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2018 Half Year Results
Record first half performance across all Regions and Business Units
Vesuvius plc, a global leader in molten metal flow engineering, announces its unaudited results for the six months ended 30 June 2018.
Financial summary
H1 2018 (£m) |
H1 2017 (£m) |
Year-on-year change | Underlying change(1) | |
| Revenue | 897.0 | 831.5 | +7.9% | +12.1% |
| Trading Profit(2) | 99.6 | 86.3 | +15.4% | +20.3% |
| Return on Sales(2) | 11.1% | 10.4% | +70bps | +80bps |
| Operating Profit | 90.0 | 67.7 | +32.9% | |
| Headline Profit Before Tax(2) | 97.4 | 79.4 | +22.7% | |
| Profit Before Tax | 87.8 | 60.8 | +44.4% | |
| Profit | 70.0 | 46.4 | +50.9% |
|
| Headline Earnings(2) | 68.7 | 53.3 | +28.9% | |
| Headline EPS(2) (pence) | 25.4 | 19.7 | +28.9% | |
| Statutory EPS (pence) | 24.4 | 15.7 | +55.4% | |
| Operating cash flow(2) | 76.7 | 67.4 | +13.8% | |
| Net Debt | 281.8 | 321.8 | -12.4% | |
| Dividend (pence) | 6.00 | 5.50 | +9.1% |
(1) Underlying basis is at constant currency and excludes separately reported items and the impact of acquisitions
(2) For definitions of non-GAAP measures, refer to Note 16 in the condensed financial statements
Key points
- Record H1 trading profit at £99.6m (+20.3% on an underlying basis)
- Improved return on sales at 11.1% (+80bps on an underlying basis)
- Key steel and foundry end markets favourable in H1 2018 and remain positively oriented
- Raw material cost inflation successfully addressed through sales price increases
- Elimination of Flow Control intercompany supply headwind
- Implementation of previously announced restructuring programmes on track
- Increase in targeted annual savings from the new restructuring programme announced in March, from £15m p.a. to £22m p.a.
- Working capital to revenue ratio at 24.1% versus 26.2% at the end of H1 2017
- Net Debt / LTM EBITDA at 1.3x versus 1.6x at the end of H1 2017
- Interim dividend increased by 9.1% to 6.00 pence per share
Patrick André, Chief Executive of Vesuvius, commented:
“We had a strong H1 2018, delivering our best half year revenue, trading profit and return on sales since we became an independent company in 2012. We continued to outperform underlying markets thanks to the growth in demand for our value-creating solutions, supported by our increasing investment in R&D. We are cautiously optimistic regarding H2 2018 performance as the environment in our key end markets remains positive. This strength in underlying markets and our continuing implementation of self-help measures underpins our confidence that our full year trading profit (EBITA) will be marginally above the current consensus market expectation of c.£189m(1). Looking beyond 2018, we believe in our ability to deliver further organic improvement in our profit margins as we implement our strategy and deliver on our restructuring programmes.”
(1) Compiled from analyst notes for Trading Profit (EBITA) before separately reported items, as at 25 July 2018.
For further information, please contact:
Shareholder/analyst enquiries:
Vesuvius plc
Patrick André, Chief Executive
+44 (0) 207 822 0000
Guy Young, Chief Financial Officer
+44 (0) 207 822 0000
Euan Drysdale, Group Head of Corporate Finance
+44 (0) 207 822 0027
Virginia Skroski, Investor Relations Manager
+44 (0) 207 822 0016
Media enquiries:
MHP Communications
Andrew Jaques/ James White/ Ollie Hoare
+44 (0) 203 128 8100
Vesuvius management will make a presentation to analysts and investors on 26 July 2018 at 9.15 (GMT) in the Old School Building of J.P. Morgan, 60 Embankment, London EC4Y 0JP. For those unable to attend in person, an audio webcast and conference call will also be available (UK participant dial in +44(0)33 0336 9411; US participant dial in +1 929 477 0324; confirmation code 9065033). This presentation will be broadcast live on Vesuvius’ website, http://investors.vesuvius.com/investor-relations and an archive version of the presentation will be available on the website later that day.
About Vesuvius plc
Vesuvius is a global leader in molten metal flow engineering principally serving the steel and foundry industries.
We develop innovative and customised solutions, often used in extremely demanding industrial environments, which enable our customers to improve their manufacturing processes, enhance product quality and reduce costs. These include flow control solutions, advanced refractories and other consumable products and increasingly, related technical services including data capture.
We have a worldwide presence. We serve our customers through a network of low-cost manufacturing plants located close to their own facilities, and embed our industry experts within their operations, who are all supported by our global technology centres.
Our core competitive strengths are our market and technology leadership, strong customer relationships, well established presence in developing markets and our global reach, all of which facilitate the expansion of our addressable markets.
Our ultimate goal is to create value for our customers, and to deliver sustainable, profitable growth for our shareholders giving a superior return on their investment whilst providing each of our employees with a safe workplace where he or she is recognised, developed and properly rewarded.
Forward looking statements
This announcement contains certain forward looking statements which may include reference to one or more of the following: the Group’s financial condition, results of operations, cash flows, dividends, financing plans, business strategies, operating efficiencies or synergies, budgets, capital and other expenditures, competitive positions, growth opportunities for existing products, plans and objectives of management and other matters.
Statements in this announcement that are not historical facts are hereby identified as "forward looking statements". Such forward looking statements, including, without limitation, those relating to the future business prospects, revenue, working capital, liquidity, capital needs, interest costs and income, in each case relating to Vesuvius, wherever they occur in this announcement, are necessarily based on assumptions reflecting the views of Vesuvius and involve a number of known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied by the forward looking statements. Such forward looking statements should, therefore, be considered in light of various important factors that could cause actual results to differ materially from estimates or projections contained in the forward looking statements. These include without limitation: economic and business cycles; the terms and conditions of Vesuvius’ financing arrangements; foreign currency rate fluctuations; competition in Vesuvius’ principal markets; acquisitions or disposals of businesses or assets; and trends in Vesuvius’ principal industries.
The foregoing list of important factors is not exhaustive. When considering forward looking statements, careful consideration should be given to the foregoing factors and other uncertainties and events, as well as factors described in documents the Company files with the UK regulator from time to time including its annual reports and accounts.
You should not place undue reliance on such forward looking statements which speak only as of the date on which they are made. Except as required by the Rules of the UK Listing Authority and the London Stock Exchange and applicable law, Vesuvius undertakes no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward looking events discussed in this announcement might not occur.
Vesuvius plc, 165 Fleet Street, London EC4A 2AE
Registered in England and Wales No. 8217766
LEI: 213800ORZ521W585SY02