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Preliminary results FY19 – 4th June 2019discoverIE Group plc
Preliminary resultsYear ended 31st March 2019
4th June 2019
Strategy Delivering Further Strong Growth
Preliminary results FY19 – 4th June 2019discoverIE Group plc
(1) Estimated lifetime sales value of projects
A strong year
Group sales up +13% Organic growth +8%
Record period end order book +12% (organic)
New project design wins +40%(1)
Underlying operating profit +25%
Underlying EPS +22%
Operating cash flow +29%
3 higher margin acquisitions for £35m, 2 since the year end
1
Preliminary results FY19 – 4th June 2019discoverIE Group plcdiscoverIE Group plc
From FY13 to FY18: Sales up > 2x Underlying EPS up > 2x Operating profits up > 4x Share price growth 19% CAGR(2)
Dividend growth 7.6% CAGR(3)
(1) Group revenue, excluding disposed businesses(2) Growth from April 2012 (FY13) to March 2018(3) Growth from FY13 to FY18
From FY19 our aim is to double EPS in 5 years FY19 EPS up 22%
We aim to provide investors with Returns of 15 – 20% pa A progressive dividend
Growth Company
2
FY13 FY14 FY15 FY16 FY17 FY18 FY19
SALES(1)
FY13 FY14 FY15 FY16 FY17 FY18 FY19
UNDERLYING OPERATING PROFIT & EPS
Underlying Operating Profit EPS
Preliminary results FY19 – 4th June 2019discoverIE Group plc
FINANCIAL REVIEW
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Increasing operating margin Up 0.7ppts to 7.0%
Excellent cash flowOperating cash flow of
£28.6m, up 29% 93% conversion of
operating profit
Gearing reduced Gearing down to 1.7x 1.4x proforma post Apr
placing
Growing ROCE(2,3)
Up 1.7ppts to 15.4%
(1) Underlying profits exclude acquisition-related costs and exceptional items (see Appendices I & II)(2) FY18 reported profit before tax, fully diluted EPS and ROCE restated for prior year adjustment(3) ROCE is underlying operating profit as a percentage of net assets plus net debt
Financial Review
Continued strong growth
4
FY19 FY18 GrowthCER
Growth
Revenue £438.9m £387.9m +13% +14%
Underlying operating profit(1) £30.6m £24.5m +25% +26%
Underlying profit before tax(1) £27.2m £21.9m +24%
Underlying EPS(1) 27.2p 22.3p +22%
Reported profit before tax(2) £19.3m £14.6m +32%
Reported fully diluted EPS(2) 19.4p 14.2p +37%
Dividend per share 9.55p 9.00p +6%
Preliminary results FY19 – 4th June 2019discoverIE Group plc
6 years revenue growth of 150% (16% CAGR)
Financial Review
Consistent revenue growth
5
(1) Organic growth excludes acquisitions
Growth FY19
Organic(1) 8%
Acq 6%
CER 14%
Currency -1%
Actual 13%
£177m £212m£271m £288m
£338m£388m
£439m+19%
+28% +6%
+18%
+15%
+13%
FY13 FY14 FY15 FY16 FY17 FY18 FY19
REVENUE
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Underlying op profit(1) of £30.6m Up 26% CER (+£6.4m) on FY18 33% CAGR in 6 years
Underlying op margin of 7.0% Up 0.7ppts on FY18 Up 3.9ppts in 6yrs Good progress towards 8.5% target(2)
(1) Underlying measures exclude acquisition-related costs and exceptional items (see Appendices I and II).(2) Mid-term target by Nov 21
Financial Review
6
£5.5m £7.1m
£13.4m£16.3m
£20.0m
£24.5m
£30.6m
3.1%3.4%
4.9%
5.7% 5.9%6.3%
7.0%
FY13 FY14 FY15 FY16 FY17 FY18 FY19
UNDERLYING OP PROFIT & MARGIN
Strong profit growth with increasing margin
Preliminary results FY19 – 4th June 2019discoverIE Group plc
EBIT drop thru of 13%(2)
Strong organic revenue growth of 8%
Infrastructure investment in D&M to support growth
£2.5m contribution from Cursor Controls and Santon
(1) Underlying measures exclude acquisition-related costs and exceptional items (see Appendices I and II).(2) Increase in CER profits as a percentage of sales growth (organic)
Financial Review
7
Organic growth with good operating leverage
£24.5m
£9.8m
(£0.4m)
(£5.4m)£2.4m
(£0.3m)
£30.6m
FY18 REVENUE GM OPEX ACQS FX FY19
UNDERLYING OPERATING PROFIT
+£4.0m organic
Preliminary results FY19 – 4th June 2019discoverIE Group plc
(1) UOP is underlying operating profit(2) Organic growth excludes acquisitions (D&M)
Financial Review
CUSTOM SUPPLY
DESIGN & MANUFACTURING
Profit growth across both divisions…
Operating profit up 25% CER Margin up 0.3ppts to 11.2% Margin increase reduced by short
term solar slow down
Operating profit up 15% CER Margin up 0.4ppts to 5.0%,
achieving mid-term target Strong operating leverage
8
£m
D&M 266.2 29.8 11 .2% 219.8 23.9 10.9% 20% 21% 10% 25%
Custom Supply 172.7 8.6 5.0% 164.2 7.5 4.6% 4% 5% 5% 15%
Unallocated (7.8) (7.2)
Total (CER) 438.9 30.6 7.0% 384.0 24.2 6.3% 13% 14% 8% 26%
FX 3.9 0.3
Total (reported) 438.9 30.6 7.0% 387.9 24.5 6.3%
Revenue UOP(1 ) %
FY19
Revenue UOP(1 )
UOP
growth
%
Revenue growth
Organic (2 )% Actual CER
FY18 (CER)
Preliminary results FY19 – 4th June 2019discoverIE Group plc
(1) Underlying measures exclude acquisition-related costs and exceptional items (see Appendices I and II)
Financial Review
… drives EPS increase of 22%
9
Underlying PBT up 24%
Underlying EPS up 178% in 6 yrs
£m FY19 FY18
Underlying operating profit(1) 30.6 24.5
Finance costs(1) (3.4) (2.6)
Underlying PBT(1) 27.2 21.9
Effective tax rate 25% 24%
Underlying PAT 20.5 16.6
Fully diluted shares (m) 75 .4 74.5
Underlying EPS (p) 27.2p 22.3p
9.8p 11 .8p15.4p 17.0p 19.2p
22.3p27.2p+20%
+31%+10%
+13%+16%
+22%
FY13 FY14 FY15 FY16 FY17 FY18 FY19
UNDERLYING EPS
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Strong 0perating cash flow(1)
£28.6m up 29% 93% of underlying operating profit Well ahead of 85% target despite
higher w/c requirement in D&M.
Net debt at 31 Mar 19 of £63m £13m reduction since last year (ex
acquisitions) Gearing ratio(3) reduced to 1.7x Further reduced to 1.4x post placing
on a proforma basis Target range 1.5x – 2.0x
Revolving credit facility increased to £180m (from £120m) Plus £60m accordion; term extended
to Jun 23 (with option to Jun 24)
Available for acquisitions and w/c
(1) Operating cash flow defined as EBITDA less working capital and capex – see Appendix III(2) FY18 operating cash flow restated for prior year adjustment(3) Net debt at 31 Mar 19 as a ratio of adjusted EBITDA (Group underlying EBITDA adjusted for a full year of the underlying EBITDA from acquisitions).
OPERATING CASH FLOW(1)
Financial Review
10
Excellent cash flow
FY14 FY15 FY16 FY17 FY18( 2) FY19 Target
100% 104% 100% 136% 90% 93% 85%% Underlying
Operating Profit
£7. 1m
£13.9m£16.3m
£27. 1m
£22. 1m
£28.6m
Preliminary results FY19 – 4th June 2019discoverIE Group plcdiscoverIE Group plc
Dividend up 6% 88% growth FY dividend in 9yrs 7.2% CAGR
Maintaining progressive policy FY19: 2.8x cover (underlying) and
1.8x cover (reported) To exceed 3x cover (underlying)
Financial Review
Increasing dividend
11
1.69p 1.69p 1.82p 1.82p 1.82p 2.20p 2.33p 2.45p 2.65p 2.80p
3.40p 3.74p3.99p 4.36p
4.98p
5.40p5.72p
6.05p6.35p
6.75p
5.09p5.43p
5.81p6.18p
6.80p
7.60p8.05p
8.50p9.00p
9.55p
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Preliminary results FY19 – 4th June 2019discoverIE Group plc
OPERATING REVIEW
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Strong organic growth Sales +10% Orders +11%
Operating profit up 25% Operating leverage with 17% organic
EBIT drop through
Enlarged production facilities now operational (5.5ksqm, +11%) Magnetics – Bangalore, India Fibre optics – Bratislava, Slovakia Shielding – Seoul, Korea
Expansion in China underway Magnetics (+3.6k sqm)
Growing Santon order book
Note: At constant exchange rates (CER)
Operating Review
Design & Manufacturing division
13
Growth FY19
Organic 10%
Acquisitions 11%
CER 21%
Currency -1%
Actual 20%
£4.7m
£12.0m
£18.7m£20.6m
£23.9m
£29.8m
41%
63%
78% 79%76%
78%
FY14 FY15 FY16 FY17 FY18 FY19
Underlying Operating Profit% Group profit contribution
£39m
£110m
£157m£178m
£220m
£266m
19%
38%
49%52%
57% 61%
FY14 FY15 FY16 FY17 FY18 FY19
Sales% Group total
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Widespread, strong organic growth
(1) Sales destination, excluding acquisitions(2) D&M organic growth excluding acquisitions
Operating Review
14
9% 9%
14%
11% 11% 11%10%
11%
9%
Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19
QUARTERLY ORGANIC SALES GROWTH(2)
Strong, widespread D&M organic growth
UK13%
Germany13%
Nordic29%
R.O.E.18%
N. America12%
Asia15%
REVENUE BY REGION
Preliminary results FY19 – 4th June 2019discoverIE Group plc
(1) Sales growth excluding acquisitions. Target markets are renewable energy, transportation, medical and industrial connectivity
Operating Review
Target markets leading growth
Up from 62% in FY18
15
12%
1%
8%
Target Markets
Other Markets
Total
ORGANIC GROWTH BY MARKET(1)
Target Markets £290m
66%
GROUP REVENUE FROM TARGET MARKETS (% of total revenue)
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Good organic growth FY Sales +5% (+6% underlying) H2 sales +8%
Operating profit up 15% Operating leverage (13% EBIT drop through) Structural efficiencies & tight cost control
Performance driven by Germany, Italy & Netherlands
Cross selling up 20% CER to £10.6m Higher gross margins (c.+10ppts v CS GM)
Note: At constant exchange rates (CER)
Operating Review
Custom Supply division
16
£6.9m £7.2m
£5.3m £5.5m
£7.5m
£8.6m
FY14 FY15 FY16 FY17 FY18 FY19
UNDERLYING OPERATING PROFIT
£169m £176m£164m £165m £164m £173m
£7m £7m£7m £3m
FY14 FY15 FY16 FY17 FY18 FY19
REVENUE
Ongoing Discontinued
Preliminary results FY19 – 4th June 2019discoverIE Group plc
£139m record p/e order book CER +15% Organic +12% v FY18
High proportion of recurring revenues
Driven by New project design wins Repeat revenue growth
FY13 FY14 FY15 FY16 FY17 FY18 FY19
Operating Review
Record order book underpins FY20
17
£52m £50m£65m
£73m£85m
£109m£122m
£139m
Preliminary results FY19 – 4th June 2019discoverIE Group plcdiscoverIE Group plc
Renewable energy
Transportation
DESIGN WINS
Creating future growth£266m in new project wins
(est lifetime value or ELV)
Represents 16% of current revenue
+40% increase on prior year
75% in target markets
(1) Estimated lifetime sales value of projects,
Operating Review
18
Medical
Industrial & Connectivity
£92m
£127m
£190m
£266m
FY16 FY17 FY18 FY19
Design wins - ELV(1) (£m)
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Operating Review
Consistent, proven strategy
Sales growth well ahead of GDP over the economic
cycle
Move up the value chain into higher margin products
Acquire businesses with attractive growth prospects
and strong operating margins
Internationalise the business
19
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Focused on growth markets Technology revolution driving new product development Global trends underpinning structural growth Applications necessitating increased electronic content Essential components for application-specific solutions
Transportation MedicalRenewable
EnergyIndustrial &
ConnectivityAutomotive circuit sales
expected to rise CAGR 13.4% (2016- 2021) IC Insights
Medical electronics to grow CAGR 6.8% (2017 -2022)
Research+Markets
Two thirds global investment in power
generation to 2040 will be into renewable energy
World Energy Outlook 2017
Overall market size for global machine-to-machine
connections to rise 13.2% CAGR (2016-2021)
Markets-and-Markets
20
Operating Review
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Essential products into growth markets
Medical
Renewable Energy
Industrial & Connectivity
Charging Sensing systems Power control Cabin monitoring &
control
Increasing scale of wind turbines
Diversification of solar systems
Wireless telematics Fibre optic connectivity Communication technologies Wireless robotics control Power control
Monitoring & control Automation & robotics Advanced surgery
Electric vehicles Mass transit & route
vehicles Autonomous vehicles High speed railTransportation
discoverIEsolutionsMarket driversMega trends
Decarbonisation & Diversification
Electrification & Autonomous
vehicles
Connectivity, automation &
Industrial Internet of Things
Artificial intelligence, sensing & analytics
Power inductors Turbine blade pitch
control Airflow measurement
Embedded diagnostics Interface device & cabling Power systems
Automation & robotics ‘Smart factories’ Artificial intelligence Increasing electronic
content
Technology integration
Decarbonisation ‘Safety-centric’ agenda Mass transit & route
vehicles
Proactive & preventative medicine
Technological & biological fusion
Predictive analytics
Geopolitical consensus Growing public awareness Legislative and regulatory
regimes Cost of energy
Remote monitoring & control
Quality control Precision & automation
21
Operating Review
Preliminary results FY19 – 4th June 2019discoverIE Group plc
(1) As a percentage of Group revenue(2) Mid-term is a 3 to 5 year period starting in Nov 16(3) FY18 ROCE and cash flow restated for prior year adjustment
Repeat the performance in the next 5 years
85%
10%
40%
Long term
ambit ion
Operating Review
Good progress towards targets
22
Key Strategic Indicators Mid termTarget(2)
1. Increase share of Group revenue from D&M(1) 18% 37% 48% 52% 57% 61% 75%
2. Increase underlying operating margin 3.4% 4.9% 5.7% 5.9% 6.3% 7.0% 8.5%
3. Build sales beyond Europe(1) 5% 12% 17% 19% 19% 21% 30%
Key Performance Indicators 3 yr target(FY20)
1. Sales growth
CER 17% 36% 14% 6% 11% 14%
Organic 2% 3% 3% -1% 6% 8%
2. Increase cross-selling £0.3m £0.9m £3.0m £4.6m £8.8m £10.6m £12m p.a.
(was £10m)
3. Underlying EPS growth 20% 31% 10% 13% 16% 22% >10%
4. Dividend growth 10% 11% 6% 6% 6% 6% Progressive
5. ROCE 15.2% 12.0% 11.6% 13.0% 13.7%(3) 15.4% >15%
6. Operating cash flow 100% 104% 100% 136% 90%(3) 93% >85% of Op
profit
FY14
FY16
FY17
FY17FY14 FY18
FY18 FY19
FY19
Well ahead
of GDP
FY15
FY15
FY16
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Recent acquisitions continue pace of development
23
Three high quality, higher margin niche businesses for £35m
Cursor Controls – acquired October 2018 Custom trackballs, trackpads & rugged keyboards Brings additional product capability & international
sales
Hobart Electronics – acquired April 2019 Custom magnetic components Builds presence in US Brings manufacturing in Mexico
Positek – acquired April 2019 Custom, high accuracy position sensors Brings additional sensor products & international
sales
Operating Review
Preliminary results FY19 – 4th June 2019discoverIE Group plc
14 D&M acquisitions, £187m spent since 2011 EBIT ROI of D&M acquisitions(1) of
20%, up from 17% in FY18 (v 15% target)
Consistent profitable growth from acquisitions
Acquisitions performing well
(1) ROI defined as operating profit attributable to the business over acquisition cost comprising up-front consideration, acquisition expenses, earn-out (once earned), and integration costs
(2)All D&M businesses included which were acquired more than 2yrs ago. Excludes recent acquisitions: Santon, Cursor Controls, Hobart Electronics and Positek.
Operating Review
24
115%
67%
31% 30% 30%25% 24%
12% 12%3%
20%
A B C D E F G H I J Overall
EBIT ROI(1) % of FY19
Target 15%
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Business fundamentals
• Growth markets
• Designed-in products, difficult to replace
• Distinct business, competitive advantage
• Low customer concentration
• Good gross margin
• Low capital investment requirements
• Acquisitions at the right price
Attractive rewards
• GDP++ organic growth
• High levels of repeating revenue
• Sustainable margins
• Reduced risk
• Cash generative
• Self-funding growth
• Earnings accretion
Our business
Operating Review
25
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Operating Review
Outlook
The new year has started well with the fundamentals in place for this to continue Record order book High level of design wins In-line with management’s expectations
Healthy acquisition pipeline
26
APPENDICES
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Management believe the adjustments enable a better understanding of the underlying performance of the business
Adjustments made to IFRS results are:
Acquisition/disposal related costs (transaction costs, earn-outs, amortisation of acquired intangibles, gain or loss on acquisition or disposal, IAS 19 pension charge related to legacy scheme)
Exceptional items (restructuring, integration, one offs)
FY18 reported results restated for prior year adjustment:- £1.2m of the £4.0m fraud identified in FY19 was an
exceptional loss in FY18.
Appendix I
Underlying to IFRS reconciliation
28
FY19 (£m) UOP Excep. Acqs Amort IAS19 IFRS
Gross profit 145.0 145.0
S&D costs (57.6) (57.6)
Admin expenses (56.8) 0.2 (1.8) (5.9) (0.4) (64.7)
Operating profit 30.6 0.2 (1 .8) (5 .9) (0.4) 22.7
Net finance costs (3.4) (3.4)
Profit before tax 27.2 0.2 (1.8) (5.9) (0.4) 19.3
Taxation (6.7) 0.1 0.5 1.3 0.1 (4.7)
Profit after tax 20.5 0.3 (1 .3) (4.6) (0.3) 14.6
Effective tax rate 25% 24%
EPS 27.2p 19.4p
FY18 (£m) UOP Excep. Acqs Amort IAS19 IFRS
Gross profit 126.7 126.7
S&D costs (54.5) (54.5)
Admin expenses (47.7) (1.2) (0.8) (4.9) (0.3) (54.9)
Operating profit 24.5 (1 .2) (0.8) (4.9) (0.3) 17.3
Net finance costs (2.6) (0.1) (2.7)
Profit before tax 21.9 (1.2) (0.8) (4.9) (0.4) 14.6
Taxation (5.3) 0.2 1.0 0.1 (4.0)
Profit after tax 16.6 (1 .2) (0.6) (3.9) (0.3) 10.6
Effective tax rate 24% 27%
EPS 22.3p 14.2p
Preliminary results FY19 – 4th June 2019discoverIE Group plc
UNDERLYING ADJUSTMENTS (£m) NET ASSETS (£m)
Appendix II
Underlying adjustments & net assets
29
(1) FY18 exceptional items and net assets at 31 Mar 2018 restated for prior year adjustment
Net Assets
At 31 March 2018( 1) 126.8
Net profit after tax 14.6
Dividend paid (6.7)
Currency net assets - translation impact (1.1)
Gain on defined benefit scheme 0.1
Shares issued 0.1
Share-based payments (incl tax) 0.9
At 31 March 2019 134.7
FY19 FY18
Exceptional items(1) 0.2 (1.2)
Acquisition costs (1.8) (0.8)
Amortisation of acquired intangibles (5.9) (4.9)
Legacy pension - IAS19 (0.4) (0.4)
Underlying adjustments (7.9) (7.3 )
Tax impact of adjustments 2.0 1.3
After tax adjustments (5.9) (6.0)
Preliminary results FY19 – 4th June 2019discoverIE Group plc
(1) Cash flow for FY18 restated for prior year adjustment(2) Non-cash items are depreciation, amortisation and share based payments.(3) Operating cash flow as a percentage of underlying operating profit.(4) Free cash as a percentage of underlying profit after tax.
Appendix III
Cash flow & net debt
NET DEBT (£m) CASH FLOW (£m)
30
FY19 FY18(1 )
Underlying profit before tax 27.2 21.9
Finance costs 3.4 2.6
Non cash items(2) 6.4 4.8
Underlying EBITDA 37.0 29.3
Working capital (3.2) (2.9)
Capital expenditure (5.2) (4.3)
Operating cash f low 28.6 22.1
Finance costs (3.4) (2.6)
Taxation (3.8) (3.7)
Free cash 21.4 15 .8 Target
Operating cash flow %(3) 93% 90% 85%
Free cash flow %(4) 104% 95% 90%
FY19 FY18
Net debt at 1 Apri l (52.4) (30.0)
Free cash flow 21.4 15.8
Acquisition related cash flow (24.2) (25.4)
Executive options issuance (1.6) -
Net settlement expense - (1.5)
Equity issuance 0.1 -
Net exceptional receipt 1.1 (3.0)
Legacy pension (1.7) (1.7)
Dividends (6.7) (6.2)
Foreign exchange impact 0.7 (0.4)
Net debt at 31 March (63.3) (52.4)
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Translation effects
Sterling weakened significantly in FY17 and FY18 but rose against Nordic currencies during FY19 impacting the Group on translation of overseas results into Sterling by c1%.
c.85% of Group revenues are non-UK (mainly € and Nordic).
Translation impact for FY19: Sales £3.9m Underlying operating profit £0.3m
(1) Nordic rate is a weighted average combination of £/NOK, £/SEK and £/DKK rates based on Group sales in each territory.
Operational effects
Sterling weakened significantly against US$ in FY17. Although strengthening throughout FY18, weakened again during FY19, and still remains well below the FY16 average rate.
Approximately 90% of UK cost of goods are non-Sterling, so impacts on purchase pricing .
The Group hedges material transactional exposures for around six months. Protects GM at FX rate at time of order.
Appendix IV
Foreign exchange effects
31
£/€ £/Nordic (1)
FY19 v FY18 0% 4%
FY18 v FY17 -5% -2%
FY17 v FY16 -13% -12%
£/$
FY19 v FY18 -1%
FY18 v FY17 1%
FY17 v FY16 -13%
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Opex %
Gross margin %
Operating costs down 0.4ppts Improving operating efficiency Lowest ratio since new strategy began
Operating margin % Operating margin of 7.0% 0.7ppts improvement from FY18 Up 3.6ppts in 5 years Towards mid-term target of 8.5%
Efficiency drives operating margin
32
GM back to its highest level Impact of weaker sterling v $ rates on
import costs in FY 18, reversed with better pricing
Appendix V
FY14
FY15
FY16
FY17
FY18
FY19
29.8%
31.1%
32.2%
32.8%
32.7%
33.0%
FY14
FY15
FY16
FY17
FY18
FY19
3.4%
4.9%
5.7%
5.9%
6.3%
7.0%
FY14
FY15
FY16
FY17
FY18
FY19
26.4%
26.2%
26.5%
26.9%
26.4%
26.0%
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Similar WC/sales ratio to last year 14.3% of annualised Q4 sales (v 14.4% LY) Reflects increasing proportion of D&M
(D&M WC at 19% of sales, CS WC at 10% of sales)
WC up £3.7m organically in LTM Strong organic growth in Q4 of 8%
(£35m annualised sales) = 9% WC rate. well below Group average
(1) Cash to cash cycle (C2C) is the average net number of days from remitting cash to suppliers to receipt of cash from customers (stock days – creditor days + debtor days)(2) Working capital is defined as net inventory, trade & other receivables and trade & other payables. Unallocated working capital is not represented in this chart.
33
Working capital efficiencies
Appendix VI
£21mC2C 42
£19mC2C 35
£17mC2C 41
£18mC2C 33
£37mC2C 93
£39mC2C 83
£51mC2C 93
£54mC2C 83
18 .7%13.9% 14.4% 14.3%
48%52%
57%61%
FY16 FY17 FY18 FY19
WORKING CAPITAL(2)
CS D&M Group SWC% Sales D&M Sales%
Preliminary results FY19 – 4th June 2019discoverIE Group plc
Case study: Our unique solutions for Renewable energy
Power inductors
Pitch controllerAirflow measurement
Strong and trusted customer relationships across supply chain Providing innovation-led, bespoke solutions to essential customer requirements Multi-year design cycles provide strong visibility & recurring revenues Complementary technologies create cross-selling opportunities
34
Appendix VII
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