HIGHLIGHTS
· Significant performance improvement in 2011:
Revenue of £2,826m, up 11%; 9% on an underlying basis (2010: £2,546m)
Trading profit of £290.2m, up 15% (2010: £252.1m)
Return on sales of 10.3% (2010: 9.9%):
- Engineered Ceramics (Ceramics division renamed) 11.5%
- Performance Materials (Electronics division renamed) 12.2% (return on net sales value: 23.8%)
Headline profit before tax of £261.5m, up 18% (2010: £222.1m)
· Higher growth developing countries now contribute almost 50% of Group revenue and around 60% of Group trading profit
· Good progress towards the return on sales margin target of 12% by 2013 at constant metal prices - 2011 restated margin was 10.9% versus 9.9% in 2010
· Headline earnings per share of 70.4p, up 14% (2010: 61.5p)
· Recommended final dividend of 14.50p per share, up 26%; total dividend of 21.75p per share
· Net debt of £364m; leverage ratio (net debt to EBITDA) of 1.1 times
· Pension deficit significantly reduced from £114m to £59m
· Disposal of the loss-making US operations of the Precious Metals Processing division agreed; completion expected in second quarter of 2012
· Strong progress achieved in 2011 towards all Group 2013 targets
Dividend and dividend policy
In the Capital Markets presentation on 26 January 2011, it was stated that one of the financial targets for the three year period to 2013 was that dividends would grow at least in line with earnings growth. It was also noted that the Board's intention is to balance the split of interim and final dividends broadly on a one third/two thirds basis.
Given the good trading performance in 2011 and the outlook for 2012, the Board is recommending a final dividend of 14.50p per share (2010: 11.50p) which, together with the interim dividend of 7.25p per share, gives a total dividend for the year of 21.75p per share (2010: 11.50p). The final dividend, if approved at the Annual General Meeting on 17 May 2012, is to be paid on 11 June 2012 to shareholders on the register on 4 May 2012. Any shareholder wishing to participate in the Cookson Dividend Reinvestment Plan ("DRIP") needs to have submitted their election to do so by 24 May 2012.
