Norcros : Preliminary Presentation 2020

Preliminary Results

Introduction

Martin Towers, Chairman

HCilgichkligthotsedit Master title style

FY20 Results

COVID-19, Liquidity and Current Trading

• Resilient performance despite challenging markets and COVID-19

• Eleventh consecutive year of revenue growth

• Revenue reduced by £13.2m and underlying operating profit by £4.6m -estimated impact of COVID-19 in March

• Underlying operating profit £32.3m (2019: £34.4m)

  • Decisive action taken to safeguard employees, reduce operating costs, minimise cash burn and maximise liquidity

  • Covenant waivers agreed at September 2020 and March 2021 replaced with a maximum net debt covenant of £95m. RCF committed to November 2022

  • Current trading gathering momentum and ahead of COVID-19 operating scenario

• Underlying ROCE above hurdle rate at 16.8% (2019: 18.2%)

• Strong cash generation maintained with net debt at 31 March 20 of £36.4m. Net Debt : EBITDA 0.9x

  • Year to date revenue to the end of May was 40% of last year, activity levels continue to improve with June month to date at c75% of last year

  • Net debt of £38.6m at 7 June 2020

• Return to progressive dividend policy as soon as it is appropriate to do so

• Strong balance sheet - Group well positioned to withstand COVID-19 impact and to continue to win market share

Financial Review

Shaun Smith, Group Finance Director

CInlcicokmteoSetadtietmMeanstter title style

Margin

Revenue

Underlying1operating profit

Finance charges - cash

Underlying1PBT Exceptional operating items2IAS19R admin expenses Acquisition related costs3Finance income - non cash4PBT

2020 £m Pre-IFRS16

2019 £m Pre-IFRS16

342.0331.0

31.834.4

9.3%10.4%

(1.6)(1.8)

(9.0)(4.0)

30.232.6

0.72.1

(1.5)(1.5)

(4.0)(3.8)

• 1 Underlying means before exceptional operating items, IAS19R admin costs, acquisition related costs and where relevant, non-cash finance costs

• 2 2020 Johnson Tiles COVID-19 related asset impairment. (2019 - see page 43 for details)

• 3 See page 43 for details

• 4 Includes £1.9m variance in income relating to "mark to market" on FX forward contracts. (FY20: £1.7m income, FY19: £3.6m income)

+/-reported

+3.3% -6.1%

-11.7%

-40.9%

+/-Constant Currency

+5.0%