Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — FY2017 Earnings Presentation
28 slides from Alumasc's earnings presentation, Jun 30, 2017
Slide 1: The Alumasc Group plc Annual Results to 30 June 2017
The Alumasc Group plc Annual Results to 30 June 2017 Levolux – Bower Building, Stockley Park
Slide 2: Contents
Contents 01 02 Overview Strategy & Development 03 04 Financial Review Business Review 05 Outlook Paul Hooper Chief Executive Andrew Magson Finance Director Levolux Balconies – Westmount, Jersey
Slide 3: Overview
01 Overview Levolux – Bainbridge Island Museum of Art, Washington State
Slide 4: Overview
Overview ● Alumasc’s first year as a focused building products business ● Record building products’ revenues ● Our sixth year of earnings growth ● A clear strategy for continued growth ● Group revenues : £104.8 m (2015/16 : £92.2m) - up 14% – strong export sales growth, together with further growth
Slide 5: Strategy & Development
02 Strategy & Development Levolux – Pontprennau Primary School, Cardiff
Slide 6: Strategic objectives
Strategic objectives Alumasc has strong specialised positions in premium building product markets, where specifiers and customers recognise the value added by our products, systems and solutions Our strategic objectives are to: ● Grow UK revenues at a faster rate than the overall UK construction mar
Slide 7: Alumasc's business model
Alumasc’s business model Build strong specialised positions Build specialised in premium building product marketspositions in faster capable of growing thangrowth overall construction markets markets 7 www.alumasc.co.uk
Slide 8: Alumasc's business model
Alumasc’s business model Almost 80% of group sales driven by specification & regulation Sales driven by specification & regulation 78% Others Build strong specialised positions Build specialised in premium building product 22% marketspositions in faster capable of growing thangrowth overall construc
Slide 9: Alumasc's business model
Alumasc’s business model Build strong specialised positions Manage these Build specialised in premium building product marketspositions in faster capable of growing + to optimise thangrowth overall construction markets markets opportunities Specified products Structural growth International markets
Slide 10: Alumasc's business model
Alumasc’s business model Build strong specialised positions Manage these Build specialised in premium building product marketspositions in faster capable of growing + to optimise = Success thangrowth overall construction markets markets opportunities Specified products Structural growth Internationa
Slide 11: How strategy is driving performance
How strategy is driving performance * The Alumasc data above reflects building products operations only. UK construction market growth is stated in real terms. Adjusting for inflation, Alumasc estimates it has outperformed the UK construction market by 2-3% pa. 8 www.alumasc.co.uk
Slide 12: Financial Review
03 Financial Review Alumasc Water Management Solutions – Skyline – Greenfields, Leighton Buzzard
Slide 13: Income statement summary
Income statement summary 12 months to 30 June 2017 2016 Growth Revenue (£m) 104.8 92.2 +14% Underlying* operating profit (£m) 9.1 8.5 +8% Underlying* PBT (£m) 9.0 8.3 +9% Statutory** PBT (£m) 8.1 6.8 +20% Underlying* operating margin (%) 8.7 9.2 -50bps Underlying* EPS (p) 20.1 18.4 +9% Basic EPS (p)
Slide 14: Cash flow statement summary
Cash flow statement summary 12 months to 30 June 2017 2016 Change £m £m EBITDA 10.5 9.7 0.8 Change in working capital – large construction contracts (1.7) 1.8 (3.5) Change in working capital - other (3.7) (0.3) (3.4) Operating cash flow 5.1 11.2 (6.1) Capital expenditure (1.1) (1.1) - Interest (0.1)
Slide 15: Balance Sheet Summary (£m)
Balance Sheet Summary (£m) at 30 June 2017 2016 Change £m £m £m Property, plant & equipment 5.3 5.3 - Intangible assets 18.9 19.1 (0.2) Working capital 8.8 4.0 4.8 Other net liabilities (1.5) (1.8) 0.3 Capital invested 31.5 26.6 4.9 Net cash 6.1 8.6 (2.5) Pension obligations (net of tax) (17.2) (18.
Slide 16: Segmental Analysis of Results
Segmental Analysis of Results 12 months to 30 June 2017 2016 2017 2016 Underlying Underlying Underlying Operating Operating Operating Revenue Profit (1) Revenue Profit (1) Margin(1) £m £m £m £m % % Solar Shading & Architectural Screening 24.4 2.0 17.4 1.0 8.2 5.5 Roofing & Walling 41.5 3.3 40.1 4.0
Slide 17: Business Review
Alumasc Water Management Solutions – Skyline Fascia Soffit, Guardian Building, Jersey 04 Business Review
Slide 18: Solar shading & architectural screening
Solar shading & architectural screening Nature of business ● Design & supply of custom solar shading & architectural screening solutions – mainly to commercial and public buildings in the UK & North America ● Design and supply of bespoke balcony & balustrading solutions to high value residential pro
Slide 19: Solar shading & architectural screening (continued)
Solar shading & architectural screening (continued) Investment in growth ● Investment in people £0.7m in 2016/17, mainly: – North America & UK sales resources – Designers, project managers, operations & supply chain management Potential ● Market size (including North America & UK balconies) estimate
Slide 20: Roofing & walling
Roofing & walling Nature of business ● Premium waterproofing solutions for flat roofs – including green roofs, blu-roofs and roofing support services ● Exterior wall insulation (“EWI”) systems Growth drivers ● Architectural specification ● Building regulations ● Roofing : increasing demand for full
Slide 21: Roofing & walling (continued)
Roofing & walling (continued) Investment in growth ● Investment in people £0.4m in 2016/17 ● Main focus of investment was additional sales and sales support resources Potential ● Roofing : outperformance of UK construction market through continued market share gain and introduction of new products a
Slide 22: Water Management
Water Management Nature of business ● Solutions that manage and attenuate water inside and outside buildings ● Integrated “Rain to Drain” solutions in the built environment (see opposite) Growth drivers ● Building regs and legislation: conservation, attenuation and control of water ● Architectural a
Slide 23: Water management (continued)
Water management (continued) Investment in growth ● Investment in people £0.2m in 2016/17 – mainly in sales and operational resources ● Capital investment £0.3m in 2016/17 – mainly targeted at margin / efficiency improvement and incremental capacity expansion Potential ● Increase in revenues ahead o
Slide 24: Housebuilding & ancillary products
Housebuilding & ancillary products Nature of business ● Supply of premium house building and ancillary items – e.g. passive ventilation products, cavity closers, cavity trays, access panels, loft doors & dry roof verges etc. ● High customer service focus – next day delivery Growth drivers ● Legislat
Slide 25: Housebuilding & ancillary products (continued)
Housebuilding & ancillary products (continued) Investment in growth ● Investment in people £0.3m in 2016/17 – mainly additional sales resources ● Capital investment of £0.5m in 2016/17 related to operational efficiency ● Capital spend will increase to over £2m in 2017/18 including new leased factory
Slide 26: Outlook
05 Outlook Levolux – Blackfriars Station, London
Slide 27: Outlook
Outlook • Market forecasts anticipate continued UK construction growth of 1.2% in 2017/18 • We anticipate further underlying growth in export sales in 2017/18. This is expected to mitigate a high concentration of large export contracts in 2016/17 • Order books and the level of pre-order specificatio
Slide 28: Thank you
Thank you www.alumasc.co.uk