Half year 2018 results - Key summary
Financial Headlines
- 12% revenue growth; up 3% organically and 5% on a like-for-like basis; continued order intake momentum
- Underlying operating profit up 45% at constant currency; circa two-thirds from the base business, driving improvement in return on invested capital
- Underlying operating margins increased by 170 basis points at constant currency to 7.5%
- Excellent underlying cash conversion at 105%
- Dividend up 11% to 1.95p
Strategic Progress
- Continued strong business performance; growth from R&D efforts and focus on key customers
- Operational excellence and efficiency activity supporting sales growth and margin improvement
- Strong balance sheet gives flexibility to invest further in growth
- Stadium Group plc and Precision Inc. acquisitions completed in period and contributing well; integration on track and highlighting new opportunities from the business combination
| £ million unless otherwise stated |
Underlying1 |
Statutory |
| |
H1
2018 |
H1
2017 |
Change |
Change
constant fx2 |
H1
2018 |
H1
2017 |
| Revenue |
194.2 |
180.5 |
8% |
12% |
194.2 |
180.5 |
| Operating profit |
14.6 |
10.9 |
34% |
45% |
7.7 |
6.8 |
| Operating profit margin |
7.5% |
6.0% |
150bps |
170bps |
4.0% |
3.8% |
| Profit before tax |
14.0 |
9.5 |
47% |
61% |
7.1 |
5.4 |
| Earnings per share (pence) |
6.9p |
4.6p |
50% |
60% |
4.4p |
2.4p |
| Return on invested capital3,4 |
11.2% |
10.6% |
|
|
|
|
| Cash conversion5 |
105% |
128% |
|
|
|
|
| Free cash flow6 |
|
|
|
|
4.1 |
6.8 |
| Net funds (debt)/ funds (2017: year-end) |
|
|
|
|
(41.2) |
47.0 |
| Dividend per share (pence) |
|
|
|
|
1.95p |
1.75p |
1. Excluding the effect of restructuring and acquisition and disposal related items
2. Change at constant currency calculated by comparing current year actual results to the prior year results retranslated at current year actual exchange rates
3. Rolling 12 month underlying operating profit return on average invested capital
4. Return on invested capital for full year 2017
5. Underlying operating cash flow (underlying EBITDA less net capital expenditure, capitalised development expenditure, working capital and non-cash movements) divided by underlying operating profit
6. Net cash flow from operating activities less net cash flow from investing activities less interest paid