PRESENTATION
Year ended 30 Nov 2024
Ben Stocks - Chief Executive
James Mills - Finance Director Hooman Caman Javvi - Chief Executive designate
Consistent strategy
Filtration, laboratory and environmental | Engineering, customer service and NPD in a | |
technology markets | devolved management structure | |
Year ended 30 Nov 2024
Revenue | Adjusted EPS | Net Cash | Record revenue and profit | |||||||||||||||||
£13.7m | ||||||||||||||||||||
+9% | +4% | Variable trading patterns | ||||||||||||||||||
after £15.3m invested | ||||||||||||||||||||
CAGR | ||||||||||||||||||||
5-Year | 10-Year | 15-Year | 20-Year | |||||||||||||||||
Revenue | 6% | Revenue | 6% | Revenue | 9% | Revenue | 8% | |||||||||||||
Adj EPS | 9% | Adj EPS | 10% | Adj EPS | 19% | Adj EPS | 13% | |||||||||||||
2
Regularly replaced, engineered products. We contain emissions, clean-up processes,
purify samples, reduce waste and analyse impurities.
Global growth trends
Tightening environmental regulation
Growth in analytical science
The need for clean water
Carbon-efficient transport
The replacement of plastic and steel by aluminium Industrial process efficiency and waste reduction
Attractive business characteristics | ||||||
Niche positions | Fundamental demand drivers | Barriers to entry | ||||
Recurring revenues | Long-term secular growth trends | Quality accreditation | ||||
High customer retention | Regulation | Engineering design | ||||
Good cash conversion | Maintenance schedules | Patent & IP protection | ||||
3
Market positions
Supported by fundamental growth drivers
Business division
Share of revenues
Regulation
Growth drivers
Market CAGR growth rates
Competitive advantage
Aerospace & lndustrial
44% | |
FAA, CAA | NQA1, IMO |
New build rates | Emissions control |
Flying hours | Process quality |
Aero: 4%+ | Industrial: GDP+ |
2024-43 Sources: Boeing | |
Installed base | Engineering design |
Laboratory | Metal Melt |
Quality | |
33%23%
EPA, ISO | ISO, QA | |
Water standards | Aluminium growth | |
Diagnostic/Analytic lab growth | High grade alloy usage | |
5%+ | Aluminium: 4%+ | |
2024-31 Sources: see below* | 2024-31 Sources: see below** | |
Patents | Quality accreditation |
* Transparency Research | ** Allied Market Research; CRU; Fortune Business Insights | 4 |
Strategy and execution
Strategy:
Strategic Purpose
The development of specialist filtration, laboratory and environmental technology businesses for the benefit of all stakeholders
Principal measures of success
Consistent earnings growth
ESG metrics
Regulated markets with long-term growth prospects
Customer-led product development
Allocate cash to:
Organic growth and margin enhancement Acquisitions
Progressive dividend
5
Strategy and execution
Execution:
Key themes 2024
Strong or steady: aero, | De-stocking in consumables: | Focus on margins, cash and | ||||
petrochemical, clean water | lab and industrial | continued investment | ||||
Variability - more than normal | Margins, cash, continued investment | |
Ebbs and Flows: | Margins: Forex headwinds as expected | |
Robust orders in Aero, Petrochem | Hurricane remediation | |
Lab / Industrial consumables sluggish | Cash: EFC December 2023 | |
Expected H2 pick-up underwhelming | Capex £5m | |
Investment: MMQ upgrade due 2024/25 | ||
6
Financial summary
for the year ended 30 Nov 2024
Revenue | Revenue | Revenue | Revenue |
9% 25% 7% (8)%
Group | Aerospace & Industrial | Laboratory | Metal Melt Quality |
Adjusted PBT | Adjusted EPS | Net Cash | ||
6% | 4% | £13.7m | ||
to £22.7m | to 38.6p | |||
7
Adjusted income statement
for the year ended 30 Nov 2024
2024 | 2023 | ||
£m | £m | ||
Revenue | 192.6 | 176.0 | |
Operating profit | 24.5 | 22.6 | |
Interest | (1.8) | (1.2) | |
Profit before tax | 22.7 | 21.4 | |
Tax | (4.8) | (4.3) | |
Profit for the year | 17.9 | 17.1 | |
Earnings per share | 38.6p | 37.2p |
8
Cash flow
for the year ended 30 Nov 2024
2024 | 2023 | ||
£m | £m | ||
Operating cash flow before working capital movement | 29.5 | 26.9 | |
Working capital movement | (3.8) | (2.8) | |
Cash generated from operations | 25.7 | 24.1 | |
Interest | (0.7) | (0.3) | |
Tax | (3.4) | (3.0) | |
Acquisitions | (10.2) | (13.9) | |
Capital expenditure | (5.1) | (4.8) | |
Net movement in borrowings | - | - | |
Dividends | (2.8) | (2.7) | |
Repayment of lease liabilities | (3.5) | (2.6) | |
Other | (0.1) | (0.6) | |
Decrease in cash | (0.1) | (3.8) | |
Net cash at 30 November | 13.7 | 14.1 |
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Divisional review
Results and progress - for the year ended 30 Nov 2024
Aerospace & Industrial | Laboratory | Metal Melt Quality | |||||||||
2024 | 2024 | 2024 | |||||||||
2023 | 2023 | 2023 | |||||||||
£m | £m | £m | £m | £m | £m | ||||||
Revenue | 84.2 | 67.6 | Revenue | 64.4 | 60.4 | Revenue | 44.1 | 48.0 | |||
Adjusted OP | 11.8 | 9.8 | Adjusted OP | 9.5 | 9.2 | Adjusted OP | 5.9 | 6.5 | |||
% | 14.0% | 14.5% | % | 14.8% | 15.2% | % | 13.4% | 13.5% | |||
• | Revenue +25% | • Revenue +7%; underlying (1%) | • | Revenue (8)% |
• Aero +21%; Petrochem +37% | • Order book steady - some Q4 uplift | [2023: +6%; 2022: +21%; 2021: +14%] | ||
• | EFC - good start | • Investment continued: | • | Aluminium volumes flat |
• Margin affected by mix: | - Hungary | • Turbine blades, China better | ||
- More Petrochem | - NPD | • £0.9m Hurricane remediation costs |
- US industrial consumables operational gearing
10