Resilient financial performance delivered in a difficult second half trading environment:
2012 trading profit of £150.2m (including Precious Metals Processing), affected by Steel and Foundry trading environment being significantly weaker in second half (as previously announced)
Final dividend of 9.5 pence per share, in line with guidance at demerger
Free cash flow from continuing operations of £54.2m (2011: £32.1m)
Year-end net debt of £295m
Strategic transformation of Vesuvius into a focused, global leader in metal flow engineering:
Restructuring programme well progressed across the Group, exiting low-margin business, reducing the cost base, improving operational flexibility and cash flow
Successful demerger completed
Complete exit from Solar Crucibles business announced
Discussions on disposal of Precious Metals Processing at an advanced stage
François Wanecq, Chief Executive of Vesuvius, commented:
"Vesuvius has demonstrated its resilience in the significantly weaker steel and foundry markets experienced in the second half of 2012. We have taken decisive action to exit low margin businesses and lower our fixed cost base, to drive profitability and cashflow. Since the year-end, we have decided to exit completely from the Solar Crucibles business.
We have clear market and technology leadership in both Steel and Foundry, a strong presence in developing markets, and opportunities to develop new higher value products and services for our customers. We will continue the drive to improve our operating efficiency, while maintaining our leadership in technology, innovation and global reach.
The Group is now positioned to increase margins, and as our end-markets start to strengthen, grow revenues. Our strong balance sheet and cash generation will enable us to continue to invest in our business and pursue further high value opportunities."
