The 5% increase in the recommended final dividend to 11.95p (2018: 11.35p) gives a full year dividend of 17.50p (2018: 16.65p), an overall increase of 5%. This reflects an ongoing confidence in the outlook for the Group and a commitment to a progressive dividend. The full year dividend will be paid on 1 May 2020 to shareholders on the register on the record date, 20 March 2020.
Other financial highlights include:
Organic order growth of 10% underpins expectations for long term revenue growth; organic book to bill4 of 1.09x included a strong performance in defence (1.17x book to bill)
Group organic revenue growth of 8% reflects strong performance in growing end-markets; with 8% growth in civil aerospace, 11% in defence and 10% in energy
Underlying operating profit up 10% and underlying operating margin maintained at 17.7%, with the benefits of strategic initiatives offsetting a number of headwinds including: higher Free of Charge content, adverse mix, the grounding of the 737 MAX and supply chain disruption
Statutory operating profit increased by 27% as a result of strong operational results, lower exceptional costs and a non-cash gain from the marking to market of financial derivatives
Free cash flow increased by £100m to £267.8m and cash conversion increased to 93% (2018: 63%), reflecting the strong operating performance, cash proceeds relating to property transactions (sale of Holbrook Lane site and reverse lease premium relating to Ansty Park) and the 2018 result being reduced by a one-off payment into the US pension schemes
ROCE increased to 11.0% (2018: 9.9%)
Chairman, Sir Nigel Rudd to step down from the Board by 2021 AGM; to remain as Chairman until a successor is appointed
