2019 Financial Highlights
- 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 operating profit before central corporate costs divided by LTM average trading net assets
In the UK, revenues from our hardware businesses were £84.2m broadly unchanged from 2018, despite an estimated contraction of c.7% in the size of some of the Group’s Fenestration markets. This was achieved by launching new products and winning new business allowing us to outperform the market in both the Fenestration and Architectural sectors.
An estimated 8% contraction across our Northern European markets was mitigated by a gain in market share from winning new business together with price increases to offset the effect of higher commodity costs. In Ireland we saw sales grow €0.9m to €17.9m, helped by a c.4% improvement in the market and from a growth in market share.
Our distribution business in Dubai experienced another difficult year with markets down over 13% due to continuing economic sanctions against Qatar and a worsening of economic conditions in the local construction industry. As a result of this, we have taken the difficult decision to close the business although we will continue to have a presence in the region, served by our UK based Carlisle Brass business, and via local distributors.
Overall, revenues from continuing operations have decreased by just 0.5% from 2018 despite challenging market conditions. The Group continued to focus on pushing ahead with new product introductions, winning new business and on maintaining its market leading level of customer service.
The Group’s Trading EBITDA increased by 32% in 2019 from £7.4m to £9.8m. The Group’s total profit for the period from continuing operations increased from a loss of £2.2m to a profit of £1.2m. This was due to a £2.5m increase in operating profit, £1.2m lower exceptional costs and £0.2m lower finance costs, offset by a £0.1m tax charge (vs a £0.4m tax credit in 2018) on those higher profits.
Despite the increase in profit, the Group’s shareholders’ funds decreased from £43.0m in 2018 to £41.4m as the profit for the year of £1.2m was more than offset by £0.5m losses on translation of foreign operations, £0.4m net losses on foreign exchange hedges and net pension losses of £1.9m (net of deferred tax) due to adverse movements in actuarial assumptions.
Following the sale of the Group’s US operations in 2018, the Group has remained in a net funds position for the duration of 2019 and expects to do so for the foreseeable future.
2019 Operating Profit Bridge (£m)
2019 Cash Movement (£m)