Results Presentation for the half year ended 30 September 2018 - - PowerPoint PPT Presentation

▶
results presentation for the half year ended 30 september
SMART_READER_LITE
LIVE PREVIEW

Results Presentation for the half year ended 30 September 2018 - - PowerPoint PPT Presentation

Jan 20, 2024 29 likes •129 views

Results Presentation for the half year ended 30 September 2018 Highlights Earnings per share increased 52% to 1.52p Corporate Profits up 49.5% to 0.553m Gross margin up 0.5% Continued growth in profits from the China

slide-1
SLIDE 1

Results Presentation for the half year ended 30 September 2018

slide-2
SLIDE 2

Highlights

  • Earnings per share increased 52% to 1.52p
  • Profits up 49.5% to £0.553m
  • Gross margin up 0.5%
  • Continued growth in profits from the China Joint Venture

2

Transportation Energy Corporate

  • Improved profitability of the Transportation division
  • UK rigid hydraulic tube business continues to grow
  • Further productivity gains through ongoing investment
  • US market conditions favourable but challenges with recruiting and retaining skilled

employees

  • Good progress in developing new opportunities
  • Strong operational performance
  • Revenue, as anticipated, lower due to reduction in demand from power generation

rental sector

All references to EBITDA, profit before tax and EPS are before intangible asset amortisation, share based payment charges and foreign exchange derivative valuation.

slide-3
SLIDE 3

Financial Review – Highlights

  • All businesses

profitable

  • Transportation

division continues to grow

  • Profitability

increased significantly on flat revenues

  • Further inload of

new business 3

0.0 0.2 0.4 0.6

2015 2016 2017 2018

Profit Before Tax - £m

0.0 0.5 1.0 1.5 2.0

2015 2016 2017 2018

Earnings per share - pence

0.0% 2.5% 5.0% 7.5% 10.0%

2015 2016 2017 2018

EBITDA return - % EBITDA

£0.944m Up 26.9%

Operational Gearing

29.5% Down 1.7%

Revenue

£11.415m Flat

PBT

£0.553m Up 49.5%

Earnings per share

1.52p Up 52%

slide-4
SLIDE 4

Financial Review – Balance Sheet

£m Sept 18 Sept 17 Cash generated by

  • perations

0.320 0.332 EBITDA 0.944 0.744 Investment in joint venture 1.066 0.782 Capital expenditure 0.327 0.281 Capex/depreciation ratio 1.18 1.09 Net debt 3.288 3.470 Gearing % 48.3% 57.5%

4 Cash generated by operations

£0.320m Down 3.6%

Investment in joint venture

£1.066m Up 36.3%

Net assets

£14.884m Up 4.8%

Net debt

£3.288m Down 5.2%

Net working capital

£4.012m Down 1.0%

Gearing

48.3% Down 16.0%

  • Reduction in half year on half year net debt

despite investment headwinds

  • Gearing down on previous half year
  • Increasing value of investment in China
  • The Group operates without any covenants
  • n its borrowings
slide-5
SLIDE 5

5

278 (3,288)

31 March 2018 Net debt Underlying

  • perating

profit

Financial Review - Change in Net Funds

(2,982)

30 September 2018 Net debt

(137)

Depreciation

£000’s (403)

Tangible / intangible assets

515

Net movement in working capital Finance charges

5

Cash generated by operations £320k

(473)

Other movements

(86)

slide-6
SLIDE 6

Business Review - Introduction

  • Two divisions-Transportation and Energy
  • Efficient operational base spanning three

key geographic regions in the UK, USA and China supporting a global customer base

  • Footprint has created significant
  • pportunities to expand existing

relationships and to develop new business with customers 6

slide-7
SLIDE 7

7 On Road Truck

Customer Product Markets

Off Road Machines Other Off Road Engines Energy Generation

Application: Engine Gearbox Lube Coolant Global Markets Truck – Medium and Heavy Duty Coolant Application: Fluid Transfer – Oil, Air, and Water Global Markets Power Generation Construction, Mining Application: Gas Vacuum Braking System Transmission Breathers Fuel suction Global Markets Semi-Con. Medium and Heavy Duty Truck Application: Fluid transfer of

  • il , fuel, air

water and coolant Global Markets Agriculture, Construction Mining Oil and Gas Application: Hydraulic fluid transfer – Actuator control Global Markets Construction Agriculture Mining

slide-8
SLIDE 8

Distinctive Capabilities

8

  • “Superclean“
  • Rotary TIG welding
  • World class fabrication
  • Welded assemblies
  • Innovation
  • Dedicated manufacturing cells
  • GEMBA
  • SMED
slide-9
SLIDE 9

Business Review - Performance

  • UK

– Benefitting from ongoing investment – Rigid hydraulic tube business continues to grow – Investment in in-house cutting yielded further productivity gains

  • USA

– Increased profitability – Continued to expand customer base – Market conditions favourable – Challenges on recruitment and retention of skilled employees

9

– Strong operational performance – Revenue, as anticipated, lower due to reduction in demand from the power generation rental sector

£’000 Transportation Energy H1 2018 Central adjustments H1 2017 Central adjustments H1 2018 Group H1 2017 Group H1 2018 H1 2017 H1 2018 H1 2017 Revenue 8,495 8,097 2,920 3,330 11,415 11,427 PBT 389 156 187 278 (23) (64) 553 370

Energy Transportation

  • Joint Venture

– Improved market conditions through H1 – Further improvement in profitability

Revenue Up 4.9% PBT Up 149.3% Revenue

Down 12.3% PBT Down 32.7 %

slide-10
SLIDE 10

Outlook

  • Significant progress in the period focusing on growing

margins – Significant increase in profit before tax – Earnings per share up 52%

  • Reflects benefit of an efficient operational base spanning

three key geographic regions, a global customer base and successfully developing new business opportunities

  • Pipeline of new business opportunities remains encouraging
  • Past two years seen significant growth in end markets but

some signs of growth slowing towards the end of the period

  • Expect second half revenues to be similar to first half
  • Full year underlying profit before tax expected to be in line

with market expectations

10