Slide 1: Half-Year Results
Half-Year Results Six months to 30 June 2016 24 August 2016
Slide 2: The Business
The Business H1 2016 sales by Molins is a world-leading provider of processing & packaging machinery division solutions and instrumentation, with a global service offering, to the nutrition, beverage, healthcare, pharmaceutical and tobacco markets Two operating divisions Packaging Instrumentation –
Slide 3: H1 Results: Operational Key Points
H1 Results: Operational Key Points Results in line with management expectations Softer trading conditions in Packaging Machinery division led to reduced sales Continued challenging market conditions for the Instrumentation & Tobacco Machinery division, although demand for instrumentation improved in
Slide 4: H1 Results: Financial Key Points
H1 Results: Financial Key Points Sales of £35.0m (2015: £39.5m) Underlying profit before tax of £0.1m (2015: £1.3m) Underlying profit per share of 0.2p (2015: 5.1p) Net debt of £4.6m (Dec 2015: £3.2m) Reduced interim dividend of 1.25p per share (2015: 2.5p) – in line with rebased 2015 final dividend
Slide 5: Divisional Trading Results
Divisional Trading Results H1 H1 FY Sales Jun 16 Jun 15 Dec 15 £m £m £m Packaging Machinery 18.2 21.8 51.0 Instrumentation & Tobacco Machinery 16.8 17.7 36.0 Total 35.0 39.5 87.0 Underlying operating profit* Packaging Machinery - 1.1 3.9 Instrumentation & Tobacco Machinery 0.2 0.3 0.1 Total 0.2 1.4
Slide 6: Financial Review: Income Statement
Financial Review: Income Statement H1 H1 FY 2011 £m Jun 16 Jun 15 Dec 15 £m £m £m Sales 35.0 39.5 87.0 Flat performance in Instrumentation & Tobacco Machinery division Underlying operating profit* 0.2 1.4 4.0 Decline in Packaging Machinery sales and profit Non-underlying items (0.4) (0.5) (1.1) due
Slide 7: Financial Review: Cash Flows
Financial Review: Cash Flows H1 H1 FY Cash flow from operating activities includes: Jun 16 Jun 15 Dec 15 – £0.2m working capital increase £m £m £m – £0.9m pension payments to UK defined Cash flows from operating benefit pension scheme (2015: £0.9m) activities 0.1 0.5 3.6 – £0.1m net outflow from dis
Slide 8: Financial Review: Balance Sheet
Financial Review: Balance Sheet H1 H1 FY Net assets Jun 16 Jun 15 Dec 15 £m £m £m Intangible Goodwill 7.6 7.4 7.4 Goodwill at June 2016 relates to Cerulean only assets: Property, plant and equipment includes £0.8m Product development 7.5 7.4 7.3 of investment property (land & property which is subje
Slide 9: Packaging Machinery: Business Overview
Packaging Machinery: Business Overview Leading supplier of complex highly automated product handling, cartoning and robotic end-of-line packaging and processing equipment Innovative technology tailored for specific niches within the following sectors – nutrition – beverages – healthcare – pharmaceut
Slide 10: Packaging Machinery: Operating Performance
Packaging Machinery: Operating Performance H1 H1 FY Jun 16 Jun 15 Dec 15 Sales £18.2m £21.8m £51.0m Operating profit - £1.1m £3.9m Operating margin - 5.0% 7.6% Softer trading in H2 2015 continued into 2016 and order intake was lower in H1 as prospects continue to take extended time to confirm orders
Slide 11: Instrumentation & Tobacco Machinery: Business Overview
Instrumentation & Tobacco Machinery: Business Overview Supplier of instrumentation, machinery and aftermarket services, predominantly to the tobacco industry Global presence – UK, USA, Brazil, Singapore, Czech Republic, Egypt, India and China Well developed supply chain, with instrumentation assembl
Slide 12: Instrumentation & Tobacco Machinery: Operating Performance
Instrumentation & Tobacco Machinery: Operating Performance H1 H1 FY Jun 16 Jun 15 Dec 15 Sales £16.8m £17.7m £36.0m Operating profit* £0.2m £0.3m £0.1m Operating margin* 1.2% 1.7% 0.3% *Before reorganisation costs of £nil (Jun 2015: £0.1m; Dec 2015: £0.4m) Demand for new cigarette making and packing
Slide 13: Outlook
Outlook As in previous years, the full year trading performance will be significantly weighted towards H2 Prospects for the Packaging Machinery division are more challenging as conversion of prospects to orders continues to be slow Instrumentation & Tobacco Machinery division continues to be affecte
Slide 14: Supplementary Information
Supplementary Information - Taxation and EPS - Cash Flow - Working Capital - Banking Facilities - Pensions 13
Slide 15: Taxation and EPS
Taxation and EPS Taxation Earnings per share H1 H1 FY H1 H1 FY Jun 16 Jun 15 Dec 15 Jun 16 Jun 15 Dec 15 Underlying tax charge* - £0.3m £0.9m Underlying EPS 0.2p 5.1p 15.1p Tax credit on pension - £(0.3)m £(0.6)m Profit before non-underlying items £0.1m £1.0m £2.9m scheme balances Basic loss per sha
Slide 16: Cash Flow
Cash Flow H1 H1 FY H1 H1 FY Jun 16 Jun 15 Dec 15 Jun 16 Jun 15 Dec 15 £m £m £m £m £m £m Underlying operating profit* 0.2 1.4 4.0 Interest received 0.1 - 0.1 Depreciation, amortisation and Capital expenditure (net) (0.6) (0.4) (0.9) 1.4 1.1 2.6 amortisation charge Development expenditure (0.8) (1.2)
Slide 17: Working Capital
Working Capital H1 H1 FY Jun 16 Jun 15 Dec 15 £m £m £m Inventories (increase)/decrease (0.5) (2.5) 2.2 Receivables decrease 2.1 2.6 6.4 Payables (decrease)/increase (1.7) 0.2 (8.1) Provisions decrease (0.1) (0.1) (0.1) Net working capital (increase)/decrease (0.2) 0.2 0.4 16 >>
Slide 18: Banking Facilities
Banking Facilities UK borrowing facilities of £13.0m committed to September 2018, secured on the Group’s assets Ancillary facilities in place to cover Group’s bonding, guarantees and foreign exchange requirements 17 >>
Slide 19: Pensions
Pensions H1 H1 FY Jun 16 Jun 15 Dec 15 £m £m £m Value of assets UK 370.9 349.3 346.9 Accounting valuation of the UK scheme US 16.8 14.6 14.9 deteriorated mainly due to lower discount rates, partly compensated by Total 387.7 363.9 361.8 strong investment performance Net (liability)/asset UK (1.9) (7.
Slide 20: Disclaimer
Disclaimer This presentation is being made only to and directed at: (a) persons who events and circumstances that are beyond the control of Molins, have professional experience in matters relating to investments falling including amongst other things, Molins’ future profitability, within Article 19
Slide 21: Tony Steels Chief Executive, David Cowen Group Finance Director
Tony Steels Chief Executive David Cowen Group Finance Director Rockingham Drive Linford Wood East Milton Keynes MK14 6LY Tel: +44 (0)1908 246870 Fax: +44 (0)1908 234224