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
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£ million (unless otherwise stated)
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Adjusted Results1
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Statutory Results
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H1 2021
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H1 2020 Restated2
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Change
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Change
constant fx
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H1 2021
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H1 2020 Restated2
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|
Revenue
|
235.6
|
210.0
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12%
|
16%
|
235.6
|
210.0
|
|
Operating profit
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15.9
|
13.2
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20%
|
27%
|
9.3
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(1.1)
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Operating profit margin
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6.7%
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6.3%
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40bps
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50bps
|
3.9%
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(0.5)%
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|
Profit before tax
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14.1
|
11.3
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25%
|
33%
|
7.4
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(3.0)
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|
Basic earnings per share
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6.5p
|
5.6p
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16%
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23%
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3.3p
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(1.8)p
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Dividend per share
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1.8p |
- |
- |
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|
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Return on invested capital (2020: year-end)
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8.3%
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7.7%
|
60bps |
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|
|
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Cash conversion
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(7)%
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53%
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|
|
|
|
|
|
|
|
|
|
|
|
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Free cash flow1
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|
|
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(10.3)
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(5.2)
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Net debt (2020: year-end)1
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|
|
|
|
107.3
|
83.9
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Leverage (2020: year-end)1
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|
|
|
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2.0x |
1.6x |
- 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.
- 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.