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RNS Number : 1237U Vesuvius plc 06 August 2025
6 August 2025
Half Year Results for the six months ended 30 June 2025
H1 results broadly in line with expectations, despite tough market conditions
Vesuvius plc, a global leader in molten metal flow engineering and technology,
announces its unaudited results for the six months ended 30 June 2025.
Financial summary H1 2025 H1 2024 Underlying change % ((1)) Year-on-year change %
(£m) (£m)
Headline (non-statutory)
Revenue 907.5 936.5 (0.4%) (3.1%)
Trading Profit ((2)) (adjusted EBITA) 77.0 97.2 (16.1%) (20.7%)
Return on Sales (RoS) ((2)) 8.5% 10.4% (160bps) (190bps)
Headline basic EPS ((2)) (pence) 17.1 21.8 (16.4%) (21.6%)
Free cash-flow ((2) ) (12.6) 17.8 NA NM
Net Debt / EBITDA ((2)) 2.0x 1.2x NA +0.8x
Statutory
Operating Profit 65.5 84.1 (16.8%) (22.1%)
Profit Before Tax 56.0 76.7 (21.4%) (27.0%)
Statutory basic EPS (pence) 12.5 18.1 (24.4%) (30.9%)
Cash generated from operations 54.9 94.0 NA (41.6%)
Dividend (pence per share) 7.1 7.1 NA -
((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.
NB. The above table and other tables in this results statement contains
amounts and percentages derived from source data which was then rounded. The
margins and percentage change figures are based on source data, not the
rounded figures.
Highlights
· Challenging first half with market share gains and strong cost
reduction activities only partially offsetting weak markets and a difficult
pricing environment
· Steel Division
o Steel production (World ex China, Iran, Russia and Ukraine) declined
by 0.3% versus H1 2024 with particular weakness in the EU27+UK, which declined
4.9%. Strong growth in India at 9.2%
o Overall market share gains in both Flow Control and Advanced
Refractories, with the latter regaining positions in EMEA and the US
o Pricing evolution not fully compensating cost inflation in the first
half, especially in EU27+UK and China
o Temporarily unfavourable product mix evolution as some customers
prioritise cost over performance due to the difficult market conditions
o Lower but resilient Divisional RoS of 9.0%
· Foundry Division
o Market activity significantly lower versus H1 2024 but stable compared
to H2 2024
o Strong market share gains in all regions
o Challenging pricing environment
o Divisional RoS of 6.9% stable on H2 2024
· Strong progress in our cost reduction programme
o £10.1m delivered in H1, ahead of schedule
o 2025 in-year savings estimate increased to c. £20m
· Good progress in the integration of PiroMet
· Continued progress in R&D efficiency with Group's New Product
Sales ratio up to 19.5% (Flow Control continuing to exceed 20%)
· Strong Safety performance in H1 with a continuation of our record
low level of accidents
· Interim dividend per share of 7.1p, flat versus the 2024 interim
dividend
Comment from Patrick André, CEO:
"With the exception of India, we have seen a continuation of the general
weakness in our end markets which we highlighted in our AGM Trading Update in
May. We now anticipate that these challenging market conditions will persist
for the balance of the year, particularly in Europe. The pricing environment
has also been challenging during the first half, in particular in Europe and
China, limiting our ability to fully recover labour cost inflation. We however
anticipate progressively improving our pricing performance over the second
half of the year to partially recover this cost inflation, albeit with a
delayed effect.
As a result, we now expect our performance in the second half of the year to
be similar to the first half.
Beyond 2025, we remain confident in the growth potential of our steel and
foundry markets, and in our ability to improve our profitability thanks to the
success of our cost reduction efforts. Our restructured, modernised and
strategically located manufacturing footprint also ensures we are well
positioned to benefit from the recovery in end-markets irrespective of which
regions benefit. With our capacity investment programme now completed we are
equally confident in our ability to increase our free cash flow generation and
reduce leverage. This will position us favourably to return cash to
shareholders and to seize on attractive M&A opportunities when they
arise."
Technical note - FX re-translation
FY24 Reported FX rates Re-translated*
Revenue £1,820.1m £1763.5m
Trading profit £188.0m £177.0m
Return on sales 10.3% 10.0%
* Hybrid rate using H1 2025 average FX rates for 6 months and 30 June 2025
spot for 6 months
Presentation of Half Year 2025 Results
Vesuvius management will make a presentation to analysts and investors on 6
August 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
(https://sparklive.lseg.com/Vesuvius/events/ef9d54f9-3aa4-404a-b288-a8578e49de9d/vesuvius-plc-half-year-results-2025)
. Participants can also join via an audio conference call. Please click here
(https://registrations.events/direct/LON638628292)
(https://registrations.events/direct/LON638628292) to register. Once
registered, you will be provided with the information needed to join the
conference, including dial-in numbers and passcodes.
For further information, please contact:
Vesuvius plc Patrick André, Chief Executive +44 (0) 207 822 0000
Mark Collis, Chief Financial Officer +44 (0) 207 822 0000
Rachel Stevens, Head of Investor Relations +44 (0) 7387 545 271
MHP Communications Rachel Farrington/Ollie Hoare +44 (0) 7817 458 804
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.
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
www.vesuvius.com (http://www.vesuvius.com)
Vesuvius plc
Half Year Results for the six months ended 30 June 2025
Results broadly in line with expectations, despite tough market conditions
£m H1 2025 acquisition H1 2025 Underlying H1 2024 Reported Currency H1 2024 Underlying % Change
Reported H1 '25 vs. H1 '24
Underlying Reported
Revenue 907.5 (6.3) 901.2 936.5 (31.4) 905.1 (0.4%) (3.1%)
Trading Profit 77.0 (0.3) 76.7 97.2 (5.8) 91.4 (16.1%) (20.7%)
Return on Sales 8.5% 8.5% 10.4% 10.1% (160bps) (190bps)
End markets remained weak
As anticipated, Steel markets remained weak in H1. Steel production in the
world excluding China, Iran, Russia and Ukraine, declined by 0.3% in H1 2025
compared with the prior period.
Steel production varied by region. India continues to grow strongly, up 9.2%
on the comparative half-year period. South-East Asia also showed consistent
growth in the half-year period, up 2.3% vs. prior year. North America
contracted by 0.6%, with the US growing and Mexico and Canada declining, while
South America declined 0.4% vs H1 2024. EMEA contracted by 3.0% (excluding
Iran, Russia and Ukraine), principally due to the EU27+UK (-4.9%) while EEMEA
excluding Russia, Iran and Ukraine contracted 0.2% in H1 vs the prior H1
period. (Source: World Steel Association, to June 2025). Chinese steel exports
remained at a high level, similar to that seen in H2 2024 and up 5.3 million
tonnes (+11.2%) versus H1 2024.
Foundry end markets remained challenging during the first half, down c. 8%
versus H1 2024, although they were stable versus H2 2024. The most
negatively impacted regions were EU+UK and the Americas, both North and
South.
Group trading performance
In this weak market environment, the Group generated revenue of £907.5m, a
decrease of 0.4% on an underlying basis compared to H1 2024 and a decline of
3.1% on a reported basis, reflecting the significant FX headwind in the period
and a small contribution from PiroMet. Overall, we saw volume decline
equivalent to £1.8m and pricing decline of £2.1m.
Market share gains
Within the Steel Division, both Flow Control and Advanced Refractories gained
market share overall. Advanced Refractories continued to perform well in Asia
but also started to regain market share in the United States and in EMEA. Flow
Control gained market share in EMEA, China, South-East Asia and Brazil but
progressed slightly less than the market in North America due to the closure
of some important Mexican customers where we had very high market shares. Flow
Control also progressed less than the market in India as a significant part of
H1 steel production growth came from induction furnaces, a market where we are
not present. In Foundry, we gained market share in most regions.
Mix impact
We have seen an adverse impact from H1 product mix of £13.1m, as some Steel
and Foundry customers have adopted lower quality products, resulting in a
lower average gross margin. This is predominantly a EU27+UK issue, which
accounts for over half of the mix impact and where certain customers are
prioritising cost over value in response to their own competitive environment.
Price
The challenging trading environment has made the recovery of input cost
increases, particularly labour inflation, more challenging than usual, notably
in the EU27+UK where customers are experiencing particular difficulties, and
in China where the market is also contracting.
Accordingly, in H1, while pricing itself has been broadly flat for the Group
as a whole, there has been a net negative impact on trading profit and margins
relating to rising input costs of £11.7m.
Cost savings programme fully on track
The programme to deliver at least £45m annual cost savings in-year FY28,
continues at pace, and is now expected to deliver £55m by 2028. We delivered
£10.1m in the period and we are now on track to deliver a total of c. £20m
in 2025. The projects contributing to the savings in the period include the
closure of our UK Tamworth site, transfer of production to Turkey,
manufacturing automation and the reorganisation of our commercial and
administrative functions in our North American Steel business.
First half results broadly as expected
As a result, our trading profit (adjusted EBITA) in H1 2025 of £77m is
broadly in line with our expectations. This trading profit shows a reduction
of 16.1% on an underlying basis compared to H1 2024 and a reduction of 20.7%
on a reported basis. The Group delivered a Return on Sales of 8.5%, down
160bps on an underlying basis, reflecting declines in both the Steel and
Foundry divisions where RoS fell 180bps and 110bps respectively.
Continued improvement in our health and safety performance
The health and safety of our employees and contractors remains our first
priority and we have an overall objective of zero accidents. In the half-year,
we achieved a Lost Time Injury Frequency Rate (LTIFR) per million hours worked
of 0.55, similar to 0.52 in 2024, which was a significant reduction versus our
historic performance.
Efficient R&D drives technological differentiation and value to customers
Our focused and efficient R&D is key to maintaining technological
differentiation. This is critical to our value-add proposition to customers
and to growing market share and margin. We launched 16 new products in the
period and delivered a new product sales ratio (defined as the percentage of
sales derived from products launched in the previous 5 years) of 19.5%. This
is a further improvement compared to 19.1% delivered in FY 2024 and has been
driven by both Flow Control and Foundry, with Flow Control continuing to
derive over 20% of its sales from new products.
In addition, the interest of our customer base in our robotics offering is
continuing, with a strong pipeline of opportunities. These installations add
significant value to customers by improving the quality of their steel output,
the efficiency of their operations, and the safety of their employees, while
securing ongoing consumable refractory sales for our business. Our installed
base is enhanced by the integration of PiroMet, which brings highly
complementary expertise in advanced refractories robotics and an installed
base of 9 EAF robots worldwide, expanding our own base of 42 Flow Control
robots and 18 Advanced Refractories robots.
Capital investment projects to support growth concluded
Capex in 2025 is now trending back to a sustaining run-rate, having concluded
the growth capex programme which was initiated in 2021. Capex, excluding
leases, in FY25 is now expected to be £75-80m, reduced from our initial
guidance of £80-85m, reflecting current trading conditions, and should reduce
to c. £70m in 2026 and beyond. This capex includes investment to maintain our
facilities to a high-quality level, IT infrastructure, customer installations
and investment supporting our sustainability targets.
Costs of restructuring as planned
We incurred costs of £4.3million in H1 relating to our cost-saving programme.
These are separately reported items, and the majority relate to redundancy
costs of £2.4m, with the remainder being other costs including site-closure
costs. The total one-off P&L costs relating to the cost-saving programme
in 2025 are expected to be c. £15m reflecting the further cost reductions to
be delivered in EMEA in the second half.
Cashflow
Trade working capital increased by £48.1m versus 31 December 2024,
representing 23.5% sales on a 12-month basis. This is an increase of +0.6%
versus the 31 December 2024 level, largely reflecting usual seasonality and
the impact of PiroMet. Compared to 30 June 2024, working capital intensity was
+0.3% higher, reflecting the temporary impact of safety inventories built to
maintain product availability to customers while we transfer production
between plants following restructuring decisions in Europe.
The Group generated adjusted operating cashflow of £25.8m, representing cash
conversion of 33% (H1 2024: 49%). Net capital expenditure in the period has
started to reduce as planned, at £36.4m (H1 2024: £49.9m). Free cash flow
was an outflow of £12.6m (H1 2024: inflow of £17.8m) reflecting lower
EBITDA and the temporary trade working capital outflow noted above.
The second share buyback programme for £50m commenced in November 2024 and
was completed on 2 April 2025, around four-and-a-half months from initiation
with 12.2 million shares purchased. This was the second share buyback
delivered since our November 2023 Capital Markets Event. In aggregate, we have
bought back £100m worth of shares as part of our strategy to return cash to
shareholders.
At 30 June 2025, net debt stood at £452.4m (31 December 2024: £329.2m),
reflecting the negative free cashflow from lower EBITDA, the cash outflow from
the share buy-back (£34.8m) and acquisition of PiroMet (£18.6m), and the H1
payment of the 2024 full year dividend (£40.4m). Net debt / EBITDA at 30 June
2025 stood at 2.0x (31 December 2024: 1.3x) reflecting the increased net debt
as described above combined with lower EBITDA. This increase in gearing since
31 December 2024 is partially attributable to FX translation; on a constant
currency basis, the net debt / EBITDA ratio at 31 December 2024 would have
been 1.4x. In addition, it reflects the impact of the full cash consideration
for PiroMet while only part of a year of profit contribution.
Response to the trading environment
We remain committed to executing our cost optimisation strategy to adapt to
the trading environment.
We have now mostly completed our programme to reposition the majority of our
manufacturing capacity outside of the EU and U.K., towards the faster growing
Asian, EEMEA and North American regions. We are however maintaining enough
capacity in Europe to benefit from a potential rebound in this region should
it occur. Those capacities maintained in Europe benefit from an ambitious
automation program, supporting their long-term competitiveness.
In parallel, we continue to deliver structural reductions in the cost of our
overhead functions, through increased digitalisation and reduced exposure to
high-cost countries. In the short-term, we are maintaining a very tight
control on all discretionary expenses.
Regarding pricing, we initiated a process of price rises in the second quarter
to progressively recover cost inflation. We have seen early successes and
expect a further improvement in the second half of the year.
With our capacity expansion program now completed, our capital expenditure
will stabilise to a lower level. We also remain focused on optimising our
working capital. We are thus confident in our ability to increase our free
cash flow generation and reduce leverage going forward.
Interim Dividend
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 buybacks.
The Board has declared an interim dividend of 7.1 pence per share for H1 2025,
similar to the interim dividend for 2024. The interim dividend will be paid on
19 September 2025 to shareholders on the register at the close of business on
15 August 2025. The ex-dividend date will be 14 August 2025. Any shareholder
wishing to participate in the Vesuvius Dividend Reinvestment Plan (DRIP) needs
to have submitted their election to do so by 1 September 2025. The DRIP is
provided by Equiniti Financial Services Limited and enables the Company's
shareholders to elect to have their cash dividend payments used to purchase
the Company's shares. More information can be found at
www.shareview.co.uk/info/drip
(https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.shareview.co.uk%2Finfo%2Fdrip&data=05%7C02%7CRachel.Stevens%40vesuvius.com%7Cc1f7321871214b7c0fa608dcac7f83dc%7C9316d1d247f84c56924f2ccb9bde9ac9%7C0%7C0%7C638574910886915875%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=KiKKqvDX8lYhOJ6Czo%2FcRXCa9%2BMFiHCewwz5VGoZvtY%3D&reserved=0)
.
Current trading and outlook
With the exception of India, we have seen a continuation of the general
weakness in our end markets which we highlighted in our AGM Trading Update in
May. We now anticipate that these challenging market conditions will persist
for the balance of the year, particularly in Europe. The pricing environment
has also been challenging during the first half, in particular in Europe and
China, limiting our ability to fully recover labour cost inflation. We however
anticipate progressively improving our pricing performance over the second
half of the year to partially recover this cost inflation, albeit with a
delayed effect.
As a result, we now expect our performance in the second half of the year to
be similar to the first half.
Beyond 2025, we remain confident in the growth potential of our steel and
foundry markets, and in our ability to improve our profitability thanks to the
success of our cost reduction efforts. Our restructured, modernised and
strategically located manufacturing footprint also ensures we are well
positioned to benefit from the recovery in end-markets irrespective of which
regions benefit. With our capacity investment programme now completed we are
equally confident in our ability to increase our free cash flow generation and
reduce leverage. This will position us favourably to return cash to
shareholders and to seize on attractive M&A opportunities when they arise.
Operating and Financial Review
Operating review
Vesuvius comprises two Divisions, Steel and Foundry. The Steel Division
operates as three business units, Flow Control, Advanced Refractories and
Sensors & Probes. Changes described are versus H1 2024 on an underlying
basis, excluding the impact of FX and the acquisition of PiroMet (on 28
February 2025), unless otherwise noted. There were no other acquisitions or
disposals in 2024 or H1 2025.
See Note 16.1 to the Condensed Group Financial Statements for the definition
of headline performance and Note 16.2 to the Condensed Group Financial
Statements for the definition of underlying performance.
Steel Division
Steel Division H1 2025 (£m) H1 2024 (£m) Change % underlying Change % reported
Flow Control Revenue 378.1 393.7 (0.5%) (4.0%)
Advanced Refractories Revenue 273.0 270.3 1.6% 1.0%
Steel Sensors & Probes Revenue 18.8 21.7 (5.8%) (13.2%)
Total Steel Revenue 670.0 685.7 0.2% (2.3%)
Steel Trading profit 60.6 76.5 (16.4%) (20.8%)
Steel Return on Sales 9.0% 11.2% -180bps -220bps
Steel revenue was flat on an underlying basis, reflecting a slight fall in
volumes related to declining markets, offset by a slight gain in market share.
Pricing was flat in the period.
Trading profit in Steel fell 16.4% principally reflecting flat pricing and
rising labour costs, and adverse mix with some customer switching to lower
value, lower performance but also lower margin, products. These effects have
been partially offset by strong cost savings. As a result, Return on Sales for
the Steel Division decreased 180bps to 9.0%
Flow Control
Flow Control Revenue H1 2025 (£m) H1 2024 (£m) Change % underlying Change % reported
Americas 144.9 157.6 (3.2%) (8.1%)
Europe, Middle East & Africa (EMEA) 118.0 123.7 (2.9%) (4.6%)
Asia-Pacific 115.2 112.4 6.0% 2.6%
Total Flow Control Revenue 378.1 393.7 (0.5%) (4.0%)
Flow Control saw a decline in markets and in our volumes in EMEA and the
Americas, and growth in Asia in the period, with an overall slight 0.5%
reduction in volumes across the regions. Flow Control gained market share in
EMEA, in Brazil, in China and in South-East Asia, while our market share
slightly declined in North America due to the closure of some customers where
we enjoyed very high market share. Our growth in India has been positive but
has somewhat lagged behind market growth during the first half as induction
furnace-based steel production (a market into which we do not participate) has
outgrown the EAF and Blast furnace-based steel production during the period.
Pricing increased modestly.
Advanced Refractories
Advanced Refractories Revenue H1 2025 (£m) H1 2024 (£m) Change % underlying Change % reported
Americas 92.9 98.5 (8.5%) (5.7%)
Europe, Middle East & Africa (EMEA) 89.0 83.5 8.0% 6.6%
Asia-Pacific 91.1 88.3 6.7% 3.2%
Total Advanced Refractories Revenue 273.0 270.3 1.6% 1.0%
In Advanced Refractories we gained market share overall with volume growth
higher than the market in Asia, both in India and China, in EMEA (excluding
Iran, Russia and Ukraine), and in the US partially offset by market share
decline in Latin America. As a result, revenue growth was driven by volume
increases, while pricing declined very modestly over the period.
Sensors & Probes
Sensors & Probes Revenue H1 2025 (£m) H1 2024 (£m) Change % underlying Change % reported
Americas 13.3 15.3 (3.2%) (13.5%)
Europe, Middle East & Africa (EMEA) 5.4 6.1 (11.0%) (12.2%)
Asia-Pacific 0.2 0.2 (20.9%) (20.5%)
Total Sensors & Probes Revenue 18.8 21.7 (5.8%) (13.2%)
During the first six months of 2025, Sensors & Probes sales recorded
double-digit growth in North America, which was more than offset by declining
sales in South America. Within EMEA, sales in the EU+UK were flat
year-on-year, reflecting weak market demand, while sales in Türkiye, the
Middle East, and Africa declined.
Foundry Division
Foundry Division H1 2025 (£m) H1 2024 (£m) Change % underlying Change % reported
Americas 57.9 63.7 (2.6%) (9.1%)
Europe, Middle East & Africa (EMEA) 92.9 101.6 (7.7%) (8.5%)
Asia-Pacific 86.7 85.5 5.1% 1.4%
Total Foundry Revenue 237.5 250.8 (2.1%) (5.3%)
Foundry Trading Profit 16.4 20.7 (15.0%) (20.4%)
Foundry Return on Sales 6.9% 8.2% -110bps -130bps
Foundry end markets were negative in all major regions with the exception of
India, with the greatest impact being in EMEA, followed by North America and
persistent weakness also in South America and South-East Asia. The negative
market conditions impacted revenue by c. 8%, partially offset by market share
gains of c. 6.8%, while headline pricing was modestly negative. As a result,
Foundry revenue fell 2.1% as compared with H1 2024.
At the trading profit line, Foundry was also impacted by rising costs not
covered by price increases, and a negative product mix. The Division's trading
profit fell 15.0% versus H1 2024 and Return on Sales reduced by 110bps to
6.9%.
Financial Review
H1 2025 performance overview
Income statement
Group revenue of £907.5m is down 3.1% on a reported basis (H1 2024: £936.5m)
and -0.4% on an underlying basis; trading profit fell 20.7% on a reported
basis to £77.0m (H1 2024: £97.2m), as set out in the operating review above,
and fell 16.1% on an underlying basis.
Operating profit decreased 22.1% on a reported basis to £65.5m (H1 2024:
£84.1m), reflecting the changes in trading profit described above, before
amortisation of acquired intangible assets of £5.0m (H1 2024: £5.1m),
cost-reduction programme expenses of £4.3m (H1 2024: £8.0m) and acquisition
related costs of £2.2m. These three items have been treated as separately
reported items.
In H1 2025, we spent £17.7m on R&D activities (H1 2024: £19.7m), which
represents 1.9% of our revenue (H1 2024: 2.1%).
Headline PBT was £67.5m (H1 2024: £89.8m), a reduction of 24.8% on a
reported basis, reflecting the reduction in operating profit and an increase
in net finance cost to £10.0m (H1 2024: £8.0m) due to a combination of
higher debt, and reduced financial income.
PBT including amortisation of acquired intangibles was 27.0% lower at £56.0m
(H1 2024: £76.7m), on a reported basis.
Headline EPS from continuing operations fell 21.6% on a reported basis to
17.1p (H1 2024: 21.8p), reflecting the lower trading profit described above
partially offset by a reduction in the non-controlling interest (£6.6m; H1
2024 £7.6m). This was also partially offset by a reduction in our average
number of shares in issue from 264.7m (HY 2024) to 248.0m, due to the share
buy-back undertaken last year, and the second share buyback commenced in
November 2024 and completed in April 2025.
Taxation
The Group's effective tax rate is the income tax associated with headline
performance of H1 2025, £18.4m, (H1 2024: £24.5m), divided by the headline
profit before tax and before the Group's share of post-tax profit of joint
ventures. The Group's headline effective tax rate was 27.5% in H1 2025 as
previously guided (H1 2024: 27.5%). We expect the Group's effective tax rate
to be 27.5% for the full year 2025.
The tax debit of £0.1m in separately reported items includes a debit of
£2.8m related to the withholding tax related to one-off dividend remittances,
offset against a credit of £1.3m relating to the amortisation of intangible
assets, and a balancing amount relating to deferred tax, as set out in note 5
to the accounts.
Cash flow
The Group generated adjusted operating cash flows of £25.8m, a 46.1% decrease
versus H1 2024 (£47.9m). This implies a cash conversion rate in H1 2025 of
33% (H1 2024: 49%). H1 2025 cash conversion reflected a reduced cash generated
from continuing operations of £54.9m (H1 2024: £94.0m) partially offset by a
decrease in net capex of £36.4m (H1 2024: £49.9m). Free cash flow was an
outflow of £12.6m in H1 2025 (H1 2024: inflow of £17.8m).
Working capital
Trade working capital, measured as a percentage of sales on a 12-month moving
average basis, has trended broadly flat, at 23.5% as at 30 June 2025 (30 June
2024: 23.2%; 31 Dec 2024 22.9%), with the rise versus the level at 31 December
2024 reflecting usual seasonality.
In absolute terms, on a constant currency basis, trade working capital
increased by £50.1m in H1 2025 to £441.9m compared to the balance as at 31
December 2024. The increase was due to a rise in inventory (+£30.3m) and
debtors (+£48.0m), partially offset by an increase in creditors (+£28.2m).
On a reported basis, the increase in trade working capital was £48.1m (H1
2024: £34.2m), including working capital relating to PiroMet of c. £6m.
Capital expenditure
Net cash capital expenditure in H1 2025 was £36.4m (H1 2024: £49.9m).
Including additional fixed assets resulting from capitalised leases and the
net repayment of capital expenditure creditors, total capital expenditure
additions were £37.9m (H1 2024: £47.9m), of which £28.1m (H1 2024: £39.2m)
related to the Steel Division and £9.8m (H1 2024: £8.7m) related to the
Foundry Division.
Balance sheet
Financial position
At 30 June 2025, Net Debt was £452.4m, (31 December 2024: £329.2m), due to
an outflow at the free cash flow line of £12.6m plus dividend payments
(£40.4m), share buybacks (£34.8m), consideration in relation to the
acquisition of PiroMet (£18.6m) and other factors.
The net debt to EBITDA ratio increased to 2.0x versus 31 December 2024 (1.3x),
principally reflecting the increase in net debt and also the fall in the
trailing last-12-months EBITDA.
EBITDA to interest was 15.0x (31 December 2024: 18.4x). The Group had
committed borrowing facilities of £761.2m as at 30th June 2025 (31 December
2024: £669.6m), of which £238.5m was undrawn (31 December 2024: £202.5m).
Liquidity stood at £402.9m on 30 June 2025 (31 December 2024: £389m),
defined as undrawn committed debt facilities plus our cash on balance sheet,
less cash used as collateral against loans.
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.
Return on Invested Capital
In March 2025, the Board decided to re-define ROIC for the purpose of
remuneration targets, to exclude the impact of goodwill and intangibles that
arose on the acquisition of Foseco in 2008, as the Remuneration Committee
believes that this approach removes the distortive effects of that
acquisition, and provides a clearer measure of management performance.
Accordingly, ROIC is now defined as trading profit less amortisation of
acquired intangibles (excluding Foseco) plus share of post-tax profit of joint
ventures and associates for the previous 12 months after tax, divided by the
average invested capital. Invested capital is defined as total assets
excluding cash and non-interest-bearing liabilities, less the goodwill and
intangibles that arose under IFRS3 in respect of the Foseco acquisition in
2008, averaged between the closing balance sheet date and the balance sheet
date twelve months prior, at year-to-date foreign exchange rates. In the
period, ROIC (excluding the Foseco intangible assets) was 12.0%, down from
14.4% at 31 December 2024, principally reflecting the reduction in rolling
12-month trading profit.
ROIC on the previous methodology was 7.1% (31 December 2024: 8.4%)
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. In the funded UK plan, an insurance
asset from PIC 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 this UK Plan. The Group's net
pension liability on 30 June 2025 was £33.5m (2024 full year: £37.4m).
There is no one driver for the reduction in liability as movements in all
plans remained relatively flat.
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 has reviewed the Principal Risks and Uncertainties facing the Group
and consider that these remain unchanged compared with those published in the
Annual Report for the year ended 31 December 2024.
The Principal Risks which could have a material impact on the Group's
performance for the remainder of the financial year are as follows:
- End-market risks
- Protectionism and globalisation
- 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
Further information on these Principal Risks and the way in which the Group
manages them is detailed on pages 67-73 of the 2024 Annual Report. A copy of
the 2024 Annual Report is available to view in unedited full text, on the
Vesuvius website at www.vesuvius.com (http://www.vesuvius.com) and on the
National Storage Mechanism at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
There was no material change to the level of risks facing the Group during the
period under review.
Half Year Results for the six months ended 30 June 2025
Directors' responsibility statement
The Directors confirm that these condensed interim financial statements have
been prepared in accordance with UK adopted International Accounting Standard
34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct Authority and that
the interim management report includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8, namely:
1) an indication of important events that have occurred
during the first six months and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
2) material related-party transactions in the first
six months and any material changes in the related-party transactions
described in the last annual report.
The names and functions of the Directors of Vesuvius plc are as follows:
Carl-Peter Forster Chairman
Patrick André Chief Executive
Mark Collis Chief Financial Officer
Eva Lindqvist Independent Non-executive Director and
Senior Independent Director
Italia Boninelli Independent Non-executive Director and
Chair of the Remuneration Committee
Robert MacLeod Independent Non-executive Director and
Chair of the Audit Committee
Carla Bailo Independent Non-executive Director
Dinggui Gao Independent Non-executive Director
Friederike Helfer Non-executive Director
On behalf of the Board
Mark Collis
Chief Financial Officer
5 August 2025
Independent review report to Vesuvius plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Vesuvius plc's condensed consolidated interim financial
statements (the "interim financial statements") in the Half Year Results of
Vesuvius plc for the six months ended 30 June 2025 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Condensed Group Balance Sheet as at 30 June 2025;
· the Condensed Group Income Statement and Condensed Group
Statement of Comprehensive Income for the period then ended;
· the Condensed Group Statement of Cash Flows for the period then
ended;
· the Condensed Group Statement of Changes in Equity for the period
then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the Half Year Results of Vesuvius
plc have been prepared in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Half Year Results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Half Year Results, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the Half Year Results in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the Half Year Results, including the
interim financial statements, the directors are responsible for assessing the
group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Half Year Results based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
5 August 2025
Condensed Group Income Statement
For the six months ended 30 June 2025
Half year 2025 (Unaudited) Half year 2024 (Unaudited) Full year 2024
Headline performance((1)) Separately reported items((1)) Total Headline performance((1)) Separately reported items((1)) Total Headline performance((1)) Separately reported items((1)) Total
Notes £m £m £m £m £m £m £m £m £m
Revenue 2 907.5 - 907.5 936.5 - 936.5 1,820.1 - 1,820.1
Manufacturing costs (670.2) - (670.2) (666.9) - (666.9) (1,316.4) - (1,316.4)
Administration, selling & distribution costs (160.3) - (160.3) (172.4) - (172.4) (315.7) - (315.7)
Trading profit((2)) 2 77.0 - 77.0 97.2 - 97.2 188.0 - 188.0
Cost reduction programme expenses 3 - (4.3) (4.3) - (8.0) (8.0) - (14.6) (14.6)
Acquisition related expenses 3 - (2.2) (2.2) - - - - - -
Provision for future water treatment at disused mine - - - - - - - (9.7) (9.7)
Amortisation of acquired intangible assets - (5.0) (5.0) - (5.1) (5.1) - (10.0) (10.0)
Operating profit/(loss) 2 77.0 (11.5) 65.5 97.2 (13.1) 84.1 188.0 (34.3) 153.7
Finance expense (14.5) - (14.5) (13.3) - (13.3) (27.1) - (27.1)
Finance income 4.5 - 4.5 5.3 - 5.3 10.9 - 10.9
Net finance costs 4 (10.0) - (10.0) (8.0) - (8.0) (16.2) - (16.2)
Share of post-tax profit of joint ventures and associates 0.5 - 0.5 0.6 - 0.6 1.1 - 1.1
Profit/(loss) before tax 2 67.5 (11.5) 56.0 89.8 (13.1) 76.7 172.9 (34.3) 138.6
Income tax (charge)/credits 5 (18.4) (0.1) (18.5) (24.5) 3.2 (21.3) (47.2) 8.9 (38.3)
Profit/(loss) 49.1 (11.6) 37.5 65.3 (9.9) 55.4 125.7 (25.4) 100.3
Profit/(loss) attributable to:
Owners of the parent 42.5 (11.6) 30.9 57.7 (9.9) 47.8 112.6 (25.4) 87.2
Non-controlling interests 6.6 - 6.6 7.6 - 7.6 13.1 - 13.1
Profit/(loss) 49.1 (11.6) 37.5 65.3 (9.9) 55.4 125.7 (25.4) 100.3
Earnings per share - pence
6
Total operations - basic 17.1((1)) 12.5((1)) 21.8((1)) 18.1 43.3((1)) 33.5
- 17.0((1)) 12.3((1)) 21.6((1)) 17.9 42.7((1)) 33.1
diluted
(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.
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 £171.8m (2024
half year: £185.5m, 2024 full year: £350.0m).
Condensed Group Statement of Comprehensive Income
For the six months ended 30 June 2025
Unaudited Unaudited
Half year Half year Full year
2025 2024 2024
Notes £m £m £m
Profit 37.5 55.4 100.3
Items that will not subsequently be reclassified to income statement:
Remeasurement of defined benefit assets/liabilities 3.8 7.0 3.6
Income tax relating to items not (0.9) (2.5) (0.8)
reclassified
5
Items that will not subsequently be reclassified to income statement 2.9 4.5 2.8
Items that may subsequently be reclassified to income statement:
Exchange differences on translation of foreign operations (58.2) (31.9) (49.1)
Exchange differences arising on translation of net investment hedges (2.5) 6.0 7.1
Net change in costs of hedging 0.3 0.1 (0.1)
Change in the fair value of the hedging instrument (1.6) 0.6 1.5
Amounts reclassified from Net finance costs 1.4 (0.5) (1.2)
Items that may subsequently be reclassified to income statement (60.6) (25.7) (41.8)
Other comprehensive loss, net of income tax (57.7) (21.2) (39.0)
Total comprehensive (loss)/ income (20.2) 34.2 61.3
Total comprehensive income attributable to:
Owners of the parent (20.8) 26.7 49.5
Non-controlling interests 0.6 7.5 11.8
Total comprehensive (loss)/ income (20.2) 34.2 61.3
Condensed Group Statement of Cash Flows
For the six months ended 30 June 2025
Unaudited Unaudited
Half year Half year Full year
2025 2024 2024
Notes £m £m £m
Cash flows from operating activities
Cash generated from operations 9 54.9 94.0 216.7
Interest paid (10.4) (8.9) (20.9)
Interest received 2.7 4.4 9.0
Income taxes paid (21.8) (20.3) (46.1)
Net cash inflow from operating activities 25.4 69.2 158.7
Cash flows from investing activities
Purchases of property, plant & equipment (34.6) (46.8) (88.1)
Purchases of intangible assets (5.6) (3.7) (12.7)
Proceeds from the sale of property, plant and equipment 3.8 0.6 4.3
Acquisition of subsidiaries and joint ventures, net of cash acquired (18.6) - -
Proceeds from sale of associate - - 0.4
Dividends received from joint ventures - - 0.7
Net cash outflow from investing activities (55.0) (49.9) (95.4)
Cash flows from financing activities
Proceeds from borrowings 8 238.4 111.7 134.8
Repayment of borrowings 8 (131.7) (10.0) (13.0)
Payment of lease liabilities (9.0) (8.4) (18.2)
Cash outflow relating to derivatives (1.2) - -
Purchase of ESOP Shares - (17.1) (17.1)
Share buyback (34.8) (30.2) (63.4)
Dividends paid to equity shareholders 7 (40.4) (42.7) (61.1)
Dividends paid to non-controlling shareholders (1.6) (1.5) (2.5)
Net cash inflow / (outflow) from financing activities 19.7 1.8 (40.5)
Net increase/(decrease) in cash and cash equivalents 8 (9.9) 21.1 22.8
Cash and cash equivalents at 1 January 178.6 160.8 160.8
Effect of exchange rate fluctuations on cash and cash equivalents (9.3) (3.2) (5.0)
Cash and cash equivalents at the end of the reporting period 8 159.4 178.7 178.6
Free cash flow 16.11
Net cash inflow from operating activities 25.4 69.2 158.7
Purchases of property, plant & equipment (34.6) (46.8) (88.1)
Purchases of intangible assets (5.6) (3.7) (12.7)
Proceeds from the sale of property, plant and equipment 3.8 0.6 4.3
Proceeds from the sale of associates - - 0.4
Dividends received from joint ventures - - 0.7
Dividends paid to non-controlling shareholders (1.6) (1.5) (2.5)
Free cash flow(1) 16.11 (12.6) 17.8 60.8
((1))For definitions of alternative performance measures, refer to Note 16
Condensed Group Balance Sheet
As at 30 June 2025
Unaudited Unaudited
Half year Half year Full year
2025 2024 2024
Notes £m £m £m
Assets
Property, plant and equipment 485.6 464.1 482.6
Intangible assets 689.3 692.6 690.9
Interests in joint ventures and associates 10.8 11.2 11.0
Deferred tax assets 101.7 112.4 109.9
Other receivables 24.5 27.9 26.7
Investments 0.9 0.7 0.2
Derivative financial instruments 15 0.7 0.6 1.1
Employee benefits - surpluses 10 35.8 35.5 34.1
Total non-current assets 1,349.3 1,345.0 1,356.5
Cash and short-term deposits 8 164.4 180.0 186.4
Trade and other receivables 472.5 468.0 438.9
Inventories 315.0 309.1 295.4
Income tax receivable 18.7 14.0 12.9
Derivative financial instruments 15 0.1 1.8 3.6
Total current assets 970.7 972.9 937.2
Total assets 2,320.0 2,317.9 2,293.7
Liabilities
Interest-bearing borrowings 8 28.1 221.2 80.4
Trade and other payables 380.5 374.7 363.4
Income tax payable 9.4 13.0 6.6
Provisions 14 9.3 10.9 10.3
Derivative financial instruments 15 0.3 0.2 0.1
Total current liabilities 427.6 620.0 460.8
Interest-bearing borrowings 8 587.3 276.2 439.8
Other payables 6.4 8.8 6.9
Provisions 14 50.6 48.0 54.8
Deferred tax liabilities 19.3 23.9 16.3
Derivative financial instruments 15 1.9 - -
Employee benefits - liabilities 10 69.3 74.0 71.5
Total non-current liabilities 734.8 430.9 589.3
Total liabilities 1,162.4 1,050.9 1,050.1
Net assets 1,157.6 1,267.0 1,243.6
Equity
Issued share capital 25.5 27.1 26.4
Retained earnings 2,607.9 2,658.2 2,645.7
Other reserves (1,557.4) (1,490.2) (1,503.7)
Equity attributable to the owners of the parent 1,076.0 1,195.1 1,168.4
Non-controlling interests 81.6 71.9 75.2
Total equity 1,157.6 1,267.0 1,243.6
Condensed Group Statement of Changes in Equity
For the six months ended 30 June 2025
Issued share capital Other reserves Retained earnings Owners of the parent Non-controlling interests Total equity
£m £m £m £m £m £m
As at 1 January 2025 26.4 (1,503.7) 2,645.7 1,168.4 75.2 1,243.6
Profit - - 30.9 30.9 6.6 37.5
Remeasurement of defined benefit assets/liabilities - - 3.8 3.8 - 3.8
Income tax relating to items not reclassified - - (0.9) (0.9) - (0.9)
Exchange differences on translation of the net assets of foreign operations - (52.2) - (52.2) (6.0) (58.2)
Exchange differences arising on translation of net investment hedges - (2.5) - (2.5) - (2.5)
Net change in costs of hedging - 0.3 - 0.3 - 0.3
Change in the fair value of the hedging instrument - (1.6) - (1.6) - (1.6)
Amounts reclassified from Net finance costs - 1.4 - 1.4 - 1.4
Other comprehensive (loss)/income, net of income tax - (54.6) 2.9 (51.7) (6.0) (57.7)
Total comprehensive (loss)/income - (54.6) 33.8 (20.8) 0.6 (20.2)
Share-based payments - - 3.6 3.6 - 3.6
Business acquisition - - - - 7.4 7.4
Share buyback (0.9) 0.9 (34.8) (34.8) - (34.8)
Dividends paid (Note 7) - - (40.4) (40.4) (1.6) (42.0)
Total transactions with owners (0.9) 0.9 (71.6) (71.6) 5.8 (65.8)
As at 30 June 2025 25.5 (1,557.4) 2,607.9 1,076.0 81.6 1,157.6
Issued share capital Other reserves Retained earnings Owners of the parent Non-controlling interests Total equity
£m £m £m £m £m £m
As at 1 January 2024 27.7 (1,464.6) 2,691.2 1,254.3 65.9 1,320.2
Profit - - 47.8 47.8 7.6 55.4
Remeasurement of defined benefit assets/liabilities - - 7.0 7.0 - 7.0
Income tax relating to items not reclassified - - (2.5) (2.5) - (2.5)
Exchange differences on translation of the net assets of foreign operations - (31.8) - (31.8) (0.1) (31.9)
Exchange differences arising on translation of net investment hedges - 6.0 - 6.0 - 6.0
Net change in costs of hedging - 0.1 - 0.1 - 0.1
Change in the fair value of the hedging instrument - 0.6 - 0.6 - 0.6
Amounts reclassified from Net finance costs - (0.5) - (0.5) - (0.5)
Other comprehensive income/(loss), net of income tax - (25.6) 4.5 (21.1) (0.1) (21.2)
Total comprehensive income/(loss) - (25.6) 52.3 26.7 7.5 34.2
Share-based payments - - 4.1 4.1 - 4.1
Purchase of ESOP shares - - (17.1) (17.1) - (17.1)
Share buyback (0.6) - (29.6) (30.2) - (30.2)
Dividends paid (Note 7) - - (42.7) (42.7) (1.5) (44.2)
Total transactions with owners (0.6) - (85.3) (85.9) (1.5) (87.4)
As at 30 June 2024 27.1 (1,490.2) 2,658.2 1,195.1 71.9 1,267.0
Notes to the Condensed Group Financial Statements
1. Basis of preparation
1.1 Basis of accounting
These Condensed Group Financial Statements of Vesuvius plc ("Vesuvius" or the
"Company") and its subsidiary and joint venture companies (the "Group") have
been prepared in accordance with UK adopted International Accounting Standard
34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct Authority.
These Condensed Group Financial Statements have been prepared using the same
accounting policies as used in the preparation of the Group's Annual financial
statements for the year ended 31 December 2024, except for income taxes which
are calculated using the effective tax rate which is expected to apply for the
full year. The assessment of the Group's critical accounting estimates and
judgements remain consistent with the 2024 Annual Report and Financial
Statements. The Group's Annual report and financial statements for the year
ended 31 December 2024 was prepared in accordance with UK-adopted
international accounting standards (IFRS) and the requirements of the
Companies Act 2006.
The Condensed Group Financial Statements do not include all of the information
required for full annual financial statements and should be read in
conjunction with the consolidated financial statements of the Group for the
year-ended 31 December 2024. The financial information presented in this
document is unaudited but has been reviewed by the Company's auditor.
These Condensed Group Financial Statements do not comprise statutory accounts
within the meaning of section 434 of the Companies Act 2006. The comparative
figures for the financial year ended 31 December 2024 have been extracted from
the Group's Annual Report and Financial Statements for that financial year.
Those accounts have been reported on by the Company's auditor and delivered to
Companies House. The report of the auditor was unqualified, did not include
reference to any matters to which the auditor drew attention by way of
emphasis without qualifying its report and did not contain a statement under
section 498(2) or (3) of the Companies Act 2006.
1.2 Going concern
The Directors have prepared cash flow scenarios for the Group for a period of
at least 12 months from the date of approval of the 2025 Interim Condensed
Financial Statements. These forecasts reflect an assessment of current and
future end market conditions, and their impact on the Group's future trading
performance.
The analysis includes a severe but plausible downside scenario which assumes
for a 5% decline in business activity, compared to the previous year combined
with a declining of Return on Sales by 1.5% over the period under review. Debt
maturing during the period is assumed to be re-financed and a consistent level
of dividend payments continues.
In this scenario, the forecast shows that the Group maintains considerable
headroom against its covenants. The Net debt / EBITDA leverage ratio never
exceeds 2.25x, compared to a covenant of 3.25x and the interest coverage
covenant (EBITDA / interest, never falls below 12.5x compared to a covenant of
4.0x.
The analysis also included a stress test to determine how much the Group's
revenues could decrease before breaching at least one of the debt covenants.
Based on the exercise described above and the Group's available committed
liquidity which currently stands at £402.9m, 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
Interim Condensed Financial Statements. Accordingly, they continue to adopt a
going concern basis in preparing the Condensed Financial statements of the
Group and the Company.
1.3 Presentational currency
The financial statements are presented in millions of pounds sterling and
rounded to one decimal place.
1.4 Disclosure of "separately reported items"
Columnar presentation
The Group has adopted a columnar presentation for its Group Income Statement,
with certain items drawn out as 'separately reported' from headline
performance, as the Directors consider that this gives a useful view of the
core results of the ongoing business. The 'separately reported items' column
includes the effect of any components of financial performance that the
Directors consider separate disclosure would assist users understanding of the
financial performance in a given year and in making projections of future
results.
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,
significant merger and acquisition activity costs, 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.
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.
The Company applies an even-handed approach to both gains and losses and aims
to be both consistent and clear in its disclosure of such items. The exclusion
of separately reported items may result in headline earnings being materially
higher or lower than total earnings.
1.5 New and revised IFRS
None of the new standards, amendments or interpretations that became effective
in the period had a material impact on the Group, and none of the standards
which have been issued but are not yet effective are expected to have a
material impact on the Group.
2 Segment information
Operating segments for continuing operations
The Group's operating segments are determined by how the Group's components
are reported to the Group's Chief Executive Officer, who makes the key
operating decisions and is responsible for allocating resources and assessing
performance of the components. In line with the Group's management and
internal reporting structure, the operating segments are Steel Flow Control,
Steel Advanced Refractories, Steel Sensors & Probes and the Foundry
Division. The principal activities of each of these segments are described in
the Operating Review.
The 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
considers the economic characteristics of these operating segments including
the similar nature of products, customers, production processes and margins.
Segmental analysis
Unaudited Half Year 2025
Flow Control Advanced Refractories Sensors Steel Foundry Total
& Probes
£m £m £m £m £m £m
Segment revenue 378.1 273.0 18.8 670.0 237.5 907.5
At a point in time 667.9 237.5 905.4
Over time 2.1 - 2.1
Segment adjusted EBITDA ((1)) 84.1 24.9 109.0
Segment depreciation and amortisation (23.5) (8.5) (32.0)
Segment trading profit 60.6 16.4 77.0
Return on sales % ((2)) 9.0% 6.9% 8.5%
Cost reduction programme expenses (4.3)
Amortisation of acquired intangible assets (5.0)
Acquisition related expenses (2.2)
Operating profit 65.5
Net finance costs (10.0)
Share of post-tax profit of joint ventures 0.5
Profit before tax 56.0
Capital expenditure 28.1 9.8 37.9
Inventory 257.0 58.0 315.0
Trade debtors 282.8 92.8 375.6
Trade creditors 197.6 62.9 260.5
Unaudited Half Year 2024
Flow Control Advanced Refractories Sensors Steel Foundry Total
& Probes
£m £m £m £m £m £m
Segment revenue 393.7 270.3 21.7 685.7 250.8 936.5
At a point in time 684.4 250.8 935.2
Over time 1.3 - 1.3
Segment adjusted EBITDA ((1)) 98.0 29.4 127.4
Segment depreciation and amortisation (21.5) (8.7) (30.2)
Segment trading profit 76.5 20.7 97.2
Return on sales % ((2)) 11.2% 8.2% 10.4%
Cost reduction programme expenses (8.0)
Amortisation of acquired intangible assets (5.1)
Operating profit 84.1
Net finance costs (8.0)
Share of post-tax profit of joint ventures 0.6
Profit before tax 76.7
Capital expenditure 39.2 8.7 47.9
Inventory 256.9 52.2 309.1
Trade debtors 278.2 93.0 371.2
Trade creditors (186.3) (60.5) (246.8)
Full Year 2024
Flow Control Advanced Refractories Sensors Steel Foundry Total
& Probes
£m £m £m £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 ((1)) 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 % ((2)) 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 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)
((1)) Adjusted EBITDA is defined in note 16.13
((2)) Return on sales is defined in note 16.3
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. 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 headline performance and
shown as separately reported items outside of Trading Profit, allowing for a
clear measure of the Group's operating performance.
During 2025, cost reduction programme expenses reported as separately reported
items were £4.3m (2024 half year £8.0m; full year: £14.6m). The charges
reflect redundancy costs £2.4m (2024 half year £5.0m; full year: £10.8m),
advisory costs £1.1m (2024 half year £nil; full year £nil) plant closure
costs £0.8m (2024 half year £2.2m; full year: £2.2m), and non-cash asset
impairments of nil (2024 half year £0.8m; full year: £1.6m). The net tax
credit attributable to these cost reduction programme expenses was £0.5m
(2024 half year £1.9m; full year: £2.6m).
Acquisition related expenses
Costs of £2.2m have been drawn out as a separately reported item (2024 half
year £nil; full year £nil). These are professional fees incurred in
relation to acquisition related activity. As these expenses are not related
to current trading, separate disclosure will assist users in better
understanding financial performance.
4 Net finance costs
Unaudited Half year Unaudited Half year Full year
2025 2024 2024
£m £m £m
Interest payable on borrowings
Loans, overdrafts and factoring arrangements 10.2 9.3 19.3
Interest on lease liabilities 1.3 1.5 3.0
Amortisation of capitalised arrangement costs 0.9 0.5 1.0
Total interest payable on borrowings 12.4 11.3 23.3
Interest on net retirement benefits obligations 0.6 0.8 1.6
Adjustments to discounts on provisions and other liabilities 1.5 1.2 2.2
Adjustments to discounts on receivables (0.6) (0.6) (1.2)
Interest income (3.9) (4.7) (9.7)
Total net finance costs 10.0 8.0 16.2
Within the table above, total finance costs are £14.5m (2024 half year:
£13.3m, 2024 full year: £27.1m) and total finance income is £4.5m (2024
half year: £5.3m, 2024 full year: £10.9m).
5 Income tax
The Group's headline effective tax rate was in-line with expectations at 27.5%
in H1 2025 (2024 half year 27.5%; 2024 full year 27.5%) giving a headline
income tax charge of £18.4m (2024 half year £24.5m; 2024 full year £47.2m).
The headline income tax charge reflected in the Condensed Group Income
Statement excludes a debit of £0.1m (2024 half year credit £3.2m; 2024 full
year credit £8.9m) relating to separately reported items comprising a credit
of £1.3m (2024 half year £1.3m; 2024 full year £2.6m) relating to the
amortisation of intangible assets, a debit of £2.8m (2024: nil) for
withholding tax on exceptional dividends and the rest relates to the
anticipated current and deferred tax impact of cost reduction programme
expenses.
The Group's total net income tax charge reflected in the Condensed Group
Statement of Comprehensive Income was £0.9m (2024 half year £2.5m; 2024 full
year: £0.8m). It was in respect of tax on net actuarial gains and losses on
employee benefits.
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 Condensed Group
Income Statement. The table below reconciles these different profit measures.
Unaudited Half year Unaudited Half year Full year
2025 2024 2024
£m £m £m
Profit attributable to owners of the parent 30.9 47.8 87.2
Adjustments for separately reported items:
Cost reduction programme expenses 4.3 8.0 14.6
Provision for future water treatment at disused mine - - 9.7
Acquisition related expenses 2.2 - -
Amortisation of acquired intangible assets 5.0 5.1 10.0
Income tax (credit)/charge 0.1 (3.2) (8.9)
Headline profit attributable to owners of the parent 42.5 57.7 112.6
6.2 Weighted average number of shares
Unaudited Half year Unaudited Half year Full year
2025 2024 2024
millions millions millions
For calculating basic and headline EPS 248.0 264.7 260.0
Adjustment for potentially dilutive ordinary shares 2.3 3.0 3.7
For calculating diluted and diluted headline EPS 250.3 267.7 263.7
The adjustment for potentially dilutive ordinary shares used for calculating
diluted EPS relates to options under the Company's share based payment plans.
Per share amounts
Unaudited Half year Unaudited Half year Full year 2024
2025 2024
Pence Pence pence
Earnings per share - reported basic 12.5 18.1 33.5
- reported diluted 12.3 17.9 33.1
- headline basic((1)) 17.1 21.8 43.3
- headline diluted((1)) 17.0 21.6 42.7
((1)) For definition of headline earnings per share, refer to Note 16.8
7 Dividends
Unaudited Half year Unaudited Half year Full year
2025 2024 2024
£m £m £m
Amounts recognised as dividends and paid to shareholders
Final dividend for the year ended 31 December 2023 of 16.20p per ordinary - 42.7 42.7
share
Interim dividend for the year ended 31 December 2024 of 7.10p per ordinary - - 18.4
share
Final dividend for the year-ended 31 December 2024 of 16.40p per ordinary 40.4 - -
share
40.4 42.7 61.1
The Directors have declared an interim dividend of 7.1p in respect of the
year-ending 31 December 2025.
8 Reconciliation of movement in net debt
Balance as at Foreign exchange adjustments Fair value gains/ Non-cash movements(*) Cash flow(**) Balance as at 30 June 2025
1 Jan 2025 (losses)
£m £m £m £m £m
Cash and cash equivalents
Cash at bank and in hand 186.4 (9.2) - - (12.8) 164.4
Bank overdrafts (7.8) (0.1) - - 2.9 (5.0)
178.6 (9.3) - - (9.9) 159.4
Borrowings, excluding bank overdrafts (513.2) 6.2 - (5.6) (101.1) (613.7)
Capitalised arrangement costs 0.8 - - (0.9) 3.4 3.3
Derivative financial instruments 4.6 (1.2) (6.0) - 1.2 (1.4)
Net debt (329.2) (4.3) (6.0) (6.5) (106.4) (452.4)
* £4.4m (2024 half year: £7.6m) of new leases were entered into during the
period.
** Borrowings, excluding bank overdrafts include proceeds from borrowings,
repayment of borrowings and payment of lease liabilities.
( )
Balance as at Foreign exchange adjustments Fair value gains/ Non-cash movements(*) Cash flow(**) Balance as at 30 June 2024
1 Jan 2024 (losses)
£m £m £m £m £m
Cash and cash equivalents
Cash at bank and in hand 164.2 (3.2) - - 19.0 180.0
Bank overdrafts (3.4) - - - 2.1 (1.3)
160.8 (3.2) - - 21.1 178.7
Borrowings, excluding bank overdrafts (400.6) 5.6 - (9.1) (93.3) (497.4)
Capitalised arrangement costs 1.8 - - (0.5) - 1.3
Derivative financial instruments 0.5 - 1.7 - - 2.2
Net debt (237.5) 2.4 1.7 (9.6) (72.2) (315.2)
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.
Cash is held both centrally and in operating territories. There is no
restricted cash. For certain territories including Argentina, China, Egypt,
India and Russia cash is more readily used locally than for broader group
purposes.
9 Cash Generated from Operations
Unaudited Unaudited
Half year Half year Full year
2025 2024 2024
£m £m £m
Operating profit 65.5 84.1 153.7
Adjustments for:
Cost reduction programme expenses 4.3 8.0 14.6
Acquisition related expenses 2.2 - -
Provision for future water treatment at disused mine - - 9.7
Amortisation of acquired intangible assets 5.0 5.1 10.0
Trading Profit 77.0 97.2 188.0
Gain on disposal of non-current assets (1.7) (0.4) (2.2)
Depreciation and amortisation 32.0 30.2 62.2
Defined benefit retirement plans net charge 2.8 2.9 5.0
Net increase in inventories (27.7) (24.5) (14.3)
Net (increase)/decrease in trade receivables (46.7) (24.3) 1.9
Net increase in trade payables 26.3 14.6 11.8
Net increase/(decrease) in other working capital 4.0 5.5 (16.6)
Outflow related to restructuring charges (0.2) (0.1) (1.0)
Defined benefit retirement plans cash outflows (3.8) (3.4) (9.4)
Outflow related to cost reduction programme (5.9) (3.2) (7.9)
Outflow related to acquisition related expenses (0.9) - -
Water treatment at disused mine cash outflows (0.3) (0.5) (0.8)
Cash generated from operations 54.9 94.0 216.7
10 Employee benefits
The net employee benefits liability as at 30 June 2025 was £33.5m (2024 half
year: £38.5m; 2024 full year: £37.4m) 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.
Unaudited Unaudited Full year
Half year Half year
2025 2024 2024
£m £m £m
Employee benefits - net surpluses
UK defined benefit pension plans 33.4 33.7 31.8
ROW defined benefit pension plans 2.4 1.8 2.3
35.8 35.5 34.1
Employee benefits - net liabilities
UK defined benefit pension plans (1.0) (1.1) (1.0)
US defined benefit pension plans (10.0) (14.3) (12.1)
Germany defined benefit pension plans (37.3) (38.2) (38.1)
ROW defined benefit pension plans (11.5) (10.7) (11.0)
Other post-retirement benefit plans (9.5) (9.7) (9.3)
(69.3) (74.0) (71.5)
Net liabilities (33.5) (38.5) (37.4)
The expense recognised in the Condensed Group Income Statement in respect of
the Group's defined benefit retirement plans and other post-retirement benefit
plans is shown below.
Unaudited Half year Unaudited Half year 2024 Full year 2024
2025
£m £m £m
In arriving at trading profit - within other manufacturing costs 0.7 0.6 1.1
(as defined in Note 16.4)
- within administration, selling and distribution costs 2.1 2.3 3
.
9
In arriving at profit before tax - within net finance costs 0.6 0.8 1.6
Total net charge 3.4 3.7 6.6
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
period.
12 Related parties
The nature of related party transactions in H1 2025 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 33
of the 2024 Annual Report and Financial Statements. Transactions between
related parties that are Group subsidiaries are eliminated on consolidation.
Unaudited Half year Unaudited Half year
2025
2024
Transactions with joint ventures and associate £m £m
Sales to joint ventures 1.8 2.0
Purchases from joint ventures 13.1 13.6
Trade payables owed to joint ventures 9.6 12.1
Trade receivables owed by joint ventures 1.1 1.3
13 Business combinations
On 28 February 2025 the Group acquired a 61.65% stake in Piromet AS, a Turkish
refractory business, for €27.1m. The acquisition will strengthen the Group's
Advanced Refractory business in the fast-growing region of EEMEA and will also
allow the Group to leverage Piromet's expertise in robotics and gunning
worldwide.
Provisional fair values of the assets and liabilities recognised as a result
of the acquisition are as follows:
£m
Cash and cash equivalents 1.6
Property, plant and equipment 14.8
Intangible asset (customer relationships and non-compete agreements) 7.6
Inventories 3.6
Trade and other receivables 2.8
Payables (4.7)
Income tax payable (2.5)
Deferred tax (4.2)
Net identifiable assets acquired 19.0
Goodwill 10.8
Less: non-controlling interest (7.4)
Consideration 22.4
The goodwill is attributable to Piromet's reputation in the marketplace and
the synergies that Vesuvius expects to gain from integrating its robotics and
gunning into the Advanced Refractories business unit and is expected to be tax
deductible.
Identifiable intangible assets acquired are customer relationships of £7.0m
and non-compete arrangements with former Directors of £0.6m.
The fair value accounting of this acquisition is provisional pending final
determination of the fair value of the assets and liabilities acquired, as
valuations have not yet been finalised. Any adjustments to the fair values
recognised will be made within 12 months of the acquisition date.
In the period since acquisition, Piromet has contributed £6.3m to revenue and
£0.3m to operating profit.
The net cash outflow on acquisition is expected to be £20.8m, being cash
consideration of £22.4m less cash and cash equivalents acquired of £1.6m.
As at 30 June 2025 there has been an initial net cash outflow of £18.6m,
with £2.2m being deferred and subject to finalisation of working capital
values.
The group recognises non-controlling interests in an acquired entity either at
fair value or at the non-controlling interest's proportionate share of the
acquired entity's net identifiable assets. This decision is made on an
acquisition-by-acquisition basis. For the non-controlling interests in Piromet
AS, the group elected to recognise the non-controlling interests at their
proportionate share of the acquired net identifiable assets.
14 Provisions
Disposal, closure and environmental costs Other Total
£m £m £m
As at 1 January 2025 59.0 6.1 65.1
Exchange adjustments (5.3) (0.1) (5.4)
Charge to Condensed Group Income Statement - 7.8 7.8
Adjustment to discount 1.6 - 1.6
Cash spend (2.3) (10.0) (12.3)
Transferred from accruals - 3.1 3.1
As at 30 June 2025 53.0 6.9 59.9
Disposal, closure and environmental costs Other Total
£m £m £m
As at 1 January 2024 51.9 6.7 58.6
Exchange adjustments 0.4 - 0.4
Charge to Condensed Group Income Statement 2.6 3.9 6.5
Adjustment to discount 1.1 - 1.1
Cash spend (2.7) (4.5) (7.2)
Transferred to accruals (0.5) - (0.5)
As at 30 June 2024 52.8 6.1 58.9
Of the total provision balance at 30 June 2025 of £59.9m (30 June 2024:
£58.9m), £50.6m (30 June 2024: £48.0m) is recognised in the Group Balance
Sheet within non-current liabilities and £9.3m (30 June 2024: £10.9m) within
current liabilities.
15 Financial instruments
The condensed interim 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 and in the method in which financial assets and financial
liabilities are measured and presented since year end.
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:
Unaudited Unaudited
Half year 2025 Half year 2024 Full year 2024
Assets Liabilities Assets Liabilities Assets Liabilities
£m £m £m £m £m £m
Investments (Level 2) 0.9 - 0.7 - 0.2 -
Derivatives not designated for hedge 0.1 (0.3) - (0.2) 0.1 (0.1)
accounting purposes (Level 2)
Derivatives designated for hedge 0.7 (1.9) 2.4 - 4.6 -
accounting purposes (Level 2)
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 and have been booked through the Income Statement.
There were no transfers between fair value hierarchies during the period. 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.
$60m of the Group's $86m cross-currency interest rate swap (CCIRS) matured in
June 2025. The remaining $26m is scheduled to mature in June 2027. Upon
maturity of the $60m CCIRS and the corresponding $60m of US Private Placement
Loan Notes, amounts previously recognised in the cash flow hedge reserve were
reclassified to profit or loss. The reclassification had a net impact on
profit or loss of nil, as the CCIRS cash flows perfectly offset those of the
US Private Placement Loan Notes.
The fair value liability of £1.9m attributable to the Group's $26m CCIRS is
presented within non-current liabilities (2024 half year: nil; full year: nil)
with the asset of £0.7m presented within non-current assets (2024 half year:
£0.6m; full year: £1.1m).
As at 30 June 2025, €430.2m (2024 half year: €338.6m; full year:
€374.6m), $30.0m (2024 half year: $30.0m; full year: $168.0m) and ¥3,472.1m
(2024 half year: nil; full year: nil) of borrowings were designated as hedges
of net investments in overseas foreign operations of equivalent worth. All net
investment hedges are 100% effective with no ineffectiveness.
As at 30 June 2025, the Group had an equivalent of £238.7m (2024 half year:
£287.6m; full year: £284.6m) of USPP notes outstanding, which carry a fixed
rate of interest, representing 41% (2024 half year: 64%; full year: 60%) of
the Group's total borrowings.
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 KPI's
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 standardised meaning prescribed by IFRS and therefore may not be
directly comparable to similar measures presented by other companies.
16.1 Headline performance
Headline performance is from continuing operations and before separately
reported items. This is reconciled to the statutory measures on the face of
the Condensed 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 key performance indicators 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 calculation 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 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 one of the Group's
key performance indicators and 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.
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
separately reported items but after deducting capital expenditure net of asset
disposals. It is used in calculating the Group's cash conversion.
Unaudited Half year Unaudited Half year Full year
2025 2024 2024
£m £m £m
Cash generated from continuing operations 54.9 94.0 216.7
Add: Outflows relating to restructuring charges 0.2 0.1 1.0
Add: Outflows relating to cost reduction programme expenses 5.9 3.2 7.9
Add: Outflows relating to acquisition related expenses 0.9 - -
Add: Outflows relating to water treatment at disused mine 0.3 0.5 0.8
Less: Purchases of property, plant & equipment (34.6) (46.8) (88.1)
Less: Purchases of intangible assets (5.6) (3.7) (12.7)
Add: Proceeds from the sale of property, plant and equipment 3.8 0.6 4.3
Add: Proceeds from the sale of associates - - 0.4
Adjusted operating cash flow 25.8 47.9 130.3
Trading Profit 77.0 97.2 188.0
Cash Conversion 33% 49% 69%
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 key performance indicators 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 Condensed 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.
Unaudited Half year Unaudited Half year Full year
2025 2024
£m £m 2024
£m
Average trade working capital 418.6 431.5 416.5
Last 12 months total revenue 1,784.7 1,859.6 1,820.1
Average trade working capital to sales ratio 23.5% 23.2% 22.9%
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 intangible assets. 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.
Unaudited Half year Unaudited Half year Full year
2025 2024
£m £m 2024
£m
Total interest payable on borrowings (note 4) 12.4 11.3 23.3
Interest income (note 4) (3.9) (4.7) (9.7)
Net interest payable on borrowings 8.5 6.6 13.6
16.15 Interest cover
Interest cover is the ratio of adjusted EBITDA for the last 12 months to net
interest payable on borrowings for the last 12 months. This measure is also a
component of the Group's covenant calculations.
Unaudited Half year Unaudited Half year Full year
2025 2024
£m £m 2024
£m
Last 12 months adjusted EBITDA 231.8 252.7 250.2
Last 12 months net interest payable on borrowings 15.5 10.9 13.6
Interest cover 15.0x 23.2x 18.4x
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 that year. It is one of the Group's KPIs 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.
Unaudited Half year Unaudited Half year Full year
2025 2024
£m £m 2024
£m
Net debt (note 8) 452.4 315.2 329.2
Last 12 months adjusted EBITDA 231.8 252.7 250.2
Net debt to adjusted EBITDA 2.0x 1.2x 1.3x
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 also used as one of the targets against which the
annual bonuses of certain employees are measured. In March 2025, the Board
decided to re-define ROIC for the purpose of remuneration targets, to exclude
the impact of goodwill and intangibles that arose on the acquisition of Foseco
in 2008, as the Remuneration Committee believes that this approach removes the
distortive effects of that acquisition and provides a clearer measure of
management performance.
ROIC is calculated as trading profit less amortisation of acquired intangibles
(excluding Foseco) plus share of post-tax profit of joint ventures and
associates for the previous 12 months after tax, divided by the average
invested capital. Invested capital is defined as total assets excluding cash
and non-interest-bearing liabilities, less the goodwill and intangibles that
arose under IFRS3 in respect of the Foseco acquisition in 2008, averaged
between the closing balance sheet date and the balance sheet date twelve
months prior at year to date foreign exchange rates.
The table below shows a reconciliation between the previous definition of ROIC
and the re-defined basis of calculation.
Unaudited Unaudited Full year
Half year Half year
2025 2024 2024
£m £m £m
Average invested capital 1,601.7 1,574.2 1,556.2
Less: average Foseco goodwill and intangible assets (592.1) (615.2) (609.5)
Adjusted average invested capital 1,009.6 959.0 946.7
Trading profit (note 16.4) 166.5 191.2 188.0
Amortisation of acquired intangible assets (10.0) (10.1) (10.0)
Share of post-tax profit of joint ventures and associates 1.0 0.9 1.1
Tax on trading profit and amortisation of acquired intangible assets (43.0) (49.8) (48.9)
Return 114.5 132.2 130.2
Add: amortisation of Foseco intangible assets 8.7 8.8 8.7
Less: tax on amortisation of Foseco intangible assets (2.4) (2.4) (2.4)
Adjusted return 120.8 138.6 136.5
ROIC 7.1% 8.4% 8.4%
ROIC excluding Foseco goodwill and intangible assets 12.0% 14.5% 14.4%
16.19 Constant currency
Figures presented at constant currency represent 2024 amounts retranslated at
average 2025 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.
Unaudited Half year Unaudited Half year Full year
2025 2024
£m £m 2024
£m
Cash and short term deposits 164.4 180.0 186.4
Undrawn committed debt facilities 238.5 222.7 202.5
Liquidity 402.9 402.7 388.9
17 Exchange rates
The principal exchange rates used were as follows:
Income and expense
Average rates
Half year 2025 Half year 2024 Half year to Half year change Full year to Half year change
Full year 2024
US Dollar 1.30 1.27 1.28 2.4% 1.6%
Euro 1.19 1.17 1.18 1.7% 0.8%
Chinese Renminbi 9.42 9.14 9.21 3.1% 2.3%
Japanese Yen 192.51 192.54 193.57 0.0% -0.5%
Brazilian Real 7.47 6.43 6.89 16.2% 8.4%
Indian Rupee 111.71 105.27 106.92 6.1% 4.5%
South African Rand 23.85 23.68 23.41 0.7% 1.9%
Assets and liabilities
Period end rates
Half year 2025 Half year 2024 Half year to Half year change Full year to Half year change
Full year 2024
US Dollar 1.37 1.26 1.25 8.7% 9.6%
Euro 1.16 1.18 1.21 -1.7% -4.1%
Chinese Renminbi 9.83 9.23 9.18 6.5% 7.1%
Japanese Yen 197.77 203.32 196.65 -2.7% 0.6%
Brazilian Real 7.46 7.07 7.74 5.5% -3.6%
Indian Rupee 117.68 105.38 107.04 11.7% 9.9%
South African Rand 24.37 22.99 23.58 6.0% 3.4%
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