Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — H1 FY22 Earnings Presentation
27 slides from Alumasc's earnings presentation, March 2022
Slide 1: The Alumasc Group plc Interim Results
The Alumasc Group plc Interim Results Six months ending 31 December 2021 Alumasc Water Management Solutions – Aqualine Box Extruded Aluminium Gutter and Flushjoint Aluminium Downpipes – The New Clubhouse, Machrihanish Golf Course
Slide 2: Contents
Contents 01 02 Overview of H1 FY22 Business Review 03 04 Strategic Delivery Financial Review 05 06 Outlook Appendices Paul Hooper Chief Executive Simon Dray Group Finance Director Alumasc Roofing – Hydrotech – The Oaks, Coventry
Slide 3: Overview of H1 FY22
01 Overview of H1 FY22 Alumasc Water Management Solutions – Skyline Fascia and Soffit System – The Sail, West Kirby, Wirral
Slide 4: Overview
Overview Solid performance, against a comparative which included c.£2.5m of sales delayed from FY20 by the Covid-19 lockdown: • Revenues from continuing operations: £46.3m (H1 FY21: £45.6m); +2% • Excluding Covid-boosted sales in H1 FY21: +7.5% • Export sales +41% to £8.7m • Underlying operating mar
Slide 5: Business Review
02 Business Review Alumasc Water Management – Beaulieu Park
Slide 6: Water Management
Water Management ALUMASC’S “RAIN TO DRAIN” SYSTEM H1 H1 H1 also showing Levolux and Alumasc Roofing FY22 FY21 FY20 Revenue (£m) 22.8 19.2 17.6 Underlying operating profit (£m) 4.1 3.5 2.4 Underlying operating margin (%) 18.1% 18.3% 13.8% Operating profit (£m) 4.1 3.5 2.4 • Divisional revenue increas
Slide 7: Building Envelope
Building Envelope H1 H1 H1 FY22 FY21 FY20 Revenue (£m) 17.8 21.1 18.2 Underlying operating profit (£m) 0.9 2.5 (0.3) Underlying operating margin (%) 4.9% 12.0% (1.5)% Operating profit (£m) 0.8 2.4 (0.4) • Alumasc Roofing had solid H1: • Further investment in historically weaker sales areas, market s
Slide 8: Housebuilding Products (Timloc)
Housebuilding Products (Timloc) H1 H1 H1 FY22 FY21 FY20 Revenue (£m) 5.7 5.3 5.3 Underlying operating profit (£m) 1.1 1.2 0.9 Underlying operating margin (%) 19.3% 22.2% 17.3% Operating profit (£m) 1.1 1.1 0.9 • Excellent performance, despite site delays caused by labour and commodity material short
Slide 9: Strategic Delivery
03 Strategic Delivery Timloc Building Products – Timloc Lorry
Slide 10: Strategic delivery – A cost-efficient operating structure
Strategic delivery – A cost-efficient operating structure • Successful reorganisation in FY19/20: • operating sites reduced from 10 to 6. • £3.1m annualised savings. • Benefit retained in FY22. • Continual focus on operating efficiency and cost control. Alumasc Water Management – Gatic Ultraslot – A
Slide 11: Strategic delivery – Levolux business improvement plan
Strategic delivery – Levolux business improvement plan Targets • Return business to sustainable profit as soon as possible. • Incorporate Levolux into the newly formed (2019/20) Building Envelope Division. • Focus on design & supply activities (install only where it adds value). • Accelerate profita
Slide 12: Strategic delivery – Investment and innovation to drive profitable growth
Strategic delivery – Investment and innovation to drive profitable growth • Focus on key manufacturing businesses: Timloc, Wade, AWMS. • Timloc: capacity, machinery upgrade & automation. • Ongoing innovation with numerous new product launches throughout the period, despite Covid disruption. • Toolin
Slide 13: Strategic delivery – Geographical expansion
Strategic delivery – Geographical expansion • Group export sales +41% to £8.7m. • Export sales represented 19% (H1 FY21: 13%) of total revenue. • Water Management exports +83%: • Access and drainage products for projects in Middle/Far East and Central/South America. • Recovery in Levolux’s core US m
Slide 14: Strategic delivery – Proactive portfolio management
Strategic delivery – Proactive portfolio management • Bolt-on acquisitions continue to be sought. • Key areas (but not limited to): • Extension of product portfolio. • Adjacent market access. • Additional technology. • No plans to make divestments. Wade – HCE Linear Drainage Channels – Lambeth Palac
Slide 15: Aligned with drive towards sustainable building & construction
Aligned with drive towards sustainable building & construction • Strong alignment to growing demand for sustainable materials and for minimising lifecycle carbon cost • c.80% of products manage energy and water management in the built environment and occupant wellbeing • Products showcased at COP26
Slide 16: Environment Social Governance
Sustainability framework Key focus areas 2022 progress Next steps Net zero plan Net zero planning underway, Timloc GHG emissions Continual improvement first carbon neutral business Sustainable in recycled content Environment materials Capital investment to increase recycled content Waste reduction a
Slide 17: Financial Review
04 Financial Review Alumasc Roofing – Hydrotech – One Chamberlain Square, Birmingham
Slide 18: Income statement summary
Income statement summary 6 months to 31 December H1 FY22 H1 FY21 Change H1 FY20 Change £m £m % £m % Revenue 46.3 45.6 +2% 41.1 +13% Gross profit 16.0 16.7 12.2 Gross margin % 34.6% 36.7% 29.8% Sales, general & administration overheads (10.5) (10.5) (9.7) Underlying operating profit* 5.5 6.2 -11% 2.5
Slide 19: Cash flow statement summary
Cash flow statement summary 6 months to 31 December H1 FY22 H1 FY21 Change £m £m £m EBITDA* 6.8 7.4 (0.6) Change in working capital (1.8) 0.9 (2.7) Deferred VAT paid (0.6) (0.6) - Operating cash flow 4.4 7.7 (3.3) Capital expenditure (1.4) (1.0) (0.4) IFRS16: Property lease cash flows (0.4) (0.4) -
Slide 20: Balance sheet summary
Balance sheet summary at 31 December H1 FY22 H1 FY21 Change £m £m £m Property, plant & equipment 12.4 11.2 1.2 IFRS16: Leased assets 5.1 5.5 (0.4) Intangible assets 21.9 22.1 (0.2) Working capital 13.4 8.2 5.2 Other net liabilities (2.9) (3.2) 0.3 Capital invested 49.9 43.8 6.1 p) Net bank debt (4.1
Slide 21: Revenue and Profit Bridge
Revenue and Profit Bridge Organic growth: £m Revenue Underlying PBT Group +1.3 +0.3 Excluding Levolux +4.4 +1.3 Water Management +3.3 +0.8 Building Envelope (2.4) (0.9) excluding Levolux +0.7 +0.1 Housebuilding Products +0.4 +0.1 Centre - +0.3 17 www.alumasc.co.uk 21
Slide 22: Outlook
05 Outlook Levolux – The Crescent, Salford
Slide 23: Outlook
Outlook • Entering H2 with good momentum. • Levolux pipeline of opportunities increasing. • Strong balance sheet will allow continued investment to accelerate growth. • Group on way to establishing market leadership in sustainable building products: • Sustainability and carbon reduction products a k
Slide 24: Thank you
Thank you www.alumasc.co.uk Alumasc Water Management Solutions – Aqualine Box Extruded Aluminium Gutter and Flushjoint Aluminium Downpipes – The New Clubhouse, Machrihanish Golf Course
Slide 25: Appendices
06 Appendices Alumasc Water Management Solutions – Broomfield School
Slide 26: Underlying To Statutory Profit Reconciliation (£m)
Underlying To Statutory Profit Reconciliation (£m) H1 FY22 H1 FY20 Operating Profit Operating Profit Profit Before Tax Profit Before Tax £’000 £’000 £’000 £’000 Underlying profit 5.5 5.3 6.2 6.0 Brand amortisation (0.1) (0.1) (0.1) (0.1) Net IAS 19 defined benefit pension scheme costs - (0.1) (0.1)
Slide 27: Diversified End Markets
Diversified End Markets Division Brands End markets Private/ Housing/ RMI/ Public Non-residential/ New build Commercial & infrastructure Water Management Building Envelope Housebuilding Products Note: Allocation of end markets to Alumasc divisions is approximate / illustrative www.alumasc.co.uk 27