Annual General Meeting 4 September 2018
AGM statement
AGM Presentation Alan Dunsmore Chief Executive Officer March 2018 3
AGM Presentation Highlights • Revenue up 5% at £274.2m • Underlying profit before tax up 19% at £23.5m • Continued strong cash generation with net funds of £33.0m • UK order book at £210m • Improved India order book of £128m reflects continued positive market developments • Improved profitability of Indian business – Group share £0.5m • Underlying basic EPS up 15% at 6.4p • Proposed final dividend of 1.7p per share • Proposed special dividend of 1.7p per share • Continued good progress made towards 2020 profit target of £26m September 2018 4
AGM Presentation Revenue and profit 2018 underlying PBT of £23.5m represents an underlying operating margin of 8.3% 300 30 250 25 200 20 Revenue (£m) PBT (£m) Continued good progress 150 15 towards achieving £26m underlying PBT target by 2020. 100 10 50 5 - - 2015 2016 2017 2018 2019 2020 Revenue Underlying profit before tax September 2018 5
AGM Presentation Cash flow Net funds bridge - year ended 31 March 2018 Represents continued investment in the new in-house 70.0 painting facilities, new equipment for our fabrication lines, site construction equipment and improvements to our site infrastructure and staff welfare facilities. (4.0) 60.0 (5.4) (7.5)) 50.0 26.7 £ million (5.5)) 40.0 (2(3.9)) 30.0 Reflects additional investment in Indian joint venture to repay the 20.0 term debt in June 2017. 32.6 33.0 10.0 - Net funds - Operating cash Working capital Net capex Dividends paid Investment in Tax Net funds - March 2017 flow movement India March 2018 September 2018 6
AGM Presentation Market sectors Health and education Power and energy Stadia and leisure Industrial and distribution Retail Commercial offices Transport Data centres and other September 2018 7
AGM Presentation High quality UK order book 350 315 300 270 259 245 237 250 229 216 211 210 200 198 200 181 £m 150 100 50 0 Jun-16 Nov-16 Jun-17 Nov-17 Jun-18 Sep-18 UK order book (total) UK order book (<12 months) September 2018 8
AGM Presentation Current major projects Endorsing Severfield’s leading market position JLR Gaydon Triangle, Midlands 22 Bishopsgate, London Ferrybridge Multifuel 2 Power Station Three Snowhill, Birmingham Tottenham Hotspur FC Stadium September 2018 9
AGM Presentation Current major projects Endorsing Severfield’s leading market position Southbank Place, London KGX1, London Wimbledon No.1 Court Ordsall Chord September 2018 10
AGM Presentation India - overview • GDP growth remains strong. India is developing fast and modernisation is wanted by people, especially the educated younger generation • Legislation changes such as goods and services tax (‘GST’), real estate regulatory authority (‘RERA’) and health care building standards are all assisting growth and ease of doing business • Much greater realisation by developers and construction supply chain of the benefits of steel in construction. Interest is growing across many sectors • Strong order book and positive forward outlook (including residential solution) September 2018 11
AGM Presentation Current major projects - India Phoenix - Aquila TATA Cancer Hospital National Cancer Institute JSW – Pellet Plant, Dolvi September 2018 12
AGM Presentation Prospects - India State Secretariat’s Office, Amravati MG Setu, Patna Phoenix – Centaurus Sattva Knowledge Park Hiranandani - TCS September 2018 13
AGM Presentation Driving future growth Smarter, safer, New revenue streams more sustainable • European projects • Innovation • Systems • Residential solution • People • Severfield (Products & • Productivity • Processing) Risk management, control and safety • More cold rolled products, • Optimisation of steel footprint in North including purlins Yorkshire now completed Our vision To be recognised as world-class leaders in structural steel , known for our ability to deliver any project, to the highest possible standards September 2018 14
AGM Presentation Summary • Strong annual results with: ‒ Increased revenue ‒ Excellent profit growth ‒ Good cash generation • Strategy implementation benefiting underlying operating margins • Progressive dividend policy and special dividend for 2018 September 2018 15
Resolutions 4 September 2018
AGM Presentation Resolution One Adoption of the financial statements and of the Directors’ and Auditor’s reports Proxies lodged by 173 Holding 239,213,945 shares Percentage of total voting rights 78.7% Votes in favour 238,057,361 99.52% Votes against 1,156,584 Votes withheld 0 September 2018 17
AGM Presentation Resolution Two Approve Directors’ remuneration report Proxies lodged by 173 Holding 239,119,944 shares Percentage of total voting rights 78.7% Votes in favour 239,005,356 99.95% Votes against 114,588 Votes withheld 94,000 September 2018 18
AGM Presentation Resolution Three Approve final dividend Proxies lodged by 172 Holding 239,213,945 shares Percentage of total voting rights 78.7% Votes in favour 239,213,945 100.00% Votes against 0 Votes withheld 0 September 2018 19
AGM Presentation Resolution Four Approve special dividend Proxies lodged by 172 Holding 239,213,945 shares Percentage of total voting rights 78.7% Votes in favour 239,213,945 100.00% Votes against 0 Votes withheld 0 September 2018 20
AGM Presentation Resolution Five Reappoint John Dodds as director Proxies lodged by 169 Holding 218,511,287 shares Percentage of total voting rights 71.9% Votes in favour 212,191,476 97.11% Votes against 6,319,811 Votes withheld 20,702,657 September 2018 21
AGM Presentation Resolution Six Reappoint Ian Cochrane as director Proxies lodged by 176 Holding 239,206,945 shares Percentage of total voting rights 78.7% Votes in favour 232,919,620 97.37% Votes against 6,287,325 Votes withheld 7,000 September 2018 22
AGM Presentation Resolution Seven Reappoint Alan Dunsmore as director Proxies lodged by 176 Holding 239,206,945 shares Percentage of total voting rights 78.7% Votes in favour 232,927,702 97.37% Votes against 6,279,243 Votes withheld 7,000 September 2018 23
AGM Presentation Resolution Eight Reappoint Derek Randall as director Proxies lodged by 174 Holding 239,181,945 shares Percentage of total voting rights 78.7% Votes in favour 232,907,951 97.38% Votes against 6,273,994 Votes withheld 32,000 September 2018 24
AGM Presentation Resolution Nine Reappoint Adam Semple as director Proxies lodged by 175 Holding 239,206,945 shares Percentage of total voting rights 78.7% Votes in favour 232,902,068 97.36% Votes against 6,304,877 Votes withheld 7,000 September 2018 25
AGM Presentation Resolution Ten Reappoint Alun Griffiths as director Proxies lodged by 173 Holding 239,198,195 shares Percentage of total voting rights 78.7% Votes in favour 234,926,083 98.21% Votes against 4,272,112 Votes withheld 15,749 September 2018 26
AGM Presentation Resolution Eleven Reappoint Tony Osbaldiston as director Proxies lodged by 173 Holding 239,204,644 shares Percentage of total voting rights 78.7% Votes in favour 234,937,532 98.22% Votes against 4,267,112 Votes withheld 9,300 September 2018 27
AGM Presentation Resolution Twelve Reappoint Kevin Whiteman as director Proxies lodged by 174 Holding 239,206,944 shares Percentage of total voting rights 78.7% Votes in favour 233,404,990 97.57% Votes against 5,801,954 Votes withheld 7,000 September 2018 28
AGM Presentation Resolution Thirteen Reappoint KPMG LLP as auditor Proxies lodged by 172 Holding 239,103,945 shares Percentage of total voting rights 78.7% Votes in favour 238,966,574 99.94% Votes against 137,371 Votes withheld 110,000 September 2018 29
AGM Presentation Resolution Fourteen Authorise Directors to determine Auditor’s remuneration Proxies lodged by 173 Holding 239,206,612 shares Percentage of total voting rights 78.7% Votes in favour 239,089,582 99.95% Votes against 117,030 Votes withheld 7,333 September 2018 30
AGM Presentation Resolution Fifteen Authorisation to allot shares Proxies lodged by 171 Holding 239,179,127 shares Percentage of total voting rights 78.7% Votes in favour 239,027,102 99.94% Votes against 152,025 Votes withheld 29,348 September 2018 31
AGM Presentation Resolution Sixteen Disapplication of pre-emption rights Proxies lodged by 172 Holding 239,188,945 shares Percentage of total voting rights 78.7% Votes in favour 239,027,658 99.93% Votes against 161,287 Votes withheld 25,000 September 2018 32
AGM Presentation Resolution Seventeen Disapplication of pre-emption rights in connection with an acquisition or specified capital investment Proxies lodged by 171 Holding 239,070,444 shares Percentage of total voting rights 78.7% Votes in favour 237,309,978 99.26% Votes against 1,760,466 Votes withheld 143,500 September 2018 33
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