Results & Reports

• Adjusted operating profit up 8% CER
  • Adjusted operating margin of 14.3% (H2: 14.8%), up 1.2ppts, well ahead of FY 2024/25 13.5% target
  • Record adjusted EPS up 5%, exceeding the top end of market expectations
• Revenue down 2% CER as industry-wide inventory correction works through
  • Full year sales -7% organic⁽¹⁾, improving through the year (H1: -10%, H2: -4%)
• Orders return to growth up 2% organic, led by S&C up 12% (later-cycle M&C: -4%)
  • Q4 pick-up with both divisions increasing by 15% organically
• Excellent free cash flow⁽²⁾ of £40.4m, up 9% with a conversion rate of 106%, well above 85% target
  • Additionally, proceeds from Santon Solar Business & ABFi disposals received in full (£13m)
  • Buy-in of legacy defined benefit scheme (c.£1.5m cash savings per year)
  • Year-end gearing⁽³⁾ of 1.3x, below the lower end of target range (1.5x to 2.0x)
• Further progress towards other key targets
  • ROCE⁽⁴⁾ of 15.8% (up 0.1ppts) with ROTCE of 52%
  • Carbon emissions reduced by 59% since CY 2021⁽⁵⁾, well on track for 65% target in CY 2025
• Two earnings-accretive, bolt-on acquisitions for initial consideration of £29m 
  • c.£80m funding capacity for further acquisitions
• Adjusted operating margin target upgraded to 17% by FY 2029/30 (from 15% by FY 2027/28)   
• Outlook: Growth drivers remain strong with the Group well positioned
  • Over £350m⁽⁶⁾ of new design wins in the year support growth into the medium term
  • High growth security market added as a fifth target market
  • Strong pipeline of acquisition opportunities
  • Group will benefit from further reductions in interest rates
  • Limited direct impact from US tariffs 
    
    
    

Notes

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 (Silvertel in August 2023, 2J Antennas Group (“2J”) in September 2023, Shape, DTI and IKN in Q4 2023/24, Hivolt in August 2024 and Burster in January 2025) and excluding last year’s announced disposal of the Santon solar business unit.
2. Free cash flow is cash flow available for the payment of dividends and investment in acquisitions. Free cash flow conversion is free cash flow divided by adjusted profit after tax.
3. Gearing ratio is defined as net debt divided by adjusted EBITDA (excluding IFRS 16; annualised for acquisitions).
4. ROCE is defined as FY 2024/25 adjusted operating profit including the annualisation of acquisitions, as a percentage of net assets excluding net debt, deferred consideration related to disposed businesses and legacy defined benefit pension asset/(liability).
5. CY 2025 target is to reduce scope 1 & 2 carbon emissions by 65% on an absolute basis (base year CY 2021).      
6. This represents estimated lifetime value (ELV)

Notes

1. Following a review of alternative performance measures (“APMs”) of other companies, the Group has renamed its ‘Underlying’ measures as ‘Adjusted’ in order to make the term consistent with other companies. The definitions of these APMs have not changed and are consistent with prior years. ‘Adjusted operating profit’, ‘Adjusted operating margin’, ‘Adjusted EBITDA’, ‘Adjusted profit before tax’, ’Adjusted EPS’, ‘Adjusted operating cash flow’ and ‘Free cash flow’ are non-IFRS financial measures used by the Directors to assess the performance of the Group. These measures exclude acquisition and disposal related costs (amortisation of acquired intangible assets of £16.2m and net acquisition and disposal expenses of £1.9m) totalling £18.1m. Equivalent Adjusting Items within the FY 2023/24 adjusted results totalled £26.0m. ‘Adjusted EBITDA’ also excludes IFRS 16, non-cash share-based payments cost and IAS19 pension costs in line with the Group’s banking covenant.
2. Growth rates at constant exchange rates (“CER”). In calculating CER for the year, the average Sterling rate of exchange strengthened 3% against the Euro compared with the average rates for last year, 1% against the US Dollar and 3% on average against the three Nordic currencies.