.8 6.1 Underlying operating margin (%) 18.4% 15.9% • Broad exposure to housing and commercial markets • Record £47.6m revenue, £9.2m (24%) higher than PY • Record £8.8m operating profit (18% operating margin),
Slide 21: Building Envelope
Building Envelope 2021/22 2020/21 Revenue (£m) 29.4 28.4 Underlying operating profit / (loss) (£m) 3.6 3.7 Underlying operating margin (%) 12.2% 13.2% From continuing operations • Sells principally into the high end UK commercial new build construction market with an increasing RMI sector • Revenue
Slide 22: Housebuilding Products (Timloc)
Housebuilding Products (Timloc) 2021/22 2020/21 Revenue (£m) 12.4 11.1 Underlying operating profit (£m) 2.4 2.6 Underlying operating margin (%) 19.7% 23.0% • Timloc, our Housebuilding products Division, had another strong year • Revenue grew by £1.3m (12%) • Underlying profit close to prior year, op
Slide 23: Outlook
05 Outlook Rainclear Systems – AGST Woodpecker Carpentry at RHS Show
Slide 24: Outlook
Outlook • Group re-positioned following disposal of Levolux: • Simplified business model with no exposure to contracting/installation and shorter cash cycle • Strong brands positioned behind long term environmental growth drivers • Long term customers across diverse end markets • Export opportunitie
Slide 25: Thank You
Thank You www.alumasc.co.uk Alumasc Building Products – Derbigum Black, Caltech QC and Blackdown Brownroof - Jersey
Slide 26: Appendices
06 Appendices Rainclear Systems – Galvanised Steel – Forest House
Slide 27: Appendix 1: Underlying To Statutory Profit Reconciliation
Appendix 1 : Underlying To Statutory Profit Reconciliation 2021/22 2020/21 Operating Profit/(loss) Operating Profit Profit Before Tax Profit Before Tax £m £m £m £m Underlying operating profit / profit before tax: continuing operations 13.3 12.7 10.5 10.0 Brand amortisation (0.1) (0.1) (0.1) (0.1) IA
Slide 28: Appendix 2: Discontinued operations
Appendix 2 : Discontinued operations FY21 FY22 FY23 (est) • Levolux business sold on 25 August 2022 and shown as discontinued Reported profit operation in FY22 accounts Operating profit/(loss) 0.5 (2.0) (0.1) Brand amortisation (0.2) (0.1) - • £14.9m non-cash asset impairment recorded in FY22 Statut
Slide 29: Appendix 3: Diversified End Markets
Appendix 3 : Diversified End Markets Division Brands End markets Private/ Housing/ RMI/ Public Non-residential/ New build Commercial & infrastructure Water Management Building Envelope Housebuilding Products 29 Note: Allocation of end markets to Alumasc divisions is approximate / illustrative www.al