The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
25 July 2022
TRADING UPDATE
Vesuvius plc ("Vesuvius", the "Group"), a global leader in molten metal flow engineering, releases the following trading update in relation to the first six months of 2022.
TRADING AND OUTLOOK
Further to the Group's trading update in relation to the first four months of the year made on 18 May 2022, trading for the months of May and June remained stronger than anticipated, despite ongoing end market weakness. As a result, Vesuvius now expects to report a trading profit (EBITA)1 for the first half of 2022 of £127.4m. Our outperformance in H1 was due to the successful implementation of our pricing strategy to recover input costs as well as market share gains, supported by our technological differentiation.
In line with the announcement made on 18 May 2022, there remains significant uncertainty as to the strength of our end markets in H2 due to the ongoing geo-political environment and potential macroeconomic weakness. Due to this uncertainty, our expectations for trading in the second half of the year, including a material drop in volume compared to H1 and challenging cost inflation, remain broadly unchanged. Consequently, Vesuvius now expects its full year Group trading profit (EBITA)1 to be towards the top end of the range of current analysts' expectations2.
While the scale of the potential slow-down remains highly uncertain, we are confident that we can deliver a resilient performance and emerge stronger once end markets return to growth.
HALF YEAR RESULTS
Vesuvius will announce its 2022 half year results at 07:00 on Thursday 28 July 2022.
Notes:
1 Excludes separately reported items
2 The range of analyst expectations as at 25 July 2022 for 2022 Trading Profit (EBITA)1 is between £155m and £199m compiled by Vesuvius.
The person responsible for making this announcement on behalf of the Company is Guy Young, Chief Financial Officer.
| For further information, please contact: | | |
| Shareholder/analyst enquiries: |
| |
| Vesuvius plc | Patrick André, Chief Executive | +44 (0) 207 822 0000 |
| | Guy Young, Chief Financial Officer Euan Drysdale, Group Head of Corporate Finance Rachel Stevens, Head of Investor Relations | +44 (0) 207 822 0000 +44 (0) 7387 545 271 |
|
Media enquiries: | | |
| MHP Communications | Andrew Jaques/ Rachel Farrington/Peter Lambie | +44 (0) 203 128 8570 |
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 for everyone.
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.
Statements in this announcement that are not historical facts are hereby identified as "forward looking statements". 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 and involve a number of known and unknown risks, uncertainties and other factors 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.
You should not place undue reliance on such forward looking statements which speak only as of the date on which they are made. Except as required by the Rules of the UK Listing Authority and the London Stock Exchange and applicable law, Vesuvius undertakes no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward looking events discussed in this announcement might not occur.
Vesuvius plc, 165 Fleet Street, London EC4A 2AE
Registered in England and Wales No. 8217766
LEI: 213800ORZ521W585SY02
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