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2018 Full Year Results

Record performance across all Regions and Business Units

Vesuvius plc, a global leader in molten metal flow engineering and technology, announces its preliminary audited results for the year ended 31 December 2018.

Financial Summary






Year-on-year change Underlying change (1)
Revenue 1,798 1,683.9 +6.8% +10.7%
Trading Profit (2) 197.2 165.5 +19.1% +24.1%
Return on Sales (2)(3) 11.0% 9.8% +120bps +120bps
Operating Profit 164.5 109.7 +50.0%  
Headline Profit Before Tax (2) 188.9 152.9 +23.5%  
Profit Before Tax 156.2 97.1 +60.9%  
Profit 145.1 44.4 +226.8%  
Headline Earnings (2) 133.7 110.1 +21.4%  
Headline EPS(2) (pence) 49.6 40.7 +21.9%  
Statutory EPS (pence) 51.3 14.1 +263.8%  
Operating cash flow (2) 179.4 171.5 +4.6%  
Net Debt 248.0 274.3 -9.6%  
Dividend (pence) 19.8p 18.0p +10.0%  

(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 Note 16 in the financial statements
(3) These numbers are rounded to 1 decimal place or 10 basis points in-line with our historical 

Key Points

  • Underlying revenue up 10.7% with both our Steel and Foundry Divisions outperforming underlying markets
  • Underlying trading profit up 24.1% to £197.2m 
  • Significant improvement in return on sales to 11.0% (+120bps)
  • Successfully recovered the impact of 2017’s temporary headwinds
  • Implementation of our restructuring programmes fully on track
  • Improved working capital to revenue ratio at 23.9% versus 24.9% at the end of 2017
  • Strengthened balance sheet with Net Debt / LTM EBITDA at 1.0x versus 1.3x at the end of 2017
  • Full year dividend increased by 10.0% to 19.8 pence per share 
  • On 27 February 2019 the Group signed an agreement to acquire CCPI, a specialty refractory producer in Ohio, USA

Patrick André, Chief Executive of Vesuvius, commented:

“2018 was a year of record performance for Vesuvius, underpinned by the benefits derived from our self-help restructuring programmes and strong commercial performances, combined with a positive orientation in the majority of our steel and foundry end-markets. Looking forward, we plan to continue growing our revenue and accelerate and intensify efforts to optimise our costs, to support our drive towards further profitable growth. For these reasons, and despite a less favourable market environment, the Board is confident that, in comparison to 2018, further progress will be made in 2019.” 

For further information, please contact:

Shareholder/analyst enquiries:
Vesuvius plc

Patrick André, 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

Media enquiries:
MHP Communications

Andrew Jaques/ James White/ Ollie Hoare 
+44 (0) 203 128 8100

Vesuvius management will make a presentation to analysts and investors on 28 February 2019 at 9.30 (GMT) in Grocers’ Hall, Princes Street, London, EC2R 8AD. For those unable to attend in person, an audio webcast and conference call will also be available. Please register for the call via the following URL: https://edge.media-server.com/m6/p/ibi8vb7m (Dial in details: UK participant dial in +44(0)20 7192 8000; US participant dial in +1 631 510 7495; confirmation code 7172259). The presentation will be broadcast live on Vesuvius’ website: https://www.vesuvius.com/en/investors.html 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 and technology 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 costs. 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 financial statements. 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 LEI: 213800ORZ521W585SY02