The Group is declaring an interim dividend for 2019 of 1.25p (H1 2018: 1.25p) in line with its dividend policy of maintaining 2-3x earnings cover. The interim dividend will be paid on 8 November 2019 to shareholders on the register at close of business on 4 October 2019. The ex-dividend date is 3 October 2019.
Other financial highlights include:
Further operational and financial progress in the first half, despite falling construction activity, particularly in the UK
Underlying PBT, pre IFRS 16, up 20% to £30.0m (H1 2018: £25.1m) and underlying earnings per share, pre IFRS 16, up 23% to 3.7p (H1 2018: 3.0p), both in line with the Board's expectations
As previously announced, like-for-like sales down 3.8% reflecting weaker market conditions and focus on profitability over volume
Transition to smaller, more profitable base of business in SIG Distribution largely complete
Gross margin up 70bps and operating costs lower. Group underlying operating profit, pre IFRS 16, up to £36.5m (H1 2018: £33.0m)
Net debt, pre IFRS 16, down to £158.2m (H1 2018: £176.1m) and headline financial leverage, pre IFRS 16, down to 1.4x (H1 2018: 1.8x). Further improvement anticipated in H2 2019
Previously announced review of strategic options for Air Handling division well advanced
Continuing transformation and the Group's normal seasonality are expected to deliver a stronger second half, although political and macro-economic uncertainty continue to increase
