The Group’s UK & European businesses supply a comprehensive range of door and window hardware products to fabricators, builders’ merchants, architectural ironmongers and online retailers, through well known brands including Carlisle Brass, Mila, Eurospec and Eurolite.
2017 Results Highlights
- Sales increased by 8% against 2016 to £269.7m helped by a favourable US Dollar and Euro despite the Group facing mixed but net adverse market conditions during 2017. Turnover was up 5% at constant exchange rates.
- The Group’s EBITDA fell by 5% to £7.3m (2016: £7.7m) as growth in our US markets, further share gains from new product introductions and currency price surcharges in the UK were more than offset by a contraction in our Hardware markets and higher input costs due to a combination of commodity cost inflation and the devaluation of Sterling following the EU referendum.
- The Group’s balance sheet remains strong with shareholders’ funds of £27.0m. This was an increase of £4.0m from 2016 due to the profit for the year of £1.0m and net pensions gains of £4.6m being only partially offset by the payment of £0.7m of dividends and an adverse FX translation impact on the Group’s closing net asset position of £0.9m.
- The Group’s closing net debt increased by £1.3m after exceptional payments of £0.4m, dividends of £0.7m and total contributions to the UK defined benefit pension scheme of £3.5m. Closing net bank debt was £18.9m (2016: £17.6m) and the year end Net Debt : EBITDA ratio continued to remain low at 2.59 (2016: 2.29).
- The major committed bank facility of the Group continues to be a £55.0m global asset-based funding agreement with Wells Fargo Capital Finance (UK) Limited which runs to 31 December 2021.
Note: EBITDA is defined as operating profit before exceptional items excluding depreciation, amortisation of intangible assets, notional administration charges on the net defined benefit pension liability and impairment charges from property revaluations.