The board approved an increase of 5% in the interim dividend to 24.50 pence per share
(1H 2018/19: 23.25 pence per share). The interim dividend will be paid to shareholders on 4thFebruary 2020, with an ex dividend date of 28th November 2019.
Other financial highlights include:
Sales increased 3% driven by good growth in Clean Air and Efficient Natural Resources
Underlying operating profit declined 5% impacted by c.£15 million of one-off costs in Clean Air, which included additional freight costs and inefficiencies within their manufacturing footprint, driven by the phasing of completion of our new plant in Poland as they serve the strong growth in our European Light Duty business
Underlying EPS declined 12% reflecting lower underlying operating profit, higher net interest expense and a one-off tax provision
Capital expenditure of £186 million in the first half and estimated to be up to £500 million in 2019/20, in line with previous guidance, as they invest in strategic growth projects
Free cash flow weaker as expected driven by higher precious metal working capital (price and volume) and higher capital expenditure
Stable average working capital days excluding precious metals
Return on invested capital (ROIC) lower primarily driven by higher precious metal working capital
Net debt to EBITDA of 2.1x with net debt at £1.5 billion, impacted by higher precious metal working capital
