INTERIM RESULTS FOR THE HALF YEAR ENDED 30 June 2012
|
|
2011 |
2012 |
Change |
|
|
|
|
|
|
Order intake |
£969m |
£768m |
-21% |
|
Total revenue |
£892m |
£843m |
-5% |
|
Core revenue (ongoing businesses) |
£773m |
£817m |
+6% |
|
Underlying trading margin |
18.7% |
18.7% |
- |
|
Underlying profit before tax |
£149m |
£142m |
-4% |
|
Basic profit before tax |
£99m |
£90m |
|
|
Underlying earnings per share (EPS) |
9.8p |
10.7p |
+9% |
|
Basic EPS |
7.0p |
7.3p |
|
|
Operating cash conversion |
97% |
88% |
|
|
Interim dividend per share |
1.80p |
2.40p |
+33% |
- £2.5bn order book with strength in Mission Systems and Aviation Services and good order intake in shorter cycle businesses - Group total affected by Analytic Solutions divestment
- Organic revenue growth of 1.7% in the core businesses - Group total affected by Analytic Solutions divestment
- Underlying EPS growth of 9% underpinned by share buy-back and lower tax rate
- Excellence in Delivery on track to deliver expected £42m of annualised, year-on-year efficiency savings since inception in 2010 to the end of 2012
- £281m Thrane & Thrane acquisition completed; expected to be strongly accretive in 2013 and adds further strength in commercial markets
- Interim dividend increased to 2.40p, rebalancing the full year dividend in line with Group's long standing, progressive dividend policy, after last year's step change
Bob Murphy, Cobham Chief Executive, said:
"We have made progress in the first half delivering organic revenue growth, earnings per share up 9% and a further step in rebalancing the portfolio towards our commercial markets.
"We remain positive on the outlook for our commercial and non US defence/security businesses which now represent 60% of revenue. The outlook for the US defence/security market for the end of 2012 and 2013 is particularly uncertain due to the upcoming US elections and the lack of political consensus on US Government budgets.
"The July 2012 divestment of the Beacon businesses and the more first half weighted contribution from the 2011 share buy-back will result in full year EPS growth being lower than the first half. The Board therefore expects full year 2012 EPS to be similar to the prior year taking account of the Beacon divestments, assuming any hiatus in US order placement is no more severe than the usual delays in approving US Government budgets.
"Given the uncertainties referred to we are approaching 2013 with caution and building flexibility into the operating model including preparations for appropriate cost management in response to differing US Government budgetary outcomes."
