Alumasc Group Plc · LSE:ALU
Alumasc — FY2024 Earnings Presentation
31 slides from Alumasc's earnings presentation, September 2024
Slide 1: Annual Results to 30 June 2024
Annual Results to 30 June 2024 Sustainability driving further growth Alumasc Roofing – Hydrotech Hot Melt and Derbigum Bituminous Membrane – Oldham Road, Manchester
Slide 2: Contents
Contents 01. Introducing Alumasc 02. FY24 Highlights & Overview 03. Financial Review 04. Business Review 05. Strategic Delivery 06. Outlook 07. Appendices The Alumasc Group plc Alumasc Roofing – Hydrotech - Nucleus Building, Edinburgh 2
Slide 3: Introducing Alumasc
01. Introducing Alumasc Paul Hooper, Chief Executive Alumasc Water Management – Skyline and Rainwater – Weston-Super-Mare General Hospital
Slide 4: Sustainability driving future growth
Sustainability driving future growth Market leadership: sustainable solutions to the global built environment: >85% of products are sustainable, addressing challenges of climate change: Building decarbonisation; Water management; Occupant wellbeing/urban biodiversity Driving shareholder value throug
Slide 5: Our environmental solutions
Our environmental solutions Water Management Building Envelope Housebuilding Products Climate change resilience through Building decarbonisation/greening Building decarbonisation through urban water and stormwater through premium weatherproofing/ products focused on improving air- management insulat
Slide 6: FY24 Highlights & Overview
02. FY24 Highlights & Overview Paul Hooper, Chief Executive Alumasc Roofing – Hydrotech and Derbigum – Pall Mall, Liverpool
Slide 7: FY24 highlights
FY24 highlights Delivery of strategic priorities driving market outperformance Strong performance in challenging end market conditions • Revenue +13% to £100.7m (FY23: £89.1m) • Underlying PBT* +16% to record £13.0m (FY23: £11.2m) • ARP acquisition performing well; further synergies expected from FY
Slide 8: Outperforming the UK construction market
Outperforming the UK construction market Construction markets subdued UK construction output CPA Summer 2024 forecast, all work • Political and macroeconomic uncertainty 10 • Pressure on public finances 5 • Customer demand supressed by inflation/high mortgage costs 0 • Private housing starts fell by
Slide 9: Financial Review
03. Financial Review Simon Dray, Group Finance Director Alumasc Water Management Solutions – Gatic F900 Recessed Duct Covers and Frames, Kai Tak Cruise Terminal in Hong Kong
Slide 10: Income statement summary
Income statement summary Year ended 30 June 2024 Continuing operations FY24 FY23 Change Strong organic and inorganic growth £m £m % Organic Acquired Total Revenue 100.7 89.1 13.0% Revenue +6.5% +6.5% +13.0% Gross profit 38.3 32.7 Underlying PBT +10.6% +5.5% +16.1% Gross profit margin % 38.0% 36.7% S
Slide 11: Revenue and profit bridges
Revenue and profit bridges Year ended 30 June 2024 Six month contribution from ARP acquisition • Revenue £5.8m Organic growth +£5.8m • Underlying PBT £0.6m (after £0.4m attributable interest) Organic growth across all three divisions Overall price inflation not significant • Raw material prices larg
Slide 12: Cashflow statement summary
Cashflow statement summary Year ended 30 June 2024 FY24 FY23 Change Strong cash performance £m £m £m • Cash conversion 120% (FY23: 105%) EBITDA from continuing operations* 17.4 15.2 +2.2 • £0.9m inflow from working capital: growth and supply Change in working capital 0.9 (0.9) chain challenges well-
Slide 13: Balance sheet summary
Balance sheet summary at 30 June 2024 FY24 FY23 Change Strong returns on invested capital £m £m £m • Well in excess of WACC (c.11%) Property, plant & equipment 21.2 18.2 Intangible assets 19.3 10.6 Significant capacity for investment • June 2024 EBITDA leverage 0.5x Working capital 11.8 11.0 • Facil
Slide 14: Capital allocation priorities
Capital allocation priorities Strong cash generation supports growth and shareholder returns Maintain debt Invest in Debt leverage maintained below 1.5x EBITDA at prudent level organic growth Organic growth investment • Revenue: • Technical sales/customer support • New product development • Overseas
Slide 15: Business Review
04. Business Review Paul Hooper, Chief Executive Alumasc Roofing – Hydrotech and Derbigum – Pall Mall, Liverpool
Slide 16: Water Management
Water Management Continuing operations FY24 FY23 Revenue (£m) 48.3 39.8 Underlying operating profit (£m) 7.6 5.8 Underlying operating margin (%) 15.8% 14.5% Operating profit (£m) 6.8 5.6 • Six months contribution from ARP • Organic growth in revenue (+7%) and operating profit (+16%) • Strong growth
Slide 17: Building Envelope
Building Envelope Continuing operations FY24 FY23 Revenue (£m) 37.6 34.6 Underlying operating profit (£m) 4.6 4.1 Underlying operating margin (%) 12.3% 11.8% Operating profit (£m) 4.6 4.1 • Organic growth: +9% revenue, +13% operating profit • Leveraging investment in technical sales and customer sup
Slide 18: Housebuilding Products
Housebuilding Products Continuing operations FY24 FY23 Revenue (£m) 14.8 14.7 Underlying operating profit (£m) 3.8 3.5 Underlying operating margin (%) 25.3% 23.9% Operating profit (£m) 3.8 3.3 • Excellent performance in challenging market conditions • Lower housebuilding volumes offset by new produc
Slide 19: Strategic Delivery
05. Strategic Delivery Paul Hooper, Chief Executive Alumasc Roofing – Hydrotech – International Finance Centre, Building 6, Jersey
Slide 20: Strategic Pillars
Strategic Pillars Championing Sustainable Accelerating Organic Driving Margin Value-Accretive Building Products Sales Growth Improvement Investment Align portfolio with strategic Outperform general UK Operating margin target 15- Investment supported by cash growth markets construction sector
Slide 21: Championing Sustainable Building Products
Strategic Delivery Championing Sustainable Building Products Product GHG emission intensity tCO2e, scope 1, 2 and business travel/£m revenue >85% of portfolio aligned with strategic growth markets • Building decarbonisation (construction and in use) 70 • Water management 60 • Occupant wellbeing/urba
Slide 22: Accelerating Sales Growth
Strategic Delivery Accelerating Sales Growth • Another year of sectoral outperformance • Organic sales growth +6.5% • UK construction* (2.9)% • UK sales resilient • Strong overseas sales growth • Significant long term growth drivers • Long term housing undersupply/ageing UK building stock • Building
Slide 23: Driving Margin Improvement
Strategic Delivery Driving Margin Improvement Operating margin history • 11% organic growth in UPBT Continuing operations • 400bps increase in gross margin over last 5 years 20 18 Target range 15-20% • 14.1% operating margin, progressing towards 15- 16 20% target range, driven by 14 • Volume growth
Slide 24: Value-Enhancing Investment
Strategic Delivery Value-Enhancing Investment Organic • Further targeted investment to support future growth • Sales/marketing capability, R&D/new product development • £3.6m of capital expenditure • Automation of covers manufacturing at Wade, Halstead • Investment in ERP/CRM systems to improve comm
Slide 25: Outlook
06. Outlook Paul Hooper, Chief Executive Simon Dray, Group Finance Director Alumasc Roofing – Hydrotech – Stockport Exchange, Manchester
Slide 26: Outlook
Outlook Medium term drivers remain strong Supportive environmental and building safety regulations Undersupply of new houses and age of UK building stock Capabilities in place to exploit export opportunities Clear line of sight on further delivery of strategic and commercial objectives R
Slide 27: Thank you
Thank you www.alumasc.co.uk Alumasc Water Management – Gatic Slotdrain and Rotobox Units, Rugby
Slide 28: Appendices
06. Appendices Alumasc Water Management - ARP – Bespoke Aluminium Fascia, Copings and Colonnade Aluminium Downpipes – Irwin Place, The Moorings, Guernsey
Slide 29: Non-underlying items
Non-underlying items Year ended 30 June 2024 FY24 FY23 Operating Profit Operating Profit Profit Before Tax Profit Before Tax £’000 £’000 £’000 £’000 Underlying profit from continuing operations 14.2 13.0 12.1 11.2 Brand amortisation (0.2) (0.2) (0.1) (0.1) Restructuring and other non-recurring costs
Slide 30: Diversified end markets
Diversified end markets Water Building Housebuilding Group Management Envelope Products >85% revenue derived % of Group revenue from environmental products >80% revenue % of Group profit supported by legislation/regulations Private vs Public Housebuilding vs Non-residential vs Commercial/infrastruct
Slide 31: Acquisition criteria
Acquisition criteria M&A target characteristics ARP Bolt-on (to c.£20m EV) Maximum £10m EV Operating in Alumasc markets/close Rainwater management and architectural adjacents aluminium Consistent with Group margin and cash Cash generative; pre-synergy returns in line generation targets with Al