Strong Group Performance


Preliminary Results for the year ended 31 March 2024.

Steve Wadey, Group Chief Executive Officer said: I am pleased with our strong Group financial results for FY24, delivered against the background of difficult market conditions in the US. These results have been achieved through the outstanding skills of our people, delivering highly relevant services and products critical to enduring national defence and security priorities.

We enter this year with strong momentum and increasing spending in our major markets, which gives us confidence to increase our guidance for FY25 and underpins our FY27 outlook of c.£2.4bn organic revenue at c.12% margin. With a strengthened balance sheet and enhanced focus on disciplined capital allocation, we are well positioned and have a clear strategy with optionality for additional investment in sustainable growth and further shareholder returns.

  Statutory results Underlying results
  FY24 FY23 FY24 FY23
Revenue £1,912.1m £1,580.7m £1,912.1m £1,580.7m
Operating profit 1 £215.2m £178.9m £192.5m £172.8m
Profit after tax £169.6m £152.9m £139.6m £154.4m
Earnings per share 29.4p 26.5p 24.2p 26.8p
Interim dividend per share 8.25p 7.70p 8.25p 7.70p
Order intake £1,740.4m £1,724.1m    
Funded order backlog £2,873.0m £3,070.3m    
Net cash inflow from operations £320.2m £270.1m £294.1m £240.6m
Net debt £151.2m £206.9m £151.2m £206.9m

Strong overall Group operational and financial performance

  • Revenue up 21% through good programme execution, up 14% on an organic basis
  • Underlying operating profit up 20% with stable margin at 11.3%, up 16% on an organic basis
  • Cash performance remains strong with high conversion at 104%, reducing leverage to 0.5x
  • Record order intake at £1.74bn, with a book-to-bill of 1.1x2 and order backlog of £2.9bn
  • Continued strong earnings growth, with underlying EPS up 11% to 29.4p
  • Progressive dividend growth up from 5% to 7%, with full year dividend of 8.25p
  • £100m share buyback launched, on-track to complete by the end of FY25

Differentiated global company aligned to enduring needs of our AUKUS customers

  • EMEA Services delivered excellent revenue growth at stable margin, driven by strong execution of prior year orders and consistent operational delivery on our long-term contracts
  • Global Solutions continued to be impacted by difficult market conditions in the US resulting in lower revenue at stable margin, however, a strong order intake achieved a book-to-bill of 1.1x
  • Within Global Solutions, Avantus won $977m3 of awards aligned to national security priorities resulting in a funded book-to-bill of 1.2x and confidence in our platform for future growth

Expecting another strong year with clear strategy delivering sustainable growth

  • Highly relevant services and products, aligned with increasing spending in our major markets
  • Increasing guidance for FY25 with strong growth in EMEA Services and stable Global Solutions
  • On-track to deliver FY27 outlook of c.£2.4bn organic revenue at c.12% margin
  • Enhanced focus on capital allocation to deliver attractive returns and shareholder value

You can download the full statement from our Results, Reports & Presentations page.

Preliminary results presentation:

Management will host a presentation at 09:30 hours BST on Thursday 23 May 2024 at the London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS. The presentation will also be shared as a live webcast. To register to join this event, please see details at: https://www.

You are warmly invited to join, either in person or virtually.

For further information please contact:

Stephen Lamacraft, Group Director Investor Relations: +44 (0) 7570 082140
Lindsay Walls, Group Director Communications (Media enquiries): +44 (0) 7793 427582

1 Underlying operating profit refers to operating profit from segments. See note 2 for details.
2 B2B ratio is orders won divided by revenue recognised, excluding LTPA revenue of £266m (FY23: £225m)
3 $331m of orders were recognised in FY24