2014 Full Year Results
Margin improvement in challenging market conditions
Vesuvius plc, a global leader in molten metal flow engineering, announces its preliminary audited results for the year ended 31 December 2014.
|Return on Sales
|Headline EPS(3) (pence)
- Year-end net debt(2) of £268.3m; net debt to EBITDA ratio of 1.48
- Recommended final dividend of 11.125 pence per share, giving full year dividend of 16.125 pence (2013: 15.0 pence), an increase of 7.5% to be paid on 22 May 2014
- Strong underlying revenue performance from Steel Flow Control in all regions, and from Advanced Refractories in the Americas and Asia-Pacific
- Product portfolio of activities further streamlined, with increased focus on products and services where value-add is rewarded
- Implementation of self-help measures to increase productivity
- Investment in technology, with new R&D facility in Netherlands to drive innovation and growth in Foundry
- Further growth of presence in China, with the opening of a new state-of-the-art manufacturing plant for Foundry
- Acquisition of Process Metrix and ECIL Met Tec, expanding our Technical Services offering – an important medium-term growth opportunity
François Wanecq, Chief Executive of Vesuvius, commented:
“During 2014 we made encouraging progress in line with our objectives and strategy, against a backdrop of mixed trading conditions.
We have delivered further margin progression on the back of moderate underlying revenue growth, and we have maintained our long-term trend of expanding our addressable markets by building further on our strong base in Asia, and in China in particular. We have invested in new R&D centres, and we have completed acquisitions, building our new Technical Services offering for our steel and foundry customers.
We expect the underlying trading environment in the current year to be broadly similar to that experienced in 2014. We are progressing with our plan to improve operational efficiency across the Group and these actions should drive further improvement in our trading margins during 2015.”
For further information please contact:
François Wanecq, Chief Executive
+44 (0) 207 822 0000
Chris O’Shea, Chief Financial Officer
+44 (0) 207 822 0000
Nicolas Matheï, Group Head of Corporate Finance
+44 (0) 207 822 0000
Virginia Skroski, Investor Relations Manager
+44 (0) 207 822 0016
John Olsen/ Tim Roundtree/ Jamie Ricketts
+44 (0) 203 128 8100
Copies of Vesuvius’ 2014 Annual Report are due to be posted to shareholders of the Company who have elected to receive a hard copy on 7 April 2015 and are also expected to be available on the Company's website and at the Registered Office of the Company on or before this date.
Vesuvius management will make a presentation to analysts and investors on 03 March 2015 at 10.00am (GMT). This 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 energy consumption. 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