Preliminary results for the year to 31 March 2009
STRONG RESULT IN INCREASINGLY CHALLENGING MARKETS
Umeco plc ("Umeco"), an international provider of supply chain services and advanced composite materials primarily to the aerospace & defence industries, announces its preliminary results for the year to 31 March 2009.
Key highlights
· Strong organic growth and margin improvement against an increasingly challenging market environment, particularly in the second half
· Revenue from continuing operations £415.3m (2008: £335.2m), underlying growth of 11.7%
· Adjusted operating profit £35.2m (2008: £27.1m), underlying growth of 13.0%
· Adjusted PBT £29.0m (2008: £21.9m), 32.4% higher
· Adjusted EPS 40.5p (2008: 36.7p), 10.4% higher
· Proposed final dividend of 11.0p (2008: 11.0p), resulting in a total dividend of 17.5p per share (2008: 17.0p), an increase of 2.9%
· Year end net debt £120.2m (2008: £57.6m), gearing 67.3% (2008: 35.5%)
· Principal debt facility of US$150m successfully extended to June 2014
· Planning for more modest revenue growth, with management actions focused on cost control and debt reduction
· Brian McGowan to retire as Chairman
Clive Snowdon, Chief Executive of Umeco plc, said:
"We are pleased with our performance during what has been a period of increasing instability in our end markets. In the first half of the year, rapidly increasing oil prices caused significant losses by many carriers and led to increased ticket prices not helped by higher UK taxes on travel. During the second half year we suffered from the strike at Boeing and then the rapidly deteriorating global economic situation, which has caused a significant fall in premium and cargo traffic. In addition exchange and interest rates have been extremely volatile during the year, impacting our net debt, which is largely US dollar denominated to hedge against our US assets.
In view of this high level of uncertainty we have significantly reduced our capital expenditure plans, focused upon improving our working capital ratios and where appropriate have reduced our cost base, primarily through lower headcount.
We have successfully extended our principal debt facilities until June 2014 and are operating comfortably within our banking covenants. We are planning to reduce debt further in the current year.
We enter the new financial year with a solid order book. Nevertheless, we are mindful of the uncertain macroeconomic environment in which we operate and therefore, are planning for a year of more modest growth in revenue. Our experience of such conditions will stand us in good stead as we focus on growing our market share through product and service innovation, securing new contracts, cash generation and operational improvements."
Brian McGowan, Chairman of Umeco plc, said:
"After twelve years as Chairman, the time has come for me to stand back and for a successor to be found. As today's results demonstrate, Umeco is in fine shape and I commend the management team and all who work at Umeco for successfully navigating the company through these difficult times. Umeco provides important services in long term growth markets and, with its first class management team, I have no doubt it has an exciting future."
There will be a meeting for analysts at 9.30am this morning at UBS, 1 Finsbury Avenue, EC2M 2PP. Should you wish to attend please contact Davina Marriott on 0207 567 4875
For further information please contact:
Umeco plc Tel: +44 (0) 1926 331 800
Clive Snowdon, Chief Executive
Doug Robertson, Finance Director
www.umeco.com
Tulchan Communications Tel: +44 (0) 207 353 4200
John Sunnucks
Mal Patel
Further Information on Umeco plc
Umeco is a leading innovator in distribution and supply chain management to the aerospace and defence industries, harnessing new methods for enhancing its customers' performance and profitability.
Umeco also has significant manufacturing interests in advanced composite materials for a growing range of applications in its core aerospace and defence markets and in other high performance technology industries such as motor sport, automotive and wind energy.
Listed on the London Stock Exchange, Umeco had revenue from continuing operations of GBP415.3 million in the year to 31 March 2009.
Umeco is managed through two business streams:-
Umeco Composites - a provider of a complete range of advanced composite materials principally to the aerospace, motor sport, automotive and wind energy markets.
Customers include Boeing, Airbus, BAE Systems, manufacturers of wind turbine blades, a number of manufacturers of high performance super cars and Formula 1 teams including Team McLaren Mercedes.
Umeco Supply Chain - a leading international provider of value-added distribution and supply chain outsourcing services to customers in the aerospace & defence market. With its specialisation in the supply of small and medium value components and sophisticated IT systems, its growing global customer base can enjoy significant operational, cost and working capital benefits.
Customers include Rolls-Royce plc, BAE Systems, Safran Group, Parker Aerospace, Goodrich, Thales Aerospace, Turbomeca, ATK, Lockheed Martin and the US Department of Defense.
Note on adjusted profit and earnings per share measures:
Umeco uses adjusted figures as key performance indicators. Adjusted figures are stated before profits arising on the divestment of discontinued operations, amortisation and impairment charges relating to intangible assets, significant items, the revaluation of financial instruments based on their market values and associated tax effects. The differences between the adjusted and unadjusted measures of operating profit, profit before tax and profit attributable to equity holders of the parent are reconciled in note 4 to this announcement. The narrative in this announcement is based on the adjusted measures of operating profit, profit before tax and earnings per share. These provide a more consistent measure of operating performance.
A complete copy of these results can be found on www.umeco.com under Investor Relations, 'Presentatios and Reports'.
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