"We are pleased with our performance in the first half of 2016. Our strategy is gaining momentum and we have returned the business to profitable growth. We have delivered good revenue growth in Transportation Sensing and Control, earlier than expected, and the division is back in profit.
Whilst the uncertain macro-economic environment continues to impact some market segments, our self-help actions are producing tangible benefits. The combination of our underlying business performance and the contribution from Aero Stanrew mean we are confident of continued progress in 2016."
Richard Tyson, Chief Executive Officer
Half year results 2016 - Key summary
- Returned the business to profitable growth
- Transportation Sensing and Control in profit
- Strategic focus enabling robust sales in challenging markets; continuing to win new contracts
- Aero Stanrew integration complete and performing well
- OIP completed well ahead of schedule providing benefits as expected; other on-going self-help actions improving operating efficiency
- Revenue growth of 2% at constant currency
- Underlying operating profit up 24% at constant currency; 15% from Aero Stanrew, 9% from self-help actions and underlying business performance
- Steady cash conversion
- Return on invested capital improving
£million unless otherwise stated
|H1 2016||H1 2015|
|Profit before taxation1||11.4||9.1|
|Earnings per share (pence)1||5.1p||4.2p|
|Return on invested capital2||9.5%||9.0%3|
|Free cash flow5||(4.9)||(5.1)|
|Net debt (2015: year-end)||70.7||56.1|
|Dividend per share (pence)||1.7p||1.7p|
1Underlying profit and earnings are stated before restructuring costs, asset impairments and acquisition related costs.
2Rolling 12 month underlying operating profit return on average invested capital.
3Return on invested capital for full year 2015.
4Underlying operating cash flow (underlying EBITDA less net capital expenditure, capitalised development expenditure, working capital and non-cash movements) divided by underlying operating profit.
5Net cash flow from operating activities less net cash flow from investing activities less interest paid.