Exova PLC Investor Conference Call 29 August 2013

Size: px

Start display at page:

Download "Exova PLC Investor Conference Call 29 August 2013"

Theodore Rose
7 years ago
Views:

1 Exova PLC Investor Conference Call 29 August 2013

2 Forward looking statements This document contains certain forward looking statements based on knowledge and information available to the directors at the date the document was prepared.

2 2 Forward looking statements This document contains certain forward looking statements based on knowledge and information available to the directors at the date the document was prepared. Although the directors expectations are based on reasonable assumptions, these statements should be treated with caution due to the inherent uncertainties underlying such forward looking information and any statements about the future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.

3 3 Section 1 Business review Ian El-Mokadem Chief Executive Officer

4 4 Performance headlines Q2 YTD 2013 Revenue growth was 11.2% and at constant currency was 8.4% All regions continue to show positive sales growth EBITDA 28.6 million (2012: 24.6 million) New MD appointed for Middle East / Asia Pacific Acquisitions pipeline developing

5 5 Q YTD performance Europe (50% of Group sales) Constant currency revenue growth of 7.6% EBITDA up 0.4 million on H Good drop through in Oil & Gas and Aerospace Reorganisation of Food Advisory and Industrials almost complete Americas (38% of Group sales) Constant currency revenue growth of 12.2% EBITDA up 4.7 million on H Overall growth supported by particularly high levels of project work in Transportation sector Weaker performances in Canadian Environmental and Industrials businesses

6 6 Q YTD performance Middle East/Asia Pacific (12% of Group sales) Constant currency revenue growth of 1.0% EBITDA 1.1m behind H Strong performance in Fire business Disappointing performance in Middle East non-fire businesses due to lack of project work and adverse sales mix Regional team being strengthened and new MD appointed at beginning of August

7 7 Revenue growth by region Quarterly year on year sales growth management accounts constant currency basis

8 8 Section 2 Financial review Anne Thorburn Chief Financial Officer

9 9 Income statement Six months ended 30 June millions Revenue EBITDA Restructuring costs (1.4) (0.8) Finance costs (34.6) (31.7) Revenue improved by 13.9 million EBITDA improved by 4.0 million Restructuring costs related to reorganisation of UK Food Advisory and Industrials and change in senior management in the Middle East

10 10 Revenue Six months ended 30 June millions Growth at reported exchange rates Growth at constant exchange rates Europe % 7.6% Americas % 12.2% Middle East/Asia Pacific % 1.0% Total Group % 8.4% Sterling weakness supporting reported growth rates

11 11 EBITDA Six months ended 30 June millions 2013 Margin 2012 Margin Europe % % Americas % % Middle East/Asia Pacific % % Total Group % % Variable levels of margin drop through between regions Americas margin supported by project work in Transportation and ongoing cost efficiencies Actions taken in Q2 to eliminate underperforming activities and improve efficiency in Europe going forward Middle East weak due to adverse sales mix and investments to strengthen regional team

12 12 Cash flow Six months ended 30 June millions EBITDA Restructuring costs (1.6) (1.5) Movements in working capital (11.0) (1.0) Government grants (0.9) (1.1) Other (0.4) (0.3) Cash flow from operations Net capital expenditure (8.1) (5.7) Dividends due to minority shareholders (1.0) - Net interest paid (10.5) (10.6) Tax paid (1.8) (1.6) Free cash flow (6.7) 2.8 Working capital reflects sales growth and increase of 4 days in DSOs since December 2012 Capital expenditure higher in H1 but planned to be in line with 2012 for full year

13 13 Net external debt / EBITDA Based on last 12 months EBITDA millions Jun 2013 Dec 2012 Net external debt Net external debt / EBITDA Gearing improved to 3.7 times

14 14 Q & A

Exova PLC Investor Conference Call 29 November 2013

Exova PLC Investor Conference Call 29 November 2013 2 Forward looking statements This document contains certain forward looking statements based on knowledge and information available to the directors