Results & Reports

Revenue down 4% CER, reflecting market de-stocking and lead-time normalisation

• Organic sales⁽¹⁾ 10% lower (S&C division -5%, M&C -12%)
  • Asia sales +5%, UK/Europe -10% and US -19% against strong comparator (+35%)
• Organic orders up 1% (+8% CER), led by S&C division +21% (M&C -11%)
  • Up 5% sequentially⁽²⁾: recovery led by Asia & Europe (+7%), offsetting US (-4%)

Underlying operating profit up 4% CER driven by flexible operating structure and efficiencies

• Record underlying operating margin of 13.8%, up 1.0ppt at CER
• Gross margins increased due to production efficiencies and tight cost control
• Underlying EPS reduced 4% due to higher interest rates

Excellent free cash flow⁽³⁾ up 46% to £45m for last 12 months

Further good progress towards other key targets

• Well on track to achieve 15% operating margin target in FY2027/28
• ROCE⁽⁴⁾ of 15.2%, slightly ahead of target and last year
• Carbon emissions reduced by c.50% in absolute terms since CY 2021⁽⁵⁾

Record bank of design wins (up 33% over 2 years) with significant further opportunities

One bolt-on acquisition completed during the Period

• Period-end gearing⁽⁶⁾ of 1.45x, below the lower end of target range (1.5x to 2.0x)

Growth drivers remain strong with the Group well positioned

• Period end order book of £163m, 4.5 months of H1 sales, provides good forward visibility
• High growth security market added as a fifth target market⁽⁷⁾
• Strong pipeline of acquisition opportunities
• Group will benefit from reducing interest rates

On track to deliver full year underlying earnings in line with the Board’s expectations

 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 and Hivolt in August 2024) and excluding the disposal of the Santon solar business unit announced last year.
⁽²⁾ Sequential growth compares to the immediately preceding period, e.g. H1 2024/25 compared to H2 2023/24.
⁽³⁾ 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 underlying profit before tax. See definitions in note 7 of the interim financial statements.
⁽⁴⁾ ROCE is defined as annualised H1 2024/25 underlying 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⁾ Gearing ratio is defined as net debt divided by underlying EBITDA (excluding IFRS 16; annualised for acquisitions).
⁽⁷⁾ Target markets are medical, electrification of transportation, renewable energy, security and industrial automation & connectivity.
⁽⁸⁾ Unless stated, growth rates refer to the comparable prior year period.

⁽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 £7.8m and acquisition and disposal expenses of £0.2m) totalling £8.0m. Equivalent underlying adjustments within the H1 2023/24 underlying results totalled £9.1m. ‘Underlying EBITDA’ also excludes share based payments cost, and IAS19 pension cost in line with the Group’s banking covenant.
⁽²⁾ Growth rates at constant exchange rates (“CER”). In calculating CER for the Period, the average Sterling rate of exchange strengthened 2% against the Euro compared with the average rates for last year, 2% against the US Dollar and 2% on average against the three Nordic currencies, resulting in an additional 1% sales reduction for the first Period.