Carclo plc · LSE:CAR
Carclo — FY2015 Earnings Presentation
23 slides from Carclo's earnings presentation, Jun 9, 2015
Slide 1: Results for year ended 31 March 2015
Results for year ended 31 March 2015 Presentation to Analysts 9 June 2015
Slide 2: Strong revenue and profit growth across principal divisions
Carclo is a leading global manufacturer of fine tolerance parts for the Medical, Industrial, Aerospace and Luxury and Supercar Lighting markets Global contract manufacturer to medical market Leading designer and manufacturer for luxury and supercar LED Lighting Leading supplier of control cables in
Slide 3: Results and Summary
Results and Summary • Strong growth in turnover and underlying operating profit across the group • Revenue increased by 10.5% to £107.5 million, reflecting excellent sales progression across our businesses • Underlying operating profit was £7.8 million (2014 - £6.6 million), up 18.9% on the prior ye
Slide 4: Key performance indicators (KPIs)
Key performance indicators (“KPIs”) To enable our performance to be tracked against our growth strategy we focus on the following KPIs: Revenue growth The revenue growth seen year on year is a strong indicator of success in growing the business – up 10.5% on 2014. Underlying operating profit margin
Slide 5: CTP and LED divisions drive strong group performance
CTP and LED divisions drive strong group performance CTP & LED Underlying Operating CTP & LED Revenue (£m) Profit (£m) 98.3 86.2 9.8 78.3 7.2 54.0 6.1 H2 46.1 H2 5.9 42.6 H2 H1 4.5 3.9 H1 35.7 40.1 44.3 3.9 2.2 2.7 12/13 13/14 14/15 12/13 13/14 14/15 Revenue Initiatives Margin Initiatives • Harthill
Slide 6: Financial Highlights
HIGHLIGHTS Financial Highlights Year ended Year ended 31 March 31 March 2015 2014 £000 £000 Revenue Technical Plastics 64,296 58,080 LED Technologies 34,053 28,160 Precision Engineering 6,304 7,776 CIT Technology 2,850 3,251 Total 107,503 97,267 Operating profit before exceptional items 7,789 6,551
Slide 7: Divisional Analysis
Divisional Analysis CTP** Revenue change •Strong sales growth in USA and Czech 80 6 60 5 +10.7% regions Sales 4 Profit* •Improved press utilisation £m 40 3 £m Operating profit* •New global medical customer projects in 2 20 production 1 +15.9% 0 0 Mar Mar Mar Mar 14 15 14 15 LED 40 5 •New programme w
Slide 8: Income Statement
Income Statement I Comparative • Group revenue increased by 10.5% to £107.5 31-Mar-15 31-Mar-14 million Revenue 107.5 97.3 • Divisional operating profit increased 16.2% to Operating profit Divisional operating profit 9.9 8.6 £9.9 million Central costs (2.1) (2.0) • Underlying operating profit increa
Slide 9: Exceptional Costs
Exceptional Costs HIGHLIGHTS Year ended 31 March 2015 £m Impairment review of CIT Technology (25.4) Harthill rationalisation costs (3.1) Impairment review of Platform Diagnostics (2.8) Other (0.4) Total (31.7) Impairment review of CIT Technology As a result of the strategic review, £25.4m impairment
Slide 10: Financial Position – Cash Flow
FINANCIAL POSITION – Financial Position – CASH FLOW Cash Flow • Increase in working capital primarily due to Underlying cash from operations 12.6 Exceptional cash flows (1.8) unwind of $10 million Atmel prepayment & Working capital (6.1) increased sub contract tooling balances Interest and tax (1.4)
Slide 11: Financial Position – Debt & Facilities
Financial Position – Debt & Facilities Net Debt • £24.5 million at 31 March 2015 • Increase since 31 March 2014 due to planned capital investment programme and unwinding of the $10 million Atmel prepayment • Expected to reduce in the current financial year mainly due to increased operating cash gene
Slide 12: Financial Position – Pensions
Financial Position – Pensions • IAS 19 pension deficit has increased to £9.7 million net of deferred tax at 31 March 2015, after the group reported a small surplus as at 31 March 2014 • Scheme assets have increased by £5.2 million since 31 March 2014 and scheme liabilities have increased by £17.5 mi
Slide 13: Markets & Strategy Actions
OUTLOOK Markets & Strategy Actions Technical Plastics LED Technologies Aerospace CDS 13
Slide 14: Technical Plastics
OUTLOOK Technical Plastics Mar-15 Mar-14 £m £m Revenue 64.3 58.1 Profit* 5.4 4.6 Margin 8.4% 7.9% Diagnostics Medical disposables Industrial • Technical Plastic sales grew at 10.7%, ahead of medical market growth (6% CAGR Source : Lucintel) • Large proportion of our investment has been made in order
Slide 15: Technical Plastics – Market Assessment
OUTLOOK Technical Plastics – Market Assessment • Detailed review of Healthcare market undertaken • Geographically well positioned to support fastest growth European, North American and Chinese markets • Existing focus on medical device confirmed as largest relevant therapeutic area with good growth
Slide 16: LED Technologies
LED OUTLOOK Mar-15 Mar-14 £m £m Revenue 34.0 28.1 Profit* 4.4 2.6 OEM Lighting Aftermarket Optics Margin 12.9% 9.3% • Built on the previous year’s performance by securing a significant number of new vehicle lighting programmes • Wipac site has undergone a major transformation with the addition of a
Slide 17: LED – Competitive Advantages
OUTLOOK LED – Competitive Advantages • We are the only lighting supplier 100% focused on the luxury and supercar market • We have invested well and have a ‘world class’ design & manufacturing facility with all key processes integrated • We have an expert empowered team with considerable industry exp
Slide 18: Precision Engineering
Precision Engineering Mar-15 Mar-14† £m £m Revenue 6.3 6.3 Profit* 1.6 1.5 Margin 25.4% 23.8% • Divestment of non-core Birkett Cutmaster has created a focused Aerospace specialist in UK and France • Focus of growth in customer service spares business for OEMs and Tier 1s • Core aircraft control cabl
Slide 19: Carclo Diagnostic Solutions
Carclo Diagnostic Solutions • Input from external advisors in the continued appraisal of our commercial plans. As a result we have streamlined our “exemplar” applications from four end market applications to two • Focus is on an infectious disease test (CRP) and a coronary test (Troponin-l) • These
Slide 20: CIT Strategic Review – licensing agreement
HIGHLIGHTS CIT Strategic Review – licensing agreement • Strategic Review completed resulting in an exit from the touch and printed electronic activities • During period of the review we observed further negative trends within the touch market which reinforced our decision • Corporate Advisors worked
Slide 21: Growth Strategy
OUTLOOK GrowthStrategy • Just over two years ago we began an expansion programme which has led to a 40% increase in investment in our Technical Plastics and LED Technologies operations • The full beneficial impact of this investment will be felt over the next two to three years • Across the group we
Slide 22: Outlook
OUTLOOK Outlook • The momentum built up in our two main manufacturing divisions is expected to continue in the coming years • Within Technical Plastics our emphasis on continually investing in and expanding our facilities allows us to grow and expand our customer base and use this increasing scale t
Slide 23: End
OUTLOOK End Forward looking statements - Certain statements made in this presentation are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events to differ materially from any expected future