Financial highlights

GKN plc Results Announcement for the six months ended 30 June 2016

 Management basis(*)As reported 
2016 2015 Change​ 2016 2015 Change
£m £m % £m £m %
Sales 4,518 3,853 +17 4,237 3,616 +17
Operating profit  390  346  +13  290  245  -15(2)
Trading margin (%) 8.6% 9.0% -40bps      
Profit before tax  344  307  +12  182  212  -14(2)
Earnings per share (p) 15.5p 14.5p +7 9.5p 9.9p -4
Interim dividend per share (p) 2.95p 2.90p +2 2.95p 2.90p +2
Free cash flow 40 21        
Net debt  918  769(1)        

(1) As at 31 December 2015
(2) Primarily lower due to mark to market valuation of FX contracts
(*) Financial information set out on this page, unless otherwise stated, is presented on a management basis

Group Highlights(*)

  • Another period of growth – in line with expectations
    •   Sales up 17% and management eps increased 7%
    •   Continued market outperformance with organic sales up 2%
    •   Fokker integration on track and performing well
  • Sharpening the focus
    •   Reducing fixed costs; annualised savings of £30 million from 2017 through a GKN wide fixed cost optimisation programme;
        charge of £35 million in the second half of 2016
    •   Capital allocation to be progressively directed towards productivity improvement in core aerospace and
        automotive divisions
  • Continued investment in technology
    •   Strong technology pipeline; innovation recognised by customer and industry awards
    •   Momentum of new business wins continues to support growth ahead of markets

 

GKN plc Results Announcement for the year ended 31 December 2015

 Management basis(1)As reported 
2015  2014  Change​  2015  2014  Change 
£m £m % £m £m %
Sales 7,689 7,456 +3 7,231 6,982 +4
Operating profit 679 687 -1 323 289 +12
Trading margin (%) 8.8% 9.2% -40bps      
Profit before tax 603 601 0 245 221 +11
Earnings per share 27.8p 29.0p -4 11.8p 10.3p +15
Dividend per share 8.7p 8.4p +4 8.7p 8.4p +4

Financial Highlights(1)

  • Sales increased 2% organically
    •   Good growth in Automotive; GKN Aerospace up; GKN Land Systems down in tough markets
  • Trading margin unchanged at 9.2%, excluding Fokker Technologies (“Fokker”)
  • Profit before tax (management basis) of £603 million (2014: £601 million)
  • Reported profit before tax £245 million (2014: £221 million), (higher primarily due to the movement on the mark to market valuation of forward foreign exchange contracts)
  • Management earnings per share slightly lower, as a result of the costs of the Fokker acquisition and an increased tax rate to 24% (2014: 22%)
  • Total dividend increased 4% to 8.7 pence per share
  • Free cash flow of £370 million (2014: £234 million), with the benefit of customer advances
  • Net debt of £769 million, £145 million higher than last year due to Fokker acquisition
  • Acquisition of Fokker completed 28 October 2015, integration proceeding well