Full year 2018 results - Key summary
Strategic Highlights
- Delivered strong organic and acquisitive growth in revenue and profitability
- Substantial number of new customer and contract wins
- R&D investment up 37% to £12.6m (5.1% of revenue, up from 4.6%)
- Margin growth driven by self-help and operational leverage
- Creating value through our disciplined M&A strategy; Precision performing well and Stadium performing ahead of expectations
Financial Headlines
- 6% full year organic revenue growth; 9% organic growth in H2
- Underlying operating profit and PBT both materially increased
- Underlying operating margins up by 120 basis points to 7.8%
- Good underlying cash conversion at 88%
- Full year dividend up 12% to 6.5p
| £ million unless otherwise stated |
Underlying1 |
Statutory |
| |
2018 |
20175 |
Change |
Change
constant fx |
2018 |
20175 |
Continuing Operations
|
|
|
|
|
|
|
| Revenue |
429.5 |
361.1 |
19% |
21% |
429.5 |
361.1 |
| Operating profit |
33.4 |
24.3 |
37% |
42% |
16.5 |
20.0 |
| Operating profit margin (%) |
7.8% |
6.7% |
110bps |
120bps |
|
|
| Profit before tax |
31.5 |
22.0 |
43% |
48% |
14.6 |
17.7 |
| Earnings per share (pence) |
16.2p |
10.9p |
49% |
54% |
8.0p |
9.7p |
| Return on invested capital2 |
11.5% |
10.6% |
90bps |
90bps |
|
|
| Cash conversion3 |
88% |
98% |
|
|
|
|
Total Operations
|
|
|
|
|
|
|
| Earnings per share (pence) |
|
|
|
|
8.3p |
29.5p |
| Free cash flow4 |
|
|
|
|
8.5 |
4.7 |
| Net (debt)/ funds |
|
|
|
|
(41.7) |
47.0 |
| Dividend per share (pence) |
|
|
|
|
6.5p |
5.8p |
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
3. Underlying operating cash flow (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 less interest paid
5. Re-stated for IFRS 15