Half year 2022 results
Continued strong order intake and organic growth, with full year outlook unchanged
Highlights
- Revenue up 10% on a constant currency basis, 8% on an organic basis, reflects our successful positioning in structural growth markets and new project wins
- Book to bill of 144% and record order intake, with 23 new significant contract wins in the half delivering over £60m of multi-year revenues.
- Order book more than double pre-pandemic levels and up 55% vs. prior year
- Adjusted operating profit up 5% at constant currency
- Pricing action offsetting inflationary pressures
- Investment in inventory to support increased customer demand, extended material lead times and shipment delays impacting cash flow and leverage, as anticipated
- Statutory operating profit down 4% at £8.9m, statutory basic EPS of 2.3p
- Interim dividend increased 11% to 2.0p per share reflecting confidence in full year outlook and future prospects
Outlook
- Sales momentum strong and continuing;
- 2022 expected revenues already fully covered and
- orderbook creating a step-change in visibility of revenue for 2023
- Clear line of sight to delivering our unchanged, full year expectations with Group performance benefitting from an acceleration in growth, pricing action and the completion of our self-help programme
- Improved H2 profit and cash generation supports expectations that net debt to adjusted EBITDA will be within 1-2 times target range at year-end
|
£ million (unless otherwise stated)
|
Adjusted Results1
|
Statutory Results
|
| |
H1 2022
|
H1 2021
|
Change
|
Change
constant fx
|
H1 2022
|
H1 2021
|
|
Revenue
|
269.2
|
235.6
|
14%
|
10%
|
269.2
|
235.6
|
|
Operating profit
|
18.3
|
15.9
|
15%
|
5%
|
8.9
|
9.3
|
|
Operating profit margin
|
6.8%
|
6.7%
|
10bps
|
(30)bps
|
3.3%
|
3.9%
|
|
Profit before tax
|
15.0
|
14.1
|
6%
|
(3)%
|
5.6
|
7.5
|
|
Basic earnings per share
|
6.6p
|
6.5p
|
2%
|
(8)%
|
2.3p
|
3.3p
|
|
Return on invested capital (20212)
|
8.93%
|
9.1%
|
(20)bps
|
|
|
|
|
Cash conversion
|
(55)%
|
(7)%
|
|
|
|
|
|
|
|
|
|
|
H1 2022 |
H1 2021 |
|
Free cash flow1
|
|
|
|
|
(23.5)
|
(10.3)
|
|
Net debt (20212)1
|
|
|
|
|
142.0
|
102.5
|
|
Leverage (20212)1
|
|
|
|
|
2.4x |
1.7x |
| Dividend per share |
|
|
|
|
2.0p |
1.8p |
- Throughout this announcement we refer to a number of alternative performance measures which provide additional useful information. The Directors have adopted these measures to provide additional information on the underlying trends, performance and position of the Group with further details set out in the results announcement. The adjusted measures used are set out in the reconciliation of KPIs and non IFRS measures in the results announcement.
- As at December 2021
- Calculated for the 12 months to June 2022