The Dowlais Group Board has declared an interim dividend of 1.4 pence per ordinary share. This dividend is in line with the Group's dividend policy to target a sustainable and progressive annual dividend of approximately 30% of adjusted profit after tax.
Other financial highlights include:
-Adjusted revenue of £2,571 million, a reduction of 5.1% on prior year, driven by weakness in the ePowertrain product line of the Automotive business. Driveline, China and Powder Metallurgy, totalling more than 75% of the Group's revenues, performing above their markets.
-Adjusted operating profit of £151 million, including £7 million of operating losses from Hydrogen operations, a decline of 9.0% compared to prior year, driven by lower volumes. Adjusted operating margin of 5.9%, 30bps lower than prior period, as the impact from lower volume was partially offset by proactive actions to manage the cost base and by pricing recoveries.
-Automotive adjusted revenue decreased by 6.3% and adjusted operating profit declined by 13%, resulting in an adjusted operating margin of 6.0%, down 50bps versus prior period. This decrease was primarily driven by lower revenues in the ePowertrain product line largely due to BEV production schedules.
-Powder Metallurgy had a good start to the year, as adjusted revenue grew by 0.2%, ahead of the market, while adjusted operating profit increased by 6.0%, resulting in an adjusted operating margin expansion of 50bps, to 9.5%.
-Adjusted basic earnings per share of 4.9 pence, down 30% largely as a result of lower earnings and higher finance costs. Statutory loss per share of 7.3 pence.
-£10 million of adjusted free cash flow, down from £33 million in H1 2023, mainly due to lower earnings, higher interest costs and restructuring outflows. Net debt of £915 million, up from £847 million at year end, with leverage of 1.6x compared to a year end position of 1.4x.
