Carclo Plc · LSE:CAR
Carclo — H1 2017/18 Earnings Presentation
21 slides from Carclo's earnings presentation, Nov 14, 2017
Slide 1: Results for half year ended 30 September 2017
CARCLO PLC Results for half year ended 30 September 2017 14 November 2017
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: H1 - Highlights
H1 - Highlights Solid H1 trading performance overall, with outperformance by LED offsetting weaker performance by CTP Group revenue increased by 14.1% to £72.2 million (2016 - £63.3 million) Operating profit before exceptional items was £5.4 million (2016 - £5.6 million), with operating margin
Slide 4: Strategic KPIs
Strategic KPIs Revenue growth – H1 2017/18 H1 £72.2m Year on year revenue growth is a strong indicator of 2016/17 success in delivering the H1 £63.3m Group’s strategy – up 14.1% on the prior year 2015/16 H1 £57.2m Underlying operating margin – H1 2017/18 7.5% H1 Margin is 7.5% in 2017 (2016 – 8.
Slide 5: CTP and LED divisions drive strong Group performance
CTP and LED divisions drive strong Group performance CTP & LED Revenue (£m) CTP & LED Underlying* operating profit (£m) 133.1 H2 110.9 H2 H1 98.3 14.6 73.3 11.6 58.3 9.8 6.3 54.0 6.3 5.9 59.8 69.3 44.3 52.6 6.4 6.6 3.9 5.3 14/15 15/16 16/17 17/18 14/15 15/16 16/17 17/18 Technical Plastics revenue
Slide 6: Financial Highlights
Financial Highlights Half Year ended 30 September 2017 Half Year ended 30 September 2016 £000 £000 Revenue Technical Plastics 43,748 39,240 LED Technologies 25,571 20,559 Aerospace 2,859 3,485 Total 72,178 63,284 Underlying* operating profit 5,404 5,575 Exceptional items - (18) Operating profit 5,40
Slide 7: Technical Plastics
Technical Plastics 50 4 40 Revenue increase +11.5% 30 Sales £m 2 Profit £m 20 Underlying operating profit decrease - 6.0% 10 0 0 Sales Sep-14 Sep-15 Sep-16 Sep 17 Profit Underlying revenue was relatively static. Sales increase came from a first half revenue contribution from PTD and currency retra
Slide 8: LED Technologies
LED Technologies 30 4 3 Revenue increase +24.4% 20 Sales £m 2 Profit £m 10 Underlying Operating profit increase +16.2% 1 Sales 0 0 Sep-14 Sep-15 Sep-16 Sep-17 Profit Performance ahead of H1 last year and the Board’s expectations Healthy product sales in supercar lighting, strong design, developm
Slide 9: Aerospace
Aerospace 4 1.0 3 Revenue increase -18.0% Sales £m 2 0.5 Profit £m Underlying Operating profit decrease -49.8% 1 Sales 0 0.0 Sep-14 Sep-15 Sep-16 Sep-17 Profit Revenue decline reflects prior year end to a three year spares upgrade project and newly won programmes not scheduled to commence until H2
Slide 10: Income Statement Comparative
Income Statement Comparative 30-Sep-17 30-Sep-16 Operating profit Divisional operating profit 7.0 7.1 Revenue increased by Central costs (1.6) (1.5) 14.1% to £72.2 million Underlying* operating profit from continuing ops 5.4 5.6 Underlying* divisional Exceptional Items - - operating profit decre
Slide 11: Financial Position – Cash Flow
Financial Position – Cash Flow £million £million Strong underlying cash generation from Net debt at start of period (26.0) operations of £8.2 million Underlying cash from operations 8.2 Working capital increasing by £4.4 million Working capital (4.4) (2016 - £4.5 million) due mainly to Interest
Slide 12: Financial Position – Debt & Facilities
Financial Position – Debt & Facilities Net Debt Net debt of £29.6 million at 30 September 2017 Increased since 31 March 2017 due to continued investment in the Group’s manufacturing capacity and higher working capital to support growth Balance sheet remains strong with net debt expected to red
Slide 13: Financial Position – Pensions
Financial Position – Pensions Scheme assets have decreased by £3.9 million and scheme liabilities have decreased by £6.6 million IAS19 financing expense of £0.4 million and scheme administration costs of £0.3 million reflected in the income statement 30 September 2017 31 March 2017 Defined benef
Slide 14: Financial Position – Pensions (cash)
Financial Position – Pensions (cash) Recovery plan provides that the Group will aim to eliminate the funding deficit over a period of 14 years and 8 months from 1 November 2015 Annual contributions of £1.2 million, increasing at 2.9% per annum alongside the Scheme’s assumed asset returns which a
Slide 15: Markets & Strategy Actions
Technical Plastics LED Technologies Aerospace Markets & Strategy Actions 15
Slide 16: Technical Plastics
Technical Plastics Sep-17 Sep-16 £m £m Revenue 43.7 39.2 Profit* 3.2 3.5 Margin 7.4% 8.8% Revenues of £43.7 million (2016 - £39.2 million), up 11.5% on H1 last year. Underlying operating profits were £3.2 million (2016 - £3.5 million) Divisional operating margin was 7.4% (2016 - 8.8%), lower tha
Slide 17: LED Technologies
LED Technologies Sep-17 Sep-16 £m £m Revenue 25.6 20.6 Profit* 3.4 2.9 Margin 13.2% 14.2% Performance was ahead of H1 last year with a 24.4% increase in revenue. Underlying operating profit increased by 16.2% Design, development and sub-contract tooling revenues, which in aggregate made up over
Slide 18: Aerospace
Aerospace Sep-17 Sep-16 £m £m Revenue 2.9 3.5 Profit* 0.4 0.7 Margin 12.6% 20.5% Aerospace had a weak H1 performance due to a major one-off spares contracts coming to an end, as well as a generally weak spares demand H2 is expected to benefit from a strengthening in spares demand, as well as som
Slide 19: Group Strategy & Delivery
Group Strategy & Delivery Creation of sustainable growth in revenues and operating profits through the development of innovative and highly efficient solutions for existing and new customers to ensure that they see real benefits accruing from working in partnership with us Focus on organic expan
Slide 20: Outlook
Outlook Technical Plastics Operational issues experienced within the first half of the year are now largely resolved Margins are expected to improve significantly in the second half Expansion of the division with the new factory build in India and the redevelopment of Mitcham, together with ou
Slide 21: 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 or re