Hayward Tyler Group plc (Ticker: HAYT.L) Full year results to: 31 December 2012

Transcription

1 Hayward Tyler Group plc (Ticker: HAYT.L) Full year results to: 31 December 2012 Ewan Lloyd-Baker - CEO Nick Flanagan - CFO 1

2 Highlights 2 Revenue and gross profit margins ahead of prior year Trading EBITDA up 19% to 3.6 million Trading PBT up 26% to 2.1 million Fully diluted trading EPS 3.18 pence Net assets increased by 108% to 9.7 million Order intake up to 34.5 million

3 Key messages Significant progress made in restructuring the main manufacturing operations in Luton Positive benefits of the MBE Cologne relationship Stronger capital structure and improved working capital facilities Improving order environment continuing into 2013 Nuclear aftermarket Offshore oil & gas Conventional fossil fired power India & China Change of name to Hayward Tyler Group plc reflecting positive growth prospects of our operating business 3

4 Markets served Power generation Key drivers: GDP growth Aging installed base Environmental regulations Installed base of >2000 units >450 units in Greater China >140 units in India Syngas opportunities Sold to first 2 syngas projects worldwide Natural gas IGCC application Installed BCPs in China Coloured pins denote power stations with HT installed units Installed BCPs in India 4

5 Markets served Nuclear ASME N stamp Recognised supplier to Areva, GE & Westinghouse Aftermarket orders continue to grow Shipped RMPs to Sellafield Ongoing development of SMRs Defence Secondary propulsion units for the Trafalgar class RCFW units for the Astute Boat Astute Class submarine 5

6 Markets served Offshore topside Bespoke range of seawater lift & firewater pumps Largest ever order won for the Hebron field (valued at 2.7m) Offshore subsea Units delivered to Aker & GE Aker units deployed in Tyrihans field (31km step-out) Est. 10% enhanced field recovery (extra 19 million barrels of oil) c.3000 subsea wells worldwide Aker SeaBooster system 6

7 FY 2012 Income statement Income Statement FY 2012 FY 2011 million Trading Non-trading Total Trading Non-trading Total Revenue Gross profit Gross profit % 34% 34% 33% 33% Operating charges (8.3) 0.2 (8.0) (8.2) (3.6) (11.9) Restructuring cost - (1.0) (1.0) Operating profit 2.8 (0.8) (3.6) (1.3) Net finance charge (0.7) (0.5) (1.2) (0.6) (0.1) (0.7) Gain on fair value of derivatives (1.1) (1.1) Profit/(loss) before tax 2.1 (0.8) (4.8) (3.1) Tax (0.8) (0.0) (0.8) (0.4) (1.1) (1.5) Net (loss)/profit 1.3 (0.8) (5.9) (4.6) Basic EPS (pence) 3.18 (2.01) (16.56) (12.93) Weighted average number of shares in issue: 41.7million 35.5 million Gross margin improvement Trading operating profit up by 22% Trading EPS at 3.18 pence per share 7

8 FY 2012 Segmental split Segmental Split FY 2012 FY 2011 million Revenue Gross Trading Revenue Gross Trading Profit Operating Profit Operating Margin Profit Margin Profit Manufacturing % (1.7) % (1.0) Aftermarket % % 4.4 Non-segment costs Foreign exchange (0.2) 0.1 Cost of funding pension scheme deficit (0.2) (0.2) PLC costs & unallocated costs in HT (1.3) (1.1) Total % % Aftermarket business peaked at 70% of revenues Manufacturing revenue bottomed out at 30% of revenues reflecting prior period s lower order intake Manufacturing gross margin, a tale of two halves significant improvement in H2 Aftermarket gross margins remain strong despite changing mix Operating profit (pre-foreign exchange) up 36%, from 2.2m to 3.0m

9 FY 2012 Balance Sheet Balance Sheet FY 2012 FY 2011 Comment on year-on-year movement million Non-current assets Current assets excl. cash Increase in receivables reflects high revenue in Q4 Cash Short term bank borrowings (6.6) (9.7) Long term bank borrowings (3.2) (0.7) Net debt (9.7) (10.0) See next slide Payments on account (4.6) (1.5) Increase in payments on account from customers Derivatives - (4.1) Termination of swaps Other current liabilities (7.3) (9.2) Decrease in trade payables Current liabilities excl. bank borrowings (12.0) (14.8) Pension scheme deficit (1.8) (2.5) Net assets Increase in net equity, decrease in net pension 9 deficit plus net profit offset by FX translation Net debt:ebitda ratio <2.7x Net assets increased by 108% to 9.8 million Stronger capital structure

10 FY 2012 Net debt movement Movement in Net Debt Dec 11 to Dec 12 ( million) 10

11 The future 11 Positive trends in end markets Powergen / Oil & Gas/ Nuclear China & India Niche engineering play Continuing operational improvements Significant organic growth potential Supportive strategic investor (invested at 50 pence) Supply chain benefits Local market support Stronger capital structure Longer term yield stock

12 Appendices 12

13 Executive Team Ewan Lloyd-Baker Chief Executive Officer Ewan has worked in corporate finance both as a principal and adviser for the past 15 years. He started his career at Arthur Andersen working in corporate recovery and corporate turnaround with a number of privately owned and publicly listed companies. As a principal he was part of the management team in a venture capital backed start up which was ultimately sold to Reuters. He then helped set up a FTSE100 corporate incubator before completing his Masters of Business Administration. Ewan is a partner in Lloyd-Baker & Associates, a merger and acquisition boutique and for over a decade has focused on acquiring a number of companies on behalf of his clients in deals ranging from 1m to 20m with a particular focus on the engineering and manufacturing sectors. Ewan was responsible for finding the original Hayward Tyler opportunity, setting up the original plc, broking the deal, managing the finance raising process, floating the company on the CISX and then AIM, and is now responsible for the Group from a strategic and operational perspective. Nick Flanagan Chief Financial Officer Nick is a graduate engineer from Imperial College and a Chartered Accountant having qualified with Coopers & Lybrand in Before joining the company in 2008 he spent the previous 14 years in the engineering and manufacturing sectors where he held a number of senior financial roles initially with Trafalgar House PLC followed by Kvaerner ASA and Jeyes Group Limited. Prior to that he spent 6 years in corporate treasury with Saatchi & Saatchi Company PLC. Mr Flanagan s experience includes financial planning and development, commercial and operational support, capital raising, change management, reporting, mergers and acquisitions and all aspects of treasury management including foreign exchange hedging. Non-executive Chairman: John May Non-executive Directors: Deepak Khaitan, Subir Dasgupta, Prabir Ghosh 13

14 Customers With thanks to Alstom 14

15 Worldwide facilities o 300 employees across 5 locations Luton, UK HO, Manufacturing, Services East Kilbride, UK Manufacturing Kunshan, China Services Delhi, India Services Colchester, USA Manufacturing, Services 15 15

16 Shareholders Strategic investor McNally Bharat c.42% One of India s leading EPC s specialising in: Coal handling systems for power plants Turnkey contracting in steel/cement/water processing plants Oil & Gas (downstream e.g. refining balance of plant) Revenues c. 300m+, EBITDA 20m+ Part of the Williamson Magor Group Financial institutions c.25% Management c.13% Other c.20% 16