Key Points:
Revenue, profit and return on sales in line with expectations
Global steel and foundry markets showing signs of stabilisation; albeit mixed and at weak levels
Improvement in revenue and margins compared to H2 2015
Restructuring programme delivered £7.1m cost savings in H1 2016 vs 2015 cost base
Total annual restructuring programme benefits increased to £25m by the end of 2017 at a total cost of £35m
Improved debtor provision coverage of £3.7m
Strong cash performance, with cash conversion of 111%
Maintained interim dividend of 5.15 pence per share to be paid on 23 September 2016
François Wanecq, Chief Executive of Vesuvius, commented:
"We have delivered an encouraging result in the first half of 2016, with an improvement in financial performance relative to the second half of 2015. This reflects the strength of our market position and progress in implementing our self-help initiatives and ongoing restructuring programme. Our end markets in steel and foundry are showing signs of stabilisation, although we expect them to remain at relatively weak levels for the remainder of the year.
Based on our strategic and operational progress in the first half, and assuming current exchange rates continue for the rest of the year, our full year expectations remain unchanged. We remain confident in our ability to capitalise on any recovery in our addressable markets in the medium term."
