2018 Financial Highlights
Notes – All figures stated are in respect of the continuing operations of the Group
- Trading EBITDA is defined as underlying operating profit before depreciation and central corporate costs
- Underlying operating profit is defined as operating profit before exceptional items, amortisation of intangible assets and notional pension administration charges
- Trading ROCE is defined as LTM underlying profit before central corporate costs divided by LTM average trading net assets
- Revenues were broadly flat against 2017, down just 0.5% to £112.5m, despite challenging conditions from an estimated contraction of between 5% to 7% in the UK, Irish and Scandinavian Fenestration markets. This was achieved through new product launches, winning new business and price increases to mitigate the effect of higher commodity costs.
- Trading EBITDA increased by £0.5m (7%) to £7.4m, due mainly to reductions in headcount. Price increases were sufficient to fully mitigate higher material costs, inflation and the contraction in the Group’s Fenestration markets.
- In the first quarter, Carlisle Brass successfully merged its Carlisle and Blackburn operations into its Carlisle facility. This reduced both operational and distribution costs and improved customer service. The Blackburn property was subsequently sold for £1.8m realising an exceptional profit on disposal of £1.1m.
- On 30 November 2018 the Group completed the disposal of the entire issued share capital of its US subsidiary Arran Isle Inc. This business was reported by the Group as LaSalle Bristol. The profit on disposal pre-Other Comprehensive Income was £7.9m.
- The sale of LaSalle Bristol generated net proceeds on disposal of £37.0m of which £35.5m was received in the year with the balance of £1.5m received in early 2019. The disposal has transformed the funding position of the Group, which ended the year with closing net funds of £10.0m (2017: £18.9m net debt).
- As at 31 December 2018 the major committed bank facility of the Group was a £55.0m global asset-based funding agreement with Wells Fargo Capital Finance (UK) Limited. Following the transformative level of funds generated by the disposal of LaSalle Bristol, the facility was reduced to £30.0m subsequent to the year end. The facility runs to 31 December 2021.
- Available liquidity remains high. The total amount undrawn on all available bank facilities at 31 December 2018 was £25.0m (2017: £17.3m).
2018 Operating Profit bridge (£m)
2018 Cash Movement (£m)