Preliminary Results for year ended 31 March 2020

Fourth year of growth – well positioned for a new world.

 

Statutory results

Underlying* results

 

2020

2019

2020

2019

Revenue

£1,072.9m

£911.1m

£1,072.9m

£911.1m

Operating profit^

£117.6m

£114.8m

£133.2m

£124.9m

Profit after tax

£106.5m

£113.9m

£113.7m

£111.5m

Earnings per share

18.7p

20.1p

20.0p

19.7p

Full year dividend per share

2.2p

6.6p

2.2p

6.6p

 

 

 

 

 

Total funded order backlog1

 

 

£3,104.9m

£3,133.6m

Total orders

 

 

£2,227.4m

£776.4m

Orders excluding LTPA amendments2

 

 

£972.1m

£776.4m

 

 

 

 

 

Net cash inflow from operations^

£166.5m

£134.6m

£177.8m

£135.3m

Net cash^

 

 

£84.7m

£160.5m

* Definitions of the Group’s ‘Alternative Performance Measures’ can be found in the glossary. ^ Prior year restated due to the retrospective adoption of the new accounting standard, IFRS 16, in respect of leases; refer to Note 1. 1 2019 adjusted to include £1.3bn LTPA amendment signed 5 April 2019. 2 Includes share of Joint Ventures, excludes £1.3bn LTPA contract amendment signed 5 April 2019

Delivered fourth year of growth
  • Orders up 25% (excluding the LTPA amendment); largest annual order intake in 9 years
  • Revenue up 18%, 10% on an organic basis
  • Underlying operating profit up 7%, 2% on an organic basis, underlying EPS up 2%
  • 133% underlying cash conversion pre-capex
Driving growth through disciplined execution of strategy
  • Secured £168m of orders under Engineering Delivery Partner (EDP) contract
  • Won four major long-term contracts in UK, US and Belgium
  • Completed acquisitions of MTEQ in the US and NSC in the UK
  • Grown international revenue from 21% to 31% in four years
  • Improved employee engagement by 10%, driving a high performance culture

Strategic response to COVID-19 crisis over the coming year and beyond
  • Robust action to build resilience to immediate challenges
  • Partnering with our customers to respond to their evolving priorities
  • Engaging our employees to adapt our working practices
  • Accelerating capabilities to meet the needs of a new world
  • As previously announced, guidance for Group performance and dividend decision later in the year

Steve Wadey, Group Chief Executive Officer said:

“Our immediate priority in response to the COVID-19 crisis remains protecting the health and wellbeing of our people who are doing a fantastic job continuing to deliver critical work for our customers. The impact on our performance has been limited to date, predominantly in our shorter-cycle products business. We have taken prudent actions to boost the resilience of our company by managing cash outflows and reducing costs in the short-term, whilst ensuring we continue to deliver for our customers.” 

“We delivered a fourth consecutive year of top-line growth. Our strategy is working to successfully become a truly integrated global company. With strong order intake, organic profit growth and net cash on balance sheet, we enter this period of uncertainty in a strong position enabling us to be agile and proactive in addressing both the short-term challenges and pursuing medium- to long-term growth.” 
 

Preliminary results presentation

There will be a webcast presentation of the preliminary results at 1000 hours UK time on 21 May 2020. The webcast is available at https://us02web.zoom.us/webinar/register/WN_EUdJ4Q-URMGpkjiC-EMfFA

For further information, please contact:

Ian Brown, Group Head of Investor Relations: +44 (0) 7908 251123

Citigate Dewe Rogerson (Media enquiries): +44 (0) 20 7638 9571

Chris Barrie :+44 (0)7968 727 289

Ellen Wilton: +44 (0)7921 352 851