Vesuvius 2020 performance hit by pandemic but end markets recovering

(Alliance News) - Vesuvius PLC on Thursday reported a fall in revenue and profit for 2020 but anticipates an improved performance in the year ahead.

Shares in the molten metal flow engineering company were down 5.5% at 520.50 pence in London on Thursday.

Revenue for 2020 fell 15% to GBP1.46 billion, with pretax profit down 46% to GBP64.5 million. Vesuvius highlighted that the coronavirus crisis hit revenue, though added that it delivered GBP39.0 million in temporary Covid-related savings to mitigate the knock to the firm.

Vesuvius proposed a final dividend of 14.3p, bringing the full-year payout to 17.4p compared to 6.2p in 2019 after the cancellation of the proposed 14.3p final 2019 dividend.

"The board has determined that this level of dividend is appropriate for the level of business activity in 2020, while also considering the strong cash flow generation, and that the company has sufficient liquidity and overall balance sheet strength to justify payment, whilst also maintaining flexibility to fund both organic and inorganic growth, as opportunities arise," said Vesuvius.

The company said it is seeing "clear" signs of recovery in both its Steel and Foundry end markets, which should accelerate in the second half of 2021. Vesuvius is confident in delivering an improved financial performance in the year ahead.

By Lucy Heming; lucyheming@alliancenews.com

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