Financial highlights

GKN plc Results Announcement for the six months ended 30 June 2017

 Management basis(*)As reported
 20172016Change20172016Change
 £m£m%£m£m%
Sales 5,212 4,518 +15 4,879 4,237 +15
Operating profit 436 390 +12 591 209 +183(2)
Trading margin (%) 8.4% 8.6% -20bps      
Profit before tax 393 344 +14 559 182 +207(2)
Earnings per share (p) 17.7p 15.5p +14 24.8p 9.5p +161(2)
Dividend per share (p) 3.10p 2.95p +5 3.10p 2.95p +5
Free cash flow 116 40        
Net debt 697 704(1)        

(*) Financial information set out on this page, unless otherwise stated, is presented on a management basis
(1) As at 31 December 2016
(2) Primarily higher due to mark to market valuation of FX contracts

Group highlights(1)

  • Another period of growth delivering earnings momentum
    • Sales up 15% (organic sales up 5%) and management eps increased 14%
    • Profit before tax (management basis) up 14% to £393 million (2016: £344 million), helped by currency
    • Reported profit before tax £559 million (2016: £182 million)
    • Free cash flow of £116 million (2016: £40 million)
    • Interim dividend increased 5% to 3.1 pence per share
    • UK defined benefit pension closed to future accrual, £250 million lump sum payment planned to address the deficit and reduce future deficit recovery payments
  • Continued investment in technology
    • Strong technology pipeline; innovation recognised by customer and industry awards
    • Focus on electrified drivetrains and additive manufacturing (3D printing)
    • Industry 4.0 - expect to reduce cost and increase margin

 


GKN plc Results Announcement for the year ended 31 December 2016

 Management basis(1)As reported
 20162015Change20162015Change
 £m£m%£m£m%
Sales 9,414 7,689 +22 8,822 7,231 +22
Operating profit 773 679 +14 335 323 +4
Trading margin (%) 8.2% 8.8% -60bps      
Profit before tax 678 603 +12 292 245 +19
Earnings per share (p) 31.0p 27.8p +12 14.1p 11.8p +19
Dividend per share (p) 8.85p 8.7p +2 8.85p 8.7p +2
Free cash flow 201 370        
Net debt 704 769        

(1) Financial information set out on this page, unless otherwise stated, is presented on a management basis

Group highlights(1)

  • Another year of growth delivering earnings momentum
    • Sales up 22% and management eps increased 12%
    • Continued market outperformance with organic sales up 2%
    • Strong performance from Fokker Technologies (“Fokker”) in first full year of ownership
    • Profit before tax (management basis) up 12% to £678 million (2015: £603 million), including £39 million restructuring charge
    • Reported profit before tax £292 million (2015: £245 million)
    • Free cash flow of £201 million (2015: £370 million), lower due to the absence of a significant customer advance that benefited 2015
    • Momentum of new business wins continues to support growth ahead of markets
  • Sharpening the focus
    • Group-wide fixed cost reduction programme resulted in a restructuring charge of £39 million - annualised savings of £30 million
    • Disposal of Stromag completed; GKN focused on three core divisions and two end markets
    • 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
    • Primary focus - electrified drivetrains and additive manufacturing (3D printing)