Slide 1: Full year results to 31 July 2017
Volution Group plc Full year results to 31 July 2017 Excellence in ventilation
Slide 2: Introduction
Introduction Excellence in ventilation Volution Group plc is a leading supplier of ventilation products to the residential and commercial construction markets in the UK, the Nordics and Central Europe. >>Introduction to Volution >>Highlights >>Financial Review >>Business update and outlook >>Q&A Ron
Slide 3: Volution Group plc Snapshot
Volution Group plc Snapshot Brands Excelling in both the residential and Ventilation Group commercial markets. 88.1% of revenue The Ventilation Group consists of thirteen key brands: We operate through two segments: >> In the UK: Vent-Axia, Manrose, Breathing Buildings, >> Ventilation Group, which p
Slide 4: Our Locations
Our Locations UK and Ireland Ten locations Seven brands We aim for our products to enhance our customers’ experience of ventilation by reducing energy consumption, improving air quality and design and making them easier to use. Our acquisition strategy over the last year has increased the number of
Slide 5: Our Strategy
Our Strategy Strong revenue growth of 20% and adjusted EPS up 8%. Recent acquisitions integrating well, supplementing continued organic growth. Three strategic pillars Organic growth in our core Growth through a disciplined Development of OEM markets and value‑adding (Torin-Sifan) range and acquisit
Slide 6: 2017 Highlights
2017 Highlights Revenue £m Adjusted operating profit £m Adjusted operating profit margin % £185.1m £35.6m 19.3% 185.1 35.6 21.7 22.0 22.6 32.5 21.0 154.5 29.4 19.3 26.5 130.2 120.7 22.2 102.3 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 >> Strong revenue growth in the y
Slide 7: 2017 Highlights continued
2017 Highlights continued Adjusted EPS p Adjusted operating cash flow £m Net debt £m 13.6p £35.9m £37.0m 172.7 13.6 35.9 12.6 31.1 11.0 27.6 8.8 22.8 20.9 42.9 36.1 37.0 21.2 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 >> Adjusted EPS growth of 7.9% >> Adjusted operating ca
Slide 8: Financial Review
Financial Review Ian Dew – CFO Financial year ended 31 July 2017
Slide 9: Financial Highlights
Financial Highlights Financial year ended 31 July 2017 Key highlights Movement >> Strong revenue growth of 19.8% (14.5% at cc). 2017 2016 Movement % >> Strong growth in adjusted profit before tax of 10.3% Revenue (£m) 185.1 154.5 30.6 19.8% (4.7% at cc). Adjusted profit before tax (£m)1 34.6 31.3 3.
Slide 10: Income Statement Summary
Income Statement Summary Financial year ended 31 July 2017 >> Revenue growth of 19.8% (+£30.6 million) (14.5% at cc). Movement Movement >> Revenue growth would have been £8.2 million lower at cc. 2017 2016 £m % >> 7.3% organic growth (2.1% at cc). Revenue (£m) 185.1 154.5 30.6 19.8% >> 12.5% inorgan
Slide 11: Adjusted Profit before Tax Reconciled to Reported Profit before Tax
Adjusted Profit before Tax Reconciled to Reported Profit before Tax Financial year ended 31 July 2017 2017 2016 Movement Adjustments: £m £m £m >> Exceptional items: Adjusted profit before tax 34.6 31.3 3.3 >> Acquisition related costs of £0.8 million and factory Items excluded from adjusted measures
Slide 12: Consolidated Statement of Financial Position Summary
Consolidated Statement of Financial Position Summary Financial year ended 31 July 2017 31/07/2017 31/07/2016 >> Non current assets increased by £9.8 million, mainly as £m £m a consequence of two acquisitions in the year and the Property, plant and equipment 19.6 19.1 translational effect of FX movem
Slide 13: Cash Flow Summary and Net Debt Bridge
Cash Flow Summary and Net Debt Bridge Financial year ended 31 July 2017 2017 2016 >> Net debt increased to £37.0 million: two acquisitions in the year. £m £m >> Adjusted operating cash flow of £35.9 million Opening net debt (36.1) (21.2) (2016: £31.1 million): Movements from normal business operatio
Slide 14: Business update and outlook
Business update and outlook Ronnie George – CEO
Slide 15: Growth by Market Segment
Growth by Market Segment 2017 2017 2016 Growth Growth £m £m (cc) £m % % (cc) Ventilation Group revenue 163.1 155.9 134.1 21.6% 16.3% OEM (Torin-Sifan) revenue 22.0 21.0 20.4 7.7% 2.8% Total Volution Group revenue 185.1 176.9 154.5 19.8% 14.5% Revenue growth Revenue £m The total Group revenue grew by
Slide 16: Market Sector Review: UK Ventilation Group
Market Sector Review: UK Ventilation Group % of Volution Group Total Organic Inorganic Total revenue 2017 2017 (cc) 2016 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % UK Ventilation Group revenue 104.8 104.0 84.7 23.7% 1.3% 21.5% 22.8% UK Residential New Build revenue 23.4 23.4 19.8 18
Slide 17: Market Sector Review: Nordics
Market Sector Review: Nordics % of Volution Group Total Organic Inorganic Total revenue 2017 2017 (cc) 2016 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % Nordics revenue 30.8 27.8 25.5 20.8% 5.1% 3.7% 8.8% 16.7% Nordics >> Strong organic growth of 8.8% (cc); consistent year-on-year org
Slide 18: Market Sector Review: Central Europe
Market Sector Review: Central Europe % of Volution Group Total Organic Inorganic Total revenue 2017 2017 (cc) 2016 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % Central Europe revenue 27.5 24.1 23.8 15.3% 1.3% 0.0% 1.3% 14.8% Central Europe >> Organic growth of 1.3%. Belgium >> Our str
Slide 19: Market Sector Review: OEM (Torin-Sifan)
Market Sector Review: OEM (Torin-Sifan) % of Volution Group Total Organic Inorganic Total revenue 2017 2017 (cc) 2016 growth growth (cc) growth (cc) growth (cc) £m £m £m % % % % 11.9% OEM (Torin-Sifan) revenue 22.0 21.0 20.4 7.7% 2.8% 0.0% 2.8% OEM (Torin-Sifan) >> Organic growth of 2.8% demonstrate
Slide 20: Volution Group plc: Operations Update
Volution Group plc: Operations Update >> Mike Gansser-Potts joined us in May 2017 as Managing Director of the UK Ventilation Group with further people investment in the UK team now underway. >> New Reading factory handover in November 2017, with the project to move existing Reading and Slough factor
Slide 21: Volution Group plc: Operations Update
Volution Group plc: Operations Update >> Continued investment in new product development initiatives underpinning our future growth. >> Positive Input Ventilation. >> Premium domestic fan range. >> Extended range of application (app) software controls. >> New sMove controller for de-centralised heat
Slide 22: Volution Group plc: Acquisitions
Volution Group plc: Acquisitions NVA Services (Airtech and National Ventilation brands) Return on investments >> Integrated in FY17. FY17 return FY17 return Implied FY17 >> Significant swap away from factored to in-house products on invested on tangible EBITDA capital net assets multiple increasing
Slide 23: Summary and Outlook
Summary and Outlook >> Revenue Growth of 20%. UK and Ireland >> Two acquisitions completed in the year, both integrating well. >> Strong growth in underlying profitability and strong cash generation. >> Continuing focus on future acquisitions underpinned by our excellent operating cash generation an
Slide 24: Thank you
Thank you Q&A
Slide 25: Disclaimer
Disclaimer This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such words as