Half year 2020 results - Key summary
- As a result of actions taken, TT entered the pandemic well placed to withstand its impact and emerge strongly
- Decisive and well executed response to COVID-19
- Operational throughout due to actions and essential nature of products
- Employees protected, costs reduced, cash spend minimised
- Gradual recovery in organic revenue through the second quarter, after April low point; all sites now open and capacity improving
- Actively progressing strategy execution
- Significant self-help programme extended and underway, with expected 2023 run-rate benefits of £11-12 million
- Continued R&D investment at 5.0 per cent (2019: 5.4 per cent) of revenue1 for future growth
- Confidence in medium-term outlook and continuing to improve the quality of TT
- Robust balance sheet with substantial covenant and liquidity headroom
- Organic revenue growth and margin enhancement
- Disciplined M&A
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£ million (unless otherwise stated)
|
Underlying1
|
Statutory
|
| |
H1 2020
|
H1 2019
|
Change
|
Change
constant fx1
|
H1 2020
|
H1 2019
|
|
Continuing Operations
|
|
|
|
|
|
|
|
Revenue
|
210.0
|
238.2
|
(12)%
|
(12)%
|
210.0
|
238.2
|
|
Operating profit/(loss)
|
11.4
|
19.2
|
(41)%
|
(41)%
|
(2.9)
|
6.9
|
|
Operating profit margin (%)
|
5.4%
|
8.1%
|
(270)bps
|
(270)bps
|
(1.4)%
|
2.9%
|
|
Profit/(loss) before taxation
|
9.5
|
17.4
|
(45)%
|
(46)%
|
(4.8)
|
5.1
|
|
Earnings/(loss) per share (pence)
|
4.8p
|
8.8p
|
(45)%
|
(47)%
|
(2.7)p
|
3.3p
|
|
Inerim dividend per share (pence)
|
|
|
|
|
- |
2.1p |
|
Return on invested capital1
|
9.0%
|
11.3%
|
|
|
|
|
|
Cash conversion1
|
61%
|
28%
|
|
|
|
|
|
|
|
|
|
|
H1 2020 |
H1 2019 |
|
Free cash flow
|
|
|
|
|
(5.2)
|
(9.2)
|
|
Net debt
|
|
|
|
|
(89.0)
|
(69.1)
|
| Net debt/underlying EBITDA1 |
|
|
|
|
1.6x |
0.9x |
1. The Directors have adopted a number of alternative performance measures to provide additional information on the underlying trends, performance and position of the Group. Further details are set out on page 35 of the full results announcement. The adjusted measures used are set out in the glossary on pages 41 to 49 of the full results announcement.