Alumasc Group Plc · LSE:ALU
Alumasc — The Alumasc Group — H1 2018/19 Earnings Presentation
29 slides from Alumasc's earnings presentation, February 2019
Slide 1: The Alumasc Group plc Interim Results to 31 December 2018
Levolux - Topping Rose House, Bridgehampton, New York – Timber Fins The Alumasc Group plc Interim Results to 31 December 2018
Slide 2: Contents
Contents 01 02 Overview Strategic Development 03 04 Financial Review Business Review 05 06 Order Books & Outlook Appendices Paul Hooper Chief Executive Andrew Magson Finance Director Gatic Slotdrain – Tesco Head Office, Welwyn Garden City
Slide 3: Overview
Levolux – Holybrook Mall, The Oracle, Reading – Twisted Fins 01 Overview
Slide 4: Overview
Overview Continued strategic development: 1. Increasing specification cross-selling (“external building envelope”) 2. Improving quality of earnings through proactive portfolio management 3. Developing a more cost efficient operating structure 4. Prioritising & focusing investment to drive both organ
Slide 5: Strategic Development
Alumasc Roofing – Redcliffe Quarter, Bristol – Derbigum BluRoof combined with Blackdown Greenroofs & Landscaping 02 Strategic Development
Slide 6: Strategic development
Strategic development 1. Increasing specification cross-selling (“external building envelope”): ● Increasingly successful across Roofing, Water Management & Levolux balconies businesses ● Alumasc Roofing is now integrated into the Water Management Division Levolux – Bream Street balconies - £2m cros
Slide 7: Strategic development
Strategic development 1. Increasing specification cross-selling (“external building envelope”): ● Increasingly successful across Roofing, Water Management & Levolux balconies businesses ● Alumasc Roofing is now integrated into the Water Management Division 2. Improving quality of earnings through pr
Slide 8: Strategic development
Strategic development 3. Developing a more cost-efficient operating structure: ● Plan to reduce operating sites from 10 to 6 over next 3 years ● Sharing common overhead structures where synergies exist ● Actions taken to save a net £1m in overhead in FY 2019/20 (mainly Roofing & Water Management div
Slide 9: Strategic development
Strategic development 3. Developing a more cost-efficient operating structure: ● Plan to reduce operating sites from 10 to 6 over next 3 years ● Sharing common overhead structures where synergies exist ● Actions taken to save a net £1m in overhead in FY 2019/20 (mainly Roofing & Water Management div
Slide 10: Strategic development
Strategic development 1. Increasing specification cross-selling (“external building envelope”): 3. Developing a more cost-efficient operating structure: ● Increasingly successful across Roofing, Water Management & Levolux ● Plan to reduce operating sites from 10 to 6 over next 3 years balconies busi
Slide 11: Financial Review
Alumasc Water Management Solutions – Oundle – Infinity Steel Rainwater Products 03 Financial Review
Slide 12: Income statement summary (£m)
Income statement summary (£m) 6 months to 31 December 2018 2017 Change £m £m % Continuing operations: Revenue 44.3 42.6 +4 Gross profit 12.7 13.3 -4 Gross margin % 28.7% 31.1% Sales, general & administration overheads (10.3) (9.7) Underlying operating profit * 2.4 3.6 -33 Underlying operating margin
Slide 13: Revenue analysis – continuing operations (£m)
Revenue analysis – continuing operations (£m) H1 2018/19 H1 2017/18 % Change Headline revenues 44.3 42.6 +4% Like-for-like revenues 41.8 42.6 -2% UK like-for-like revenues 37.8 36.7 +3% Export revenues (mainly larger projects) 4.0 5.9 -33% 13 www.alumasc.co.uk
Slide 14: Underlying PBT reconciliation – continuing operations
Underlying PBT reconciliation – continuing operations £m Comment Underlying PBT H1 2017/18 3.5 Marginal profit effect of reduced like-for-like sales volumes (0.6) Market conditions, project timing Contribution margin & mix (0.6) Mainly Levolux and Gatic. Actions being taken to improve Investment in
Slide 15: Cash flow summary (£m)
Cash flow summary (£m) 6 months to 31 December 2018 2017 Change £m £m £m Underlying EBITDA 3.2 4.3 (1.1) Change in working capital 1.6 (3.2) 4.8 Operating cash flow 4.8 1.1 3.7 Capital expenditure (0.9) (1.9) 1.0 Pension funding (1.6) (1.6) - Interest (0.1) (0.1) - Tax (0.3) (0.4) 0.1 Dividends (1.6
Slide 16: Balance sheet summary (£m)
Balance sheet summary (£m) 31 Dec 30 June 31 Dec 2018 2018 2017 £m £m £m Property, plant & equipment 10.8 10.7 6.7 Intangible assets 22.3 22.6 18.8 Working capital 7.9 11.3 10.8 Other net liabilities (2.5) (2.8) (1.4) Capital invested 38.5 41.8 34.9 Net (debt) / cash (0.3) (4.8) 2.4 Pension obligati
Slide 17: Business Review
04 Business Review Levolux – St Catherine’s Health Centre, Birkenhead – Aerofoil Fins
Slide 18: Roofing & Water Management
Roofing & Water Management 2018/19 H1 2017/18 H1 Revenue (£m) 28.6 26.0 Underlying operating profit (£m) 2.3 2.3 Underlying operating margin (%) 8.1% 8.8% ● This division now comprises Alumasc Roofing, Alumasc Water Management Solutions (AWMS), Wade, Gatic & Rainclear – all under common management t
Slide 19: Architectural Screening, Solar Shading & Balconies
Architectural Screening, Solar Shading & Balconies 2018/19 H1 2017/18 H1 Revenue (£m) 10.2 11.3 Underlying operating profit (£m) (0.4) 0.7 Underlying operating margin (%) (4.2)% 6.5% ● Challenging H1: reduction in commercial new build activity in the UK and project delays in the UK & USA ● IFRS15 im
Slide 20: Housebuilding Products & Ancillaries
Housebuilding Products & Ancillaries 2018/19 H1 2017/18 H1 Revenue (£m) 5.6 5.0 Underlying operating profit (£m) 0.9 0.9 Underlying operating margin (%) 15.8% 17.4% ● Timloc continues to outperform growth in the UK new housing sector with revenues up 11% ● Next day service model is enabling Timloc t
Slide 21: Order Books and Outlook
Alumasc Roofing – Edinburgh Council HQ – Blackdown Intensive Green Roof and Derbigum 05 Order Books and Outlook
Slide 22: Order book evolution
Order book evolution £m 30 25 20 15 10 5 0 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 June 18 Jul 18 Aug 18 Sept 18 Oct 18 Nov 18 Dec 18 Levolux Rest of the group • H1 order intake up over 20% on prior H1, driven by Levolux • December 2018 order book up 17% on a year ago • Gatic won a further £0.8m e
Slide 23: Outlook
Outlook • Despite the challenging market conditions, the Board is encouraged by order intake levels and expects a much stronger second half performance • The Board remains mindful of the risks posed by the current economic uncertainty to the UK construction sector as well as further delays in projec
Slide 24: Thank You
Thank You www.alumasc.co.uk Alumasc Roofing - Tabard Square Development, London – Hydrotech
Slide 25: Appendices
Alumasc Water Management Solutions – Living Legend, Jersey – Cast iron Gutters & Downpipes, Flushjoint Downpipes & Skyline Fascia & Soffit 06 Appendices
Slide 26: Appendix 1 - Segmental Analysis of Results, Continuing Operations - Summary
Appendix 1 - Segmental Analysis of Results, Continuing Operations - Summary 6 months to 31 December Underlying Underlying Operating Operating Underlying Revenue(2) Profit (1) Revenue(2) Profit (1) Operating Margin 2018 2018 2017 2017 2018 2017 £m £m £m £m % % Roofing & Water Management 28.6 2.3 26.0
Slide 27: Appendix 2: Underlying To Statutory Profit Reconciliation (£m)
Appendix 2 : Underlying To Statutory Profit Reconciliation (£m) Half year to 31 December 2018 2017 Operating Profit Operating Profit Profit Before Tax Profit Before Tax £’000 £’000 £’000 £’000 Underlying profit 2.4 2.3 3.6 3.5 Brand amortisation (0.1) (0.1) (0.1) (0.1) IAS 19 net pension scheme fina
Slide 28: Appendix 3: Summary of Brexit risk issues and mitigation
Appendix 3 : Summary of Brexit risk issues and mitigation • Alumasc does not have European operations or international “just in time” supply chains • Only c.5% of sales are exported to EU countries, mostly Republic of Ireland • Over 10% of sales value is materials imported from Eurozone Communicatio
Slide 29: Appendix 4: Legacy pensions deficit management
Appendix 4 : Legacy pensions deficit management • IAS19 deficit 31 December 2018 £15.0m (30 June 2018: £15.1m), despite past service cost increase of £1.1m relating to GMP equalisation following a High Court ruling in October • Some previous actuarial prudence in mortality assumptions not borne out