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Vesuvius plc

Vesuvius plc A year of record performance

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

Financial summary

2018

(£m)

2017

(£m)

Year-on-year change

Underlying change(1) 

Revenue

1,798.0

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 disclosure

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.”