Embed Size (px)
Citation preview
PRELIMINARY RESULTS Year ended 31 March 2013
4th June 2013
2
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background
Introduction Richard Moon
Overview of results & outlook Nick Jefferies
Financial review Simon Gibbins
Operating review Nick Jefferies
Agenda
3
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Introduction
Good progress in challenging markets
Strategy working well
Full year dividend increased by 6%
Acquisitions adding value
4
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background
Introduction Richard Moon
Overview of results & outlook Nick Jefferies
Financial review Simon Gibbins
Operating review Nick Jefferies
Agenda
5
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Overview of annual results
1. Underlying profits exclude exceptional costs, amortisation of acquired intangible assets and IAS 19 charge on legacy pension fund
2. Growth at constant exchange rates (CER)
3. Ongoing sales are at constant exchange rates (CER) excluding UK Parts disposal and discontinued non specialist products announced last year
4. Excludes impact of disposals - loss on disposal of UK Parts business of £5.1m (EPS impact -11.4p)
Ongoing sales down 5%(3) to £203m
Gross margin increased by 0.8ppts to 31.0%
Underlying PBT down 6% to £6.3m
Working capital improved to 11.6% of sales
Free cash flow 112% of operating profit
ROTCE 24%, up 2.3ppts
FY 12/13 FY 11/12CER
growth(2)
Ongoing
growth(3)
Revenue £219m £258m -12% -5%
Gross Profit £67.9m £77.9m -10% -4%
Underlying Operating Profit(1) £6.9m £8.1m -9%
Underlying PBT(1) £6.3m £7.2m -6%
Underlying Diluted EPS(1) 17.5p 19.9p -6%
Fully Diluted EPS pre-disposal(4) 5.1p 7.1p
Dividend per Share 8.5p 8.0p +6%
6
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Operating highlights
Second half pick up
Orders returned to growth in H2
Second half sales higher than first
Market share gains in Electronics division
Gross margins increase – 4th consecutive year
Operating expense flexibility
New web platform live across Europe
Acquisition of Myrra Group with successful placing & new debt
Disposal of UK Supply Chain business
Figures quoted like for like at constant exchange rates
7
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Outlook
Good start to the new year Orders up 19%, or 7% excluding Myrra
Book to Bill ratio of 1.09:1
Growth initiatives delivering results Cross sell - bookings uplift
Web – new customer enquiries
Further acquisition opportunities
Stabilising economic conditions
Electronics Division orders growth
Book : Bill 0.98 1.03 1.09
Figures quoted like for like at constant exchange rates
-5%
5%7%
Electronics Myrra
H1
12%
H2 Apr/May
8
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background
Introduction Richard Moon
Overview of results & outlook Nick Jefferies
Financial review Simon Gibbins
Operating review Nick Jefferies
Agenda
9
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background
28.4%
30.2%
31.0%
FY 11 FY 12 FY 13
GM rise partially offsets tough sales environment
Ongoing sales(2) down 5% to £203m
European slowdown -4%
(v overall market decline of -11%(3))
Spain -1%
H2 up 3% on H1
Further increase in gross margin
Up 0.8ppts y-o-y to 31.0%
1. Sales at constant exchange rates (CER)
2. Ongoing sales are at CER excluding UK Parts disposal and discontinued non specialist products announced last year
3. External data for European electronics distribution excluding Spain produced by IDEA
CER sales(1) (£m)
Gross margin
215 214203
FY11 FY12 FY13
Discontinued sales Ongoing sales
44 35
16
10
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Gross profit remains resilient
Ongoing gross profit(1) down 4% y-o-y
Up 4% (v 2 yrs ago)
CER gross profit (£m)
£4.6m
1. Ongoing gross profit is at CER excluding UK Parts disposal and discontinued non specialist products announced last year
61.265.7 63.4
FY11 FY12 FY13
Discontinued GP Ongoing GP
4.5
9.712.3
11
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Operating expense flexibility protects earnings
Profit down £0.7m on revenues down £29.7m(1)
Only 2% drop through rate
10% opex savings driven by cost reduction
programme last year
(2%)
(1) Approximately 2/3 relates to discontinued products, 1/3 to ongoing sales
(2) Figures quoted at constant exchange rates
Underlying Drop through
operating % of reduced
profit sales
FY 2012 8.1
FX (0.5) -1%
FY 2012 (CER) 7.6 -1%
Acqn / Disposal 0.3 1%
Volume (6.6) -22%
GM 1.6 5%
Opex 4.0 14%
FY 2013 6.9 -3%
12
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Operating margins maintained
Operating profit(1) at £6.9m down £0.7m y-o-y
H2 up £0.5m on H1
Operating margin maintained at 3.1%
H2 up 0.5ppts on H1 to 3.4%
1. Underlying operating profit excludes exceptional items and amortisation of acquired intangible assets
2. Figures quoted at constant exchange rates
H1 10
£4.6m
Operating
Profit £m
Op Profit %
of Sales
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
FY 10 FY 11 FY 12 FY 13
Underlying operating profit (CER) % of sales (CER)
13
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Divisional margins increased
Electronics
Operating margin improves to 5.4%
Supply Chain
Profitability improvement following sale of loss-making UK Parts
Ongoing sales down 2%
Operating profit up £0.2m and operating margin up 0.9ppts to 3.3%
1. Sales and operating profit comparatives at constant exchange rates (CER)
2. Ongoing sales are at CER excluding UK Parts disposal and discontinued non specialist products announced last year
£m
Sales Operating % Sales Operating % CER Ongoing
profit profit sales(2)
Electronics 177.4 9.5 5.4% 199.4 10.4 5.2% -11% -6%
Supply Chain 41.8 1.4 3.3% 49.5 1.2 2.4% -16% -2%
Unallocated (4.0) (4.0)
Total 219.2 6.9 3.1% 248.9 7.6 3.1% -12% -5%
FY 13 FY 12 (CER)(1)
Sales Growth
14
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Earnings
Interest
Lower average monthly gross debt
Tax
Underlying effective tax rate of 17%
Tax loss utilisation (~£16m remaining)
Underlying diluted EPS down 1.1p to 17.5p
H2 up 13% on H1 and in line with last year
1. Underlying operating profit excludes exceptional items of £3.1m and amortisation on acquired intangible assets of £0.8m (see appendix)
2. Underlying finance costs excludes IAS 19 legacy pension finance cost of £0.4m
3. Stated at constant exchange rates
4. Excludes loss on disposal of UK Parts business of £5.1m; including disposals, the IFRS EPS was – 6.3p
FY 13
£m IFRS CER(3)
Operating profit(1)
6.9 8.1 7.6
Finance costs(2)
(0.6) (0.9) (0.9)
PBT 6.3 7.2 6.7
Effective tax rate 17% 18%
PAT 5.2 5.9
Underlying EPS (p) 17.5p 19.9p 18.6p
IFRS adj to PBT(1,2)
(4.3) (4.5)
IFRS PBT (pre disposal)(4)
2.0 2.7
IFRS EPS (p) 5.1p 7.1p
Loss on disposal (5.1)
IFRS PBT (3.1)
FY 12
15
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Further working capital improvements
Working capital at 11.6% of sales
Improvement of 0.4ppts
ROTCE up 2.3ppts to 24.0%
Working Capital as % of Sales
11%
12%
13%
14%
15%
16%
FY 09 FY 10 FY 11 FY 12 FY 13
16
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Strong generation of free cash
Free cash flow at 112% of operating profit
Acq/disp – Earnouts £2.0m
– UK Parts £1.5m
Myrra cash cost on 3 April 2013 - £8.1m
Average Q4 13 net cash of £1m
£22m of committed facilities including new £8m
acquisition facility (1)
1. The Group also has £13m of uncommitted facilities.
FY 13 FY 12
Underlying Operating Profit 6.9 8.1
D&A + LTIPs 1.8 2.1
EBITDA 8.7 10.2
Working capital 2.3 3.6
Capex (1.3) (1.3)
Interest (0.6) (0.9)
Tax (1.4) (1.1)
Free cash 7.7 10.5
Exceptionals (3.6) (3.9)
Legacy pension (1.5) (0.7)
Free cash (after excep) 2.6 5.9
Dividends (2.3) (2.2)
Acquisitions & Disposals (0.5) (4.0)
Cash flow (pre equity) (0.2) (0.3)
FY 13
Net cash b/f 6.3
Cash flow (0.2)
Equity 5.7
FX 0.0
Net cash c/f 11.8
17
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Summary financial highlights
Operating margin maintained
Cyclicality impact on earnings minimised
Tight control of costs and capital
Generating cash
Increasing returns to shareholders
18
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background
Introduction Richard Moon
Overview of results & outlook Nick Jefferies
Financial review Simon Gibbins
Operating review Nick Jefferies
Agenda
19
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Second half pick up
Order growth in all regions 9% higher than first half
5% higher than prior year
Ongoing sales growth 3% higher than first half
3% lower than prior year
Improving trends continue into new year (April & May)
Electronics growth rates YoY – Orders (£m)
Electronics growth rates YoY –Sales (1) (£m)
(1) Ongoing sales are at CER excluding discontinued non specialist products announced last year
87.3
90.1
H1 H2
85.4
92.7
H1 H2
20
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Rising book to bill ratio
Book-to-bill ratio positive in H2 on rising
sales
Indicator of future sales growth
UK & Germany account for 51% of
revenues
Excludes Myrra which gives additional
presence in Nordic & France
Electronics Division FY13 Book-to-Bill ratio
0.91
0.98
1.03
H2 12 H1 13 H2 13
Electronics Division Revenue by Country FY13
UK 27%
Germany 24% France
14%
Benelux 11%
Nordic 12%
Italy 6%
Spain 3%
South Africa
3%
21
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Order pick up driven by major markets
* Nordic full year orders +16% YoY
9%
16%
25%
3%
-4%
-8%
10% 9%
UK Germany France Benelux Nordic Italy Spain Total
Electronics Div H2 v H1 Orders Growth by Country
67% of total Orders
*
22
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background New web platform launched across Europe
Website live in all European markets
Data structure optimised for search engines
Objectives
Clearer communication of products & services
Providing a multi channel customer experience
New customer acquisition
Encouraging early results
Growing customer traffic
New customers & enquiries
Further enhancements planned
Nu
mb
er
of
vis
ito
rs p
er
week
Growing customer traffic
23
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background New marketing activities to drive awareness
Re-branded to Acal BFi across Europe
Awareness & brand building underway
Increased digital marketing activities
Customer acquisition and development
programmes
£750k marketing campaign plan for the
coming year Increase of £175k (30%) on prior year
24
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Update on Myrra acquisition
Acquisition completed on 4th April 2013
€9.5m consideration with up to €1.8m earn out
(3yr)
Designer & manufacturer of magnetic
electronic products
70% customer specific
Similar customer base to Acal
Good start with trading in-line
Integration programme underway
Cross-selling in Germany
Manufacturing efficiencies
25
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background The acquisition of Myrra brings distinct
benefits
Reminder of benefits
Further strengthens Electronics business
Develops customisation capabilities
Develops geographic profile
Potential operational benefits
Enhancing financial performance
26
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background
Growth Strategy
Sales growth Cross-selling
Product range expansion
Custom Service revenues
New customer acquisition
Create a multi channel environment with
the web
Efficiency improvements
Value enhancing acquisitions Distribution & Supply with manufacturing
Expand into new territories
High Volume,
Low Gross Margin
Global High Service
distributors
Global High Volume
distributors
Low Volume,
High Gross Margin
Competitive landscape
European Specialist Acal / BFi Optilas
Standard
components
Specialist components &
systems
Acal is building Europe’s leading specialist
electronics business
Distribution Value Add Manufacture Design
27
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background A unique value proposition
Only company operating on a broad scale in specialist technologies
Multiple technologies, industrial sectors & geographies
Market leader in Europe
Selling solutions rather than components
Design capabilities
Cross-selling technologies
Attractive proposition to customers & suppliers
Customers - technical expertise & product knowledge
Suppliers - access to 25k+ potential customers
Unique products
Around 75% of all products sold are unique (sourced / customised / designed)
Building market position and value for shareholders
28
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Customer case study – Transportation Communication
Broadband Internet router for transportation
Railway / Automotive applications
Acal’s role
Design support for wireless and power solutions
Prototyping and certification
Supply of modules
Acal supplies
High performance, rugged Power module
Wireless M2M module
Cross-selling between Acal BFi technology units
29
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Customer case study – Wireless Audio
Wireless audio PA system
Acal’s role
Design support & recommendation for wireless interface
Custom design of Electromagnetic shielding product
Acal supplies
Wireless module
Custom electromagnetic shielding
Cross-selling between Acal companies
Acal BFi & MTC
30
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Customer case study – Gas pressure measurement
Gas chromatography system
Gas pressure measurement
Critical medical application
Acal’s role
Design of custom sensor specification
Acal supplies custom sensor
Existing customer for opto-mechanical products
31
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Summary
Good performance in challenging markets
Growing market share and gross margins
Strong cash flow
Operating cost flexibility
Trading pick up in second half
Growth trends continue into new year
Myrra acquisition progressing well
Niche strategy building a differentiated industrial electronics business
Further acquisitions on the radar
Cautious but optimistic for the year ahead
APPENDIX
33
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Key Performance Indicators
1) 3 yrs CAGR of ongoing sales
2) Annual cash flow as a % of underlying operating profit
Strategic Objectives Target
FY13 FY 12
Sales growth ahead of the market Sales growth (CAGR) ahead 21% 27%1
of GDP over the cycle
Develop & maintain attractive margins Underlying operating margin at
5% over the cycle
3.1% 3.1%
Deliver strong cash flow Free cash flow > 60% of
underlying operating profit over
the cycle
112% 130% 2
Attractive return on capital employed ROTCE > 25% 24% 22%
Enhance growth through acquisitions ROI > 15% 24% 26%
Generate long term value for shareholders 3yr small cap TSR in upper
quartile27th % 27th %
Status
Appendix I
34
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Balance Sheet
Balance sheet comparatives at CER, excluding
UK Parts assets/liabilities at last year end.
Reduction in intangibles – amortisation
Working capital reduction (see slide 15)
Provisions – settlement of FY 11/12
restructuring
Tax reduction – resolution of open tax yrs
Movement in Net Assets
Working Capital
FY 13
FY 12
(CER excl
UK Parts)
PPE 3.1 2.9
Intangibles 3.2 4.2
6.3 7.0
Trading capital employed
Inventories 19.3 22.5
Receivables 44.7 45.2
Payables (42.5) (42.6)
21.5 25.1
Total capital employed 27.8 32.2
Goodwill 21.0 20.7
Provisions (3.1) (7.7)
Tax assets / liabilities 0.5 (2.2)
Pension (6.5) (6.5)
Total capital employed 39.7 36.5
Net cash 11.8 6.8
UK Parts - 5.8
Total net assets 51.5 49.1
Net Assets
Balance at 31 March 2012 49.1
Profit after tax (1.8)
Dividend paid (2.3)
Pension - Actuarial losses (0.9)
Equity placing 5.7
Share based payment(1)
0.9
FX on net currency assets 0.8
Balance at 31 March 2013 51.5
1. Includes £0.3m of tax benefit.
Appendix II
35
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Underlying to IFRS reconciliation
Management believe that
Underlying profitability is a useful
measure of the performance of the
business.
Excluded from IFRS results are:-
exceptional costs (restructuring
and integration)
IAS 19 pension finance charge
related to legacy scheme
Amortisation on acquired
intangibles
Profit/(loss) on disposal of
businesses
Y/e 31 March 2013 (£m)
Underlying Excep. Amort IAS19 IFRS Other IFRS
Gross profit 67.9 67.9 67.9
S&D costs (37.7) (37.7) (37.7)
Admin expenses (23.3) (3.1) (0.8) (27.2) (27.2)
Operating Profit 6.9 (3.1) (0.8) 3.0 3.0
Net finance costs (0.6) (0.4) (1.0) (1.0)
Loss on disposal (5.1) (5.1)
Profit before tax 6.3 (3.1) (0.8) (0.4) 2.0 (5.1) (3.1)
Taxation (1.1) 0.3 0.2 0.1 (0.5) 1.8 1.3
Profit after tax 5.2 (2.8) (0.6) (0.3) 1.5 (3.3) (1.8)
Effective tax rate 17% 25% 42%
Fully diluted EPS (p) 17.5 5.1 (6.3)
Y/e 31 March 2012 (£m)
Underlying Excep. Amort IAS19 IFRS
Gross profit 77.9 77.9
S&D costs (41.1) (41.1)
Admin expenses (28.7) (3.4) (0.8) (32.9)
Operating Profit 8.1 (3.4) (0.8) 3.9
Net finance costs (0.9) (0.3) (1.2)
Profit before tax 7.2 (3.4) (0.8) (0.3) 2.7
Taxation (1.3) 0.4 0.2 0.1 (0.6)
Profit after tax 5.9 (3.0) (0.6) (0.2) 2.1
Effective tax rate 18% 22%
Fully diluted EPS (p) 19.9 7.1
Appendix III
36
ACAL
BLUE
R8
G90
B152
0
0
128
0
70
144
0
102
204
204
204
255
192
192
192
0
128
128
0
128
0
128
128
0
51
51
0
235
242
245
Chart
Background Exceptional items and IFRS adjustments
FY 13 FY 12
Electronics restructuring costs 1.0 1.8
Supply chain & other restructuring 0.4
Acquisiton/integration costs 0.9 0.7
Disposal costs 0.2
Web set up costs 1.2 0.3
Total Exceptionals 3.1 3.4
Amortisation of acquired intangibles 0.8 0.8
Legacy pension - IAS19 0.4 0.3
Underlying Adjustments 4.3 4.5
Tax impact of adjustments (0.6) (0.7)
After-tax adjustments 3.7 3.8
Appendix IV
