Results centre

Richard Tyson

"We have been delighted with the performance of the business in the first half. We have reported strong organic revenue growth, an improved operating margin with excellent profit growth and cash conversion.

Most notably, we have taken an important step for TT with the proposed sale of the Transportation division. The disposal will make TT a higher margin, higher quality business, with significantly improved financial capacity. We will deploy our increased investment capacity to drive growth and value creation for the new TT.

Our first half performance and order momentum reinforce our confidence of making further progress in 2017."

Richard Tyson, Chief Executive Officer
August 2017


Half year results 2017 - Key summary

Strategic Progress

  • Proposed sale of TS&C division for £118.8m, making TT a higher margin, higher quality business; shareholder approval received
  • Increased financial capacity to accelerate growth through capital investments and acquisitions
  • Business structure optimised to allow better coordination of routes to market
  • Good progress in continuing operations; further product launches, favourable order momentum, and continued operational efficiency improvements

Financial Headlines

  • Strong organic revenue growth reflecting market demand and success in gaining market share
  • Underlying operating profit up 11%, underlying PBT up 28%
  • Group underlying operating margins now 6.1%
  • Strong cash flow performance with excellent cash conversion
  • 80 basis point improvement in return on invested capital to 10.0%
£ million unless otherwise stated Underlying1 Statutory
  H1 2017 H1 2016 Change Change constant fx H1 2017 H1 2016
Continuing operations            
Revenue 180.0 159.2 13% 6% 180.0 159.2
Operating profit 10.9 8.3 31% 11% 6.8 4.8
Profit before taxation 9.5 5.9 61% 28% 5.4 2.4
Earnings per share (pence) 4.6p 2.3p 100% 53% 2.4p 0.6p
Return on invested capital 2,3 10.0% 9.2%        
Cash conversion 4 128% 63%        
Total operations            
Earnings per share (pence) 7.5p 5.1p     5.1p 2.4p
Free cash flow 5         6.8 (4.9)
Net debt (2016: year-end)         56.0 55.4
Dividend per share (pence)         1.75p 1.7p

1Excluding the effect of restructuring and acquisition and disposal related items
2Rolling 12 month underlying operating profit return on average invested capital
3Return on invested capital for full year 2016
4Underlying operating cash flow (underlying EBITDA less net capital expenditure, capitalised development expenditure, working capital and non-cash movements) divided by underlying operating profit
5Net cash flow from operating activities less net cash flow from investing activities less interest paid