2016 Half Year Results
First half progress in a marginally firmer trading environment
Vesuvius plc, a global leader in molten metal flow engineering, announces its results for the six months ended 30 June 2016.
|Change(%)||Underlying change(1)||H2 2015
|Return on Sales
||-100bps||8.7%||10 bps||10 bps|
|Headline EPS(3) (pence)
|Statutory EPS (pence)
(1) Underlying basis is at constant currency and excludes separately reported items and the impact of acquisitions
(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
- Revenue, profit and return on sales in line with expectations
- Global steel and foundry markets showing signs of stabilisation; albeit mixed and at weak levels
- Improvement in revenue and margins compared to H2 2015
- Restructuring programme delivered £7.1m cost savings in H1 2016 vs 2015 cost base
- Total annual restructuring programme benefits increased to £25m by the end of 2017 at a total cost of £35m
- Improved debtor provision coverage of £3.7m
- Strong cash performance, with cash conversion of 111%
- Maintained interim dividend of 5.15 pence per share to be paid on 23 September 2016
François Wanecq, Chief Executive of Vesuvius, commented:
“We have delivered an encouraging result in the first half of 2016, with an improvement in financial performance relative to the second half of 2015. This reflects the strength of our market position and progress in implementing our self-help initiatives and ongoing restructuring programme. Our end markets in steel and foundry are showing signs of stabilisation, although we expect them to remain at relatively weak levels for the remainder of the year.
Based on our strategic and operational progress in the first half, and assuming current exchange rates continue for the rest of the year, our full year expectations remain unchanged. We remain confident in our ability to capitalise on any recovery in our addressable markets in the medium term.”
For further information please contact:
François Wanecq, Chief Executive
+44 (0) 207 822 0000
Guy Young, Chief Financial Officer
+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
Vesuvius management will make a presentation to analysts and investors on 29 July 2016 at 10.30am (BST) at Bank of America Merrill Lynch, 2 King Edward Street, London EC1A 1HQ. For those unable to attend in person, an audio webcast and conference call will also be available (UK participant dial in +44(0)20 3364 5721; US participant dial in +1 646 254 3362; confirmation code 7676096). This presentation will be broadcast live on Vesuvius’ website 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