Slide 1: Norcros plc - Preliminary Results Year ended 31st March 2010
Norcros plc - Preliminary Results Year ended 31st March, 2010
Slide 2: Introduction
Introduction John Brown Chairman 2
Slide 3: 2010: Highlights
2010 : Highlights Revenue growth +10.0% Resilient performance of the UK businesses and SA Adhesive operation Operational changes in SA tile manufacturing and retail benefitting H2 Trading profit of £7.3m (2009: £7.0m) Bank refinancing completed July 09 Capital raising of £27.7m net in Dec 09 to payd
Slide 4: Board Changes
Board Changes In anticipation of Joe Matthews retiring from the Board as Group Chief Executive in 2011: Nick Kelsall, Group Finance Director, appointed Group Chief Executive from 1 April 2011, and Group Chief Executive-designate from 1 July 2010 Board also strengthened with the appointment of Mr. Vi
Slide 5: Financial Review
Financial Review Nick Kelsall Group Finance Director 5
Slide 6: Financial Highlights
Financial Highlights Revenue and profit • Revenue of £169.6m, +10.0% (2009: £154.2m) • Trading profit of £7.3m, +4.3% (2009: £7.0m) Intense cash focus • Cash generated from operations £10.6m (2009: £6.8m) • Increase in rate of cash conversion • Capex c. 60% of depreciation; focus on new product deve
Slide 7: Summary Income Statement
Summary Income Statement 2010 2009 Change £m £m % £m Revenue 169.6 154.2 + 10.0 15.4 Group trading profit* 7.3 7.0 + 4.3 0.3 Other operating income / costs 0.1 - 0.1 Group operating profit* 7.4 7.0 + 5.7 0.4 Finance charges – cash (4.0) (2.8) (1.2) Profit before tax – underlying* 3.4 4.2 - 19.0 (0.8
Slide 8: Revenue by Geographic Segment
Revenue by Geographic Segment RoW £7.9m (£8.1m) Strong revenue growth in UK offset by decline, in constant currency, in overseas businesses SA £59.0m (£63.0m) Underlying revenue change in constant currency UK £102.7m (£94.6m) • UK +£8.1m +8.6% • SA -£4.0m -6.3% At constant currency +2.4 % • RoW -£0.
Slide 9: Summary Cash Flow
Summary Cash Flow 2010 2009 £m £m Cash generated from operations 10.6 6.8 Capex (3.9) (4.7) Disposal of businesses - 4.0 Net asset disposals & Div’s rec’d 0.1 2.0 Free cash flow, pre financing 6.8 8.1 Interest and tax (3.0) (3.0) Dividends paid - (4.0) Net proceeds from capital raising 27.7 - Paymen
Slide 10: Cash Conversion
Cash Conversion 2010 2009 £m £m Cash generated from operations 10.6 6.8 Trading profit 7.3 7.0 Cash conversion 145% 97% 10
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights 2010 2009 Depreciation (£m) 6.7 6.4 Capex (£m) 3.9 4.7 Capex / Depreciation 0.6x 0.7x Net bank debt (£m) 15.9 45.8 Net bank debt/ Ebitda* 1.3x 3.3x * covenant basis Mature and well funded UK pension scheme – see further details in Appendix • March 09 triennial actuarial valu
Slide 12: Operating Review
Operating Review Joe Matthews Group Chief Executive 12
Slide 13: Market Environment
Market Environment UK Shower Market • Slow recovery in H2 • YoY overall market +1.1% (H1 -12.2%) • Market still -20% peak to trough • Electric showers –14%; Mixers -36% • Electric performance driven by replacement activity UK Tile Market • Total market –10% YoY • Peak to trough -19% • Independent Re
Slide 14: UK Operations - Good revenue growth despite significant market downturn
UK Operations - Good revenue growth despite significant market downturn +8.6% Triton • Overall revenue 9.3% UK +12.3%; Exports -4.8% • Strong performance in UK Trade (National and Independent Merchants) • Significant growth in DIY and Home Shopping Triton • Market share gains in electric and mixer •
Slide 15: UK Operations – Substantial increase in trading profit
UK Operations – Substantial increase in trading profit Triton – resilient profit performance and strong 2010 2009 Change cash generation in weak market % • Strength of product offer • 70% of sales from products launched in last 3 years Trading Profit 11.6 8.9 +30.3 • Higher commodity prices (£m) • S
Slide 16: South Africa - Revenue declined 6.3% in tough market
South Africa - Revenue declined 6.3% in tough market -6.3%* TAF revenues -5%* • LFL sales H2 +0.8% v H1 –12.6% • Closure of 4 underperforming stores • 15 stores now upgraded to Lifestyle format JTSA revenue -20.6%* • Impact of severe market conditions TAF TAF • Effects of the closure of wall tile ki
Slide 17: South Africa - Increased loss but significant reduction in H2
South Africa - Increased loss but significant reduction in H2 TAF • Impact of revenue decline and high operational leverage • Closure of 4 unprofitable stores – announced H1 2010 2009 • Action plan to drive - Supply chain efficiencies - Reduction in distribution & store operating costs Trading * (3.
Slide 18: Summary & Outlook
Summary & Outlook • Leading supplier in UK domestic shower market Triton • Continued market share gains • Commercial and care markets expansion • Leading edge new product development Johnson Tiles • Focus on commercial specifications • DIY & Export market share gains • Management team strengthened •
Slide 19: Appendices
Appendices UNIVERSAL — Mosaic Adhesive & Grout i) _ ¥) mer Mould Resistant For walls & floors Interior & exterior High strength Improved Formula norcros i
Slide 20: UK Pension Scheme
UK Pension Scheme Mature Scheme; 11,000 members £m • Pensioners (61%), Deferred (35%), Actives 20 (4%) • Average age of pensioners is 75 13.4 Investment Strategy 10 10.0 6.6 • Low risk asset allocation; 35% equities, 32.5% gilts, 32.5% corporate bonds 2.3 1.3 • Pensioner liability matched 0 Mar-06 M