Preliminary results Year ended 31 st March 2019 Strategy Delivering Further Strong Growth 4 th June 2019 discoverIE Group plc Preliminary results FY19 – 4 th June 2019
A strong year Group sales up +13% Organic growth +8% Record period end order book +12% (organic) New project design wins +40% (1) Underlying operating profit +25% Underlying EPS +22% Operating cash flow +29% 3 higher margin acquisitions for £35m, 2 since the year end (1) Estimated lifetime sales value of projects discoverIE Group plc Preliminary results FY19 – 4 th June 2019 1
SALES (1) Growth Company We e aim t to provi vide de inve vesto tors w with Returns of 15 – 20% pa A progressive dividend From om F FY13 13 t to o FY18 18: FY13 FY14 FY15 FY16 FY17 FY18 FY19 Sales up > 2x Underlying EPS up > 2x UNDERLYING OPERATING Operating profits up > 4x PROFIT & EPS Share price growth 19% CAGR (2) Dividend growth 7.6% CAGR (3) From F FY1 Y19 o our a aim im is t is to double E EPS in in 5 ye year ars FY19 EPS up 22% FY13 FY14 FY15 FY16 FY17 FY18 FY19 Underlying Operating Profit EPS (1) Group revenue, excluding disposed businesses (2) Growth from April 2012 (FY13) to March 2018 (3) Growth from FY13 to FY18 discoverIE Group plc discoverIE Group plc Preliminary results FY19 – 4 th June 2019 2
FINANCIAL REVIEW discoverIE Group plc Preliminary results FY19 – 4 th June 2019
Financial Review Continued strong growth Increas asing o g operat ating mar argi gin Up 0.7ppts to 7.0% CER ER FY19 FY FY FY18 Growt wth Excellen ent c t cash f flow Growt wth Operating cash flow of £438. 8.9m £387.9m Revenue +13% +14% £28.6m, up 29% £30.6m 6m £24.5m Underlying operating profit (1) +25% +26% 93% conversion of £27 27.2m 2m £21.9m Underlying profit before tax (1) +24% operating profit Underlying EPS (1) 27.2p 27 2p 22.3p +22% Gear aring r reduced £14.6m Reported profit before tax (2) £19. 9.3m +32% Gearing down to 1.7x Reported fully diluted EPS (2) 19. 9.4p 14.2p +37% 1.4x proforma post Apr Dividend per share 9.55p 55p 9.00p +6% placing Growi wing R ROCE (2,3) Up 1.7ppts to 15.4% (1) Underlying profits exclude acquisition-related costs and exceptional items (see Appendices I & II) (2) FY18 reported profit before tax, fully diluted EPS and ROCE restated for prior year adjustment (3) ROCE is underlying operating profit as a percentage of net assets plus net debt discoverIE Group plc Preliminary results FY19 – 4 th June 2019 4
Financial Review Consistent revenue growth REVENUE Growth FY19 FY Organic (1) 8% +13% +15% Acq 6% +18% CER 14% +6% +28 28% Currency -1% £439m 9m +19% Actual 13% £388m 88m £338 338m £288m 88m £27 271m £21 212m 2m £177m 77m FY13 FY14 FY15 FY16 FY17 FY18 FY19 6 years revenue growth of 150% ( 16% CAGR) (1) Organic growth excludes acquisitions discoverIE Group plc Preliminary results FY19 – 4 th June 2019 5
Financial Review Strong profit growth with increasing margin UNDERLYING OP PROFIT & MARGIN 7.0% 7. Underly lying g op p profit (1 (1) ) of £30.6 .6m 6.3% 6. Up 26% CER (+£6.4m) on FY18 5.9% 9% £30.6 .6m 5.7% 7% 33% CAGR in 6 years 4.9% 9% £24.5m 5m Underly lying g op mar argi gin o of 7.0% 0% £20.0m 0m Up 0.7ppts on FY18 £16.3m 3m 3.4% 4% £13.4m 4m 3.1% 1% Up 3.9ppts in 6yrs Good progress towards 8.5% target (2) £7.1m 1m £5.5m 5m FY13 FY14 FY15 FY16 FY17 FY18 FY19 (1) Underlying measures exclude acquisition-related costs and exceptional items (see Appendices I and II). (2) Mid-term target by Nov 21 discoverIE Group plc Preliminary results FY19 – 4 th June 2019 6
Financial Review Organic growth with good operating leverage UNDERLYING OPERATING PROFIT EBIT IT d drop t p thru o of f 13% (2) 2) (£0.4m) (£0.3m) (£5.4m) Strong organic revenue growth of 8% £2.4m £9.8m 8m Infrastructure investment in D&M to +£4.0m organic support growth £30.6 .6m £24.5 .5m £2.5m contribution from Cursor Controls and Santon FY18 FY REV EVEN ENUE GM GM OPEX EX AC ACQS FX FX FY FY19 (1) Underlying measures exclude acquisition-related costs and exceptional items (see Appendices I and II). (2) Increase in CER profits as a percentage of sales growth (organic) discoverIE Group plc Preliminary results FY19 – 4 th June 2019 7
Financial Review Profit growth across both divisions… £m FY FY19 FY18 ( (CER ER) Rev even enue g e growth UO UOP grow rowth UOP (1 (1) UOP (1 (1) rganic (2 (2 ) Rev even enue UO % Rev even enue UO % Actual al CER CE Org % D&M 2 266. 66.2 29 29.8 11. 1.2% 219.8 23.9 10.9% 20% 21% 10% 25% Custom Supply 1 172. 2.7 8. 8.6 5.0% 0% 164.2 7.5 4.6% 4% 5% 5% 15% Unallocated (7.8) 8) (7.2) Total (CER) 4 438. 8.9 3 30. 0.6 7.0% 7. 384.0 24.2 6.3% 13% 14% 8% 26% FX 3.9 0.3 Total (reported) 438. 8.9 30. 0.6 7. 7.0% 387.9 24.5 6.3% DESIG IGN & N & CUSTOM M MANU NUFACTURING ING SUPPL PPLY Ope perating pr profi fit up p 15% % CE CER Ope perating pr profi fit up p 25 25% % CE CER Margin up 0.4ppts to 5.0%, Margin up 0.3ppts to 11.2% achieving mid-term target Margin increase reduced by short Strong operating leverage term solar slow down (1) UOP is underlying operating profit (2) Organic growth excludes acquisitions (D&M) discoverIE Group plc Preliminary results FY19 – 4 th June 2019 8
Financial Review … drives EPS increase of 22% £m FY FY19 FY18 FY Underlyi ying ng P PBT up 24% 4% Underlying operating profit (1) 30.6 30 24.5 Underlyi ying ng E EPS up up 178% % in 6 n 6 yrs Finance costs (1) (3.4) 4) (2.6) Underlying PBT (1) 27 27.2 21.9 Effective tax rate 25 25% 24% UNDERLYING EPS Underlying PAT 20 20.5 16.6 Fully diluted shares (m) 75 75.4 74.5 +22% 22% Underlying EPS (p) 27.2p 27 2p 22.3p +16% +13% +10% +31% +20 20% 27.2p 27 2p 22. 22.3p 19.2p 2p 17. 7.0p 15.4p 4p 11. 1.8p 9.8p 8p FY13 FY14 FY15 FY16 FY17 FY18 FY19 (1) Underlying measures exclude acquisition-related costs and exceptional items (see Appendices I and II) discoverIE Group plc Preliminary results FY19 – 4 th June 2019 9
Financial Review Excellent cash flow Strong 0 g 0peratin ing g cash sh flo low (1 (1) ) £28.6m up 29% OPERATING CASH FLOW (1) 93% of underlying operating profit £28.6m 6m Well ahead of 85% target despite higher w/c requirement in D&M. £27.1m 1m £22. 22.1m Net d t debt a t at 31 31 M Mar 1 r 19 of £ f £63m 3m £16.3m 3m £13m reduction since last year (ex £13. 3.9m acquisitions) Gearing ratio (3) reduced to 1.7x Further reduced to 1.4x post placing £7.1m 1m on a proforma basis Target range 1.5x – 2.0x FY18 ( 2) 2) FY14 FY FY FY15 FY FY16 FY FY17 FY FY FY19 Tar arget % Underlying Revo volvi ving c credi dit f t facility ty increa eased ed 100% 104% 100% 136% 90% 93% 85% Operating Profit to o £180m m (from £ m £120m) m) Plus £60m accordion; term extended to Jun 23 (with option to Jun 24) Available for acquisitions and w/c (1) Operating cash flow defined as EBITDA less working capital and capex – see Appendix III (2) FY18 operating cash flow restated for prior year adjustment (3) Net debt at 31 Mar 19 as a ratio of adjusted EBITDA (Group underlying EBITDA adjusted for a full year of the underlying EBITDA from acquisitions) . discoverIE Group plc Preliminary results FY19 – 4 th June 2019 10
Financial Review Increasing dividend 9.55p 5p 9.00p 00p 8.50p 8. 8.05p 8. 7. 7.60 60p Divide dend nd up 6 p 6% 6.80 80p 88% growth FY dividend in 9yrs 6.18p 8p 5.81p 1p 6.75p 7.2% CAGR 5.43 43p 6.35p 5p 5.09 09p 6.05 05p 5.72p 5.40p Maint ntaini ning ng p progressi sive 4.98p 8p po policy y 4.36p 6p 3.99p 9p 3.74p 4p 3.40p 0p FY19: 2.8x cover (underlying) and 1.8x cover (reported) To exceed 3x cover (underlying) 2.80p 0p 2.65p 5p 2.45p 5p 2.33p 33p 2. 2.20 20p 1.82p 1.82p 1.82p 1.69p 9p 1.69p 9p FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 discoverIE Group plc discoverIE Group plc Preliminary results FY19 – 4 th June 2019 11
OPERATING REVIEW discoverIE Group plc Preliminary results FY19 – 4 th June 2019
Recommend
More recommend
