Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — H1 FY23 Earnings Presentation
27 slides from Alumasc's earnings presentation, February 2023
Slide 1: The Alumasc Group plc Interim Results
The Alumasc Group plc Interim Results Six months ending 31 December 2022 Alumasc Roofing – Derbigum Anti-Root & Blackdown - Jersey, Channel Islands
Slide 2: Contents
Contents 01 02 Overview of H1 FY23 Business Review 03 04 Strategic Delivery Financial Review 05 06 Outlook Appendices Paul Hooper Chief Executive Simon Dray Group Finance Director Alumasc Roofing – Derbigum - Haven Green Court, London
Slide 3: Overview of H1 FY23
01 Overview of H1 FY23 Alumasc Water Management Solutions – Gatic Drainage System, Gatic CastSlot - Fulham Football Club
Slide 4: Overview
Overview Solid performance against a comparative which included a significant contribution from export contracts £m H1 H1 Continuing operations FY23 FY22 Change • Revenue* £45.0m (H1 FY22: £42.6m) Revenue £45.0m £42.6m +5.4% • Underlying PBT* £5.6m (H1 FY22: £6.3m) Underlying profit before tax £5.6m
Slide 5: Strategic Delivery
timloc building products Strategic Delivery » 7 _ > es ~ ae -
Slide 6: Strategic Overview
Strategic Overview FY18-FY22 CAGR: Revenue +6.5%, Operating Profit +19.6% Driven by execution of strategic priorities Short-term • Simple, cost effective structure Long term • Selective investment in organic growth opportunities • Geographical expansion • Portfolio management • Strong alignment with
Slide 7: Strategic delivery – Simple, cost-effective structure
Strategic delivery – Simple, cost-effective structure • Operating Margins (continuing group) improved from 8.4% (FY18) to 14.9% (FY22) • Driven by: • Brand and product strength (maintain gross margins) • New product development • Investment in efficiency, capacity, capability • Rationalisation of ma
Slide 8: Strategic delivery – Selective investment in organic growth opportunities
Strategic delivery – Selective investment in organic growth opportunities • Maintain and grow share, penetrate adjacent markets • Enhanced environmental benefits • Significant recent launches: • Tile Vent (Housebuilding Products) • New channels into specialist roofing merchants • Supplied with Timlo
Slide 9: Strategic delivery – Geographical expansion
Strategic delivery – Geographical expansion • Medium term aspiration: grow exports > 15% of total sales • Key products: Wade drainage, Gatic drainage/covers • Decline, as expected, in H1 FY23 (to c.5% of sales) • Completion of Chek Lap Kok airport project in FY22 • Slower sales in Middle East (FIFA
Slide 10: Strategic delivery – Portfolio Management
Strategic delivery – Portfolio Management Disposal of Levolux (August 2022) and exit from Blackdown Roof installation (December 2022) Businesses now aligned around core strengths: • Attractive niche markets, supported by long term environmental drivers • Pricing power and market stability • Repeat b
Slide 11: Strategic delivery – Environmental growth drivers
Strategic delivery – Environmental growth drivers Sustainable materials Supported by Circular economy: reduce, repair, recycle Health and Safety management Market-leading durability GHG and Waste reduction targets Diversity and inclusion Decarbonising the built environment Employee & Community engag
Slide 12: Business Review
02 Business Review Alumasc Water Management – Skyline Door Canopy - Beaulieu Park
Slide 13: Water Management
Water Management H1 H1 ALUMASC’S “RAIN TO DRAIN” SYSTEM FY23 FY22 also showing Alumasc Roofing Revenue (£m) 19.6 22.8 Underlying operating profit (£m) 2.5 4.1 Underlying operating margin (%) 12.8% 18.1% Operating profit (£m) 2.5 4.1 • 3 years of growth FY20-FY22 • H1 FY23 more subdued: • UK sales st
Slide 14: Building Envelope (Roofing)
Building Envelope (Roofing) H1 H1 Continuing operations FY23 FY22 Revenue (£m) 18.3 14.2 Underlying operating profit (£m) 2.6 1.9 Underlying operating margin (%) 14.1% 13.3% Operating profit (£m) 2.6 1.9 • Very strong H1, revenue +29% vs H1 FY22 • Driven by market share gains • Reflects investments
Slide 15: Housebuilding Products (Timloc)
Housebuilding Products (Timloc) H1 H1 FY23 FY22 Revenue (£m) 7.0 5.7 Underlying operating profit (£m) 1.6 1.1 Underlying operating margin (%) 23.0% 19.3% Operating profit (£m) 1.4 1.1 • Excellent H1 performance, 24% revenue growth • Successful launch of Tile Vents into adjacent specialist roofing me
Slide 16: Financial Review
04 Financial Review Alumasc Roofing – Hydrotech - Buchanan Wharf, Building 5
Slide 17: Income statement summary
Income statement summary 6 months to 31 December H1 FY23 H1 FY22 Change £m £m % Gross margin broadly level with H1 FY22 Revenue from continuing operations 45.0 42.6 +5.4% Underlying operating margin reflects: Gross profit 16.5 15.7 • Continued pass-through of cost increases Gross margin % 36.7% 36.9
Slide 18: Revenue and Profit Bridge
Revenue and Profit Bridge Cost price increases continued to be passed through Organic growth (excluding price changes, export contracts/operational investment): £m Revenue Underlying PBT Group +2.0 +0.5 Water Management -1.4 -0.1 Building Envelope +2.6 +0.4 Housebuilding Products +0.8 +0.4 £2.8m low
Slide 19: Cash flow statement summary
Cash flow statement summary 6 months to 31 December H1 FY23 H1 FY22 Change £m £m £m Operating cashflow 92% of underlying operating EBITDA from continuing operations* 7.4 7.8 (0.4) profit (H1 FY22: 78%) Change in working capital (1.9) (2.1) 0.2 VAT (repayment)/deferral - (0.6) 0.6 Seasonal working ca
Slide 20: Balance sheet summary
Balance sheet summary at 31 December 2022 2021 Change £m £m £m Capital invested reduced by Levolux divestment Property, plant & equipment 17.2 17.5 (0.3) £25m bank facility (+£20m accordion) expires Intangible assets 10.6 21.9 (11.3) August 2025, extendable to August 2027 Working capital 13.0 13.4 (
Slide 21: Outlook
05 Outlook Rainclear – Round Copper Gutters and Round Copper Downpipes, Surrey
Slide 22: Outlook – industry forecasts
Outlook – industry forecasts Slower UK activity expected to be mitigated by: • Export market growth • UK share growth and entry into adjacent markets • Demand resilience for products assisting energy efficiency and water management • Continued cost control/efficiency measures 22 Source: CPA January
Slide 23: Outlook
Outlook • Encouraging momentum entering H2 • Record half year order book, including next phase of Chek Lap Kok airport (HK) • Board confident in achieving full year expectations, despite macroeconomic uncertainty • Robust strategy and market positioning • Attractive markets, underpinned by strong br
Slide 24: Thank you
Thank you www.alumasc.co.uk Alumasc Water Management Solutions – Aqualine Box Extruded Aluminium Gutter and Flushjoint Aluminium Downpipes – The New Clubhouse, Machrihanish Golf Course
Slide 25: Appendices
06 Appendices Alumasc Water Management Solutions – Skyline aluminium Fascia and Soffits, GX pressed aluminium box gutters and Flushjoint aluminium downpipes - Broomfield School
Slide 26: Underlying To Statutory Profit Reconciliation (£m)
Underlying To Statutory Profit Reconciliation (£m) H1 FY23 H1 FY22 Operating Profit/(loss) Operating Profit/(loss) Profit Before Tax Profit Before Tax £’000 £’000 £’000 £’000 Underlying profit from continuing operations 6.0 5.6 6.5 6.3 Brand amortisation - - - - Net IAS 19 defined benefit pension sc
Slide 27: Diversified end markets
Diversified end markets Housebuilding Water Management Building Envelope Group Products 80% revenue derived from % of Group revenue environmental products 80% revenue supported by specification/regulation % of Group profit Export sales: 15% of total Private vs Public Housebuilding vs Non-residential