Chesterfield Special Cylinders Holdings Plc · LSE:CSC
Chesterfield Special Cylinders — Pressure Technologies — H1 2020 Earnings Presentation
34 slides from Chesterfield Special Cylinders's earnings presentation, June 2020
Slide 1: Interim Results 2020
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Slide 2: Agenda
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Agenda 1. Strategic Progress and Group Highlights 2. COVID-19 Response 3. Financial Review 4. Divisional Highlights ○ Chesterfield Special Cylinders ○ Precision Machined Components 5. Outlook 2
Slide 3: Group Overview H1 2020
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 GROUP OVERVIEW H1 2020
Slide 4: Our strategic roadmap
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Our strategic roadmap Creating value for investors, customers, ● Quality of our products and services ● Financial Performance - revenue, operating profit, EPS, dividend colleagues and the communities we ● Customer Preference - mar
Slide 5: Mixed performance amidst operational and market challenges
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Mixed performance amidst operational and market challenges Revenue* 4% down to Operating loss* of Return on Revenue at £13.9m £(0.1)m -0.7% (2019*: £14.5m) (2019*: profit £1.3m) (2019: +9.0%) Operating cash inflow** Working capital
Slide 6: Further progress against our strategic goals
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Further progress against our strategic goals ● Overall Group revenue was significantly lower than prior year period due to phasing of large defence contracts and the impact of Covid-19 restrictions in March 2020 ● Strong order int
Slide 7: Well positioned to navigate through Covid-19 crisis
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Well positioned to navigate through Covid-19 crisis Proud of the response across the entire business ● Ensured business continuity as we are a critical supplier to defence and energy ○ All sites operational throughout ○ Minimised
Slide 8: Group Financial Review H1 2020
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 GROUP FINANCIAL REVIEW H1 2020
Slide 9: Summary Profit & Loss
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Summary Profit & Loss H120 H119* FY19* Revenue (£m) 13.9 14.5 28.3 Precision Machined Components Division 7.6 6.8 14.4 Chesterfield Special Cylinders Division 6.3 7.7 13.9 Gross profit (£m) 4.0 5.0 9.2 ● Adjusted operating loss for
Slide 10: Summary Balance Sheet
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Summary Balance Sheet H120 H119* FY19 £m £m £m ● Strategic investment in facilities and capital equipment continued in the Goodwill & Intangible Assets 15.2 16.8 16.1 period with additions exceeding depreciation Tangible fixed ass
Slide 11: Priority remains to reduce net RCF debt and leverage
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Priority remains to reduce net RCF debt and leverage ● Composition of total debt has changed in the period with the continued investment in capital equipment support by individual asset finance and the impact of adopting IFRS 16.
Slide 12: Positive cash in-flow in the reported period, liquidity remains the focus
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Positive cash in-flow in the reported period, liquidity remains the focus for H220 and beyond ● £3.1m headroom in the undrawn RCF facility remains until December 2020 when it reduces to £1.1m, assuming no further draw. ● Post half
Slide 13: Chesterfield Special Cylinders
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 CHESTERFIELD SPECIAL CYLINDERS
Slide 14: CSC in numbers
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 CSC in numbers Revenue 18% down to Gross profit margin Operating profit reduced to £6.3m (2019: £7.7m) 33% £0.4m (2019: 39%) (2019: £1.4m) Integrity Management Services Revenue up to Contracted Revenue deliverable within next 12 Re
Slide 15: CSC - Products, Markets and Customers
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 CSC - Products, Markets and Customers Products and Markets: Defence Market Customers: ● Ultra Large Cylinders ○ Defence - Naval UK ○ Defence - Naval Overseas ○ Oil & Gas - Exploration & Production ○ Oil & Gas - Diving Support ○ I
Slide 16: CSC - Strategic Progress in 2020
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 CSC - Strategic Progress in 2020 Sales and margin growth, new customer acquisition ● Management changes completed in December 2019 ● Improved sales effectiveness and clear diversification of revenue ● Oil and gas market headwinds
Slide 17: CSC - Integrity Management Customer Case Studies
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 CSC - Integrity Management Customer Case Studies NAVAL OPERATIONS OFFSHORE DIVE SUPPORT VESSEL ● Existing relationships with UK prime contractors ● Targeted global fleet of Dive Support Vessels (DSV’s) that are for MoD Naval opera
Slide 18: Precision Machined Components
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 PRECISION MACHINED COMPONENTS
Slide 19: PMC in numbers
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 PMC in numbers Revenue 12% up to Gross margin Operating profit reduced to £7.6m (2019: £6.8m) 25% £0.3m (2019: 31%) (2019: £0.8m) Return on revenue Percentage of revenue from new customers Closing order book up 4% (2019: 11%) 14%
Slide 20: PMC - Products and Customers
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 PMC - Products and Customers Products: Oil & Gas Customers: ● Components supplied to OEMs for onshore & offshore capex and opex projects: ○ Drilling systems ○ Completions ○ Production systems ○ Flow control ○ Fishing systems ● Sa
Slide 21: PMC - Strategic Progress in 2020
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 PMC - Strategic Progress in 2020 Top three customer Average concentration improved to OTD performance improved to 69% >90% from 83% higher for key customers Sales and margin growth - new customer acquisition ● Improved customer m
Slide 22: PMC - Customer Case Study
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 PMC - Customer Case Study ● New global OEM customer acquired in Summer 2019. Initial orderbook limited to a few core product lines for Quadscot. Orders awarded by OEM’s UK engineering base. ● Scope extended to more advanced and d
Slide 23: Summary & Outlook
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 SUMMARY & OUTLOOK
Slide 24: Conclusion and outlook
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Conclusion and outlook ● Further progress delivered against our strategic roadmap ● Responding well in the face of Covid-19 disruption and uncertainty ● We continue to take steps to maintain business continuity and safely deliver
Slide 25: Q&A
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Q&A
Slide 26: Appendix
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 APPENDIX
Slide 27: Our Group and Our Mission
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Our Group Leading UK designers and manufacturers of high-integrity, safety-critical components and systems serving global supply chains in oil and gas, defence, industrial gases and hydrogen energy markets. Our Mission To create
Slide 28: Executive Management Team
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Executive Management Team Chris Walters Joanna Allen Chief Executive Chief Financial Officer Appointed - September 2018 Appointed - July 2015 Relevant strengths Relevant strengths ● Business regeneration and growth ● IFRS financial
Slide 29: Independent Non-Executive Directors
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Independent Non-Executive Directors Sir Roy Gardner Brian Newman Chairman SID RemCo Chair Appointed - January 2020 Appointed - September 2015 Relevant strengths Relevant strengths ● 40 years’ experience in leading FTSE 250 compan
Slide 30: Independent Non-Executive Directors
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Independent Non-Executive Directors Tim Cooper Mike Butterworth ARC chair Appointed - January 2020 Appointed - June 2020 Relevant strengths Relevant strengths ● Strong commercial expertise in industrial markets ● 18 years’ experi
Slide 31: Major Shareholders at May 2020
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Major Shareholders at 14 May 2020 Name of Shareholder No. of Shares Holding Gresham House Asset Management 3,650,000 19.63% Artemis Investment Management LLP 3,598,648 19.35% James Sharp & Co 1,317,467 7.08% Schroder Investment M
Slide 32: Reconciliation of measured leverage covenant
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Reconciliation of measured leverage covenant Net debt: EBITDA leverage H120 H119 Reported last 12m EBITDA £2.4m £3.3m Reported Net Debt £10.8m £9.4m Reported leverage 4.5x 2.8x Adjusted last 12m EBITDA £3.3m £3.8m Adjusted Net De
Slide 33: Disclaimer
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Disclaimer This presentation has been prepared by Pressure Technologies plc (the “Company“ or “Pressure Technologies”) solely in connection with providing information on the Company and to certain institutional and professional i
Slide 34: Keep up to date with our news
PRESSURE TECHNOLOGIES PLC INVESTOR PRESENTATION - INTERIM RESULTS 2020 Keep up to date with our news Please join us on LinkedIn https://www.linkedin.com/company/17971399/ And keep up to date with news from around the Group http://www.pressuretechnologies.com/news Contact us PressureTechnologies@hous
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