Results centre

Richard Tyson

"We are pleased with the strong performance achieved in 2016, ahead of expectations. This has resulted in improved growth and profitability for the Group, and our free cash flow performance has been excellent.

We have a clear and realistic strategy for TT to focus on structural growth markets where there is increasing electronic content. We continue to deploy our engineering expertise and investment in areas where we see real opportunities for growth. Despite uncertain end-markets, we enter the year with good momentum in operational efficiency improvement and a robust order book, giving us confidence of making further progress in 2017."

Richard Tyson, Chief Executive Officer
March 2017

 

Full year results 2016 - Key summary

Good strategic progress and strong financial performance

  • Continued customer focus driving new contract wins; strong sales performance in Asia
  • Operational efficiency improvements supporting excellent profit growth
  • Aero Stanrew continues to perform well and successfully integrated
  • Entering 2017 with good momentum and a robust order book

Financial Headlines

  • Robust organic revenue performance, returned to organic revenue growth in H2
  • Underlying operating profit up 26%, underlying EPS up by 19% at constant currency
  • Good underlying cash conversion at 87%, further enhanced by £12.3 million from sale of properties
  • Return on invested capital improving, up 130bps
  • Increase in dividend reflects progress in 2016 and confidence in 2017

£million unless otherwise stated

FY 2016 FY 2015
Continuing operations    
Revenue 569.9 509.9
Operating profit1 31.3 21.7
Profit before taxation1 26.9 19.2
Earnings per share (pence)1 12.0p 8.8p
Return on invested capital2 10.3% 9.0%
Cash conversion3 87% 136%
Free cash flow4 13.8 5.1
Net debt (55.4) (56.1)
Dividend per share (pence)5 5.6p 5.5p

1Excluding the effect of restructuring costs, asset impairments and acquisition related costs
2Rolling 12 month underlying operating profit return on average invested capital
3Underlying operating cash flow (underlying EBITDA less net capital expenditure excluding property disposals, capitalised development expenditure, working capital and non-cash movements) divided by underlying operating profit
4Net cash flow from operating activities less net cash flow from investing activities less interest paid
5Interim dividend combined with final proposed dividend