Slide 1: Results for year ended 31 March 2016
Results for year ended 31 March 2016 Presentation to Analysts 7 June 2016
Slide 2: Carclo is a leading global manufacturer of fine tolerance parts
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 of luxury and supercar LED Lighting Leading supplier of aviation control ca
Slide 3: Results and Summary
Results and Summary • Strong growth in group revenue and underlying operating profit driven by Technical Plastics and LED divisions • Revenue increased by 10.7% to £119.0 million (2015 - £107.5 million), reflecting excellent sales progression across our businesses • Underlying operating profit incre
Slide 4: Strategic KPIs
Strategic KPIs 2016 £119.0m Revenue Growth Revenue growth year on year is a strong indicator 2015 £107.5m of success in delivering the group’s strategy – up 10.7% on 2015. 2014 £97.3m 2016 8.4% Underlying Operating Profit Margin 2015 7.2% Margin strengthened 120 bps to 8.4% in 2016. 2014 6.7% 4
Slide 5: Strategic KPIs
Strategic KPIs 2016 169.1% Return on Investment* Underlying operating profit as a 2015 164.9% percentage of annual investment shows improving returns 2014 140.1% *calculated on a 5-year rolling basis with investment/ performance in CIT, CDS & PDL excluded to provide a more meaningful benchmark for f
Slide 6: CTP and LED divisions drive strong group performance
CTP and LED divisions drive strong group performance CTP & LED Revenue £m CTP & LED Underlying Operating 111.0 Profit £m 99.1 98.3 11.6 86.2 78.3 9.8 58.3 54.0 7.2 6.3 46.1 H2 6.1 H2 42.6 5.9 H2 H1 4.5 3.9 H1 44.3 52.6 5.3 35.7 40.1 3.9 2.2 2.7 12/13 13/14 14/15 15/16 12/13 13/14 14/15 15/16 Revenue
Slide 7: Financial Highlights
Financial Highlights Year ended Year ended 31 March 2016 31 March 2015 £000 £000 Revenue Technical Plastics 70,473 64,296 LED Technologies 40,468 34,053 Aerospace 6,386 6,304 CIT Technology 1,647 2,850 Total 118,974 107,503 Underlying operating profit before exceptional 10,034 7,789 items Exceptiona
Slide 8: Divisional Analysis
Divisional Analysis CTP 80 7 70 6 •Revenue growth mainly from expanded 60 50 5 Revenue +9.6% sites in USA and Czech Republic 4 Profit* Sales £m 40 •Site expansion and efficiency improvements 30 3 £m Operating profit* now generating better returns 20 2 +15.7% •Strong demand mainly in medical device 1
Slide 9: Income Statement
Income Statement • Group revenue increased by 10.7% to £119.0 Comparative million 31-Mar-16 31-Mar-15 • Underlying divisional operating profit Revenue 119.0 107.5 increased 28.4% to £12.8 million Operating profit • Underlying operating profit increased 28.8% to Divisional operating profit 12.8 9.9 C
Slide 10: Financial Position – Cash Flow
Financial Position – Cash Flow • Strong underlying cash generation from operations • Royalty payment of £3 million was received from UniPixel in respect of the licence of CIT £million £million fine line technology Net debt at start of period (24.5) • Exceptional cash flows primarily related to Under
Slide 11: Financial Position – Debt & Facilities
Financial Position – Debt & Facilities Net Debt • £24.8 million at 31 March 2016 • Stable year-on-year reflecting continued investment in the group’s manufacturing capacity • Net debt/ EBITDA was 1.77X moving towards our medium-term target of 1.5X Bank Facilities • £30.0 million of committed facilit
Slide 12: Financial Position – Pensions
Financial Position – Pensions • IAS 19 pension deficit increased to £19.0 million (net of deferred tax) at 31 March 2016 (deficit of £9.7 million at 31 March 2015) • Scheme assets decreased by £15.3 million since 31 March 2015 and scheme liabilities decreased by £4.2 million • IAS19 financing expens
Slide 13: Markets & Strategy Actions
Markets & Strategy Actions Technical Plastics LED Technologies Aerospace 13
Slide 14: Technical Plastics
Technical Plastics Mar-16 Mar-15 £m £m Revenue 70.5 64.3 Profit* 6.2 5.4 Margin 8.8% 8.3% Diagnostics Medical disposables Industrial • Operating margin increased to 8.8%, close to our medium term target of 10%. We look to achieve our target of a 10% operating margin within the near term • As the glo
Slide 15: Technical Plastics – Next Phase Strategy
Technical Plastics – Next Phase Strategy • Healthcare represented 76% of CTP’s revenue and we intend to increase this focus further over the coming years • New plant in China is key to our strategy as China is the fastest growing region at a CAGR of 10.6% (Source: Global Data) • We are well placed g
Slide 16: LED
LED Mar-16 Mar-15 £m £m Revenue 40.5 34.1 Profit* 5.4 4.4 OEM Lighting Aftermarket Optics Margin 13.3% 13.0% • Another excellent year of growth for the division with turnover increasing significantly by 18.8% and underlying operating profit increasing to £5.4m • Performance driven by high levels of
Slide 17: LED – Market and Positioning
LED – Market and Positioning • The Wipac business has continued to meet or exceed customer expectations • The luxury and supercar market continues to expand and grow with additional model variants such as SUV’s • Our strong market position and Wipac’s focus away from the ‘high volume’ sector puts Wi
Slide 18: Aerospace
Aerospace Mar-16 Mar-15 £m £m Revenue 6.4 6.3 Profit* 1.3 1.6 Margin 20.8% 25.4% • Increased level of activity in H2 and finished the year with a good level of demand as our major end customer, the leading European aircraft manufacturer, continued to increase build rates of new aircraft • Spares mar
Slide 19: Carclo Diagnostic Solutions (CDS)
Carclo Diagnostic Solutions (‘‘CDS’’) The decision to cease further investment in CDS and to exit the business was announced in May. Followed a review process highlighting the need to develop a wider range of assays which would require an increasing level of future investment. Further concerns also
Slide 20: Group Strategy
Group Strategy • Focus on revenue growth • Continue to improve underlying operating margin • Continue to grow ROI over the long term • Driven by:- - LED Technologies can build on its world class brand and manufacturing capability in the mid-volume (10,000 – 30,000) vehicle sector - Technical Plastic
Slide 21: Outlook
Outlook • The strong momentum in our two main manufacturing divisions is expected to continue in the coming years • Within Technical Plastics, we have continued to expand our manufacturing capacity and will continue to do so. All our expanded capabilities are underpinned by existing customer awards.
Slide 22: End
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 events o