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2021 Half Year Results 

“We are really pleased to have delivered a strong performance in the first half with a record order book and strong growth as a direct result of the steps we have taken to reposition and improve the quality of the business. This growth together with the benefits of our self-help programme and higher margin acquisitions have resulted in improved margins. 

With 2021 expected revenues already fully covered by orders, continuing demand momentum and the benefits of our successful self-help programme being realised we are confident of delivering a further improvement in full year 2021 results and have increased visibility in our path to double digit margins”.
 

Richard Tyson, Chief Executive Officer

August 2021

 


Half year 2021 results 

Strong momentum, good margin progression and further increase in full year profit expectations

 

Highlights

  • Record order book and continued strong order intake with good visibility building for 2022
  • H1 book to bill of 134%
  • Significant new customer wins, reflecting focus on structural growth markets underpinned by megatrends and ESG drivers
  • Revenue up 16% for the period on a constant currency basis, 12% on an organic basis
  • Successful self-help programme remains on track to deliver expected savings at reduced cost
  • Adjusted operating profit up 27% benefiting from growth, self-help programme and M&A
  • Adjusted operating margin improved to 6.7% and run rate margin higher at 8.0% excluding Virolens start-up costs
  • Statutory operating profit increased to £9.3m, statutory basic EPS of 3.3p
  • Interim dividend of 1.8p per share reflecting confidence in outlook

 

Outlook

  • Order and sales momentum continue; 2021 expected revenues already fully covered
  • Confident in medium term outlook and further modest increase in full year profit expectation
  • Anticipate strong improvement in adjusted operating margin and cash conversion in H2
  • Increased visibility in our path to deliver double digit Group operating margins

 

£ million (unless otherwise stated)

Adjusted Results1

Statutory Results

 

H1 2021

H1 2020 Restated2

Change

Change
constant fx

H1 2021

H1 2020 Restated2

Revenue

235.6

210.0

12%

16%

235.6

210.0

Operating profit

15.9

13.2

20%

27%

9.3

(1.1)

Operating profit margin 

6.7%

6.3%

40bps

50bps

3.9%

(0.5)%

Profit before tax

14.1

11.3

25%

33%

7.4

(3.0)

Basic earnings per share 

6.5p

5.6p

16%

23%

3.3p

(1.8)p

Dividend per share

1.8p - -      

Return on invested capital (2020: year-end)

8.3%

7.7%

60bps      

Cash conversion

(7)%

53%

       

 

           

Free cash flow1

       

(10.3)

(5.2)

Net debt (2020: year-end)1

       

107.3

83.9

Leverage (2020: year-end)1

        2.0x 1.6x
  1. Throughout the announcement we refer to a number of alternative performance measures which provide additional useful information.  The Directors have adopted these measures to provide additional information on the underlying trends, performance and position of the Group with further details found in the results announcementThe adjusted measures used are set out in the ‘Reconciliation of KPIs and non IFRS measures’ section in the announcement.
  2. The results for the year ended 30 June 2021 have been restated to reflect prior year adjustments. Further details are set out in note 2 in the results announcement.