6 March 2025
THIS ANNOUNCMENT CONTAINS INSIDE
INFORMATION
Full Year Results for the
twelve months ended 31 December 2024
Vesuvius
plc, a global leader in molten metal flow engineering and
technology, announces its audited results for the twelve months
ended 31 December 2024.
|
Financial summary
|
|
2024
(£m)
|
2023
(£m)
|
Underlying change(1)
|
Year-on-year change
|
|
Headline
|
|
|
|
|
|
|
Revenue
|
|
1,820.1
|
1,929.8
|
(1.8%)
|
(5.7%)
|
|
Trading Profit (2)
(EBITA)
|
|
188.0
|
200.4
|
(0.2%)
|
(6.2%)
|
|
Return on Sales
(2)
|
|
10.3%
|
10.4%
|
+10bps
|
-10bps
|
|
Headline basic EPS (2)
(pence)
|
|
43.3
|
46.7
|
+2.1%
|
(7.2%)
|
|
Free cash flow
(2)
|
|
60.8
|
128.2
|
NA
|
(52.6%)
|
|
Net Debt /
EBITDA(2)
|
|
1.3x
|
0.9x
|
NA
|
+0.4x
|
|
Statutory
|
|
|
|
|
|
|
Operating Profit
|
|
153.7
|
190.1
|
(13.8%)
|
(19.1%)
|
|
Profit Before Tax
|
|
138.6
|
179.4
|
(16.3%)
|
(22.7%)
|
|
Statutory basic EPS
(pence)
|
|
33.5
|
44.0
|
(16.0%)
|
(23.8%)
|
|
Cash inflow from
operations
|
|
216.7
|
272.0
|
NA
|
(20.3%)
|
|
Dividend (pence per
share)
|
|
23.5
|
23.0
|
NA
|
+2.2%
|
(1) Underlying basis is at
constant currency and excludes separately reported items, and the
impact of acquisitions and disposals.
(2) For definitions of non-GAAP
measures, refer to Note 16 in the Condensed Group Financial
Statements.
Highlights
· Robust Group
performance with market share gains in Flow Control and Foundry,
delivered in challenging market conditions
· Together
with resilient pricing and cost reductions, this partially offset
weak end markets experienced in the Foundry Division
· Group revenue, trading profit and return on sales stable
year-on-year on an underlying basis
·
Good performance by our Steel
Division despite weaker markets than originally
anticipated
·
Positive net pricing across
the year
· Flow Control continues to gain market share
·
RoS improved by 110bps (underlying) to
11.4% driven by cost savings and net positive pricing
·
Challenging year for the Foundry Division as
markets outside of India weakened, offsetting strategic
progress
·
Good market share gains overall
·
Accelerated delivery of cost-savings
·
Return on sales reduced by 230bps (underlying) to
7.4%, with low activity in EU+UK, North America and North
Asia
·
Acceleration of our group-wide cost reduction
programme with £13m delivered in-year and exit run-rate of c.
£18m
· New product
sales increased further to 19.1%, with 33 new products launched in
2024 and a strong pipeline of new products for the coming
years
·
Strategic expansion programme in Asia and Flow
Control largely completed
· Acquired PiroMET,
a refractory and robotics business in Turkey, in February 2025,
enhancing our position in the strategically important and growing
EEMEA market
·
Trade working capital intensity reducing by 50bps
to 22.9%
·
Share buyback programmes successfully
implemented in 2024, with 5% of shares in issue bought back during
the year. Second programme launched in November 2024, continuing in
2025
·
Strong balance sheet with net debt / EBITDA of
1.3x (31 December 2024)
·
Proposed final dividend of 16.4p, bringing the
full year dividend to 23.5p, up 2.2%
·
Strong safety performance with a record Lost time
injury frequency rate of 0.52
·
Reduction of 27% in CO2e intensity vs.
2019 baseline, exceeding our intermediary target of -20% by
2025
Comment from Patrick André, CEO:
"This has been a challenging year
for Vesuvius with Foundry markets in Europe, North Asia and the
Americas weakening significantly and global Steel production
outside China negatively affected by the sharp increase of Chinese
steel exports. Despite this, thanks to significant cost cutting,
resilient pricing and market share gains, we have delivered a
robust performance, maintaining our results at the level of 2023 on
an underlying basis, demonstrating again the strength of our
technologically differentiated business model.
For the year ahead, while we
remain confident in our own performance, we are cautious on market
conditions due to the uncertain economic environment arising from
the negative impact of trade tariffs which continue to evolve,
geopolitical volatility and the continuing structural weakness of
Steel and Foundry markets in Europe. We currently anticipate that
our trading profit in 2025 will be at a broadly similar level to
2024 on a constant currency basis and including the contribution
from the PiroMET acquisition. We expect that cashflow for 2025 will
be significantly ahead of 2024, benefiting from our working capital
focus and a more normalised level of capex.
Given the near-term uncertain
tariff and geopolitical environment and the decline experienced in
Foundry end markets over the last 18 months, we are now targeting
to achieve our mid-term Return on Sales target of at least 12.5% by
2028 and to deliver our cumulative £400m free cash flow target by
2027. This will be partially dependent on a return to normal
conditions in our end-markets and will be supported by an extension
of our cost reduction programme which we are increasing from £30m
to £45m by 2028."
Presentation of Full Year 2024 Results
Vesuvius management will make a
presentation to analysts and investors on 6 March 2025 at 09:00 UK
time at the London Stock Exchange, 10 Paternoster Square, London
EC4M 7LS. For those unable to attend, the event will be
livestreamed and can be accessed by clicking
here. Participants can also
join via an audio conference call. Please click
here to
register. Once registered, you will be provided with the
information needed to join the conference, including dial-in
numbers and passcodes. Be sure to save this information in your
calendar.
|
For further information, please contact:
|
|
|
Vesuvius
plc
|
Patrick André, Chief Executive
|
+44 (0)
207 822 0000
|
|
|
Mark Collis, Chief Financial
Officer
Rachel Stevens, Group Head of
Investor Relations
|
+44 (0)
207 822 0000
+44 (0) 7387 545 271
|
|
MHP Communications
|
Rachel Farrington/Ollie
Hoare
|
+44 (0) 203 128 8570
|
The person responsible for
arranging the release of this announcement on behalf of Vesuvius is
Mark Collis, Chief Financial Officer.
About Vesuvius plc
Vesuvius is a global leader in
molten metal flow engineering and technology principally serving
process industries operating in challenging high‑temperature
conditions.
We develop innovative and
customised solutions, often used in extremely demanding industrial
environments, which enable our customers to make their
manufacturing processes safer, more efficient and more sustainable.
These include flow control solutions, advanced refractories and
other consumable products and increasingly, related technical
services including data capture.
We have a worldwide presence. We
serve our customers through a network of cost-efficient
manufacturing plants located close to their own facilities, and
embed our industry experts within their operations, who are all
supported by our global technology centres.
Our core competitive strengths are
our market and technology leadership, strong customer
relationships, well established presence in developing markets and
our global reach, all of which facilitate the expansion of our
addressable markets.
Our ultimate goal is to create
value for our customers, and to deliver sustainable, profitable
growth for our shareholders giving a superior return on their
investment whilst providing each of our employees with a safe
workplace where they are recognised, developed and properly
rewarded.
We think beyond today to create
solutions that will shape the future.
Forward looking statements
This announcement contains certain
forward looking statements which may include reference to one or
more of the following: the Group's financial condition, results of
operations, cash flows, dividends, financing plans, business
strategies, operating efficiencies or synergies, budgets, capital
and other expenditures, competitive positions, growth opportunities
for existing products, plans and objectives of management and other
matters. Forward-looking statements can be identified by the use of
terms such as 'intend', 'aim', 'project', 'anticipate', 'estimate',
'plan', 'believe', 'expect', 'forecasts', 'may', 'targets',
'could', 'should', 'will', 'continue' or similar words.
Such forward looking statements,
including, without limitation, those relating to the future
business prospects, revenue, working capital, liquidity, capital
needs, interest costs and income, in each case relating to
Vesuvius, wherever they occur in this announcement, are necessarily
based on assumptions reflecting the views of Vesuvius. Although
Vesuvius makes such statements based on assumptions that it
believes to be reasonable, by their nature, these forward looking
statements are subject to a number of known and unknown risks,
uncertainties and other factors beyond Vesuvius' control that could
cause actual results, performance or achievements to differ
materially from those expressed or implied by the forward looking
statements. Such forward looking statements should, therefore, be
considered in light of various important factors that could cause
actual results to differ materially from estimates or projections
contained in the forward looking statements. These include without
limitation: economic and business cycles; the terms and conditions
of Vesuvius' financing arrangements;
foreign currency rate fluctuations; competition in Vesuvius'
principal markets; acquisitions or disposals of businesses or
assets; and trends in Vesuvius' principal industries.
The foregoing list of important
factors is not exhaustive. When considering forward looking
statements, careful consideration should be given to the foregoing
factors and other uncertainties and events, as well as factors
described in documents the Company files with the UK regulator from
time to time including its annual reports and accounts. In light of
these risks, uncertainties and assumptions, the forward looking
events discussed in this announcement might not occur and such
forward looking statements are not guarantees or predictions of
Vesuvius' future performance. You should not place undue reliance
on such forward looking statements which speak only as of the date
on which they are made. Past performance is no guide to future
performance and persons needing advice should consult an
independent financial adviser.
Neither Vesuvius nor any of its
affiliates, associates, employees, directors, officers or advisers
assumes any responsibility for the accuracy or completeness or
undertakes any obligation, to update or revise any of these
forward-looking statements to reflect any new information or any
changes in events, conditions or circumstances on which any such
forward-looking statement is based save in respect of any
requirement under applicable law or regulation.
Vesuvius plc, 165 Fleet Street,
London EC4A 2AE
Registered in England and Wales
No. 8217766
LEI:
213800ORZ521W585SY02
www.vesuvius.com
Vesuvius
plc
Full Year Results for the
twelve months ended 31 December 2024
In 2024, we have shown resilience
despite difficult market conditions, thanks to a strong focus on
cost reduction and to the continuing benefits of our technology
strategy.
|
£m
|
2024
Reported
|
|
2023
Reported
|
currency
|
2023
Underlying
|
|
Reported
Change
|
Underlying Change
|
|
|
|
|
Revenue
|
1,820.1
|
|
1,929.8
|
(76.0)
|
1,853.7
|
|
(5.7%)
|
(1.8%)
|
|
Trading Profit
|
188.0
|
|
200.4
|
(11.9)
|
188.4
|
|
(6.2%)
|
(0.2%)
|
|
Return on
Sales
|
10.3%
|
|
10.4%
|
|
10.2%
|
|
-10bps
|
+10bps
|
Resilient Group trading performance
In 2024, revenue was £1,820.1m, an
underlying decrease of 1.8% compared to 2023, and a 5.7% decline on
a reported basis, reflecting FX headwinds. The small underlying
decrease in revenue was principally due to lower volumes (£30.1m),
reflecting a weak market that we partially offset by market share
gains, and pricing declines of £3.5m reflecting the lower cost of
raw materials. Revenue in our Steel Division was stable on an
underlying basis reflecting some market share gains in a market
which grew only very moderately, while in Foundry, revenue reduced
by 6.3% on an underlying basis, principally reflecting lower market
activity, which we partially offset by market share gains.
Trading profit was £188.0m, stable
on an underlying basis and a decrease of 6.2% on a reported basis
versus the prior year reflecting FX headwinds. The benefits of our
£30m cost-saving programme delivered a £13m in-year benefit, well
ahead of our previous expectations resulting from the accelerated
delivery on specific projects, and a further benefit of £6m from
short-term actions. These were mostly offset by the negative profit
impact of volume reductions. Net pricing was essentially neutral
for the Group with a modest consolidated impact of minus £2m on
trading profit. The Group achieved a return on sales of 10.3%
in 2024, 10 basis points ahead of 2023 on an underlying basis. This
resilient performance was achieved through the swift implementation
of cost reduction actions and market share gains, particularly in
Flow Control and in Foundry, supported by the differentiation of
our products.
Difficult market background in both Steel and
Foundry
Global steel production remained
subdued in the world excluding China, Russia, Iran and Ukraine with
growth limited to 0.8% for the full year (Source: World Steel Association),
due to sharply increasing steel exports from China. Steel
production in India continued to exhibit strong growth (+6.3%
year-on-year), as did South-East Asia (+5.3%) and EEMEA (EMEA
excluding EU+UK, Iran, Russia and Ukraine) (+4.1%). Conversely,
Steel production declined in the Americas (-2.9%) and in North Asia
(-3.6%). Europe (EU+UK) only modestly recovered from the very
low point of 2023, with growth of +1.2%.
Despite steel production in China
contracting by 1.7%, the level of net exports continued to rise
during the year, reaching 104 million tonnes, an increase of c. 20
million tonnes versus 2023, due to an even sharper decline in
domestic steel consumption. These increasing exports put steel
production outside of China under strong pressure and depressed
steel prices worldwide.
Foundry markets, with the
exception of India, remained very weak throughout 2024, in
particular in Europe, North Asia and in the Americas, as declining
industrial activity impacted the end markets of our customers.
All industrial end markets outside of China were affected,
including the light vehicle industry which had performed well in
2023. The foundry market decline was particularly severe in EU+UK
and in North Asia important regions for our Foundry
Division, and we now do not expect them to
return to their pre-pandemic levels in the near future.
Good performance in our Steel Division
Despite adverse market conditions,
the Steel Division performed well in 2024. On an underlying basis,
the Steel Division revenue remained broadly stable (-0.1%) while
profit grew by 9.9%, resulting in return on sales increasing by
110bps. Revenue growth was driven by market share gains offsetting
slightly negative market volumes evolution overall due to our
overweight market position in North America, where Steel production
declined in 2024.
Overall, we gained market share
across the Steel Division, with gains across the Flow Control
business and in Advanced Refractories in the growing regions of
Asia and EEMEA, which more than offset some limited Advanced
Refractories market share losses in EU+UK and the
Americas.
Headline pricing decreased
slightly, reflecting a decline in raw materials costs. Pricing net
of cost inflation (raw materials and labour), however, remained
positive.
Steel Division profits were also
supported by the strong cost reduction actions undertaken as part
of the group-wide £30m cost-saving programme.
Performance of the Foundry Division negatively impacted by
the short-term market conditions, despite good underlying
progress
Severe market decline, in
particular in EU+UK and North Asia which represents c. 40% of the
Foundry Division turnover, reduced overall Foundry Division revenue
by c. 10%. The division was, however able to mitigate this general
market downturn with market share gains of c. 5%.
Headline pricing also decreased
during the year, reflecting a decline of raw materials prices.
Pricing net of cost inflation (labour and raw materials) was
slightly negative as labour inflation was not fully compensated by
price increases.
The division reacted strongly to
this challenging environment, successfully implementing
cost-reduction actions and accelerating production and resources
transfers from EU+UK to lower cost and faster growing
areas.
We expect this this strong action
plan will pave the way for an improvement of the Foundry Division
results going forward despite the continuing difficult market
conditions in Europe and North Asia.
Capacity-expansion investment programme in Flow Control and
in Asia nearing completion
The investment programme to expand
capacity and support the growth of Flow Control worldwide and
Advanced Refractories and Foundry in Asia, initiated in 2021, is
now largely complete and will underpin the progression of our
results and profitability in the years to come. The expanded
production capacity for VISO, Slide Gate and Mould Flux in Flow
Control is now largely operational and will support the business
unit's expansion in India, South-East Asia, EEMEA and North
America.
In Advanced Refractories, the
expansion of our Basic monolithic and AlSi monolithic capacity at
our new flagship plant in Vizag is nearing completion and will
support profitable growth of the business unit in India going
forward.
In Foundry, our non-ferrous flux
production line in China is now fully operational and will enable
the business unit to accelerate its penetration of the fast-growing
aluminium foundry market.
This three-year capex programme of
capacity expansion will be mostly completed by the end of H1 2025.
Following this, capex is expected to revert towards normalised
levels.
Good cash generation and strong balance
sheet
The business delivered adjusted
operating cashflow of £130.3m in 2024, which represented a 69% cash
conversion rate for the year. Free cashflow was £60.8m, after cash
capex of £100.8m (2023: £92.6m). We maintained a strict focus on
working capital management and were able to reduce our trade
working capital intensity further, which was 22.9% at the year end,
versus 23.4% last year.
Our balance sheet remained strong
with a debt leverage ratio of 1.3x (31 December 2023: 0.9x), at the
lower end of our 1.0 - 2.0x range. This reflects the free cashflow
described above, £63.4m of payments relating to the share buybacks
executed during the year and dividends of £61.1m.
In February 2025 we concluded the
refinancing of our RCF facility, extended to £475m, with a
syndicate of 10 banks for a term of 4.5 years.
Continued progress in the productivity of R&D and new
product development
We increased our investment in
research and development in 2024 (on a constant currency basis),
spending £36.9m,
equating to 2.0% of revenue. This was fully expensed in our income
statement. Our two focus areas remain: (1) innovation in materials
science, with an objective to continuously improve the performance
of our consumables, and (2) the development of mechatronics
solutions to enable our customers to substitute the operators who
manipulate our consumable refractories with robots and, by doing
so, improve their safety, reliability, cost and quality
performance.
Our New Product Sales ratio,
defined as the percentage of our sales realised from products which
didn't exist five years ago, reached 19.1% for the Group in 2024
(and was over 20% in our Flow Control business). This is up from
17.6% in 2023 and well on track towards our group target of over
20% by 2026. We launched 33 new products in 2024 and have an
extensive pipeline of products under development which will be
progressively introduced in the market over the coming years and
will support our ambition to grow our revenue and
profitability.
Our robotics business is also
accelerating, with orders for robotic systems for Flow Control
growing from 5 projects in 2023 up to 9 in 2024. We also saw a
considerable increase in robots shipped, up to 6 in the year versus
one in 2023, reflecting the significant positive momentum in orders
over the last two years.
Cost optimisation programme delivering above
expectations
Our cost optimisation programme,
launched in late 2023, initially aimed to deliver £30m of annually
recurring cash savings by 2026. This program covers all of our
worldwide activities and focuses on operational improvement, lean
initiatives, automation and digitalisation as well as optimisation
of our manufacturing footprint.
In 2024, we delivered cost savings
under this programme of £13m with an annualised exit run-rate of
£18m. Of the savings delivered in-year, slightly under half were in
the Foundry Division, reflecting swift action taken to address
costs in a challenging environment. The cost savings achieved to
date have been weighted towards headcount reductions. We expect to
deliver incremental in-year cost savings of £12m - £14m in
2025.
The one-off costs to deliver these
savings are shown as separately reported items, and in FY24 were
£14.6m charged to the income statement with a cashflow impact of
£7.9m. We anticipate one-off costs in 2025 in the region £7-10m and
retain our guidance that the total programme will cost c. £40m,
including associated capex costs.
Given this good progress in 2024,
we are now raising our cash cost savings objective from £30m of
recurring annual savings by 2026 to £45m of recurring annual
savings by 2028, with an incremental cost of delivery of c.
£20m.
Acquisition in Turkey
Following the
agreement reached in November 2024, on 28
February 2025 we completed the acquisition of a 61.65% shareholding
in PiroMET, a Turkish refractory company, for €26.2m. The
acquisition will strengthen our Advanced Refractory business in the
fast-growing region of EEMEA and will also allow us to leverage
PiroMET's expertise in robotics and gunning worldwide.
Best ever safety performance
In 2024
we achieved a further improvement in safety, with a Lost Time
Injury Frequency Rate (the number of injuries necessitating a lost
work-shift, per million hours worked) of 0.52, our best result
ever, having achieved 0.60 in 2023. This positions Vesuvius among the best-in-class companies
worldwide and is the result of many years of efforts to integrate
safety as the number one priority in the company culture. We
remain committed to our goal of zero accidents, and we will strive
towards this objective.
Significant progress on our journey to net
zero
We continued to implement our
action plan to progressively decarbonise our activities. As a
result, we have reduced our carbon intensity (CO2e
tonnes per million tonnes product sold) by 27% as compared with our
2019 reference year, on a pro forma basis (-40% on a reported
basis), significantly ahead of our 2025 objective of a 20%
reduction. This has been achieved through decarbonising our
electricity, improving energy efficiency, and moving from higher to
lower carbon-emitting energy sources. As part of this initiative,
our plant in Rio de Janeiro, Brazil, became our first carbon-free
major manufacturing site operating exclusively on renewable
electricity and biomethane.
Dividend and share buy-backs
Vesuvius has a progressive
dividend policy. As a minimum we will maintain our dividend
per share year-on-year and increase it, through the cycle, in line
with earnings per share growth. In addition, where cash is not
required for additional investment in the business and while
maintaining a strong and prudent balance sheet, we will return cash
to shareholders via other means, such as share
buy-backs.
The Board has recommended a final
dividend of 16.4 pence per share, which together with the interim
dividend paid of 7.1 pence per share, brings the total dividend for
the year to 23.5 pence per share, which is a 2.2% year on year
increase on the total dividend for 2023 of 23.0 pence per share.
This represents a dividend cover of 1.8x compared to headline EPS
for 2024.
Over 2024 we completed our first
£50m share buyback (initiated in December 2023) and started a
second £50m tranche in November 2024, resulting in a total cash
outflow on share repurchases of £62.4m in FY24 (£63.4m inclusive of
costs), with £34.5m remaining under the announced programme. In
total 13.8m shares were repurchased during the year, reducing our
shares in issue by c. 5%.
Current trading and outlook
This has been a challenging year
for Vesuvius with Foundry markets in Europe, North Asia and the
Americas weakening significantly and global Steel production
outside China negatively affected by the sharp increase in Chinese
steel exports during the year. Despite this, thanks to significant
cost cutting, resilient pricing and market share gains, we have
delivered a robust performance, maintaining our results at the
level of 2023 on an underlying basis, demonstrating again the
strength of our technologically differentiated business
model.
For the year ahead, while we
remain confident in our own performance, we are cautious on market
conditions due to the uncertain economic environment arising from
the negative impact of trade tariffs which continue to evolve,
geopolitical volatility and the continuing structural weakness of
Steel and Foundry markets in Europe. We currently anticipate that
our trading profit in 2025 will be at a broadly similar level to
2024 on a constant currency basis and including the contribution
from the PiroMET acquisition. We expect that cashflow for 2025 will
be significantly ahead of 2024, benefiting from our working capital
focus and a more normalised level of capex.
Medium-term strategic position
In November 2023 we presented our
strategy and medium-term targets to investors at a Capital Markets
Event. We highlighted favourable medium-term trends in our
end-markets, and, through our market leading investment in research
and development, demonstrated our ability to gain both market share
while pricing for the value we generate for our customers. We also
set out a cost reduction programme to
achieve at least £30m of annually recurring costs savings in
2026.
Over the past year, we have
implemented our programme and delivered on the cost reduction
actions, as set out above. We have also seen the benefit of our
technology-led business model, with our differentiation driving
market share gains in Flow Control and Foundry. The market
backdrop, however, has been challenging, particularly in our
Foundry Division where the decline in market activity has been
significant, such that the benefit of cost savings in FY24 has
largely been offset by this market decline. Despite the short-term
uncertainties in our end markets, we remain confident in the mid to
long term growth potential of these markets and in particular
growth in the steel market outside of China. The strength of our
technology-based business model should also enable us to continue
outperforming our underlying markets in Flow Control and
Foundry.
Given the
near-term uncertain tariff and geopolitical environment and the
decline experienced in Foundry end markets over the last 18 months,
we are now targeting to achieve our mid-term Return on Sales target
of at least 12.5% by 2028 and to deliver our cumulative £400m free
cash flow target by 2027. This will be partially dependent on a
return to normal conditions in our end-markets and will be
supported by an extension of our cost reduction programme which we
are increasing from £30m to £45m by 2028.
Operational Review
Vesuvius comprises two Divisions,
Steel and Foundry. The Steel Division operates as three business
lines, Flow Control, Advanced Refractories and Sensors &
Probes. Changes described are versus 2023 on an underlying basis,
excluding the impact of FX, unless otherwise noted. There were no
acquisitions or disposals in 2024 and hence no adjustments were
required.
Steel
Division
|
Steel Division
|
|
2024 (£m)
|
2023 (£m)
|
Underlying change
|
Change
|
|
Flow Control Revenue
|
|
769.0
|
793.0
|
1.3%
|
(3.0%)
|
|
Advanced Refractories
Revenue
|
|
535.6
|
567.9
|
(2.6%)
|
(5.7%)
|
|
Steel Sensors & Probes
Revenue
|
|
39.2
|
39.1
|
7.0%
|
0.4%
|
|
Total Steel Revenue
|
|
1,343.8
|
1,400.0
|
(0.1%)
|
(4.0%)
|
|
Total Steel Trading
Profit
|
|
153.0
|
147.6
|
9.9%
|
3.7%
|
|
Total Steel Return on
Sales
|
|
11.4%
|
10.5%
|
+110bps
|
+90bps
|
Our Steel Division reported
revenues of £1,343.8m in 2024, flat on an underlying basis (-0.1%)
and a decrease of 4.0% on a reported basis, reflecting currency
headwinds. The flat performance reflects an increase in revenue of
1.3% in Flow Control offset by a 2.6% reduction in Advanced
Refractories. Revenue from Sensors and Probes grew 7% due to market
share gains. The impact of the underlying steel market performance
was negative given our mix of business, as a result of our strong
position in the North America market where Steel production
declined during the year, which we partially offset by market share
gains.
Steel Division trading profit grew
by 9.9% on an underlying basis to £153.0m. The profit impact from
volume declines was greater than usual reflecting some plant
underutilisation in recently expanded sites. The impact of
these negative volumes was offset by a combination of modestly
positive net pricing and accelerated cost savings, both as part of
our group-wide cost-saving programme, and additional one-off
benefits. The rise in trading profit on broadly flat revenue has
resulted in the divisional return on sales reaching 11.4%, an
increase of 110bps.
Flow Control
|
Flow Control Revenue
|
|
2024 (£m)
|
2023 (£m)
|
Underlying change
|
Change
|
|
Americas
|
|
297.8
|
317.8
|
(1.1%)
|
(6.3%)
|
|
Europe, Middle East & Africa
(EMEA)
|
|
241.3
|
252.7
|
(1.2%)
|
(4.5%)
|
|
Asia-Pacific
|
|
230.0
|
222.4
|
7.8%
|
3.4%
|
|
Total Flow Control
Revenue
|
|
769.0
|
793.0
|
1.3%
|
(3.0%)
|
In 2024, revenue in the Group's
Flow Control business increased by 1.3% on an underlying basis to
£769.0m (a decline of 3.0% on a reported basis after FX headwinds).
This performance was driven by positive pricing and overall market
share gains, partially offset by market-driven volume
declines.
In the Americas, overall
underlying revenue declined 1.1%, made up of a small
out-performance of the market in North America (volumes reducing 3%
against a market decline of 4%) but with modestly positive pricing
and a slight decline in South America with sales volumes declining
moderately while steel production volumes were broadly flat, in
part due to a significant destocking effect at our Argentinian
customers. Pricing in South America reduced
slightly.
In EMEA, revenue declined 1.2%
compared to 2023. In EEMEA (excluding Iran, Russia and Ukraine)
where steel production grew c. 4%, we gained market share with
volume growth significantly ahead of the market. This was offset by
moderate volume declines in the EU+UK, slightly behind a flat
market, due to a voluntary reduction of our sales to some customers
at risk of insolvency. Pricing over the region was broadly
flat.
In Asia Pacific, revenue grew
7.8%, driven by double-digit sales volume growth in India, well
ahead of market volume growth and high-single-digit growth in China
despite the steel market contracting in this region.
Advanced Refractories
|
Advanced Refractories
Revenue
|
|
2024
(£m)
|
2023
(£m)
|
Underlying change
|
Change
|
|
Americas
|
|
188.2
|
212.1
|
(7.6%)
|
(11.2%)
|
|
Europe, Middle East & Africa
(EMEA)
|
|
167.6
|
191.5
|
(10.9%)
|
(12.5%)
|
|
Asia-Pacific
|
|
179.7
|
164.3
|
13.9%
|
9.4%
|
|
Total Advanced Refractories
Revenue
|
|
535.6
|
567.9
|
(2.6%)
|
(5.7%)
|
Advanced Refractories reported
revenue of £535.6m in 2024, a decrease of 2.6%. This was broadly
evenly split between pricing declines (partly reflecting input cost
decreases) and some volume decline. Sales volume decline was higher
than the underlying steel market in both the Americas and the EU+UK
region of EMEA, due to market share losses at customers where we
had historically given priority to pricing. Market share in these
areas has now stabilised. In Asia Pacific, revenue grew 13.9%
driven by very significant double-digit volume increases in India
and China, materially ahead of the market, reflecting both demand
for our high-quality products and the benefit of new capacity
coming on stream in these regions.
Sensors & Probes
|
Steel Sensors & Probes
Revenue
|
|
2024
(£m)
|
2023
(£m)
|
Underlying change
|
Change
|
|
Americas
|
|
28.3
|
28.2
|
8.4%
|
0.2%
|
|
Europe, Middle East & Africa
(EMEA)
|
|
10.5
|
10.2
|
5.8%
|
3.2%
|
|
Asia-Pacific
|
|
0.4
|
0.6
|
(32.2%)
|
(34.8%)
|
|
Total Steel Sensors & Probes
Revenue
|
|
39.2
|
39.1
|
7.0%
|
0.4%
|
Revenue in Sensors & Probes
was £39.2m in 2024, up 7% year-on-year on an underlying basis.
Growth has been driven mainly by robust market demand in South
America during the first half of the year, increased sales of new
high-value products, and by winning new customers in
EEMEA.
Foundry Division
|
Foundry Revenue
|
|
2024
(£m)
|
2023
(£m)
|
Underlying change
|
Change
|
|
Americas
|
|
119.3
|
136.4
|
(7.8%)
|
(12.6%)
|
|
Europe, Middle East & Africa
(EMEA)
|
|
183.6
|
215.1
|
(12.7%)
|
(14.6%)
|
|
Asia-Pacific
|
|
173.4
|
178.3
|
2.7%
|
(2.7%)
|
|
Total Foundry Revenue
|
|
476.3
|
529.8
|
(6.3%)
|
(10.1%)
|
|
Total Foundry Trading
Profit
|
|
35.0
|
52.8
|
(28.9%)
|
(33.6%)
|
|
Total Foundry Return on
Sales
|
|
7.4%
|
10.0%
|
-230bps
|
-260bps
|
Our Foundry Division experienced a
difficult trading environment, with reported revenues of £476.3m in
2024, an underlying decrease of 6.3%, reflecting contracting
revenues in EMEA (-12.7%) and the Americas (-7.8%), which we
partially offset by growth in Asia-Pacific (+2.7%) including India
(+12%) and China (+6%). The underlying fall in revenue was largely
due to c. 10% market volume declines - partially offset by c. 5%
revenue growth from market share gains - and modestly negative
sales price. The market contraction described was driven by
double-digit declines in our markets in EU+UK and North Asia and a
high-single-digit market decline in North America. Against this
backdrop, India continued its strong and sustained growth trend.
Market share gains were largest in EMEA, India and China, with the
latter being supported by our new capacity in the region. Foundry
markets have now stabilised at the level of H2 2024.
Trading profit and return on sales
contracted 28.9% and 230bps respective, both on an underlying
basis, reflecting the negative impact of significant volume
declines, particularly in our traditionally most profitable
regions. This was partially offset by accelerated cost savings as
part of the group-wide plan to deliver £30m savings by
2026.
Financial Review
Basis of Preparation
All references in this financial
review are to headline performance unless stated otherwise. See
Note 16.1 to the Group Financial Statements for the definition of
headline performance.
We also report key metrics on an
underlying basis, where we adjust to ensure appropriate
comparability between periods, irrespective of currency
fluctuations and any business acquisitions and
disposals.
This is done by:
·
Restating the previous period's results at the
same foreign exchange (FX) rates used in the current
period
·
Removing the results of disposed businesses in
both the current and prior years
·
Removing the results of acquired businesses in
both the current and prior years
Therefore, for 2024, we
have:
·
Retranslated 2023 results at the FX rates used in
calculating the 2024 results
·
No adjustments have been required for
acquisitions or disposals
2024 performance overview
Income statement
|
£m
Revenue
|
2024
|
|
2023
|
|
%
change
|
|
Reported
|
|
Reported
|
Currency
|
Underlying
|
|
Underlying
|
Reported
|
|
Steel
|
1,343.8
|
|
1,400.0
|
(54.7)
|
1,345.2
|
|
(0.1%)
|
(4.0%)
|
|
Foundry
|
476.3
|
|
529.8
|
(21.3)
|
508.5
|
|
(6.3%)
|
(10.1%)
|
|
Total Group
|
1,820.1
|
|
1,929.8
|
(76.0)
|
1,853.7
|
|
(1.8%)
|
(5.7%)
|
|
Trading profit
|
|
|
|
|
|
|
|
|
|
Steel
|
153.0
|
|
147.6
|
(8.4)
|
139.2
|
|
9.9%
|
3.7%
|
|
Foundry
|
35.0
|
|
52.8
|
(3.5)
|
49.3
|
|
(28.9%)
|
(33.6%)
|
|
Total Group
|
188.0
|
|
200.4
|
(11.9)
|
188.4
|
|
(0.2%)
|
(6.2%)
|
|
Return on sales
|
|
|
|
|
|
|
|
|
|
Steel
|
11.4%
|
|
10.5%
|
|
10.3%
|
|
+110bps
|
+90bps
|
|
Foundry
|
7.4%
|
|
10.0%
|
|
9.7%
|
|
-230bps
|
-260bps
|
|
Total Group
|
10.3%
|
|
10.4%
|
|
10.2%
|
|
+10bps
|
-10bps
|
2024 was a stable year in terms of
underlying trading profit and return on sales overall, despite
depressed underlying markets in Foundry in particular, and we have
continued to generate good free cashflow. This has enabled the
Board to recommend an attractive final dividend to our shareholders
and commence a second share buy-back, while maintaining investment
in strategic areas.
Revenue for the year decreased by
5.7%, of which 3.9% related to FX headwinds and 1.8% underlying
performance. Underlying revenue performance was driven by a decline
in volume of1.6% and a reduction in pricing of 0.2%. On a reported
basis, the Steel and Foundry Division revenue decreased by 4.0% and
10.1%, respectively, in the year.
We achieved a trading profit of
£188.0m, down 6.2% on a reported basis of which 0.2% was underlying
performance and 6.0% related to FX headwinds. Within the underlying
profit changes, there was a £15.1m decline due to the drop-through
from volume declines, and a £2.0m decline from net pricing. In
addition, there was a further contribution from our ongoing
cost-saving programme of £13m plus a £6.0m benefit relating to
lower management incentives based on FY24 financial performance,
and a net -£2.4m relating to other one-off items. Return on sales
of 10.3% was up 10bps on an underlying basis.
The net impact of average 2024
exchange rates compared to 2023 averages has been a headwind of
£11.9m at a trading profit level, in particular, due to the
depreciation of the Brazilian Real, the US Dollar and the Indian
Rupee versus Sterling. Translated at FX rates on 27 February 2025,
2024 revenue would have been c. £1799.9m and trading profit would
be c. £185.2m, giving currency headwinds of £20m and £2.8m,
respectively.
Investment in R&D is central
to our strategy of delivering market-leading product technology and
services to customers. In 2024 we spent £36.9m on R&D
activities (2023: £37.4m), which represents 2.0% of our revenue
(2023: 2.0%, on a constant currency basis) and a small increase in
expenditure on a constant currency basis.
Net Interest cost for FY24
increased to £16.2m (2023: £11.6m), principally related to a
reduction in finance income from £16.6m to £10.9m due to a
reduction in deposits held in Argentina that were accruing a high
interest rate. This reduction in deposits arose following the
successful repatriation of surplus cash which would have otherwise
devalued relative to Sterling.
Profit from joint ventures and
associates was broadly flat year on year at £1.1m (2023:
£0.9m).
Separately reported items of
£34.3m were recognised in FY24 compared to £10.3m in FY23. £10.0m
relates to amortisation of acquired intangible assets, which is
consistently excluded from our adjusted profit measure (FY23:
£10.3m). In addition, one-off costs of £14.6m were incurred
relating to our cost saving programme, and in addition a provision
for site remediation works was increased by £9.7m, reflecting a
reassessment of the duration of the related liability. Due to the
one-off nature of both these charges, they are shown as separately
reported.
Headline profit before tax ("PBT")
was £172.9m, down 8.9% versus last year (£189.7m) on a reported
basis. Including separately reported items, PBT of £138.6m was
22.7% lower than last year.
A key measure of tax performance
is the Headline Effective Tax Rate ("ETR"), which is calculated on
the income tax associated with headline performance, divided by the
headline profit before tax and before the Group's share of post-tax
profit of joint ventures. The Group's headline ETR, based on the
income tax costs associated with headline performance of £47.2m
(2023: £51.9m), was 27.5% (2023: 27.5%).
The Group's total income tax costs
for the period include a credit within separately reported items of
£8.9m (2023: £3.1m) which primarily relates to deferred tax on
intangible assets and restructuring costs.
A tax charge reflected in the
Group Statement of Comprehensive Income in the year amounted to
£0.8m (2023: £2.0m charge) which primarily relates to tax on net
actuarial gains and losses on pensions.
We expect the Group's effective
tax rate in 2025 on headline profit before tax and before the share
of post-tax profits from joint ventures to be in line with that in
2024, dependent on profit mix and any one-off items.
Non-controlling interests
principally comprise the minority holdings in Indian subsidiaries
for the Steel and Foundry businesses. This increased to £13.1m in
2024 (2023: £12.1m) reflecting the ongoing strong growth in profit
in those subsidiaries.
Headline EPS from continuing
operations at 43.3p was 7.2% lower on an underlying basis than 2023
(46.7p), reflecting both the lower earnings and the higher level of
non-controlling interests, partially offset by a reduction in
average shares in issue from 269.1m to 260.0m (basic), reflecting
both the two share buyback programmes undertaken in 2024, and the
purchase of shares into the ESOP. Statutory EPS of 33.5p is 23.8%
lower than the prior year (2023: 44.0p) reflecting the factors just
described and higher separately reported costs.
Dividend
The Board has recommended a final
dividend of 16.4 pence per share to be paid, subject to shareholder
approval, on 6 June 2025 to shareholders on the register at 25
April 2025. When added to the 2024 interim dividend of 7.1
pence per share paid on 13 September 2024, this represents a
full-year dividend of 23.5 pence per share. The last date for
receipt of elections from shareholders for the Vesuvius Dividend
Reinvestment Plan will be 15 May 2025.
Cost saving programme
At the start of 2024 we initiated
an efficiency programme to realise recurring savings of £30m per
annum by 2026, of which £13m has been delivered in 2024,
significantly ahead of schedule as we accelerated our savings in
response to the difficult trading environment. We expect to deliver
further cost savings of £12 - 14m in 2025. The programme costs are
expected to be c. £40m, including capex and operating expense, of
which c. £14.6m of operating expense has been incurred in 2024 with
a further £7-10m expected in 2025. As set out above, these
restructuring costs are excluded from underlying performance,
allowing for a clear measure of our operating
performance.
Cash-flow and balance sheet
Our cash management performance
was solid, achieving an 69% cash conversion (2023: 93%), reflecting
broadly flat trade working capital and continued investment in
strategic capacity expansion.
We measure working capital both in
terms of actual cash flow movements, and as a percentage of sales
revenue. Trade working capital as a percentage of sales in 2024
improved to 22.9% (2023: 23.4%), measured on a 12-month moving
average basis. The improvement was principally due to a reduction
in debtor days on a 12 -month average basis by 1.3 days, an
increase in creditor days by 1.9 days and flat inventory
days.
Free cash flow from continuing
operations was £60.8m in 2024 (2023: £128.2m).
Capital
expenditure
Capital expenditure in 2024 was
£100.8m in cash outflow (2023: £92.6m) and £116.1m including
capitalised leases (2023: £125.3m) of which £92.2m was in the Steel
Division (2023: £93.2m) and £23.9m in the Foundry Division (2023:
£32.1m). Capital expenditure on revenue-generating customer
installation assets, almost entirely in Steel, was £11.0m (2023:
£8.4m) and we spent c. £39m in 2024 on growth capex, also
principally in Steel. Total cash capex in 2025 is expected to be c.
£80 -85m, reflecting a modest level of growth capex which is being
concluded in H1 2025. Capital expenditure will then revert to more
normalized levels.
Net debt
Net debt on 31 December 2024 was
£329.2m, a £91.7m increase compared to £237.5m on 31 December 2023,
due to free cash flow of £60.8m offset principally by dividends of
£61.1m, share buybacks of £63.4m and purchases of shares for our
ESOP trust of £17.1m.
At the end of 2024, the net debt
to EBITDA ratio was 1.3x (2023: 0.9x) and EBITDA to interest was
18.4x (2023: 31.5x). These ratios are monitored regularly to ensure
that the Group has sufficient financing available to run the
business and fund future growth.
The Group's debt facilities have
two financial covenants: the ratios of net debt to EBITDA (maximum
3.25x limit) and EBITDA to interest (minimum 4x limit). Certain
adjustments are made to the net debt calculations for bank covenant
purposes, the most significant of which is to exclude the impact of
IFRS 16.
The Group had committed borrowing
facilities of £669.6m as of 31st December 2024 (2023: £685.8m), of
which £202.5m was undrawn (2023: £333.4m).
Return on invested capital
(ROIC)
Our ROIC for 2024 was 8.4% (2023:
8.9%). Excluding goodwill on our balance sheet from the acquisition
of Foseco in 2008, ROIC for 2024 would be 14.3%. ROIC is our key
measure of return from the Group's invested capital, calculated as
trading profit less amortisation of acquired intangibles plus share
of post-tax profit of joint ventures and associates for the
previous 12 months after tax, divided by the average (being the
average of the opening and closing balance sheet) invested capital
(defined as: total assets excluding cash plus non-interest-bearing
liabilities), at the average foreign exchange rate for the
year).
Pensions
The Group has a limited number of
historical defined benefit plans located mainly in the UK, USA,
Germany and Belgium. The main plans in the UK and USA are closed to
further benefits accrual. All of the liabilities in the UK were
insured following a buy-in agreement with Pension Insurance
Corporation plc ("PIC") in 2021. This buy-in agreement secured an
insurance asset from PIC that matches the remaining pension
liabilities of the UK Plan, with the result that the Company no
longer bears any investment, longevity, interest rate or inflation
risks in respect of the UK Plan.
The Group's net pension liability
at 31 December 2024 was £37.4m (2023: £46.3m
liability).
Technical guidance for
2025
Depreciation in 2025 is expected
to be in the range £65m - £70m and the net finance charge is
expected to be c. £18 - 20m.
Financial Risk
Factors
The Group's approach to risk
management, including the mitigations in place for our principal
risks, is detailed below. We consider the main financial risk
faced by the Group to be a material business interruption incident
leading to reduced revenue and profit. We also manage broad
financial risks such as cost inflation, bank financing and capital
market activity and to a lesser extent foreign exchange and
interest rate movements (see Note 25 to the Group Financial
Statements). We mitigate liquidity risk by financing using
both the bank and private placement debt markets and we mitigate
refinancing risk by seeking to avoid a concentration of debt
maturities in any one calendar year.
Principal Risks and Uncertainties
The Board exercises oversight of
the Group's Principal Risks and reviews the way in which the Group
manages those risks. The Board takes overall responsibility for
establishing and maintaining a system of risk management and
internal control and for reviewing its effectiveness.
The Board reviewed the Principal
Risks and Uncertainties facing the Group during 2024 and considers
that they remain unchanged compared with those published in the
Annual Report for the year ended 31 December 2023. The
Principal Risks which could have a material impact on the Group's
performance are as follows:
-
End market risk
-
Protectionism and globalization
-
Product quality failure
-
Complex and changing regulatory environment
-
Failure to secure innovation
-
Business interruption
-
People, culture and performance
-
Health and safety
-
Environmental, Social and Governance criteria
Risk
update
Whilst there are no changes to the
Principal Risks and Uncertainties facing the Group, the level
geopolitical risk remains elevated, our end markets have been
challenging, and global trade dynamics are in flux. In addition,
workforce demographics are changing and the potential threat from
cyber security attacks continues to evolve. Each of these risks has
the potential to impact the Principal Risks facing the Group;
specifically End market risk; Protectionism and globalisation;
Complex and changing regulatory environment; People, culture and
performance; and the risk of Business interruption.
Further information on these
Principal Risks and the way in which the Group manages them are
detailed in the 2024 Annual Report.
6 March
2025
|
Group Income Statement
For the year ended 31 December
2024
|
|
|
2024
|
|
|
2023
|
|
|
|
|
(1)
Headline
performance
|
(1)
Separately
reported items
|
Total
|
|
|
(1)
Headline performance
|
(1)
Separately reported items
|
Total
|
|
|
Notes
|
|
£m
|
£m
|
£m
|
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
2
|
|
1,820.1
|
-
|
1,820.1
|
|
|
1,929.8
|
-
|
1,929.8
|
|
|
Manufacturing costs
|
|
|
(1,316.4)
|
-
|
(1,316.4)
|
|
|
(1,391.9)
|
-
|
(1,391.9)
|
|
|
Administration, selling and distribution costs
|
|
|
(315.7)
|
-
|
(315.7)
|
|
|
(337.5)
|
-
|
(337.5)
|
|
|
Trading
profit(2)
|
2
|
|
188.0
|
-
|
188.0
|
|
|
200.4
|
-
|
200.4
|
|
|
Cost
reduction programme expenses
|
3
|
|
-
|
(14.6)
|
(14.6)
|
|
|
-
|
-
|
-
|
|
|
Provision
for future water treatment at disused mine
|
3
|
|
-
|
(9.7)
|
(9.7)
|
|
|
-
|
-
|
-
|
|
|
Amortisation of acquired intangible assets
|
2
|
|
-
|
(10.0)
|
(10.0)
|
|
|
-
|
(10.3)
|
(10.3)
|
|
|
Operating
profit/(loss)
|
|
|
188.0
|
(34.3)
|
153.7
|
|
|
200.4
|
(10.3)
|
190.1
|
|
|
Finance
expense
|
|
|
(27.1)
|
-
|
(27.1)
|
|
|
(28.2)
|
-
|
(28.2)
|
|
|
Finance
income
|
|
|
10.9
|
-
|
10.9
|
|
|
16.6
|
-
|
16.6
|
|
|
Net
finance costs
|
4
|
|
(16.2)
|
-
|
(16.2)
|
|
|
(11.6)
|
-
|
(11.6)
|
|
|
Share of
post-tax income of joint ventures and associates
|
|
|
1.1
|
-
|
1.1
|
|
|
0.9
|
-
|
0.9
|
|
|
Profit/(loss) before
tax
|
|
|
172.9
|
(34.3)
|
138.6
|
|
|
189.7
|
(10.3)
|
179.4
|
|
|
Income
tax (charge)/credits
|
5
|
|
(47.2)
|
8.9
|
(38.3)
|
|
|
(51.9)
|
3.1
|
(48.8)
|
|
|
Profit/(loss) after
tax
|
|
|
125.7
|
(25.4)
|
100.3
|
|
|
137.8
|
(7.2)
|
130.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of
the parent
|
|
|
112.6
|
(25.4)
|
87.2
|
|
|
125.7
|
(7.2)
|
118.5
|
|
|
Non-controlling interests
|
|
|
13.1
|
-
|
13.1
|
|
|
12.1
|
-
|
12.1
|
|
|
Profit/(loss)
|
|
|
125.7
|
(25.4)
|
100.3
|
|
|
137.8
|
(7.2)
|
130.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share(3)
-
pence
|
6
|
|
|
|
|
|
|
|
|
|
|
Continuing and total operations - basic
|
|
|
43.3(1)
|
|
33.5
|
|
|
46.7
(1)
|
|
44.0
|
|
- diluted
|
|
|
42.7(1)
|
|
33.1
|
|
|
46.2
(1)
|
|
43.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Headline performance and
separately reported items are non-GAAP measures. Headline
performance is defined in Note 16.1 and separately reported items
are defined in Note 1.5.
(2)
Trading profit is a non-GAAP
measure and is defined in Note 16.4.
(3)
Earnings per
share are attributable to the ordinary equity holders of the
parent.
The above
results were derived from continuing operations.
Manufacturing costs are costs of goods
sold. The pre-tax separately reported
items would form part of Administration, selling & distribution
costs if classified within headline performance, which including
these amounts would total £350.0m
(2023: £347.8m
Notes to the Group Financial
Statements
1
Basis of preparation
1.1 Basis of
preparation
The financial information in this
preliminary announcement has been extracted from the audited Group
Financial Statements for the year ended 31 December 2024 and does
not constitute statutory accounts within the meaning of section 434
of the Companies Act 2006. The Group Financial Statements and this
preliminary announcement were approved by the Board of Directors on
March 2025.
The auditors have reported on the
Group Financial Statements for the years ended 31 December 2023 and
31 December 2022 under section 495 of the Companies Act 2006. The
auditors' reports are unqualified and do not contain a statement
under section 498(2) or (3) of the Companies Act 2006. The Group's
statutory financial statements for the year ended 31 December 2023
have been filed with the Registrar of Companies and those for the
year ended 31 December 2024 will be filed following the Company's
Annual General Meeting.
The Group financial statements
have been prepared in accordance with UK-adopted international
accounting standards (IFRS) and with the requirements of the
Companies Act 2006 as applicable to companies reporting under those
standards. The financial statements have been prepared under the
historical cost convention, with the exception of fair value
measurement applied to defined benefit pension plans,
investments, share based payments
and derivative financial
instruments.
The same accounting policies,
presentation and computation methods are followed in this
preliminary announcement as in the preparation of the Group
Financial Statements. The accounting policies have been applied
consistently by the Group.
1.2 Basis of
consolidation
The Group Financial Statements
incorporate the financial statements of the Company and entities
controlled by the Company (its 'subsidiaries'). Control exists when
the Company has the power to direct the relevant activities of an
entity that significantly affect the entity's return so as to have
rights to the variable return from its activities. In assessing
whether control exists, potential voting rights that are currently
exercisable are taken into account. The results of subsidiaries
acquired or disposed of during the year are included in the Group
Income Statement from the effective date of acquisition or up to
the effective date of disposal, as appropriate.
The principal accounting policies
applied in the preparation of these Group Financial Statements are
set out in the Notes. These policies have been consistently applied
to all of the years presented, unless otherwise stated. Where
necessary, adjustments are made to the financial statements of
subsidiaries to bring their accounting policies into line with
those detailed herein to ensure that the Group Financial Statements
are prepared on a consistent basis. All intra-Group transactions,
balances, income and expenses are eliminated on
consolidation.
Non-controlling interests in the
net assets of consolidated subsidiaries are identified separately
from the Group's interest therein. Non-controlling interests
consist of the amount of those interests at the date of the
original business combination together with the non-controlling
interests' share of profit or loss and each component of other
comprehensive income, and dividends since the date of the
combination. Total comprehensive income is attributed to the
non-controlling interests even if this results in the
non-controlling interests having a deficit balance.
1.3
Going concern
The Group's available liquidity
stood at £389m at year-end 2024, down from £488m at year-end 2023.
The Directors have prepared cash flow forecasts for the Group for
the period to 30 June 2026. These forecasts reflect an assessment
of current and future end-market conditions, which are expected to
be challenging in 2025 (as set out in the "outlook" statement in
the Chief Executive's Strategic Review in this document), and their
impact on the Group's future trading performance.
The Directors have also considered
a severe but plausible downside scenario, based on an assumed
volume decline and loss of profitability over the period. This
downside scenario assumes:
· a decline in business activity level
in 2025 and 2026 by 3% compared to 2024 performance,
· a
decline in profitability (Return on Sales) of 2.1% compared to 2024
performance,
· working capital as a percentage of sales deteriorating by
1.0% compared to 2024.
On a full-year basis relative to
2024, this implies a c.23% decline in Trading Profit.
The Group has two covenants; net
debt / EBITDA (under 3.25x) and an interest cover requirement of at
least 4.0x. In this downside scenario, the forecasts show that the
Group's maximum net debt / EBITDA (pre-IFRS 16 in-line with the
covenant calculation) does not exceed 1.9x, compared to a leverage
covenant of 3.25x, and the minimum interest cover reached is 17x
compared to a covenant minimum of 4.0x.
The
forecasts show that the Group will be able to operate within its
current committed debt facilities and show continued compliance
with the Group's financial covenants. On the basis of the exercise
described above and the Group's available committed debt
facilities, the Directors consider that the Group and the Company
have adequate resources to continue in operational existence for a
period of at least 12 months from the date of signing of these
financial statements and that there is no material uncertainty in
respect of going concern. On 21 February 2025 the Group obtained a
new committed syndicated bank facility of £475m reaching maturity
in August 2029, replacing the previous one in place (see note
15) with the same covenants. This is
considered to be a non-adjusting event after balance sheet
date. Accordingly, they
continue to adopt a going concern basis in preparing the financial
statements of the Group and the Company.
1.4 Presentational currency
The financial statements are
presented in millions of pounds sterling, which is the
presentational currency of the Group and the Company and rounded to
one decimal place. Foreign operations are included in accordance
with the policies set out in Note 15.
1.5 Disclosure of "separately
reported items"
Columnar presentation
The Group has adopted a columnar
presentation for its Group Income Statement, to separately identify
headline performance results, as the Directors consider that this
gives a useful view of the core results of the ongoing business. As
part of this presentation format, the Group has adopted a policy of
disclosing separately on the face of its Group Income Statement,
within the column entitled 'Separately reported items', the effect
of any components of financial performance for which the Directors
consider separate disclosure would assist users both in a useful
understanding of the financial performance achieved for a given
year and in making projections of future results.
1.6 Disclosure of "separately
reported items" (continued)
Separately reported items
Both materiality and the nature of
the components of income and expense are considered in deciding
upon such presentation.
Such items may include, inter alia,
the financial effect of exceptional items which occur infrequently,
such as major restructuring
activity, cost reduction programme
expenses, and items reported separately for consistency, such as
amortisation charges
relating to acquired intangible
assets, profits or losses arising on the disposal of continuing or
discontinued operations and the
taxation impact of the
aforementioned items reported separately.
The amortisation charge in respect
of intangible assets recognised on business combinations is
excluded from the trading results
of the Group since they are
non-cash charges and are not considered reflective of the core
trading performance of the Group. As headline results include the
benefits of major acquisitions but exclude this amortisation
charge, they should not be regarded as a complete picture of the
Group's financial performance, which is presented in its total
results.
In its adoption of this policy, the
Company applies an even-handed approach to both gains and losses
and aims to be both consistent and clear in its accounting and
disclosure of such items. The exclusion of other separately
reported items may result in headline earnings being materially
higher or lower than total earnings.
2
Segment information
Operating segments for
continuing operations
The Group's operating segments are
determined taking into consideration how the Group's components are
reported to the Group's Chief Executive Officer,
who make the key operating decisions and are
responsible for allocating resources and assessing performance of
the component. Taking into account the Group's management and
internal reporting structure, the operating segments are Steel Flow
Control, Steel Advanced Refractories, Steel Sensors & Probes and Foundry
division. The principal activities of each of these segments are
described in the Operational Review.
Steel Flow Control, Steel Advanced
Refractories and Steel Sensors &
Probes operating segments are aggregated
into the Steel reportable segment. In determining that aggregation
is appropriate, judgement is applied which takes into account the
economic characteristics of these operating segments which include
a similar nature of products, customers, production processes and
margins.
Revenue from contracts with
customers
Revenue comprises the fair value
of the consideration received or receivable for goods supplied and
services rendered to customers after deducting rebates, discounts
and value-added taxes, and after eliminating sales within the
Group. Revenue from contracts with customers is recognised when
control of the goods or services are transferred to the customer,
upon the completion of specified performance obligations, at an
amount that reflects the considerations to which the Group expects
to be entitled to in exchange for these consumable products and
associated services.
Segmental analysis
|
|
|
2024
|
|
|
|
Flow
Control
|
Advanced
Refractories
|
Sensors
&
Probes
|
Steel
|
Foundry
|
Total
|
|
|
|
|
|
|
£m
|
£m
|
£m
|
|
Segment
revenue
|
|
769.0
|
535.6
|
39.2
|
1,343.8
|
476.3
|
1,820.1
|
|
at a point in
time
|
|
|
|
|
1,339.9
|
476.3
|
1,816.2
|
|
Over
time
|
|
|
|
|
3.9
|
-
|
3.9
|
|
|
|
|
|
|
|
|
|
|
Segment
adjusted EBITDA *
|
|
|
|
|
197.2
|
53.0
|
250.2
|
|
Segment
depreciation and amortisation
|
|
|
|
|
(44.2)
|
(18.0)
|
(62.2)
|
|
Segment trading
profit
|
|
|
|
|
153.0
|
35.0
|
188.0
|
|
Return on sales
margin
|
|
|
|
|
11.4%
|
7.4%
|
10.3%
|
|
|
|
|
|
|
|
|
|
|
Cost
reduction programme expenses
|
|
|
|
|
(5.8)
|
(8.8)
|
(14.6)
|
|
Provision
for future water treatment at disused mine
|
|
|
|
|
|
|
(9.7)
|
|
Amortisation of acquired intangible assets
|
|
|
|
|
|
|
(10.0)
|
|
Operating
profit
|
|
|
|
|
|
|
153.7
|
|
Net
finance costs
|
|
|
|
|
|
|
(16.2)
|
|
Share of
post-tax profit of joint ventures
|
|
|
|
|
|
|
1.1
|
|
Profit before
tax
|
|
|
|
|
|
|
138.6
|
|
Capital
expenditure additions
|
|
|
|
|
92.2
|
23.9
|
116.1
|
|
Inventory
|
|
|
|
|
241.7
|
53.7
|
295.4
|
|
Trade
debtors
|
|
|
|
|
259.7
|
82.0
|
341.7
|
|
Trade
payables
|
|
|
|
|
(180.1)
|
(61.6)
|
(241.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
|
|
Flow
Control
|
Advanced
Refractories
|
Sensors
&
Probes
|
Steel
|
Foundry
|
Total
|
|
|
|
|
|
|
|
£m
|
£m
|
£m
|
|
|
Segment
revenue
|
|
793.0
|
567.9
|
39.1
|
1,400.0
|
529.8
|
1,929.8
|
|
|
at a point in
time
|
|
|
|
|
1,396.6
|
529.8
|
1,926.4
|
|
|
Over
time
|
|
|
|
|
3.4
|
-
|
3.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
adjusted EBITDA *
|
|
|
|
|
187.9
|
70.3
|
258.2
|
|
|
Segment
depreciation and amortisation
|
|
|
|
|
(40.3)
|
(17.5)
|
(57.8)
|
|
|
Segment trading
profit
|
|
|
|
|
147.6
|
52.8
|
200.4
|
|
|
Return on sales
margin
|
|
|
|
|
10.5%
|
10.0%
|
10.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortisation of acquired intangible assets
|
|
|
|
|
|
|
(10.3)
|
|
|
Operating
profit
|
|
|
|
|
|
|
190.1
|
|
|
Net
finance costs
|
|
|
|
|
|
|
(11.6)
|
|
|
Share of
post-tax profit of joint ventures
|
|
|
|
|
|
|
0.9
|
|
|
Profit before
tax
|
|
|
|
|
|
|
179.4
|
|
|
Capital
expenditure additions
|
|
|
|
|
93.2
|
32.1
|
125.3
|
|
|
Inventory
|
|
|
|
|
239.5
|
51.5
|
291.0
|
|
|
Trade
debtors
|
|
|
|
|
267.6
|
89.3
|
356.9
|
|
|
Trade
payables
|
|
|
|
|
(177.7)
|
(58.7)
|
(236.4)
|
|
|
|
|
|
|
|
|
|
|
|
* Adjusted EBITDA is defined in
note 16.13
3
Separately reported items
Cost reduction programme expenses
In November 2023 the Group
initiated an efficiency programme with the aim of realising
recurring cash cost savings of £30m per
annum by 2026. The programme
covers all of the Group's activities worldwide and focuses on
operational improvement, lean
initiatives, automation and
digitalisation as well as further optimisation of the manufacturing
footprint.
Cost reduction programme expenses
are excluded from underlying performance, allowing for a clear
measure of the Group's
operating performance. They are
shown as a separately reported item outside of Trading Profit and
shown on the face of the
Income statement below Trading
Profit.
During 2024, cost reduction
programme expenses reported as separately reported items were
£14.6m (2023: £nil). The charges reflect redundancy costs £10.8m
(2023: £nil), plant closure costs £2.2m (2023: £nil), and non-cash
asset impairments £1.6m (2023: £nil). The net tax credit
attributable to these cost reduction programme expenses was £2.6m
(2023: £nil).
Provision for future water treatment at disused
mine
In 1999 the Group acquired Premier
Refractories which owned a disused clay mine in the United States.
In 2018, wastewater
containing pollutants was
discovered and in 2022 a water treatment facility was installed.
Reflecting the future expected
operating costs of 10 years, a
provision was established for £6.0m during the year-ended 2020. In
2024, the forecast annual
operating cost is £0.8m and the
remaining period for which water treatment will be required was
reassessed to be 20 years, resulting in an increase in the
provision and a charge to the income statement for £9.7m (2023:
nil). The charge has been reported as a separately reported item.
The net tax credit attributable to these cost in respect of disused
mine was £2.3m (2023: £nil).
4
Net finance costs
|
|
|
|
2024
|
|
2023
|
|
|
|
|
£m
|
|
£m
|
|
Interest payable on
borrowings
|
|
|
|
|
|
|
Loans,
overdrafts and factoring arrangements
|
|
|
19.3
|
|
20.1
|
|
Interest
on lease liabilities
|
|
|
3.0
|
|
2.4
|
|
Amortisation of capitalised borrowing costs
|
|
|
1.0
|
|
1.0
|
|
Total interest payable on
borrowings
|
|
|
23.3
|
|
23.5
|
|
Interest
on net retirement benefits obligations
|
|
|
1.6
|
|
2.3
|
|
Adjustments to discounts on provisions and other
liabilities
|
|
|
2.2
|
|
2.4
|
|
Adjustments to discounts on receivables
|
|
|
(1.2)
|
|
(1.3)
|
|
Financial
income
|
|
|
(9.7)
|
|
(15.3)
|
|
Total net finance
costs
|
|
|
16.2
|
|
11.6
|
Within the table above, total
finance costs are £27.1m (2023: £28.2m) and total finance income is
£10.9m (2023: £16.6m).
5
Income tax
The Group's headline effective tax
rate, based on the income tax costs associated with headline
performance of £47.2m (2023: £51.9m), was 27.5% (2023:
27.5%).
The Group's total income tax costs
include a credit on separately reported items of £8.9m (2023:
£3.1m), which primarily relates to the amortisation of acquired
intangible assets, cost reduction programme expenses and provision
for future water treatment at a disused mine.
The net tax charge reflected in
the Group Statement of Comprehensive Income in the year amounted to
£0.8m (2023: £2.0m), which primarily relates to tax on net
actuarial gains and losses on pensions.
6
Earnings per share ("EPS")
6.1 Earnings for EPS
Basic and diluted EPS from
continuing operations are based upon the profit attributable to
owners of the parent, as reported in the Group Income Statement.
The table below reconciles these different profit
measures.
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
£m
|
|
£m
|
|
Profit attributable to
owners of the parent
|
|
|
|
|
87.2
|
|
118.5
|
|
Adjustments for separately
reported items:
|
|
|
|
|
|
|
|
|
Cost
reduction programme expenses
|
|
|
|
|
14.6
|
|
-
|
|
Provision
for future water treatment at disused mine
|
|
|
|
|
9.7
|
|
-
|
|
Amortisation of acquired intangible assets
|
|
|
|
|
10.0
|
|
10.3
|
|
Income
tax (credit)/charge
|
|
|
|
|
(8.9)
|
|
(3.1)
|
|
Headline profit attributable
to owners of the parent
|
|
|
|
|
112.6
|
|
125.7
|
6.2 Weighted average
number of shares
|
|
|
|
2024
|
|
2023
|
|
|
|
|
millions
|
|
millions
|
|
For calculating basic and
headline EPS
|
|
|
260.0
|
|
269.1
|
|
Adjustment for potentially dilutive ordinary
shares
|
|
|
3.7
|
|
3.0
|
|
For calculating diluted and
diluted headline EPS
|
|
|
263.7
|
|
272.1
|
For the purposes of calculating
diluted and diluted headline EPS, the weighted average number of
ordinary shares is adjusted to include the weighted average number
of ordinary shares that would be issued on the conversion of all
potentially dilutive ordinary shares expected to vest, relating to
the Company's share-based payment plans. Potential ordinary shares
are only treated as dilutive when their conversion to ordinary
shares would decrease EPS or increase loss per share.
6.3 Per share amounts
|
|
|
|
|
|
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
pence
|
pence
|
|
Earnings per share - reported
basic
|
|
|
|
|
|
|
33.5
|
44.0
|
|
- reported diluted
|
|
|
|
|
|
|
33.1
|
43.6
|
|
|
|
|
|
|
|
|
|
|
|
- headline basic(1)
|
|
|
|
|
|
|
43.3
|
46.7
|
|
- headline diluted(1)
|
|
|
|
|
|
|
42.7
|
46.2
|
(1) For definition of headline
earnings per share, refer to Note 16.
7
Dividends
|
|
|
|
2024
|
|
2023
|
|
|
|
|
£m
|
|
£m
|
|
Amounts recognised as
dividends and paid to equity holders during the
period
|
|
|
|
|
|
|
Final
dividend for the year ended 31 December 2022 of 15.75p per ordinary
share
|
|
|
-
|
|
42.4
|
|
Interim
dividend for the year ended 31 December 2023 of 6.80p per ordinary
share
|
|
|
-
|
|
18.3
|
|
Final
dividend for the year ended 31 December 2023 of 16.20p per ordinary
share
|
|
|
42.7
|
|
-
|
|
Interim
dividend for the year ended 31 December 2024 of 7.10p per ordinary
share
|
|
|
18.4
|
|
-
|
|
|
|
|
61.1
|
|
60.7
|
In addition to the above
dividends, since year end the directors have recommended the
payment of a final dividend of 16.40 pence (2023: 16.20 pence) per
ordinary share (TDIM: VSVS and ISIN: GB00B82YXW83).
This is subject to approval by
shareholders at the Company's Annual General Meeting on 16 May
2025. If approved by shareholders, the aggregate amount of the
proposed dividend expected to be paid on 6 June 2025 out of
retained earnings at 31 December 2024, but not recognised as a
liability at year end, to holders of ordinary shares on the
register on 25 April 2025 is £40.0m (31 May 2024:
£42.7m).
The ordinary shares will be quoted
ex-dividend on 24 April 2025. Any shareholder wishing to
participate in the Vesuvius Dividend Reinvestment Plan needs to
have submitted their election to do so by 15 May 2025.
8
Reconciliation of movement in net debt
|
|
|
Balance as
at
1 Jan 2024
|
Foreign exchange
adjustments
|
Fair value
gains/
(losses)
|
Non-cash
movements(1)
|
Cash
flow(2)
|
Balance as at 31 Dec
2024
|
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
Cash at
bank and in hand
|
|
164.2
|
(5.1)
|
-
|
-
|
27.3
|
186.4
|
|
Bank
overdrafts
|
|
(3.4)
|
0.1
|
-
|
-
|
(4.5)
|
(7.8)
|
|
|
|
160.8
|
(5.0)
|
-
|
-
|
22.8
|
178.6
|
|
Borrowings, excluding bank
overdrafts
|
|
(400.6)
|
9.2
|
-
|
(18.2)
|
(103.6)
|
(513.2)
|
|
|
|
|
|
|
|
|
|
|
Capitalised arrangement fees
|
|
1.8
|
-
|
-
|
(1.0)
|
-
|
0.8
|
|
Derivative financial instruments
|
|
0.5
|
-
|
4.1
|
-
|
-
|
4.6
|
|
Net debt
|
|
(237.5)
|
4.2
|
4.1
|
(19.2)
|
(80.8)
|
(329.2)
|
(1) £15.2m (2023:
£31.2m) of new leases were entered into during the year.
(2) Borrowings,
excluding bank overdrafts include proceeds from borrowings,
repayment of borrowings and payment of lease
liabilities.
|
|
|
Balance as
at
1 Jan 2023
|
Foreign exchange
adjustments
|
Fair value
gains/
(losses)
|
Non-cash
movements
|
Cash
flow(2)
|
Balance as at 31 Dec
2023
|
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
Cash at
bank and in hand
|
|
184.2
|
(21.1)
|
-
|
-
|
1.1
|
164.2
|
|
Bank
overdrafts
|
|
(4.4)
|
0.1
|
-
|
-
|
0.9
|
(3.4)
|
|
|
|
179.8
|
(21.0)
|
-
|
-
|
2.0
|
160.8
|
|
Borrowings, excluding bank
overdrafts
|
|
(440.2)
|
11.9
|
-
|
(33.6)
|
61.3
|
(400.6)
|
|
|
|
|
|
|
|
|
|
|
Capitalised arrangement fees
|
|
2.7
|
-
|
-
|
(0.9)
|
-
|
1.8
|
|
Derivative financial instruments
|
|
2.7
|
-
|
(2.2)
|
-
|
-
|
0.5
|
|
Net debt
|
|
(255.0)
|
(9.1)
|
(2.2)
|
(34.5)
|
63.3
|
(237.5)
|
Net debt is a measure of the Group's net indebtedness to banks and
other external financial institutions and comprises the total of
cash and short-term deposits, current and non-current
interest-bearing borrowings, derivative financial instruments and
lease liabilities.
The Group routinely rolls over the
principal of borrowings drawn under the committed syndicated bank
facility. The procedure may be repeated, depending on liquidity
requirements of the Group, until maturity date of the credit
facility.
9
Cash generated from operations
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
2023
|
|
|
|
|
|
£m
|
£m
|
|
Operating
profit
|
|
|
|
153.7
|
190.1
|
|
Adjustments for:
|
|
|
|
|
|
|
Cost
reduction programme expenses
|
|
|
|
14.6
|
-
|
|
Provision
for future water treatment at disused mine
|
|
|
|
9.7
|
-
|
|
Amortisation of acquired intangible assets
|
|
|
|
10.0
|
10.3
|
|
Trading
Profit
|
|
|
|
188.0
|
200.4
|
|
|
|
|
|
|
|
|
Gain on
disposal of non-current assets
|
|
|
|
(2.2)
|
(2.5)
|
|
Depreciation and amortisation
|
|
|
|
62.2
|
57.8
|
|
Defined
benefit retirement plans net charge
|
|
|
|
5.0
|
5.2
|
|
Net
(increase)/decrease in inventories
|
|
|
|
(14.3)
|
9.9
|
|
Net
decrease in trade receivables
|
|
|
|
1.9
|
2.6
|
|
Net
increase in trade payables
|
|
|
|
11.8
|
8.3
|
|
Net
increase in other working capital
|
|
|
|
(16.6)
|
(0.5)
|
|
Outflow
related to restructuring charges
|
|
|
|
(1.0)
|
(0.8)
|
|
Defined
benefit retirement plans cash outflows
|
|
|
|
(9.4)
|
(7.4)
|
|
Cost
reduction programme cash outflows
|
|
|
|
(7.9)
|
-
|
|
Water
treatment at disused mine cash outflows
|
|
|
|
(0.8)
|
(1.0)
|
|
|
|
|
|
|
|
|
Cash generated from
operations
|
|
|
|
216.7
|
272.0
|
|
|
|
|
|
|
|
|
10
Employee benefits
The net employee benefits
liability as at 31 December 2023 was £37.4m (2023: £46.3m) derived
from an actuarial valuation of the Group's defined benefit pension
and other post-retirement obligations as at that date.
All the liabilities in the UK were
insured following a buy-in agreement with Pension Insurance
Corporation plc ("PIC") in 2021. This buy-in agreement secured an
insurance asset from PIC that matches the remaining pension
liabilities of the UK Plan, with the result that the Company no
longer bears any investment, longevity, interest rate or inflation
risks in respect of the UK Plan.
As disclosed in note 27 of the
2024 Annual Report and Financial Statements, the above amounts may
materially change in the next 12 months if there is a change in
assumptions.
|
|
|
|
2024
|
|
2023
|
|
|
|
|
£m
|
|
£m
|
|
Employee benefits -
net surpluses
|
|
|
|
|
|
|
UK defined benefit pension
plans
|
|
|
31.8
|
|
32.5
|
|
ROW defined benefit pension
plans
|
|
|
2.3
|
|
2.1
|
|
Net surpluses
|
|
|
34.1
|
|
34.6
|
|
|
|
|
|
|
|
|
Employee benefits -
net liabilities
|
|
|
|
|
|
|
UK defined benefit pension
plans
|
|
|
(1.0)
|
|
(1.1)
|
|
US defined benefit pension
plans
|
|
|
(12.1)
|
|
(18.2)
|
|
Germany defined benefit pension
plans
|
|
|
(38.1)
|
|
(41.3)
|
|
ROW defined benefit pension
plans
|
|
|
(11.0)
|
|
(10.4)
|
|
Other post-retirement long-term
benefit plans
|
|
|
(9.3)
|
|
(9.9)
|
|
Net liabilities
|
|
|
(71.5)
|
|
(80.9)
|
|
Total net liabilities
|
|
|
(37.4)
|
|
(46.3)
|
The expense recognised in the Group
Income Statement in respect of the Group's defined benefit
retirement plans and other post-retirement benefit plans is shown
below.
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
£m
|
|
£m
|
|
In
arriving at trading profit
(as
defined in Note 16.4)
|
- within
other manufacturing costs
|
|
|
1.1
|
|
1.3
|
|
- within
administration, selling and distribution costs
|
|
|
3.9
|
|
3.9
|
|
In
arriving at profit before tax
|
- within
net finance costs
|
|
|
1.6
|
|
2.3
|
|
Total net
charge
|
|
|
6.6
|
|
7.5
|
11
Contingent liabilities
Vesuvius has extensive international operations and is subject to
various legal and regulatory regimes, including those covering
taxation and environmental matters.
Certain of Vesuvius' subsidiaries are
subject to legacy matter lawsuits, predominantly in the US,
relating to a small number of products containing asbestos
manufactured prior to the acquisition of those subsidiaries by
Vesuvius. These suits usually also name many other product
manufacturers. To date, Vesuvius is not aware of there being any
liability verdicts against any of these subsidiaries. Each year a
number of these lawsuits are withdrawn, dismissed or settled. The
amount paid, including costs, in relation to this litigation has
not had a material adverse effect on Vesuvius' financial position
or results of operations.
As the settlement of many of the
obligations for which reserve is made is subject to legal or other
regulatory process, the timing and amount of the associated
outflows is subject to some uncertainty (see Note 32 of the 2024
Annual Report and Financial Statements for further information).
The amount paid, including costs in relation to this litigation,
has not had a material effect on Vesuvius' financial position or
results of operations in the current year.
12
Related parties
The nature of related party
transactions in 2024 are in line with those transactions disclosed
in Note 33 of the 2024 Annual Report and Financial Statements. All
transactions with related parties are conducted on an arm's length
basis and in accordance with normal business terms. Transactions
with joint ventures and associates are consistent with those
disclosed in Note 32 of the 2023 Annual Report and Financial
Statements. Transactions between related parties that are Group
subsidiaries are eliminated on consolidation.
|
|
2024
|
2023
|
|
Transactions with joint
ventures and associates
|
£m
|
£m
|
|
Sales to
joint ventures
|
4.2
|
4.3
|
|
Purchases
from joint ventures
|
27.1
|
30.1
|
|
Dividends
received
|
0.7
|
1.0
|
|
Trade
payables owed to joint ventures
|
8.1
|
10.3
|
|
Trade
receivables due from joint ventures
|
1.0
|
1.0
|
13
Acquisitions and divestments
The Group did not acquire any
material interests in any companies during the year ended 31
December 2024. There was no contingent consideration paid during
the year ended 31 December 2024.
On 15 November 2024 the Group
signed an agreement to acquire a 61.65% stake in PiroMET AS, a
Turkish business for €26.2m. Following the agreement reached in
November 2024, on 28 February 2025 we completed the acquisition of
a 61.65% shareholding in PiroMET, a Turkish refractory company, for
€26.2m. The acquisition will strengthen our Advanced Refractory
business in the fast-growing region of EEMEA and will also allow us
to leverage PiroMET's expertise in robotics and gunning
worldwide.
14
Provisions
|
|
|
Disposal, closure and
environmental costs
|
Other
|
Total
|
|
|
|
£m
|
£m
|
£m
|
|
As at 1 January
2023
|
|
57.7
|
9.0
|
66.7
|
|
Exchange
adjustments
|
|
(2.6)
|
(0.2)
|
(2.8)
|
|
Charge to
Group Income Statement - trading profit
|
|
1.5
|
7.0
|
8.5
|
|
Charge to
Group Income Statement - separately reported items
|
|
-
|
-
|
-
|
|
Adjustment to discount
|
|
2.3
|
-
|
2.3
|
|
Cash
spend
|
|
(7.0)
|
(9.1)
|
(16.1)
|
|
As at 31 December
2023
|
|
51.9
|
6.7
|
58.6
|
|
|
|
Disposal, closure and
environmental costs
|
Other
|
Total
|
|
|
|
£m
|
£m
|
£m
|
|
As at 1 January
2024
|
|
51.9
|
6.7
|
58.6
|
|
Exchange
adjustments
|
|
1.2
|
(0.2)
|
1.0
|
|
(Release)/charge to Group Income Statement - trading
profit
|
|
(0.6)
|
7.5
|
6.9
|
|
Charge to
Group Income Statement - separately reported items
|
|
9.7
|
2.6
|
12.3
|
|
Adjustment to discount
|
|
2.2
|
-
|
2.2
|
|
Cash
spend
|
|
(5.4)
|
(10.5)
|
(15.9)
|
|
As at 31 December
2024
|
|
59.0
|
6.1
|
65.1
|
In assessing the probable costs
and realisation certainty of provisions, or related assets,
reasonable assumptions are made. Changes to the assumptions used
could significantly alter the Directors' assessment of the value,
timing or certainty of the costs or related amounts.
15
Financial instruments
The Group's financial assets and
liabilities are measured as appropriate either at amortised cost or
at fair value through other comprehensive income or at fair value
through profit and loss.
IFRS 13 Fair Value Measurement
requires classification of financial instruments within a hierarchy
that prioritises the inputs to fair value measurement. The three
levels of the fair value hierarchy are:
Level 1 - Unadjusted quoted prices
in active markets for identical assets or liabilities;
Level 2 - Inputs other than quoted
prices that are observable for the asset or liability, either
directly or indirectly;
Level 3 - Inputs that are not
based on observable market data.
The following table summarises
Vesuvius' financial instruments measured at fair value, and shows
the level within the fair value hierarchy in which the financial
instruments have been classified:
|
|
|
2024
|
|
2023
|
|
|
|
|
Assets
|
Liabilities
|
|
Assets
|
Liabilities
|
|
|
|
|
£m
|
£m
|
|
£m
|
£m
|
|
Investments (Level 2)
|
0.2
|
-
|
|
0.3
|
-
|
|
Derivatives not designated for hedge accounting purposes
(level 2)
|
0.1
|
(0.1)
|
|
-
|
(0.1)
|
|
Derivatives designated for hedge accounting purposes (level
2)
|
4.6
|
-
|
|
0.6
|
-
|
All of the derivative financial
instruments not designated for hedge accounting purposes reported
in the table above will mature within a year of the balance sheet
date. There were no transfers between fair value hierarchies during
the period. The method for determining the hierarchy and for
valuing the financial instruments is consistent with that disclosed
in Note 25 of the 2024 Annual Report and Financial
Statements. Fair value disclosures have not been made in
respect of other financial assets and liabilities on the basis that
the carrying amount is deemed to be a reasonable approximation of
fair value.
The Group's Treasury department,
acting in accordance with policies approved by the Board, is
principally responsible for managing the financial risks faced by
the Group. The Group's activities expose it to a variety of
financial risks, the most significant of which are market risk and
liquidity risk. The condensed financial statements do not include
all financial risk management information and disclosures required
in the annual financial statements; they should be read in
conjunction with the Group's 2024 Annual Report and Financial
Statements, in which further details of these financial risks were
disclosed in Note 25. There have been no changes in the risk
management policies since year-end.
In 2020, the Group executed a
US$86m cross-currency interest rate swap (CCIRS). The effect of
this is to convert the $86m Private Placement Notes issued in 2020
into €76.6m. US dollar cash flows under the CCIRS exactly mirror
those of the Private Placement Notes and the maturity date of the
CCIRS matches the repayment date of the Notes. The CCIRS would by
default be revalued through the Income Statement; however, as it is
in a designated hedging relationship, it is revalued through other
comprehensive income. The US dollar exposure is designated as a
cash flow hedge of the Private Placement Notes and the euro
exposure is designated as a net investment hedge of the Group's
foreign operations. The CCIRS is presented as a non-current asset
or liability as it is expected to be settled more than 12 months
after the end of the reporting period.
With the exception of the CCIRS,
the fair value of derivatives outstanding at the year-end has been
booked through the Income Statement. All of the fair values shown
in the table above are classified under IFRS 13 as Level 2
measurements which have been calculated using quoted prices from
active markets, where similar contracts are traded and the quotes
reflect actual transactions in similar instruments. All the
derivative assets and liabilities not designated for hedge
accounting purposes reported above will mature in 2025.
Derivative financial instruments
are subject to International Swaps and Derivatives Association
(ISDA) agreements. Derivatives designated for hedge accounting
purposes are presented net £4.6m (2023: £0.6m), of which £4.6m are
gross assets and nil are gross liabilities (2023: gross assets
£0.8m and gross liabilities £0.2m).
As at 31 December 2024, €298.0m and
$146.0m (2023: €246.0m and $30.0m) of borrowings were designated as
hedges of net investments in €298.0m and $146.0m (2023: €246.0m and
$30.0m) worth of foreign operations. In addition, the €76.6m (2023:
€76.6m) CCIRS liability has been designated as a net investment
hedge of a further €76.6m (2023: €76.6m) worth of foreign
operations.
As the value of the borrowings and
the CCIRS liability exactly matches the designated hedged portion
of the net investments, the relevant hedge ratio is 1:1. The net
investment hedges are therefore highly effective. It is noted that
hedge ineffectiveness would arise in the event there were
insufficient euro-denominated foreign operations to be matched
against the €76.6m CCIRS liability.
The total retranslation impact of
the borrowings and CCIRS designated as net investment hedges was a
gain of £7.1m (2023: a gain of £7.9m).
The $86.0m CCIRS asset has been
designated as a cash flow hedge of the $86.0m USPP Notes issued in
2020. As all principal and interest cash flows under the CCIRS
exactly mirror those under the USPP Notes, the cash flow hedge is
highly effective. It is noted that hedge ineffectiveness would
arise in the event of a change in the contractual terms of either
the USPP Notes or the CCIRS.
Hedge effectiveness is determined
at inception of the hedge relationship and through periodic
effectiveness assessments, to ensure that an economic relationship
exists between the hedged item and hedging instrument.
As at 31 December 2024, the Group
had $116.0m, €198.0m and £28.0m (£284.6m in total) of US Private
Placement (USPP) Notes outstanding (2023: $116.0m, €198.0m and
£28.0m (£290.8m in total)), which carry a fixed rate of interest,
representing 60% (2023: 82%) of the Group's total borrowings
outstanding at that date. Maturities of the corresponding USPP
Notes were disclosed in Note 25 to the 2024 Annual Report and
Financial Statements.
The currency and interest rate
profile of the Group's borrowings is detailed in the tables
below.
|
|
|
Fixed rate
|
Floating
rate
|
Total
|
|
|
|
£m
|
£m
|
£m
|
|
Sterling
|
|
28.0
|
11.7
|
39.7
|
|
US
dollar
|
|
92.7
|
92.8
|
185.5
|
|
Euro
|
|
163.9
|
82.8
|
246.7
|
|
Other
|
|
-
|
2.9
|
2.9
|
|
Capitalised arrangement fees
|
|
(0.4)
|
(0.4)
|
(0.8)
|
|
As at 31 December
2024
|
|
284.2
|
189.8
|
474.0
|
|
|
|
|
|
|
|
Sterling
|
|
28.0
|
21.5
|
49.5
|
|
US
dollar
|
|
91.1
|
0.1
|
91.2
|
|
Euro
|
|
171.7
|
43.4
|
215.1
|
|
Other
|
|
-
|
-
|
-
|
|
Capitalised arrangement fees
|
|
(0.7)
|
(1.1)
|
(1.8)
|
|
As at 31
December 2023
|
|
290.1
|
63.9
|
354.0
|
Following adoption of amendments to
IAS 1, the Group has reclassified amounts due under its committed
syndicated bank facility as non-current as it had the right to roll
over the obligations for at least 12 months after the reporting
date and was compliant with all relevant covenant requirements at
the reporting date. Comparatives for the year ended 31 December
2023 in these financial statements have been restated on the same
basis. The amount reclassified as non-current liabilities in the
comparative period was £51.6m.
As at 31 December 2024, the Group
had committed borrowing facilities of £669.6m (2023: £685.8m), of
which £202.5m (2023: £333.4m) were undrawn. 100% of these undrawn
facilities was due to expire in 2026. On 21 February 2025 the Group
signed a new committed syndicated bank facility for an amount of
£475.0m and with maturity date of August 2029. The previous
committed syndicated bank facility signed in 2021 for an amount of
£385.0m was cancelled with effect from the same date. The Group's
borrowing requirements are therefore met by the USPP and a
committed syndicated bank facility of £475.0m (2023: £385.0m). This
is considered to be a non-adjusting event after balance sheet
date.
The maturity analysis of the
Group's non-derivative financial liabilities is shown in the tables
below.
|
As at 31 December
2024
|
|
Within one
year
£m
|
Between 1-2
years
£m
|
Between 2-5
years
£m
|
Over 5
years
£m
|
Total contractual cash
flows
£m
|
Carrying
amount
|
|
|
Trade
payables
|
|
241.7
|
-
|
-
|
-
|
241.7
|
241.7
|
|
Loans
& overdrafts
|
|
76.0
|
188.7
|
178.8
|
57.3
|
500.8
|
474.8
|
|
Lease
liabilities(1)
|
|
15.0
|
11.9
|
15.7
|
18.2
|
60.8
|
46.2
|
|
Capitalised arrangement fees
|
|
-
|
-
|
-
|
-
|
-
|
(0.8)
|
|
Derivative liability
|
|
0.1
|
-
|
-
|
-
|
0.1
|
0.1
|
|
Total
financial liabilities
|
|
332.8
|
200.6
|
194.5
|
75.5
|
803.4
|
762.0
|
|
As at 31
December 2023
|
|
Within
one year
£m
|
Between
1-2
years
£m
|
Between
2-5
years
£m
|
Over 5
years
£m
|
Total
contractual cash flows
£m
|
Carrying
amount
|
|
Trade
payables
|
|
236.4
|
-
|
-
|
-
|
236.4
|
236.4
|
|
Loans
& overdrafts
|
|
22.3
|
68.0
|
196.9
|
103.9
|
391.1
|
355.8
|
|
Lease
liabilities(1)
|
|
13.5
|
12.2
|
17.0
|
19.4
|
62.1
|
48.2
|
|
Capitalised arrangement fees
|
|
-
|
-
|
-
|
-
|
-
|
(1.8)
|
|
Derivative liability
|
|
0.1
|
-
|
-
|
-
|
0.1
|
0.1
|
|
Total
financial liabilities
|
|
272.3
|
80.2
|
213.9
|
123.3
|
689.7
|
638.7
|
(1)The lease
liabilities at 31 December 2024 were £46.2 (2023: £48.2m). The cash
payments for leases during the year were
£18.2 (2023: £24.2m) and the
interest on lease liabilities was £3.0m (2023: £2.4m). The net book
value of the Group's property, plant and equipment assets held as
right-of-use assets under lease contracts at 31 December 2024 was
£54.7m (2023: £57.6m) and the depreciation on these assets during
the year was £15.6m (2023: £14.2m).
Presented within interest-bearing
borrowings of £520.2m (2023: £402.2m) are loans and overdrafts of
£474.8m (2023: £355.8m), finance lease liabilities of £46.2m (2023:
£48.2m) and capitalised arrangement fees of £(0.8)m (2023:
£(1.8)m).
16
Alternative performance measures
The Company uses a number of
alternative performance measures (APMs) in addition to those
reported in accordance with IFRS. The Directors believe that these
APMs, listed below, are important when assessing the underlying
financial and operating performance of the Group and its divisions,
providing management with key insights and metrics in support of
the ongoing management of the Group's performance and cash flow. A
number of these align with KPIs and other key metrics used in the
business and therefore are considered useful to also disclose to
the users of the financial statements. The following APMs do not
have a standard definition prescribed by IFRS and therefore may not
be directly comparable with similar measures presented by other
companies.
16.1 Headline
performance
Headline performance, reported
separately on the face of the Group Income Statement, is from
continuing operations and before items reported separately on the
face of the Group Income Statement.
16.2 Underlying revenue,
underlying trading profit and underlying return on
sales
Underlying revenue, underlying
trading profit and underlying return on sales are the headline
equivalents of these measures after adjustments to exclude the
effects of changes in exchange rates, business acquisitions and
disposals. Reconciliations of underlying revenue and underlying
trading profit can be found in the Financial Summary. Underlying
revenue growth is one of the Group's KPIs and provides an important
measure of organic growth of Group businesses between reporting
periods by eliminating the impact of exchange rates, acquisitions
and disposals.
16.3 Return on
sales ('ROS')
ROS is calculated as trading
profit divided by revenue. It is one of the
Group's key performance indicators and is used to assess the
trading performance of Group businesses. A reconciliation of ROS is
included in Note 2.
16.4 Trading
profit/adjusted EBITA
Trading profit/adjusted EBITA is
defined as operating profit before separately reported items. It is
one of the Group's key performance indicators and is used to assess
the trading performance of Group businesses.
16.5 Headline
profit before tax
Headline profit before tax,
reported separately on the face of the Group Income Statement, is
calculated as the net total of trading profit, plus the Group's
share of post-tax profit of joint ventures and total net finance
costs associated with headline performance. It is used to assess
the financial performance of the Group as a whole.
16.6 Headline
effective tax rate ('ETR')
The Group's headline ETR is
calculated on the income tax costs associated with headline
performance, divided by headline profit before tax and before the
Group's share of post-tax profit of joint ventures and
associates.
16.7 Headline
earnings
Headline earnings is profit after
tax before separately reported items attributable to owners of the
parent.
16.8 Headline
earnings per share
Headline earnings per share is
calculated by dividing headline profit before tax less associated
income tax costs, attributable to owners of the parent by the
weighted average number of ordinary shares in issue during the
year. It is one of the Group's key performance indicators and is
used to assess the underlying earnings performance of the Group as
a whole. It is also used as one of the targets against which the
annual bonuses of certain employees are measured. Headline earnings per share is disclosed in Note
6.
16.9 Adjusted
operating cash flow
Adjusted operating cash flow is
cash generated from operations before restructuring and vacant site
remediation costs but after deducting capital expenditure net of
asset disposals. It is used in calculating the Group's cash
conversion.
|
|
|
2024
£m
|
2023
£m
|
|
Cash generated from operations
|
|
216.7
|
272.0
|
|
|
|
|
|
|
Add: Outflows relating to
restructuring charges
|
|
1.0
|
0.8
|
|
Add: Outflows relating to cost
reduction programme expenses
|
|
7.9
|
-
|
|
Add: Outflows relating to water
treatment at disused mine
|
|
0.8
|
1.0
|
|
Less: Purchases of property, plant
& equipment
|
|
(88.1)
|
(84.6)
|
|
Less: Purchases of intangible
assets
|
|
(12.7)
|
(8.0)
|
|
Add: Proceeds from the sale of property, plant and
equipment
|
|
4.3
|
5.4
|
|
Add: Proceeds from the sale of
associates
|
|
0.4
|
-
|
|
Adjusted operating cash flow
|
|
130.3
|
186.6
|
|
|
|
|
|
|
Trading Profit
|
|
188.0
|
200.4
|
|
Cash Conversion
|
|
69%
|
93%
|
16.10
Cash conversion
Cash conversion is calculated as
adjusted operating cash flow divided by trading profit. It is
useful for measuring the rate at which cash is generated from
trading profit. It is also used as one of the targets against which
the annual bonuses of certain employees are measured. The
calculation of cash conversion is detailed in Note 16.9
above
16.11
Free cash flow
Free cash flow is defined as net
cash flow from operating activities after net outlays for the
purchase and sale of property, plant and equipment, dividends from
joint ventures and dividends paid to non-controlling shareholders.
It is one of the Group's KPIs and is used to assess the underlying
cash generation of the Group and is one of the measures used in
monitoring the Group's capital. A reconciliation of free cash flow
is included underneath the Group Statement of Cash
Flows.
16.12
Average trade working capital to sales ratio
The average trade working capital
to sales ratio is calculated as the percentage of average trade
working capital balances to the total revenue for the previous 12
months, at constant currency. Average trade working capital
(comprising inventories, trade receivables and trade payables) is
calculated as the average of the 13 previous month-end balances. It
is one of the Group's key performance indicators and is useful for
measuring the level of working capital used in the business and is
one of the measures used in monitoring the Group's capital. It is
also used as one of the targets against which the annual bonuses of
certain employees are measured.
|
|
|
2024
£m
|
2023
£m
|
|
Average trade working
capital
|
|
416.5
|
451.8
|
|
Total revenue
|
|
1,820.1
|
1,929.8
|
|
Average trade working capital to
sales ratio
|
|
22.9%
|
23.4%
|
16.13
Adjusted earnings before interest, tax, depreciation and
amortisation (adjusted EBITDA)
Adjusted EBITDA is calculated as
the total of trading profit before depreciation and amortisation of
non-acquired intangibles charges. It is used in the calculation
of the Group's interest cover and net debt to
adjusted EBITDA ratios. A reconciliation of adjusted EBITDA is
included in Note 2.
16.14
Net interest payable on borrowings
Net interest payable on borrowings
is calculated as total interest payable on borrowings less finance
income, excluding interest on net retirement benefit obligations,
adjustments to discounts and any item separately reported. It is
used in the calculation of the Group's interest cover
ratio.
|
|
|
2024
£m
|
2023
£m
|
|
Total interest payable on
borrowings (note 4)
|
|
23.3
|
23.5
|
|
Finance income (note 4)
|
|
(9.7)
|
(15.3)
|
|
Net interest payable on
borrowings
|
|
13.6
|
8.2
|
16.15
Interest cover
Interest cover is the ratio of
adjusted EBITDA to net interest payable on borrowings for the last
12 months. It is one of the Group's key performance indicators and
is used to assess the financial position of the Group and its
ability to fund future growth. This measure is also a component of
the Group's covenant calculations.
|
|
|
2024
£m
|
2023
£m
|
|
Adjusted EBITDA (note
2)
|
|
250.2
|
258.2
|
|
Net interest payable on
borrowings
|
|
13.6
|
8.2
|
|
Interest cover
|
|
18.4x
|
31.5x
|
16.16
Net debt
Net debt comprises the net total
of current and non-current interest-bearing borrowings (including
IFRS16 lease liabilities), cash and short-term deposits and
derivative financial instruments. Net debt is a measure of the
Group's net indebtedness to banks and other
external financial institutions. A reconciliation of the movement
in net debt is included in Note 8.
16.17
Net debt to adjusted EBITDA
Net debt to adjusted EBITDA is the
ratio of net debt at the year-end to adjusted EBITDA for the last
12 months. It is one of the Group's key performance indicators and
is used to assess the financial position of the Group and its
ability to fund future growth and is one of the measures used in
monitoring the Group's capital.
|
|
|
2024
£m
|
2023
£m
|
|
Net debt (note 8)
|
|
329.2
|
237.5
|
|
Adjusted EBITDA (note
2)
|
|
250.2
|
258.2
|
|
Net debt to adjusted
EBITDA
|
|
1.3x
|
0.9x
|
16.18
Return on invested capital (ROIC)
The Group has adopted ROIC as its
key measure of return from the Group's invested capital.
It is one of the Group's key performance
indicators and is used to assess the financial performance of the
Group as a whole. ROIC is calculated as trading
profit less amortisation of acquired intangibles plus share of
post-tax profit of joint ventures and associates for the previous
12 months after tax, divided by the average (being the average of
the opening and closing balance sheet) invested capital (defined
as: total assets excluding cash plus non-interest-bearing
liabilities), at the average foreign exchange rate for the
year.
|
|
|
2024
£m
|
2023
£m
|
|
Average invested
capital
|
|
1,556.2
|
1,558.5
|
|
|
|
|
|
|
Trading profit (note
16.4)
|
|
188.0
|
200.4
|
|
Amortisation of acquired
intangible assets
|
|
(10.0)
|
(10.3)
|
|
Share of post-tax profit from
joint ventures and associates
|
|
1.1
|
0.9
|
|
Tax on trading profit and
amortisation of acquired intangible assets
|
|
(48.9)
|
(52.3)
|
|
|
|
130.2
|
138.7
|
|
ROIC
|
|
8.4%
|
8.9%
|
16.19
Constant currency
Figures presented at constant
currency represent 2023 amounts retranslated at average 2024
exchange rates.
16.20
Liquidity
Liquidity is the Group's cash and
short-term deposits plus undrawn committed debt facilities less
cash used as collateral on loans and any gross up of cash in
notional cash pools. .
|
|
|
2024
£m
|
2023
£m
|
|
Cash
|
|
186.4
|
164.2
|
|
Undrawn committed debt
facilities
|
|
202.5
|
333.4
|
|
Cash used as collateral on
loans
|
|
-
|
(10.0)
|
|
Gross up of cash in notional
pools
|
|
0.1
|
-
|
|
Liquidity
|
|
389.0
|
487.6
|
17
Exchange rates
The Group reports its results in
pounds sterling. A substantial portion of the Group's revenue and
profits are denominated in currencies other than pounds sterling.
It is the Group's policy to translate the income statements and
cash flow statements of its overseas operations into pounds
sterling using average exchange rates for the year reported (except
when the use of average rates does not approximate the exchange
rate at the date of the transaction, in which case the transaction
rate is used) and to translate balance sheets using year-end rates.
The principal exchange rates used were as follows:
|
|
Income and
expense
|
|
Assets and
liabilities
|
|
|
Average
rates
|
|
Year-end
rates
|
|
|
2024
|
2023
|
Change
|
|
2024
|
2023
|
Change
|
|
US Dollar
|
1.28
|
1.24
|
3.2%
|
|
1.25
|
1.27
|
(1.6%)
|
|
Euro
|
1.18
|
1.15
|
2.6%
|
|
1.21
|
1.15
|
5.2%
|
|
Chinese
Renminbi
|
9.21
|
8.82
|
4.4%
|
|
9.18
|
9.07
|
1.2%
|
|
Japanese
Yen
|
193.57
|
174.87
|
10.7%
|
|
196.65
|
179.56
|
9.5%
|
|
Brazilian
Real
|
6.89
|
6.21
|
11.0%
|
|
7.74
|
6.18
|
25.2%
|
|
Indian
Rupee
|
106.92
|
102.68
|
4.1%
|
|
107.04
|
105.89
|
1.1%
|
|
South African
Rand
|
23.41
|
22.95
|
2.0%
|
|
23.58
|
23.27
|
1.3%
|
