Latest Financial Highlights

Financial Highlights

 

£ millionH1 2020H1 2019Reported change
Group revenue39.348.7-19%
Operating margin (%)11.323.4-52%
Adjusted1 operating margin (%)14.026.7-47%
Profit before tax4.311.2-62%
Adjusted1 profit before tax5.312.8-59%
Diluted earnings per share (p)1.684.06-59%
Adjusted1 diluted earnings per share (p)2.164.80-55%
Net operating cash flow8.810.3-14%
Net cash267.963.9+6%
Interim dividend per share (p)0.500.50+0%

Business Highlights

  • Trading was in line with our trading update of 9 July 2020, with the majority of the business impacted by government-led restrictions to control COVID-19 and a slowdown in demand across all regions and product categories
  • All manufacturing sites have remained in operation throughout the COVID-19 pandemic, servicing customers and order demand, and having implemented strict controls to ensure employee safety at all times
  • First half revenue was £39.3 million (2019 H1 £48.7 million) down by 19% on a reported and constant currency3 basis
  • Despite the significant challenges, the Group reported an adjusted operating profit of £5.5 million (2019 H1: £13.0 million) and an increase in net cash to £67.9 million (2019 H1: £63.9 million)
  • Investment in R&D increased to £3.8 million (2019 H1: £2.9 million) as progress continued on all core projects across the Group
  • US LiquiBand® recovery plan remains on track with sales initiatives recovering 2% share of end market volumes. LiquiBand® Rapid launched with a key partner as planned and regained product listings on the two previously lost Group Purchasing Organisation (GPO) contracts
  • Product approvals for new geographies have continued with our first approvals in India for both LiquiBand® and LiquiBandFix8®
  • Patents granted for LiquiBand® Exceed in the UK and US, providing protection and tax benefits until 2034
  • Interim dividend maintained at 0.50p per share (2019 H1: 0.50p) payable on 23 October 2020 to shareholders on the register at the close of business on 25 September 2020. The Board expects to return to dividend growth in the near future, as business returns to normal.

Note 1: Adjusted profit before tax is shown before exceptional items which, in 2020 H1 were £nil (2019 H1: £0.9 million), before amortisation of acquired intangible assets which, in 2020 H1, were £1.1 million (2019 H1: £0.7 million) and a credit of £0.03 million (2019 H1: £nil) due to a change in the fair value of long-term liability as defined in the financial review. Adjusted operating margin is shown before exceptional items and amortisation of acquired intangible assets
Note 2: Net cash in 2020 H1 was £67.9 million (2019 H1: £63.9 million) defined as cash and cash equivalents of £68.4 million (2019 H1: £63.9 million) plus short-term investments less financial liabilities and bank loans in 2020 H1 of £0.5 million (2019 H1: £nil)
Note 3: Constant currency adjusts for the effect of currency movements by re-translating the current period’s performance at the previous period’s exchange rates