News

Steve Wadey, Group Chief Executive Officer said: Tougher near-term trading conditions impacted performance in our UK Intelligence and US Sectors in the fourth quarter. In response, we have taken decisive action and are focused on reshaping the business for growth, with a clear restructuring plan to strengthen and capture the increasing opportunities within our key markets.

We finished the year with record order intake and continue to see strong demand for our mission-critical capabilities. Today we announced a five-year extension to the LTPA increasing total order backlog³ to c.£5bn. The fundamentals of our business are strong, our priority remains on delivering value accretive organic growth. Our strong cashflow enables investment in our people, technology and capability, and the delivery of attractive shareholder returns.

Financial highlights

	Underlying* results		Statutory results
	FY25	FY24	FY25	FY24
Revenue	£1,931.6m	£1,912.1m	£1,931.6m	£1,912.1m
Operating profit/(loss) 1	£185.4m	£215.2m	£(90.5)m	£192.5m
Profit/(loss) after tax	£147.0m	£169.6m	£(185.7)m	£139.6m
Earnings per share	26.1p	29.4p	(33.0)p	24.2p
Interim dividend per share	8.85p	8.25p	8.85p	8.25p
Order intake	£1,954.8m	£1,740.4m
Funded order backlog	£2,845.1m	£2,873.0m
Net cash inflow from operations	£316.2m	£320.2m	£286.7m	£294.1m
Net debt	£133.2m	£151.2m

Group performance impacted by geopolitical uncertainty and delays to short cycle work

• Revenue up 2% on an organic basis and 1% on a reported basis
• Statutory operating loss includes specific adjusting items of £305.9m primarily comprising impairment of goodwill, restructuring costs, and other impacts predominately related to our legacy US operations and the non-cash loss on the sale and lease back transaction
• Cash performance remains strong with high conversion at 105%, reducing leverage to 0.4x
• Record order intake up 12% at £1.95bn, with a book-to-bill² of 1.2x and order backlog of £2.8bn
• Underlying EPS reduced 11.2% to 26.1p
• Dividend growth of 7%, with proposed full year dividend of 6.05p, total dividend for year 8.85p
• £103m of our £150m existing share buyback programmes completed in year

Focused on operational execution and return to sustainable growth

• Increasing strategic focus to leverage UK base to better serve NATO and its allies
• Launched restructuring to drive improved effectiveness and cost efficiency, including refining the US strategy to align with current national security and defence priorities
• Capital allocation focused on organic investment to drive growth and shareholder returns

FY26 Outlook

• Revenue growth expected to be c.3% for FY26, with 75% revenue cover³
• Margin expected to be c.11% due to phasing of restructuring
• EPS growth expected to be 15-20%
• Additional £200m share buyback over 2 years announced in March, to commence in June

Preliminary results presentation:

Management will host a presentation at 09:30 hours BST on Thursday 22 May 2025 at Deutsche Numis, 45 Gresham Street, London, EC2V 7BF. The presentation will also be shared as a live webcast. To register to join this event, please see details at FY25 Preliminary Results presentation.

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

The preliminary results are also available in full at Investor Relations.

For further information please contact:

Stephen Lamacraft, Interim Group Investor Relations Director: +44 (0) 7471 885817
Stephanie Mann, Group Head of Media Relations: +44 (0) 7770 720268

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^* Definitions of the Group’s ‘Alternative Performance Measures’ can be found in the glossary
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 £270m (FY24: £266m)
³ Funded and Unfunded