Results centre

 
Richard Tyson

 "TT has performed strongly in the first half. We have delivered good revenue growth and significant margin improvement reflecting operational leverage, better efficiency and the benefit of value-added acquisitions. Our strong business performance has been delivered alongside continued investment in the business to support future growth. The integration of Stadium and Precision is progressing well and is highlighting new opportunities. 

Our strategy to position ourselves in structural growth markets benefitting from increasing electrification is resulting in a much stronger business with higher growth and higher margins. Our recent acquisitions have added more design-led product solutions, whilst providing a new growth dimension focused on connected devices and the Internet of Things. We continue to look for further opportunities to add to our portfolio. Our first half performance and order momentum give us confidence of progress for the full year ahead of our prior expectations."

Richard Tyson, Chief Executive Officer
August 2018

 

Half year 2018 results - Key summary
 

Financial Headlines

  • 12% revenue growth; up 3% organically and 5% on a like-for-like basis; continued order intake momentum
  • Underlying operating profit up 45% at constant currency; circa two-thirds from the base business, driving improvement in return on invested capital
  • Underlying operating margins increased by 170 basis points at constant currency to 7.5%
  • Excellent underlying cash conversion at 105%
  • Dividend up 11% to 1.95p
     

Strategic progress

  • Continued strong business performance; growth from R&D efforts and focus on key customers
  • Operational excellence and efficiency activity supporting sales growth and margin improvement
  • Strong balance sheet gives flexibility to invest further in growth
  • Stadium Group plc and Precision Inc. acquisitions completed in period and contributing well; integration on track and highlighting new opportunities from the business combination
     
£ million unless otherwise stated Underlying1 Statutory
  H1
2018
H1
2017
Change Change
constant fx2
H1
2018
H1
2017
Revenue 194.2 180.5 8% 12% 194.2 180.5
Operating profit 14.6 10.9 34% 45% 7.7 6.8
Operating profit margin 7.5% 6.0% 150bps 170bps 4.0% 3.8%
Profit before tax 14.0 9.5 47% 61% 7.1 5.4
Earnings per share (pence) 6.9p 4.6p 50% 60% 4.4p 2.4p
Return on invested capital3,4 11.2% 10.6%        
Cash conversion5 105% 128%        
Free cash flow6         4.1 6.8
Net funds (debt)/ funds (2017: year-end)         (41.2) 47.0
Dividend per share (pence)         1.95p 1.75p

1. Excluding the effect of restructuring and acquisition and disposal related items
2. Change at constant currency calculated by comparing current year actual results to the prior year results retranslated at current year actual exchange rates
3. Rolling 12 month underlying operating profit return on average invested capital
4. Return on invested capital for full year 2017
5. Underlying operating cash flow (underlying EBITDA less net capital expenditure, capitalised development expenditure, working capital and non-cash movements) divided by underlying operating profit
6. Net cash flow from operating activities less net cash flow from investing activities less interest paid