Full year 2020 results 

Financial Highlights

• Recovery well underway, strengthening in Q4 with increasing order intake and improved production capacity, after Q2 COVID-19 impact
• £60 million investment in R&D and acquisitions; Torotel largely integrated, performing well and bringing exciting business opportunities
• Benefiting from structural growth drivers associated with sustainability, supplying products for a cleaner, smarter and healthier world
• ESG credentials recognised through an improved ‘AA’ rating in MSCI ESG assessment
• Self-help programme on-track; yielding £2 million benefits in 2020, a further £5 million in 2021 and £11-12 million full run-rate in 2023
• Full year revenue down 9% year-on-year at constant currency after COVID-19 impact; improving trend in H2
• Strong free cash flow of £14.4 million, aided by £3.6 million working capital inflow
• Resumption of dividend payments, reflecting good recovery and positive outlook

Outlook

• Improving business performance and clear path to double-digit margins, supported by self-help actions
• Good trading momentum in 2021 underpinned by record order book
• Revenue in the five months from October 2020 to February 2021 flat organically versus prior year
• Positive structural trends in markets expected to accelerate as a result of COVID-19 impacts

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 announcement.  The 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 31 December 2019 have been restated to reflect prior year adjustments. Further details are set out in note 2 in the results announcement.