2016 Full Year Results
Resilient performance and margin progression
Vesuvius plc, a global leader in molten metal flow engineering, announces its preliminary audited results for the year ended 31 December 2016.
|Year-on-year change||Underlying change (1)|
|Trading Profit (2)||133.3||124.0||+7.5%||-1.5%|
|Return on Sales||9.5%||9.4%||+10bps||+30bps|
|Profit Before Tax||79.4||77.4||+2.6%|
|Headline Earnings (3)||82.1||75.7||+8.5%|
|Hedline EPS(2) (pence)||30.4||28.1||+8.4%|
|Operating cash flow||125.0||124.4||+0.5%|
- Resilient performance in 2016, despite broadly flat end markets as anticipated
- Positive effects of restructuring with benefits of £16.6m in 2016, and target savings further increased to £35m by the end of 2017
- Good progress in long-term, structural growth markets – China, India and Brazil
- Strong operating cash flow generation of £125.0m; cash conversion of 93.8%
- Increase in net debt of £28.7m, impacted by foreign exchange and cash restructuring costs
- Our reported revenue and trading profit benefited by 9.3% and 9.8% respectively from the weaker Sterling
- Full year dividend increased 1.7% to 16.55 pence per share. Final dividend of 11.40 pence per share to be paid on 19 May 2017
François Wanecq, Chief Executive of Vesuvius, commented:
“We delivered an encouraging set of results in 2016 in challenging market conditions and made important progress towards our strategic and operating objectives, in particular, growth in return on sales as a result of the restructuring programme. Our resilience reflects the strength of our customer relationships, built on our proven ability to offer innovation, reliability and efficiency.”
“Whilst the trading environment remains broadly stable, we have seen early signs of improvement in 2017. Following our cost improvement efforts, we are well positioned to benefit from any recovery in demand and we will continue to focus on creating value for our customers and shareholders alike. We remain confident of making further progress, both in the near and longer 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
Euan Drysdale, Group Head of Corporate Finance
+44 (0) 207 822 0027
Virginia Skroski, Investor Relations Manager
+44 (0) 207 822 0016
John Olsen/ Jamie Ricketts/ Ollie Hoare
+44 (0) 203 128 8100
Vesuvius management will make a presentation to analysts and investors on 2 March 2017 at 09.00am (GMT) at 155 Bishopsgate, London EC2M 3XY. 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, 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