Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — H1 2019/20 Earnings Presentation
22 slides from Alumasc's earnings presentation, February 2020
Slide 1: Interim Results for the Six Months Ending 31 December 2019
The Alumasc Group plc Interim Results for the Six Months Ending 31 December 2019 Alumasc Water Management Solutions –Alumasc Skyline Aluminium Fascia & Soffit
Slide 2: Overview
Overview • Alumasc is a UK leader in the design and supply of sustainable building products, systems and solutions. • Over 80% of revenues are driven by building regulations and customer specifications. • We have leading specialist market positions and are positioned strategically to benefit from st
Slide 3: A Leader in the Design and Supply of Sustainable Building Products
A Leader in the Design and Supply of Sustainable Building Products A growing portfolio of design-led products backed by leading brands • Building Envelope and Water Management (commercial and public sector) customers value Alumasc’s strong design capabilities and established, trusted brands • Our Ho
Slide 4: Examples of Alumasc's Solutions
Examples of Alumasc’s Solutions Water Management “Rain to Drain” Green / Brown Roof Heritage Cast Iron / Aluminium Rainwater Wade Gatic Slotdrain Gatic & Water Attenuation - Bristol St Pancras Building Drainage External Drainage / Attenuation COEX Access Cover Building Envelope Housebuilding Product
Slide 5: Interim Results to 31 December 2019 - Highlights
Interim Results to 31 December 2019 - Highlights Strategic • Building Envelope (Levolux and Alumasc Roofing) division formed • Levolux restructuring generally on track and expect to be back in profit in H2 • Operational sites reduced from 10 to 6 by June 2020 • On track to deliver £2m of fixed cost
Slide 6: Summary of Interim Results
Summary of Interim Results £m (unless otherwise stated) 6 Months to 31 December 2019 2018(4) % Change Revenue 41.1 44.3 -7% Gross profit 12.2 12.7 -4% Gross margin (%) 29.8% 28.7% +110bps Underlying EBITDA 3.5 3.2 +10% EBITDA margin (%) 8.6% 7.2% +140bps Underlying(1) EBIT 2.5 2.4 +5% EBIT margin (%
Slide 7: Water Management
Water Management ALUMASC’S “RAIN TO DRAIN” SYSTEM H1 2019/20 H1 2018/19 also showing Levolux Revenue (£m) 17.6 19.0 Underlying operating profit (£m) 2.4 1.6 Underlying operating margin (%) 13.8% 8.3% Rainwater, drainage, fascia soffits and access covers ● Strengths and core revenue drivers: – Strong
Slide 8: Building Envelope
Building Envelope H1 2019/20 H1 2018/19 Revenue (£m) 18.2 19.7 Underlying operating (loss) / profit (£m) (0.3) 0.3 Underlying operating margin (%) (1.5)% 1.6% Design & supply of Flat Roofing, Green Roofing, Solar Shading / Screening, Balcony and Façade systems and integrated Building Envelope (roof
Slide 9: Housebuilding Products
Housebuilding Products H1 2018/19 H1 2017/18 Revenue (£m) 5.3 5.6 Operating profit (£m) 0.9 0.9 Operating margin (%) 17.3% 15.8% Supplies manufactured high volume, relatively low unit value plastic products required by legislation and Building Regulations mainly into the UK new house building produc
Slide 10: Strategic Development - Overview
Strategic Development - Overview Commercial positioning and revenue development Cost base optimisation, efficiencies and margins • Increasing focus on end markets underpinned by legislation and regulation with long • Recent restructuring on track to deliver £2m of fixed cost savings in FY 2019/20 te
Slide 11: Strategy in Action – Recent, Ongoing and Future Initiatives
Strategy in Action – Recent, Ongoing and Future Initiatives Levolux restructuring and business improvement plan Levolux incorporated into new Building Envelope Division, combining two complementary product groups and similar routes to market enabling cross-selling Significant restructuring to delive
Slide 12: Pensions update
Pensions update - a significant reduction in the deficit and ongoing pension funding Triennial Review at 31 March 2019 2016 Pension deficit (technical provision basis) £22.4m £33.0m Recovery period remaining from 31 March 7 years 11 years Deficit reduction payments (pa) - up to 31 December 2019 £3.2
Slide 13: H1 Summary
H1 Summary • A resilient performance with profit maintained in spite of the difficult market backdrop • Strong Water Management divisional performance (43% of Group revenues) with H1 profit up 50% • New Building Envelope division formed and Levolux restructuring / recovery programme generally on tra
Slide 14: Summary of Strategy and Outlook
Summary of Strategy and Outlook Strategy • Focus on ongoing growth in our Water Management, Building Envelope and Housebuilding Products businesses - supplemented by complementary acquisitions • Focus on design, new product development, quality and service as key differentiators • Continue to drive
Slide 15: Appendices
Appendices
Slide 16: The Alumasc Group – Divisional Overview
The Alumasc Group – Divisional Overview Water Management Building Envelope Housebuilding Products Description Description Description • Comprises Alumasc Water Management Solutions • Comprises Alumasc Roofing, and Levolux solar shading, • Comprises Timloc, almost 100% UK revenues (“AWMS”); Wade (acq
Slide 17: Diversified End Markets
Diversified End Markets 3% 7% 8% Private Commercial Private Housing 29% Public Non-Residential Infrastructure Building Envelope Public Housing 13% Water Management Private Industrial Public Non-Residential RMI Private Housing RMI 1% Housebuilding Products Private Non-Residential RMI 2% Public Housin
Slide 18: Strategy in Action – Proven track record in M&A – Acquisition of Wade
Strategy in Action – Proven track record in M&A – Acquisition of Wade A highly complementary business • A leading designer, manufacturer and supplier of high quality metal drainage products and access covers acquired in February 2018 • Strong positioning in surface water drainage (internal & externa
Slide 19: Income statement summary (£m)
Income statement summary (£m) 6 months to 31 December 2019 2018(1) Change £m £m % Revenue 41.1 44.3 -7% Gross profit 12.2 12.7 Gross margin % 29.8% 28.7% Sales, general & administration overheads (9.7) (10.3) Underlying operating profit* 2.5 2.4 +5% Underlying operating margin % 6.1% 5.4% Interest o
Slide 20: Cash flow statement summary
Cash flow statement summary 6 months to 31 December 2019 2018 Change £m £m £m EBITDA* 3.5 3.2 0.1 Change in working capital - 1.6 (1.4) Operating cash flow 3.5 4.8 (1.3) Capital expenditure (0.9) (0.9) - IFRS16: Property lease cash flows (0.2) n/a (0.2) Interest (0.2) (0.1) (0.1) Tax - (0.3) 0.3 Pen
Slide 21: Balance sheet summary (£m)
Balance sheet summary (£m) at 31 December 2019 2018(1) Change £m £m £m Property, plant & equipment 11.7 10.8 0.9 IFRS16: Leased assets 4.8 n/a(1) 4.8 Intangible assets 22.0 22.3 (0.3) Working capital 10.1 7.9 2.2 Other net liabilities (2.1) (2.5) 0.4 Capital invested 46.5 38.5 8.0 p) Net debt (6.6)
Slide 22: Underlying To Statutory Profit Reconciliation (£m)
Underlying To Statutory Profit Reconciliation (£m) H1 2019/20 H1 2018/19 Operating Profit Operating Profit Profit Before Tax Profit Before Tax £’000 £’000 £’000 £’000 Underlying profit 2.5 2.3 2.4 2.3 Brand amortisation (0.1) (0.1) (0.1) (0.1) Net IAS 19 defined benefit pension scheme costs - (0.2)