Treatt Plc · LSE:TET
Treatt — FY2014 Earnings Presentation
15 slides from Treatt's earnings presentation, December 2014
Slide 1: Preliminary Results for the year ended 30 September 2014
Preliminary Results for the year ended 30 September 2014 Daemmon Reeve Chief Executive Officer Richard Hope Finance Director
Slide 2: Contents
Contents Financial Summary Customer Base Treatt in 2014 Strategy Map Innovation Driving Success through Cultural Change Financial Review 2015 Prospects 2
Slide 3: Summary 2014
Summary 2014 + + + + 11% 15% 7% 3.8% £6.9m 9.95p £79.2m 3.84p Profit Before Tax Earnings per share Revenue Dividend Delivering growth on a consistent basis 3
Slide 4: Key Performance Indicators
Key Performance Indicators + + 10.9% 15.2% 2014 £6.9m 2014 9.95p 2013 £6.2m 2013 8.64p Profit Before Tax Earnings per share 2014 2013 Net operating margin 9.6% 9.4% Return on capital employed 19.7% 19.4% Average net debt to EBITDA 0.99 x 1.28 x 4
Slide 5: Cash – raw material price increases
Cash – raw material price increases Inventory levels increase by £4.4m to £28m Debt increased by £1.3m Net Debt to EBITDA reduced to 0.99 Headroom of £10.7m Total of £20m bank facilities with HSBC, Lloyds and Bank of America 5
Slide 6: Customer Base
Customer Base Top Customer – 8% of group sales Top Ten Customers – 35% of group sales Consumer product Manufacturers – 3 of the top 10 6
Slide 7: Treatt in 2014
Treatt in 2014 Strategy embedded Managed change at the company ̶ Global sales structure • Termination of European Agent • New Sales Team for China ̶ Global Quality Control and Human Resources ̶ Behavioural Safety Programme ̶ Working closer with customers on Innovation Record performance in our 128 y
Slide 8: Strategy Map
Strategy Map Group Market- driven new Growth product Focussed development sales approach Market- Concentrated driven new product product range development Setting Targeted milestones customers Innovation and segments Excellent Cost control quality and service Well motivated and experienced workforce
Slide 9: Innovation
Innovation Wellness – Sugar Reduction Tailored Solutions – Partnering with customers Alcoholic Beverages – Large number of new brewery customers 9
Slide 10: Driving Success through Cultural Change
Driving Success through Cultural Change Engagement Surveys Culture of Empowerment Free Shares Charity Work Community Spirit Leave 10
Slide 11: Financial Overview
Financial Overview 2014 2013 Revenue £79.2m £74.1m EBITDA* £9.0m £8.3m Profit before tax * £6.9m £6.2m Earnings per share * 10.0p 8.6p Dividends per share 3.8p 3.7p Net Assets per share 56.0p 52.4p * Excluding exceptional items 11
Slide 12: Interim / Final Profit Before Tax
Interim / Final Profit Before Tax 2006-2014 £7,000k £6,000k £5,000k £4,000k £3,000k £2,000k £1,000k £k Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 MONTHS 1H 2H 12
Slide 13: Summary Balance Sheet
Summary Balance Sheet All figures £m 2014 2013 Goodwill £1.1m £1.1m Fixed Assets £11.7m £12.4m Inventories £28.0m £23.7m Debtors £14.5m £13.2m Creditors (£11.5m) (£11.3m) Working Capital £31.0m £25.6m Taxation (£1.1m) (£1.2m) Net Debt (£9.6m) (£8.3m) Other net liabilities (£3.9m) (£2.2m) Shareholder
Slide 14: Interim / Final Dividends
Interim / Final Dividends 2005-2014 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 MONTHS 1H 2H 14
Slide 15: 2015 Prospects
2015 Prospects Group order books up On-going efficiency improvements Greater opportunities from new customer briefs Steady start to new financial year Shift to added value continues 15