Results Presentation for year ended 31 March 2018 Highlights - PowerPoint PPT Presentation

Results Presentation for year ended 31 March 2018

Highlights • Revenue increased 19.8% to £22.180m Corporate • Profits up 260% to £0.827m • Excellent progress across both divisions and Chinese joint venture • Cash generated by operations of £1.532m, up £0.717m on previous year Transportation • Businesses benefitting from impact of new business wins • Long term agreement with London Electric Vehicle Company • New product introductions at record levels in the USA • Investment in capability and capacity • Revenue well ahead of the previous year Energy • Business benefitted from revenue in the power generation rental sector in the early part of the year • Strong operational performance All references to EBITDA, profit/(loss) before tax and EPS/(LPS) are before restructuring costs, intangible asset amortisation, share based payment charges and foreign exchange derivative valuation. 2

Financial Review – Highlights Revenue Profit/(loss) Before Tax - £m  Excellent 1.0 £22.180m Up 19.8% progress across 0.5 all of the Group’s businesses, Operational Gearing 0.0 which were 2015 2016 2017 2018 29.9% Down 11% -0.5 profitable in the year EBITDA return - % EBITDA 10.0% £1.575m Up 63.8% 8.0%  China JV 6.0% delivered first 4.0% full year profit PBT 2.0% 0.0% £0.827m Up 260% 2015 2016 2017 2018  Continuing to win new Earnings/(Loss) per share - pence Earnings per share 3.0 business 2.65p Up 268% 2.0 1.0 0.0 -1.0 2015 2016 2017 2018 3

Financial Review – Balance Sheet Net assets £m Mar 18 Mar 17 Cash generated by operations £14.359m Up 4.1% £1.532m Up 87.9% Cash generated by 1.532 0.815 operations Cash generation/EBITDA ratio Net debt EBITDA 1.575 0.961 £0.97 Up 14.1% £2.982m Down 14.7% Cash generation/EBITDA 0.97:1 0.85:1 ratio Net working capital Gearing £3.475m Down 10.7% 47.6% Down 17.8% Capital expenditure 0.696 0.559 Capex/depreciation ratio 1.33 1.09  £3.5m of cashflow from operations over the last 3 years  China based borrowing of £0.439m repaid Net debt 2.982 3.497 in the year Gearing % 47.6% 57.9%  The Group operates without any covenants on its borrowings 4

Financial Review - change in net funds £000’s 31 March Underlying 31 March Net movement 2017 Net operating 2018 Finance Capital Other in working Depreciation debt profit Net debt charges expenditure movements capital Cash generated by operations £1,532k (2,982) (3,497) 166 (220) 522 (696) (101) 844 5 5

Business Review - Introduction • Two divisions- Transportation and Energy • 4 manufacturing operations in the UK, USA and China supporting a global customer base • Footprint has created significant opportunities to expand existing relationships and to develop new business with customers 6

Customer Product Markets Application: Global Markets Engine Truck – Gearbox Lube Medium and On Road Truck Coolant Heavy Duty Coolant Application: Global Markets Hydraulic Construction fluid transfer Agriculture – Actuator Off Road Machines Mining control Application: Global Gas Vacuum Markets Braking Semi-Con. System Application: Medium and Global Other Transmission Fluid Heavy Duty Markets Breathers transfer of Truck Agriculture Off Road Engines Fuel suction oil, fuel, air Construction water and Mining coolant Application: Global Oil and Gas Fluid Markets Transfer – Power Energy Generation Oil, Air, and Generation Water Construction, Mining 7

Distinctive Capabilities • “Superclean “ • Rotary TIG welding • World class fabrication • Welded assemblies • Innovation • Dedicated manufacturing cells • GEMBA • SMED 8

Business Review - Performance Transportation Energy 2017/18 Central 2016/17 Central 2017/18 2016/17 £’000 adjustments adjustments Group Group 2017/18 2016/17 2017/18 2016/17 Revenue 15,901 13,595 6,279 4,924 22,180 18,519 PBT 410 195 567 251 (150) (216) 827 230 • USA Transportation – New product introductions at record levels Revenue – Strong operational performance Up 16.9% – Investment in “super clean” capability – Substantial new business opportunities being progressed PBT • UK Up 110.2% – Strong growth in rigid hydraulic tubes supported by additional investment in capacity – Long term agreement secured with the London Electric Vehicle Company • UK Revenue Energy – Revenue significantly ahead of the corresponding period last year Up 27.5% – Business benefitted from the impact of new business, particularly within the power PBT generation rental sector Up 125.9% • Joint Venture – Customer relationships developing – Benefitting from the consolidation of activities last year and improved market conditions 9

Outlook • Group has made excellent progress in the execution of its strategy – Delivering revenue growth and substantial improvement in profitability • Strong cash generation has enabled us to reduce net debt whilst continuing to invest in the business • Investment in capability and increasing capacity have enabled us to win new business and take full advantage of buoyant end markets • Momentum building and Board expects further significant progress in the current year 10