Highlights
Strong growth in profits and earnings per share
o Sales up 14% CER and gross profit up 18% CER
o Ongoing sales up 3%
o Underlying profit before tax up 37% CER
o Underlying earnings per share up 23% CER
Excellent progress made towards our target key performance and strategic indicators
o Underlying operating margin increased to 5.7% (2014/15: 4.9%)
o Design & Manufacturing sales up to 51% of Group sales (2014/15: 37%)
o International sales increased to 17% of Group sales (2014/15: 12%)
o Cross-selling accounts for 5% of Group revenues
o Operating cash flow at 100% of underlying operating profit
New customer contract wins support growth plans
Acquisitions of Contour, Flux and Plitron further build capabilities and generate efficiencies
Group well positioned for further growth
o Highest ever order book at £85m
o Developing acquisition opportunities
Full year dividend up 6%
Nick Jefferies, Group Chief Executive, commented:
"This is a strong set of results with underlying operating profit increasing by 36% on sales growth of 14% at constant exchange rates. Underlying operating margins have almost doubled over the last two years. Over 50% of ongoing revenue is now from our higher margin Design & Manufacturing division, which is generating almost 80% of Group profits.
Whilst challenging trading conditions are likely to continue in the first half of the year, we expect an improvement in the second half in line with our expectations for the full year. We have £20m of funding available for acquisitions and will continue to take advantage of opportunities that will enhance growth and shareholder value.
We are building a highly differentiated, international electronics business, supplying essential technologies to growth markets, and are confident of making further progress in the year ahead."
