26 slides from Chesterfield Special Cylinders's earnings presentation, Jun 16, 2015
Slide 1: Interim Results Presentation
Interim Results Presentation Half Year Ended 28 March 2015
Slide 2: Agenda
Agenda Highlights Group Structure Oil and gas market overview Group overview Summary results Outlook Questions Disclaimer 2
Slide 3: Highlights
Highlights AL Pressure AIP Technologies 3
Slide 4: Highlights
Highlights Revenue £32.1 million +62% Underlying operating profit £2.6 million +20% Underlying EPS 12.1p -5% Interim dividend 2.8p unchanged Net cash/(debt) £(7.5) million 2014 Y/E £5.8 million New four-year bank facility with Lloyds Banking Group for up to £15 million with an accordion of up to an
Slide 5: Group structure
Group structure A Pressure IE Technologies 5
Slide 6: New divisional structure for 2015
New divisional structure for 2015 Pressure Technologies plc Precision Machined Cylinders Engineered Products Alternative Energy Components MD: Matt Crampin MD: Mick Pinder MD: Findlay Beveridge Operational Board FD: Kathy Van Hee FD: Paul Stanger FD: John Melia FD: John Caldwell Subsidiary MDs repor
Slide 7: Oil and gas market conditions
Oil and gas market conditions 7
Slide 8: Oil production
Oil production This slump is unusual because it is supply & 14 demand-driven, with record non-OPEC supply growth in 2014 and unexpectedly weak demand growth 12 Notably, demand is as much a catalyst to the current environment as supply 10 USA production has increased by 79% since 8 2008 mmbbls/day Sa
Slide 9: Oil price impact
Oil price impact Brent crude price started to drop in June 2014, dipping below $50/bbl in January Brent Crude $/bbl 2015 OPEC maintain production at 31.5 120 mmbbls/day to retain market share 110 Saudi refusing to play the role as swing producer 100 North American land-based drilling rigs decreased
Slide 10: Industry reaction and outlook
Industry reaction and outlook Capex reductions of 20-30%, postponement According to BP plc CEO, Bob Dudley, oil prices and cancellation of projects will remain weak until next year, as production outpaces demand. Dudley was speaking at the Customers requesting 20-30% cost reductions two-day OPEC Ene
Slide 11: Group overview
Group overview AL Pressure AIT Technologies 1"
Slide 12: Precision Machined Components
Precision Machined Components Good first half-performance for the division, especially at Al-Met driven by subsea tree orders Revenue £11.6m Demand weakened substantially since half-year +177% Operating profit Demands for price reductions is being managed by cost reduction through better purchasing
Slide 13: Cylinders
Cylinders Chesterfield Special Cylinders Revenue Performing in line with expectations for 2015 due to long order to delivery lead time but little visibility for the 2016 deep-water oil and gas market £7.8m -26% Revenues from defence and integrity management continue to strengthen New forge entered p
Slide 14: Engineered Products
Engineered Products Project execution delays impacting first-half results in the UK Revenue US operation experiencing slow conversion of order pipeline as customers delay £4.7m decisions on capital spend -8% Operating profit Demand weakened substantially since half-year in UK and US £0.1m -90% Prici
Slide 15: Alternative Energy
Alternative Energy Greenlane, the Group’s technology provider for biogas upgrading purchased in October 2014 Revenue Financial stability of PRES combined with Greenlane expertise gives firm £8.0m foundation for growth +£7.9m Integration of Greenlane into the Group is proceeding well and restructurin
Slide 16: Alternative Energy structure
Alternative Energy structure PT Biogas Holdings Holding Company Ltd 100% subsidiary of Pressure Technologies Sheffield, UK plc Intellectual property PT Biogas Technology Ltd Management of R&D Sheffield, UK Greenlane Greenlane Biogas Greenlane Biogas Greenlane Biogas Technologies Ltd North America Lt
Slide 17: Summary results
Summary results Al Pressure AIT Technologies ”
Slide 18: Summary results
Summary results H1 H1 FY 2014 2015 2014 Sales (£m) 19.9 32.1 +62% 54.0 Underlying operating profit (£m) 2.2 2.6 +20% 7.9 Acquisition/amortisation costs (£m) (0.7) (1.3) (1.6) Operating profit pre KGTM provisions (£m) 1.5 1.3 -15% 6.3 PBT (£m) 1.3 (0.5) 5.3 EPS basic (pence) 6.9p (3.4)p 28.5p EPS adj
Slide 19: Revenue increased by 62%
Revenue increased by 62% £m 19.9 32.1 7.9 8.0 3.7 0.4 7.4 1.0 4.7 Alternative Energy 0.1 Engineered Products 5.1 £0.8 million 4.2 Reduction in Increased Project £4.5 million from existing demand for defence and execution from existing business APVs for deep integrity issues in the business 3.2 £6.6
Slide 20: Underlying half-year operating profits up 20%
Underlying half-year operating profits up 20% H1 2014 H1 2015 £m £m £m Precision Machined 0.6 3.3 Components Cylinders 2.2 1.1 1.1 Engineered Products 0.5 0.1 2.7 0.4 Alternative Energy (0.3) (0.9) 0.6 0.2 Unallocated central (0.8) (1.0) costs 1.3 Underlying operating 2.6 2.2 2.6 2.2 profit 1.3 Acqu
Slide 21: Balance sheet
Balance sheet Quad- Green- Land & 28 Mar 27 Sep 29Mar scot lane bldgs 2015 2014 2014 £m £m £m £m £m £m 7.3 9.1 - Intangible assets 29.4 14.1 14.6 - - - Investment/loans in KGTM - 1.6 2.3 1.7 0.1 3.3 Fixed assets 13.9 7.8 6.7 0.2 - - Inventories 8.2 8.8 8.8 1.5 0.2 - Receivables 20.7 17.8 15.0 (0.9)
Slide 22: Half-year cash flow
Half-year cash flow Operating cash flow £(0.6)m (2014: £1.8m) £m 0.8 3.2 4.6 Reduced working capital Acquis- 2015 0.8 0.4 itions half- Group 0.1 Capital year EBITDA closing 5.8 expenditure Dividends net paid Tax paid borrow- Interest Paid ings 9.8 2015 opening Roota net deferred funds consideration
Slide 23: Outlook
Outlook 23 AIT Technologies AL Pressure
Slide 24: Outlook
Outlook Oil and gas market challenging but underlying medium to long-term prospects for the Group remain very positive Market conditions mask the Group’s strengths in product and service quality and strong customer relationships Precision machined components well-placed in subsea sector which is exp
Slide 25: Questions?
Questions? 25 AIP Technologies Al Pressure
Slide 26: Disclaimer
Disclaimer This presentation has been prepared by Pressure Technologies plc (the “Company“ or “Pressure Technologies”) solely in connection with providing information on the Company and to certain institutional and professional investors in the United Kingdom. This presentation does not constitute o