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Vesuvius reports fall in revenues due to Covid-19 pressures
StockMarketWire.com
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Molten metal flow engineering and technology company, Vesuvius, has seen a £252.1 million fall in revenues as a result of the Covid-19 crisis.
The group's revenue for the year to December 31, 2020, stands at £1,458.3 million, down from £1,710.4 million in 2019.
Vesuvius made temporary Covid-related savings of £39 million during the year to mitigate the impact of the pandemic, made possible by its 'decentralised business model', it said.
A further £8 million of savings are expected to recur in 2021 based on permanent changes in working practices and reduced operating expenses.
The company reported a trading profit of £101.4 million, down £80 million versus 2019, with return on sales of 7%, reflecting the impact of the pandemic.
It had strong cash performance with £175.2m of adjusted operating cash flow (173% cash conversion), while net debt reduced to £175.1m compared to £245.8m in 2019, with net debt/EBITDA of 1.2x.
The board has proposed a final dividend of 14.3p, bringing the full year dividend to 17.4p, supported by the strong cash flow.
Patrick Andr é, chief executive of Vesuvius, said: 'Clear signs of recovery are now apparent in both our Steel and Foundry end markets and we believe that this recovery should accelerate in the second half of 2021, supported by the lifting of most pandemic-related restrictions by then.
'Vesuvius is emerging from this difficult period stronger than before. We have low leverage and an optimised manufacturing footprint resulting from our successfully completed restructuring programmes. We also benefit from our flexible and low capital intensive, entrepreneurial and decentralised business model, which has proven its value during 2020. We are confident that the group will deliver a meaningful improvement in financial performance in 2021.'
Story provided by StockMarketWire.com
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