2015 Full Year Results
Demonstrating our capabilities in challenging times
Vesuvius plc, a global leader in molten metal flow engineering, announces its preliminary audited results for the year ended 31 December 2015.
|Year-on-year change||Underlying change(1)|
|Trading Profit (2)||124.0||142.8||-13.1%||-14.0%|
|Return on Sales||9.4%||9.9%||-50bpx||-70bps|
|Headline Earnings (3)||75.7||90.3||-16.2%||-18.1%|
|Headline EPS (3) (pence)||28.1||33.4||-16.0%||-17.9%|
(1) Underlying basis is at constant currency and excludes separately reported items and the impact of acquisitions and disposals
(2) For definitions of non-GAAP measures, refer to the notes in the financial statements
(3) Headline results refer to continuing operations and exclude separately reported items
- Lower revenues and profits in line with previous guidance, reflecting weakness in global steel and foundry markets
- Margin improvement in Foundry from self-help measures undertaken by new management
- Continued outperformance in our strategic growth areas of India, China and South America
- Restructuring initiated in Q2 to address structural changes in end markets; further actions identified to respond to ongoing changes:
- Total annual savings of £20.0m expected towards end of 2017, of which £8.8m delivered in 2015
- Cash conversion ratio of 100.3%; £23.3m increase in net debt primarily reflects £23.8m acquisition of Sidermes SpA in H1, further expanding our Technical Services offering, and
- £11.5m cash spend on first phase of restructuring
- Maintained final dividend of 11.125 pence per share to be paid on 20 May 2016
François Wanecq, Chief Executive of Vesuvius, commented:
“These results reflect the substantial headwinds that we have faced in our key end-markets of steel and foundry. We have been able to minimise the impact on our margins due to a continued focus on self-help measures and our substantial restructuring programme launched in response to the permanent structural changes in the end-markets. We expect the underlying trading environment in the current year to be broadly similar to that experienced in the second half of 2015 and have initiated a further cost reduction plan, which, together with the actions already taken will deliver full year savings of £20m towards the end of 2017, an increase of £10m over the savings already announced.
“Despite the current challenges, our strategy for longer-term profitable growth remains unchanged and, in this context, we have made encouraging progress in 2015, strengthening our competitive position in the strategically important markets of China, India and South America through increasing penetration of our value added products, and continuing to develop our Technical Services offering.”
For further information, please contact:
François Wanecq, Chief Executive
Guy Young, Chief Financial Officer
Nicolas Matheï, Group Head of Corporate Finance
+44 (0) 207 822 0000
Virginia Skroski, Investor Relations Manager
+44 (0) 207 822 0016
John Olsen/ Jamie Ricketts/ Ollie Hoare
+44 (0) 203 128 8100
Copies of Vesuvius’ 2015 Annual Report are due to be posted to shareholders of the Company who have elected to receive a hard copy on 5 April 2016 and are also expected to be available on the Company's website and at the Registered Office of the Company on this date.
Vesuvius management will make a presentation to analysts and investors on 3 March 2016 at 10.00am (GMT).
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 to be 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, the overall trading environment 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