Results & Reports

Simon Gibbins

"This year's results reflect another strong operational performance, with good growth in underlying operating profits and operating margin at a record level of 13.1%. We continue to deliver strong cash flow with operating cash up 22% and a conversion rate at over 100%."

Simon Gibbins,
Group Finance Director

Full Year Results Highlights

Strong through cycle growth with efficiencies

  • Group revenue up 1% CER after adjusting for pass-through costs, a 3% reduction on a statutory basis against strong comparators (sales increased by +48% over prior 2 years)
  • Operating efficiencies improve margins and more than offset a 1% reduction in organic sales(3)
  • Strong double-digit organic sales growth in medical, renewable and transportation markets offset by short-term destocking in industrial automation
  • Underlying operating profit up 16% CER

Underlying EPS +5% reflecting higher interest costs and foreign exchange movements

  • EPS ahead of top end of consensus range
  • Group will benefit from reducing interest rates

Further good progress towards key targets

  • Record underlying operating margin of 13.1%, up 1.6ppts, a significant step towards achieving targets of 13.5% in the year ahead and 15% over the medium term
  • Underlying operating cash flow up 22% with a 103% conversion rate(4)
  • ROCE(5) of 15.7%, ahead of target, reflecting disciplined growth investment
  • ROTCE(6) of 54% reflects capital-light business
  • Carbon emissions reduced by 47% in absolute terms since CY 2021(7)

Reported PBT reduced by 24% due to the timing of a non-core disposal

  • Costs associated with the sale of the Santon solar business unit included in these results with net cash proceeds of c.£7m to be recognised in FY 2024/25

Five higher-margin acquisitions completed for £83m

  • 2J and Silvertel integrations progressing well
  • Three smaller bolt-ons in the second half for an average mid-single digit EBIT multiple
  • Year-end gearing(8) of 1.5x, at the lower end of the target range of 1.5x to 2.0x

Group well positioned for growth

  • Strong bank of design wins to drive future recurring sales (up 23% to £337m ELV(9))
  • Order book of c.4.5 months provides good visibility
  • Strong pipeline of acquisition opportunities and identified targets

Positive outlook with expectations for the full year unchanged

  • Q1 trading in line with Board expectations against a tough comparator with first half sales expected to be ahead sequentially
  • Order book supports an anticipated normal seasonal weighting to results


  1. Organic growth for the Group compared with last year is calculated at CER and is shown excluding the first 12 months of acquisitions post completion (CDT in June 2022, Magnasphere in January 2023, Silvertel in August 2023, 2J Antennas Group (“2J”) in September 2023 and Shape, DTI and IKN in Q4 2023/24) and excluding the agreed disposal of the Santon solar business unit.
  2. Underlying operating cash flow is underlying EBITDA adjusted for the investment in, or release of, working capital and less the cash cost of capital expenditure and lease payments.
  3. ROCE is defined as underlying operating profit including the annualisation of acquisitions, as a percentage of net assets excluding net debt, deferred consideration related to discontinued operations and legacy defined benefit pension asset/(liability). Organic ROCE excludes acquisitions made this year.
  4. ROTCE (return on tangible capital employed) is ROCE excluding the value of acquired goodwill and intangibles, leases provisions and tax.
  5. Target is to reduce scope 1 & 2 carbon emissions by 65% by CY 2025 on an absolute basis (base year CY 2021).
  6. Gearing ratio is defined as net debt divided by underlying EBITDA (excluding IFRS 16; annualised for acquisitions).
  7. ELV is estimated lifetime value
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Full Year Results Performance Summary

Continuing Operations FY 2023/24 FY 2022/23 Growth % CER(2) Growth %
Revenue £437.0m 448.9m -3% +1%
Underlying operating profit(1) £57.2m £51.8m +10% +16%
Underlying operating margin(1) 13.1% 11.5% +1.6ppts +1.7ppts
Underlying profit before tax(1) £48.2m £46.3m +4%
Underlying EPS(1) 36.8p 35.2p +5%
Reported profit before tax £22.2m £29.1m -24%
Reported fully diluted EPS (continuing business) 15.8p 21.7p -27%
Full year dividend per share 12.0p 11.45p +5%


  1. ‘Underlying operating profit’, ‘Underlying operating margin’, ‘Underlying EBITDA’, ‘Underlying profit before tax’, ‘Underlying EPS’, ‘Underlying operating cash flow’ and ‘Free cash flow’ are non-IFRS financial measures used by the Directors to assess the underlying performance of the Group. These measures exclude acquisition and disposal related costs (amortisation of acquired intangible assets of £16.2m and acquisition and disposal expenses of £9.8m) totalling £26.0m. Equivalent underlying adjustments within the FY 2022/23 underlying results totalled £17.2m. For further information, see note 6 of the attached consolidated financial statements.
  2. Growth rates at constant exchange rates (“CER”) exclude the impact of nil margin, pass-through costs in FY 2022/23 totalling £5.0m. The average Sterling rate of exchange was unchanged against the Euro compared with the average rate for last year whilst strengthening 7% on average against the three Nordic currencies and 4% against the US Dollar.
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