Preliminary Results for year ended 31 March 2019


Our strategy is delivering - third year of growth 
Results for the year ended 31 March 2019 
  Statutory results Underlying* results
  2019 2018 2019 2018
Revenue £911.1m £833.0m £911.1m £833.0m
Operating profit £113.8m £141.0m £123.9m £122.5m
Profit after tax £113.9m £138.1m £111.5m £109.0m
Earnings per share 20.1p 24.4p 19.7p 19.3p
Full year dividend per share 6.6p 6.3p 6.6p 6.3p
Total funded order backlog1 £3,133.6m £2,005.4m
Total orders in the period2 £776.4m £587.2m
Net cash inflow from operations
 £125.6m £132.4m £126.3m £126.5m
Net cash £188.5m £266.8m
1 2019 includes LTPA amendment signed 5 April 2019
Includes share of Joint Ventures, excludes LTPA contract amendments


Delivered a third year of organic growth

  • Orders up 32%, record £3.1bn high-quality backlog1
  • Revenue up 9%, 8% on an organic basis
  • Underlying operating profit up 1% including ~£7m non-recurring trading items (2018: ~£9m), excluding them up 3% on an organic basis, offsetting UK single source profit headwind
  • 102% underlying cash conversion pre-capex
  • Underlying EPS up 2%; 5% increase in full year dividend

Driving growth through disciplined execution of strategy

  • Secured £1.3bn amendment to Long Term Partnering Agreement (LTPA) with UK MOD
  • Won five competitive long-term programmes: UK, US & Canada
  • Completed one acquisition and one strategic investment to grow training offering
  • Grown international revenue from 21% to 30% in three years
  • Engaged employees in driving and sharing benefits of growth

Priorities for FY20

  • Operational performance; 74% revenue under contract (2018: 69%)
  • Deliver first year of amended LTPA contract and develop growth opportunities
  • Win further competitions and accelerate growth by pursuing campaigns globally
  • Drive sustainable profitable growth through continued investment
  • Maintaining expectations for Group performance in FY20

Steve Wadey, Group Chief Executive Officer said:

"This has been an excellent year with strong operational performance.  By improving our customer focus and competitiveness, we have delivered a third successive year of revenue growth, increased our international revenue share from 21% to 30% over the last three years, offset the UK single source profit headwind and delivered organic profit growth.

Securing the LTPA amendment and winning five major competitive, long-term programmes demonstrates that our strategy is working, providing a platform for sustainable profitable growth.”

Preliminary results presentation:

There will be a presentation of the preliminary results at 0900 hours UK time on 23 May 2019 at the London Stock Exchange, 10 Paternoster Square, EC4M 7LS. A webcast of the presentation is available at: and through which participants will be able to ask questions. An audiocast of the event will also be available by dialling +44 20 3936 2999 Participant Access Code: 681325

For further information please contact: 

David Bishop, Group Director Investor Relations and Communications: +44 (0) 7920 108675
Ian Brown, Group Head of Investor Relations: +44 (0) 7908 251123
Jon Hay-Campbell, Group Head of External Communications: +44 (0) 7500 856953