Avingtrans Plc · LSE:AVG
Avingtrans — FY2018 Earnings Presentation
19 slides from Avingtrans's earnings presentation, Sep 10, 2018
Slide 1: Results for year ended 31 May 2018
Pinpoint-Invest-Exit Results for year ended 31 May 2018 Steve McQuillan, CEO Stephen King, CFO 10 September, 2018
Slide 2: Avingtrans proven buy and build strategy: Pinpoint-Invest-Exit
Avingtrans plc has a proven strategy of “buy and build” in highly regulated engineering markets, a strategy it has named “Pinpoint-Invest-Exit” (PIE). Using its strong balance sheet, this strategy is being delivered by its agile and seasoned Board and management team, to create significant sharehold
Slide 3: A successful journey
A successful journey The Group has a proven track record in delivering shareholder value through PIE: 67 Identifying and executing prudent deals with precision and speed Building strong brands and value from Resulting in a decade of continual growth constituent parts Crystallising these gains
Slide 4: Our divisions
Our divisions Engineered Pumps and Motors (EPM) Division Medical and Industrial Imaging (MII) Division The EPM division is built on one brand, Hayward Tyler. Established in 1815, The medical division has specialist expertise in the design and manufacture of Hayward Tyler designs, manufactures and se
Slide 5: Our strategy in action - Pinpoint
Our strategy in action - Pinpoint Strengthening the energy market portfolio Avingtrans successfully acquires Hayward Tyler Avingtrans successfully acquires certain assets of Group for £29.4m on 1st September 2017. Ormandy Ltd for £0.1m in February 2018. With a rich installed base of 1000’s of pumps
Slide 6: Our strategy in action - Invest
Our strategy in action - Invest Establishing world class capability Energy Medical Metalcraft completes the second phase of the Scientific Magnetics Ltd and MR Resources Inc. factory development for 3M3 intermediate level launch a pan-European partnership, to bring Nuclear waste (ILW) boxes and succ
Slide 7: Our strategy in action - Exit
Our strategy in action - Exit Returning shareholder value Avingtrans is now engaged with the Pinpoint-Invest Avingtrans is committed to medium and longer term phases of its two energy divisions and its medical development plans, with the focus on exiting division, following the successful Exit of th
Slide 8: HTG – one year on
HTG – one year on Progress is pleasing so far Balance sheet stabilised, high cost debt removed Banking facilities renewed in the UK and USA Duplicate board and advisory costs removed Restructuring exercise complete Working capital stable Strategic plans on track Aftermarket focus beari
Slide 9: Divisional priorities
Divisional priorities Energy • Nuclear • Decommissioning – Sellafield progress steady • Life extension – pursuing multiple international opportunities • Fossil fuels / Oil & Gas – some recovery. Focus on aftermarket • Defence – UK MoD contracts won • Ormandy – encouraging progress on integration so
Slide 10: Financial Highlights
MD. Avingtrans Financial Highlights
Slide 11: Financial highlights
Financial highlights Group Revenue Gross Profit Margin Adjusted EBITDA £78.9m 25.5% £5.7m +247% 2017: 17.9% +690% Adjusted Diluted EPS Total Dividend Net Debt 8.4p 3.6p £7.1m +7.3p 2017: 3.4p 2017: Net Cash £26.4m
Slide 12: P&L FY18
P&L FY18 FY17 £m £m Revenue 78.9 22.7 Gross profit 20.1 4.1 Gross profit margin 25.5% 17.9% Adjusted EBITDA 5.7 0.7 Adjusted EBITDA margin 7.2% 3.2% Adjusted profit before tax 2.4 0.3 Loss after tax (4.5) (0.3) Adjusted basic EPS (pence) 8.5 1.1 Adjusted diluted basic EPS (pence) 8.4 1.1
Slide 13: Seventh year of dividend growth
Seventh year of dividend growth 4.0 3.5 3.0 2.5 2.3 2.2 Pence 2.1 2.0 2.0 1.8 1.5 1.5 1.0 1.1 1.2 1.3 0.5 0.9 1.0 0.7 0.0 FY13 FY14 FY15 FY16 FY17 FY18 Interim Final
Slide 14: Balance Sheet
Balance Sheet FY18 FY17 £m £m Tangible fixed assets 27.6 4.9 Goodwill 23.4 5.2 Other intangible 15.6 1.4 Deferred Tax Asset/Pension Surplus 3.0 0.0 Working capital 18.6 7.4 Provisions (6.1) 0.0 Tax 0.6 0.1 Net (Debt)/Cash (7.1) 26.4 Creditors > 1 year (3.6) (0.3) Deferred Tax Liability (2.9) (0.2) N
Slide 15: Movement in Net Cash/(Debt) FY18
Movement in Net Cash/(Debt) FY18 £m 35.0 5.7 (1.6) (1.7) 30.0 (3.0) 26.4 (3.7) 25.0 (1.9) (0.5) (0.9) 20.0 (3.4) (22.6) 15.0 10.0 5.0 0.0 -5.0 (7.1) -10.0 Opening net Adjusted Acquisition Restructuring HTG creditor HTG disposal Net Working Interest, tax Dividend Capital Net debt on Closing net cash
Slide 16: Tax highlights
Tax highlights • Effective tax rate 0.3% tax credit • US tax charge £1.2m offset by deferred tax credit on the amortisation of business intangibles and temporary timing differences • US tax rate reduced from 39% to 27% from January 2018 – Future benefit • UK tax rate to reduce to 17% from April 2020
Slide 17: Summary
MD. Avingtrans Summary
Slide 18: Summary
Summary Successful integration of Hayward Tyler and Peter Brotherhood Order book: robust cover in Energy; Medical primed for growth Nuclear life extension wins in the UK, USA, Sweden and S. Korea Sellafield 3M3 project on plan: technically, operationally and commercially Good potential for
Slide 19: Compelling strategy, niche leadership, consistent returns
Compelling Pinpoint-Invest-Exit strategy Niche market leadership positions Consistent shareholder returns