Preliminary Results for year ended 31 March 2020

21/05/2020

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

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