The Vesuvius Board has recommended a final dividend of 14.3 pence per share (2018: 13.8 pence per share), a 3.6% increase on the final dividend paid in 2018, reflecting confidence in their trajectory. This will result in a total dividend for the year of 20.5 pence per share (2018: 19.8 pence per share) and represents a 3.5% increase to the full year dividend.
The Board remains committed to delivering long-term dividend growth, provided that this is supported by underlying earnings, cash flows and is justified in the context of capital expenditure requirements and the prevailing market outlook. If approved at the Annual General Meeting on 13 May 2020, the final dividend will be paid on 22 May 2020 to shareholders on the register at the close of business on 17 April 2020. The last date for receipt of elections from shareholders for the Vesuvius Dividend Reinvestment Plan will be 1 May 2020.
Other financial highlights include:
£87.6m drop in revenue, reflecting a significant deterioration in both main end markets of Steel and Foundry after a strong 2018
Decline of trading profit (EBITA) limited to £15.8m due to the acceleration of restructuring efforts
Resilient return on sales at 10.6% (2018: 11.0%) despite lower revenue
Acceleration and intensification of restructuring programmes with £16.4m of recurring savings delivered and eight plant closures in 2019 without reducing overall production capacity
Strong cash conversion of 120% versus 91% in 2018 and adjusted operating cash flow up 21.3%, demonstrating their strength as a flexible, technology-led, low capital intensity business, capable of generating consistently strong free cash flow across the cycle
They have accelerated their R&D efforts, launching more than 10 new products and new products as a percentage of sales increased to 16.3%, from 15.4% in 2018
Net debt reduced to £216.3m (2018: £247.8m) (net debt/EBITDA of 1.0x), on a like-for-like basis excluding IFRS 16 lease adjustment, despite cash utilisation for the CCPI acquisition, restructuring costs, modernisation capex and increased dividend payments
