Volex plc · LSE:VLX
Volex — FY2006 Earnings Presentation
19 slides from Volex's earnings presentation, 2006
Slide 1: Full Year Results 2005/06
Volex Group plc Full Year Results 2005/06
Slide 2: Briefing Agenda
Briefing Agenda 1. Introduction Heejae Chae, Group CEO 2. Results Overview Heejae Chae 3. Financials Derek Walter, Group FD 4. Divisional Review Heejae Chae 5. Future View Heejae Chae Volex Group plc Full Year Results 2005/06 2
Slide 3: FY06 Overview
FY06 Overview 9 Raised £17.6m through equity financing 9 Nearly completed the restructuring programme • Closed seven facilities and downsized two • In process of closing three additional facilities • Over 95% of direct labour in low cost area 9 Restructured the organisation into three global product
Slide 4: Financial Highlights
Financial Highlights 2005/06 2004/05 £m £m Sales 250.4 244.6 Operating profit* 5.3 1.8 Major restructuring programme charge (8.6) (6.8) Profit/(loss) before tax* 1.9 (2.4) Tax charge 2.4 4.4 Adjusted loss per share* (1.0)p (23.4)p Cash flows from operations 11.7 1.6 * Before major restructuring prog
Slide 5: Financial Review
Volex Group plc Financial Review
Slide 6: Income Statement
Income Statement FY 2006 FY 2005 1H 2H Year 1H 2H Year £m £m £m £m £m £m Sales 123.9 126.5 250.4 122.9 121.7 244.6 Operating profit pre MRP 1.4 3.9 5.3 1.2 0.6 1.8 MRP charges (1.7) (6.9) (8.6) 1.3 (8.1) (6.8) Net interest (1.7) (1.7) (3.4) (2.4) (1.8) (4.2) PBT pre MRP (0.3) 2.2 1.9 (1.2) (1.2) (2.
Slide 7: Sales by Source
Sales by Source 2005/06 Percentage variation on prior FY Europe United Kingdom 20% North America 13.0% 9.7% Asia & South America 1.1% 0% -20% -14.8% 40% 2005/06 Percentage variation H2 on H1 17% 20% 12.7% 9.7% 0% 13% 30% -6.4% -10.2% -20% Volex Group plc Full Year Results 2005/06 7
Slide 8: Locations
Locations Factories Sales/Support Total End FY2005 25 17 42 Conover 9 Malaysia Philippines 9 Tczew Aguascalientes Fremont 9 Thailand 9 (7) 4 (3) End FY2006 18 21 39 Clinton Stoke Butts Mill (3) - (3) End FY2007 15 21 36 Volex Group plc Full Year Results 2005/06 8
Slide 9: Tax Charge
Tax Charge 2005/06 2004/05 £m £m Current tax Charge for the year 1.8 2.6 Adjustment in respect of previous years 0.6 0.9 Total current tax 2.4 3.5 Deferred tax - 0.9 Total tax charge 2.4 4.4 Volex Group plc Full Year Results 2005/06 9
Slide 10: Capital Employed
Capital Employed 2005/06 2004/05 £m £m Tangible fixed assets 11.5 13.5 Inventories 30.3 28.0 Trade and other receivables 52.8 50.4 Trade creditors & accruals (42.7) (37.2) Working capital 40.4 41.2 Capital employed 51.9 54.7 Volex Group plc Full Year Results 2005/06 10
Slide 11: Balance Sheet
Balance Sheet 2005/06 2004/05 £m £m Capital employed 51.9 54.7 Intangible assets 2.1 2.0 Net debt (13.3) (30.5) Current & deferred tax balances (1.8) (3.4) Retirement benefit obligation (3.5) (4.1) Other provisions & long term liabilities (9.3) (3.6) Net assets 26.1 15.1 Volex Group plc Full Year Re
Slide 12: Operating Cash Flow
Operating Cash Flow FY 2006 FY 2005 Ongoing MRP Total Ongoing MRP Total £m £m £m £m £m £m Operating profit 5.3 (8.6) (3.3) 1.8 (6.8) (5.0) Amort, dep’n and impair. 3.9 1.5 5.4 4.6 3.3 7.9 Loss/(profit) on disposal 0.1 - 0.1 - (1.9) (1.9) Share options 0.1 0.3 0.4 - - - Working capital 4.1 0.5 4.6 (4
Slide 13: Cash Flow
Cash Flow 2005/06 2004/05 £m £m Ongoing operating cash flow 10.7 0.3 Tax paid (4.4) (2.2) Interest paid (2.5) (3.8) Ongoing cash flow 3.8 (5.7) Cash flows of major restructuring programme (1.5) 6.9 Issue of share capital 17.6 - Refinancing costs paid (2.5) (0.7) FX movement (2.3) 0.7 Movement in deb
Slide 14: Divisional Review
Volex Group plc Divisional Review
Slide 15: Divisional Operations – PowerCord
Divisional Operations – PowerCord PowerCord – FY06 Segment Highlights 2006 2005 • Revenue driven by volume increase and higher average selling price due to mix shift and £’000 £’000 escalating copper price • Strong demand in consumer segment especially Revenue 118,275 110,882 game consoles and flat
Slide 16: Divisional Operations – Infocom
Divisional Operations – Infocom Infocom – FY06 Segment Highlights • Revenue declined due to rationalisation of low 2006 2005 margin business, increasing pricing pressure £’000 £’000 • Quality of revenue improved through focus on high growth and emerging markets such as medical and high speed Revenue
Slide 17: Divisional Operations – Wiring Harness
Divisional Operations – Wiring Harness Wiring Harness – FY06 Segment Highlights 2006 2005 • Revenue driven by construction equipment and military/aerospace markets £’000 £’000 • Profitability impacted by unexpected administration proceeding at a large account, rising commodity Revenue 32,705 29,260
Slide 18: The Future
Volex Group plc The Future
Slide 19: Summary
Summary Build on FY2006 9 Operating profit increased threefold accomplishments and 9 Cash flow increased from £1.6m to £11.7m momentum 9 Second half run rate showing the benefits 9 Nearly completed the restructuring programme Execute the strategy 9 Leverage our market leading position – preferred su