In its 2019 fiscal year ending on December 31, the U.K.-based Langley Group’s financial position remained extremely healthy. Chairman Tony Langley, in his annual review, added: “The financial position remains very healthy and the group is poised for its next phase of development.” The group, which is also owner of Manroland Sheetfed, recorded revenues of €820.2 million (2018: €848.4 million) and generated a profit of €59.9 million (2018: €103.5 million) before tax and non-recurring costs of €4.1 million (€2018: nil) associated with the acquisition and subsequent reorganization of Marelli Motori, the Italian electric motor and generator producer, acquired by the group in May of 2019. Profit after tax for the year was €41.7 million (2018: €73.8 million) and there was a shareholder dividend of €90.0 million paid in April (2018: €nil). At year’s end, the consolidated cash balance stood at €238.9 million (2018: €379.5 million) and net assets were €707.4m (2018: €722.6 million). The group had zero net debt throughout the period (2018: nil) and orders on hand at year’s end were €254.3 million (2018: €208.4 million).
Langley went on to say: “The slow downturn that began in 2018, after successive years of increasingly record profits, continued into 2019 for much of the group. The extent to which our business slowed varied from division to division. Some of the smaller subsidiaries actually bucking the trend and Piller’s excellent performance in 2019 was very similar when compared to 2018. At approximately €750 million, revenues excluding those from the Marelli Motori business acquired in May, were down by just over €100 million (12%) over the previous year. However, profit before tax of 7% was achieved on the reduced volume overall, and after cash outflows of some €150 million on dividends and acquisition, net assets still stand at over €700 million, and the consolidated cash position at almost €240 million. With no debt in the group, our financial position remains very healthy and the group is poised for its next phase of development.”
Langley’s Manroland Sheetfed Division
Langley continued: “The first two quarters of 2019 saw particularly aggressive competitor behaviour in the market, as supply continues to exceed demand in the sector. Hitherto, I was content for the business to principally serve its installed base. However, order intake was substantially impaired in the first half and in July, I gave license for the business to respond in the market ‘gloves off’. Order intake improved significantly in the second half and new orders for printing presses in the last quarter more or less equaled those of the first half, albeit at lower margins. Unfortunately, it was not possible to translate sufficient of these orders into revenue in 2019, and subsequently the factory under-recovered for much of the year, working short time until November.
However, the order book is now at a healthy level with production at its highest level since we acquired the business in 2012. At the current run-rate, the division is contributing positively again, and I have instructed the business to continue with the ‘gloves off’ initiative. The Manroland business has a lower cost base, and in contrast to its competitors, is saddled with neither debt or disproportionate overhead costs. The company’s presses are highly regarded in the market, and Manroland’s reputation universally recognized, and the shareholder is patient. During our stewardship of the company, investment in product development has continued unabated, and 2019 was no exception. In 2016, the company unveiled its Roland 700 Evolution Press, developed entirely during our stewardship and formally launched at drupa, is now widely regarded as ‘best in class’. The company will unveil its latest offering to the market at drupa 2020 in June this year.”
Manroland Sheetfed Summary for 2019
• Revenue: €203.5 million. (2018: €259.8 million)
• Orders on hand: €61.2 million. (2018: €27.4 million).
