Group Highlights
Group results reflect the continued strong organic growth in Automotive businesses, the contribution from GKN Aerospace Engine Systems (previously Volvo Aero) and the weaker performance of GKN Land Systems
Sales increased 10%, up 3% on an organic basis
Operating profit up 20%, up 4% organically, and trading margin improved 70bps to 8.7%
Profit before tax up 17%
Reported profit before tax of £484 million (2012: £568 million), lower primarily due to a smaller gain on the mark to market of foreign exchange hedging contracts than the prior year
Earnings per share up 9% to 28.7p (2012: 26.3p) and total dividend increased 10% to 7.9 pence per share (2012: 7.2 pence per share)
Return on average invested capital of 17.3% (2012: 18.0%, excluding GKN Aerospace Engine Systems)
Free cash flow of £346 million, up 54% (2012: £225 million, excluding one-time acquisition related payments)
Net debt of £732 million, £139 million lower than last year
Dividend 7.9p (7.2p) up 10%
Nigel Stein Chief Executive, GKN plc said
"We have again made good progress in-line with our strategy to grow a market-leading global engineering business. Although some of our end markets were challenging, we continued to show growth and are reporting good underlying financial results, helped by our 2012 acquisition of GKN Aerospace Engine Systems, which performed strongly. We expect the Group's progress to continue in 2014."
