News

Results for six months to 30 September 2020 (‘H1 2021’)

	Statutory results		Underlying* results
	H1 2021	H1 2020	H1 2021	H1 2020
Revenue	£603.2m	£486.5m	£603.2m	£486.5m
Operating profit	£61.6m	£68.5m	£69.0m	£59.7m
Profit after tax	£74.2m	£62.2m	£57.6m	£52.0m
Earnings per share	13.0p	11.0p	10.1p	9.2p
Interim dividend per share	2.2p	2.2p	2.2p	2.2p
Total funded order backlog			£3,087.2m	£3,083.6m
Total orders in the period			£562.9m	£410.8m
Net cash flow from operations	£91.8m	£77.0m	£92.7m	£77.0m
Net cash	£112.7m	£173.5m	£112.7m	£173.5m

* Definitions of the Group’s ‘Alternative Performance Measures’ can be found in the glossary.

Strong recovery performance through COVID-19 crisis

• 37% increase in orders, 17% on an organic basis, driven by EDP and MTEQ contribution
• 24% revenue growth, 8% on an organic basis, primarily driven by EMEA Services
• Underlying operating profit up 16%, flat on an organic basis, with a strong recovery in Q2
• Statutory operating profit down 10% due to a prior year £13m property disposal gain
• Strong cash performance with 134% underlying cash conversion pre-capex
• Underlying EPS up 10%; 2.2p interim dividend declared – one third of FY20 full year dividend

Strategic focus delivering solutions for our customers

• Strong growth from EDP, with £367m orders since inception at the half, £500m as at today
• 2 year LTPA transition programme ahead of schedule
• International revenue grown from £76m in FY17 H1 to £213m in FY21 H1, 35% of Group
• Portfolio optimisation with the acquisition of Naimuri and disposal of two non-core assets, Boldon James in the first half and Commerce Decisions after the end of the half

Renewed ambition and strategy to accelerate growth

• Increasing full year guidance for Group performance – expect to deliver low double-digit revenue growth (low to mid-single digit on organic basis) with FY margin consistent with the first half
• Drive sustainable growth, remaining vigilant about the potential risk of further impact from COVID-19: c.£575m revenue under contract for H2 versus c.£450m in prior year
• Embed and invest in the evolved strategy to meet needs of a new world

Steve Wadey, Group Chief Executive Officer said:

“We have delivered an excellent first half performance despite a challenging environment. The resilience and determination of our people, who have continued to deliver for our customers in uncertain times has been outstanding and I would like to thank them for their contribution.

We are entering the second half with confidence, with a significant order backlog, strong customer focus and an evolved strategy reflecting the increasing ambition of the Group and changing customer needs. We are increasing our full year guidance whilst proactively managing the potential risks from further COVID-19 disruption.”

For more information, see our full release in the Results Centre.

Interims results presentation:
Results will be webcast at 10.00 hours UK time on 12 November 2020. Follow this link to register for the event.

Inside information
This announcement contains inside information and the person responsible for making this announcement is Jon Messent, Company Secretary.

For further information please contact:
John Haworth, Group Head of Investor Relations: +44 (0) 7920 545841
Chris Barrie, Citigate Dewe Rogerson (Media enquiries): +44 (0) 7968 727289