Carclo Plc · LSE:CAR

Carclo — H1 2018/19 Earnings Presentation

19 slides from Carclo's earnings presentation, Nov 13, 2018

  1. Slide 1: Results for half year ended 30 September 2018

    CARCLO PLC Results for half year ended 30 September 2018 13 November 2018

  2. Slide 2: Introduction

    Introduction 2

  3. Slide 3: Financial highlights

    Financial highlights  Revenue flat at constant currency Revenue  Underlying PBT down 22% due to 2018/19 71.5 CTP underperformance and 2017/18 146.2 production inefficiencies in new 2016/17 138.3 LED programmes 2015/16 119.0  Basic underlying eps 3.7p 2014/15 107.5  CTP delayed new medical Revenu

  4. Slide 4: Income statement

    Income statement Half year ended 30 Half year ended 30  Revenue decreased by 1% to £m September September £71.5m 2018 2017  Underlying divisional operating Revenue 71.5 72.2 profit decreased 12% to £6.2m Operating profit Divisional underlying operating profit 6.2 7.0  Interest charge flat, includ

  5. Slide 5: CTP H1 performance

    CTP H1 performance £M 2018/19 2017/18 Change  Revenue lower than anticipated Revenue 42.8 43.7 (0.9) due to programme delays but flat on constant currency basis Operating profit 2.5 3.2 (0.7)  Underlying operating profit Operating margin 5.9% 7.4% (150bps) decreased by 22%  US performance continu

  6. Slide 6: CTP markets and strategy

    CTP markets and strategy  Focus on operational improvements with all sites now following standardised lean processes, supported by significant employee training  Significant actions taken in US with new leadership team in place and strengthening of engineering and manufacturing teams  Czech busin

  7. Slide 7: LED H1 performance

    LED H1 performance £M 2018/19 2017/18 Change  Overall revenue remained flat Revenue 25.6 25.6 -  Underlying operating profit Operating profit 3.0 3.4 (0.4) decreased by 10% as the business carried start-up costs Operating margin 11.9% 13.2% (130bps)  Increased investment in overhead to match expe

  8. Slide 8: LED markets and strategy

    LED markets and strategy  Two new design wins in the first half continued to demonstrate the successful shift towards a balanced low and mid-volume strategy  Significant amounts of new equipment installed in Buckingham as previously won programmes entered production  Strengthening of operations t

  9. Slide 9: Aero performance

    Aero performance £M 2018/19 2017/8 Change  Revenue increased by 9% as Revenue 3.1 2.9 0.2 newer programmes started to reach planned volumes Operating profit 0.6 0.4 0.2  These revenues provided greater Operating margin 19.4% 12.6% 680bps customer diversity  Underlying operating profit 4.0 0.8 inc

  10. Slide 10: Aero markets and strategy

    Aero markets and strategy  New aircraft build rates have remained strong  Business is focused on maintaining stable revenues and profits  Good demand from broad range of Tier 2’s with greater product diversity than in prior years 10

  11. Slide 11: Cash flow statement

    Cash flow statement £m £m  Working capital build due to sub contract tooling activity and pre- Net debt at 1 April 2018 (31.5) production build on new mid- Underlying cash from operations 6.9 volume contract Working capital (5.3) Interest and tax (0.6)  Capex relates to investment in Net capital e

  12. Slide 12: Balance sheet

    Balance sheet £m 30 September 2018 30 September 2017 31 March 2018  Net debt increased due to pre- production build on new mid- volume contract Tangible and other non-current assets 58.7 56.2 55.3 Intangible assets 25.8 25.5 25.3  Tooling prepayment due to be received H2 84.5 81.7 80.6 Current ass

  13. Slide 13: Pension

    Pension  Accounting deficit decreased by £0.3m due to slightly higher discount rate on increased corporate bond yields  Triennial actuarial valuation as at 31 March 2018 currently underway  Cash contributions of £1.2m paid in H2 13

  14. Slide 14: Outlook

    Technical Plastics LED Technologies Aerospace Outlook 14

  15. Slide 15: Operational improvements programme

    Operational improvements programme COMP – “Cash Initiative”, “Operational Excellence”, “Management” & “Pricing”  Cash Initiative focussed on improved commercial terms and lower levels of inventory – strong progress was made in CTP in the first half  Operational Excellence has resulted in adoption

  16. Slide 16: Stronger H2 performance expected

    Stronger H2 performance expected  CTP performance is expected to be stronger in H2 due to:  Ramp up in volumes on new medical programmes now in production  New tooling programmes planned for H2  Delivery of operational improvements and cost savings implemented in H1  Benefits of price increases

  17. Slide 17: H2 actions

    H2 actions  CTP  Operational improvement implementations  Delivery of lean cost savings and continued development of opportunities through kaizan approach  Final resolution of remaining US labour issues and a return to a highly efficient US plants  Czech resizing implementation  LED  Eliminat

  18. Slide 18: Outlook

    Outlook  The Board expects the Group to report a stronger performance in the second half of the financial year. This reflects the full effect of the new programmes, improved operational performance and expected higher design and tooling profits at Technical Plastics, along with the benefit from the

  19. Slide 19: Forward looking statements

    Forward looking statements - Certain statements made in this presentation are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events to differ materially from any expected future events or re

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