Strong profitability improvements in first year following demerger. Significant portfolio realignment.
Vesuvius plc, a global leader in molten metal flow engineering, announces its preliminary audited results for the year ended 31 December 2013, its first full year of independence following the demerger of Cookson Group plc in December 2012.
Highlights
Revenue of £1,511m, down 2.4%; down 0.8% on an underlying basis (2012: £1,548m)
Trading profit of £140.0m, up 6.6% on a reported basis, 10.9% on an underlying basis (2012: £131.3m)
Return on sales improved by 80 basis points to 9.3%; a 100 basis point improvement on an underlying basis
Significant realignment of portfolio including disposal of Precious Metals Processing division and exit from non-core low-margin businesses
Share repurchase programme of £30m completed in September 2013
Year-end net debt reduced to £256m: positive operating cashflow of £150m, cash conversion rate of 107%
Headline earnings per share of 31.9 pence; up 18.1% (2012: 27.0 pence)
Final dividend of 10.25 pence per share recommended
François Wanecq, Chief Executive of Vesuvius, commented:
"In our first complete year as an independent company, we have successfully initiated the recovery of margins across the Group despite an unfavourable economic environment. Market conditions remained challenging in 2013, continuing from the reduced levels of activity seen in the second half of 2012, and Sterling strengthened substantially in the second half of 2013, impacting our reported growth numbers.
"Against this backdrop we have taken a disciplined approach to implementing our stated strategy. We streamlined our business portfolio and activities, exiting non-core low-margin businesses, further improved the quality of our products and services, and implemented self-help measures to increase the productivity of our own businesses.
"The result is improved profitability, strong cash flow, and a more focused Group. This gives us a strong platform from which to pursue our growth strategy."
