Full year 2019 results - Key summary
Strategic highlights
- Strategy continues to drive growth, enhance margin and improve quality of business
- Aerospace, defence and medical revenues up 22% organically now 47% of Group revenues
- New customer wins with multi-year recurring revenues; improved order book visibility for the third year in succession
- New self-help programme launched to underpin further margin progression, improved efficiency and reduced carbon footprint;
- Successful capital deployment: core technology acquisitions with cross-selling success and continued R&D investment
Financial headlines
- 4% organic revenue growth; 9% growth at constant currency
- Underlying operating profit and PBT both materially increased; underlying EPS CAGR of 21% since 2015
- 8.4% underlying operating margin, +60 basis points
- ROIC of 11.3%; up 10 basis points to 11.6% before the impact of IFRS 16
- Strong cash conversion of 98% and ongoing investment for growth
- UK pension scheme triennial valuation completed - fully funded on an actuarial basis
- Full year dividend up 8% to 7.0p
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£ million unless otherwise stated
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Underlying1
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Statutory
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| |
2019
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2018*
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Change
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Change
constant fx
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2019
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2018*
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|
Continuing Operations
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|
|
|
|
|
|
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Revenue
|
478.2
|
429.5
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11%
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9%
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478.2
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429.5
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Operating profit
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40.0
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33.4
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20%
|
17%
|
18.8
|
16.5
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Operating profit margin (%)
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8.4%
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7.8%
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60bps
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60bps
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|
|
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Profit before tax
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36.3
|
31.5
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15%
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12%
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15.1
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14.6
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Earnings per share (pence)
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18.7p
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16.2p
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15%
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13%
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8.5p
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8.0p
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Return on invested capital2
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11.3%
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11.5%
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|
|
|
|
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Cash conversion3
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98%
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88%
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|
|
|
|
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Total Operations
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|
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|
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| Earnings per share (pence) |
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|
|
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10.6p |
8.3p
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Free cash flow4
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|
|
|
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9.7
|
8.5
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Net debt
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|
|
|
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(69.1)
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(41.7)
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| Net debt exc. IFRS 16 |
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(51.5) |
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Net debt to EBITDA5
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|
|
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0.9x
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0.9x
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Dividend per share (pence)
|
|
|
|
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7.0p
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6.5p
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*FY2018 not re-stated for IFRS 16 impacts
1. Excluding the effect of restructuring and other non-recurring costs and acquisition related costs
2. Rolling 12 month underlying operating profit return on average invested capital. Excluding IFRS16, ROIC is 11.6%, up 10 bps
3. Underlying 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
4. Net cash flow from operating activities less net cash flow from investing activities and leases less interest paid. Please see note 7 for more information
5. Net debt at average exchange rates excluding leases previously recognised as operating leases divided by underlying operating profit excluding the impact of IFRS 16. including full-year pro-forma effect for acquisitions. Measure used for our banking covenants