RNS Number:8369H
Ultra Electronics Holdings PLC
24 February 2003
Embargoed until 7.00am 24 February 2003
ULTRA ELECTRONICS HOLDINGS PLC
("Ultra" or "the Group")
Preliminary Audited Results For The Year Ended 31 December 2002
FINANCIAL HIGHLIGHTS
Year ended Year ended Change
31 December 2002 31 December 2001
Turnover #260.4m #239.5m +8.7%
Operating profit* #33.5m #31.7m +5.6%
Profit before tax* #29.9m #27.1m +10.6%
Earnings per share* 33.2p 30.5p** +9.1%
Dividend per share - final 7.5p 7.0p +7.1%
- total 11.2p 10.4p +7.7%
*before goodwill amortisation of #3.9m (2001: #3.7m)
** 2001 tax restated for FRS19
- Record levels of sales, profit and order book
- Sales driven by growth in Battlespace IT, anti-submarine
warfare equipment and HiPPAG
- North American market now almost 40% of sales
- Order book up 10% at #348m, representing approximately 15
months of future sales
- Excellent cash performance with conversion of operating
profit to operating cash flow of 116%
- Successes during the year included:
- the award of Ultra's largest contract to date for the supply
of SSTD to the UK Royal Navy, worth #54m
- the signature of a partnership intent memorandum on sonobuoys
with the MoD
- Acquisition of MilComm, (now called Tactical Communication
Systems) for C$53m (#21.5m), before expenses, in September 2002
strengthens Ultra's position in Battlespace IT
Dr Julian Blogh, Chief Executive, commented: "The outlook for the
Group remains strong with the background of growing defence
budgets, particularly in the US. Expenditure is being
concentrated on Battlespace IT, unmanned vehicles for air, land
and sea and highly mobile systems. Through its continuing
investments, Ultra is well positioned to benefit from this
activity.
"Recent important contract wins in the UK and in the export market
have more than compensated for the slowdown in civil aerospace and
are laying the foundations for further business growth. With
interest cover before goodwill amortisation of 9.5 times in 2002,
Ultra enters 2003 with the capacity to continue its strategy of
acquiring complementary businesses in order to strengthen its
market niches. These factors, coupled with the record closing
order book, give the Board confidence in the performance of the
Group in 2003."
- Ends -
Enquiries:
Ultra Electronics Holdings plc (24.02.03) 020 7067 0700
Dr Julian Blogh, Chief Executive Thereafter 020 8813 4321
David Jeffcoat, Finance Director www.ultra-electronics.com
Weber Shandwick Square Mile 020 7067 0700
Susan Ellis or Susanne Walker
Ultra Electronics Holdings plc
("Ultra" or "the Group")
PRELIMINARY AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2002
Ultra Electronics again produced excellent results in 2002,
achieving record levels of sales, profit and order intake.
Confirming the quality of earnings, the conversion of operating
profit to operating cash flow was 116%. Successes in the year
included the award of the largest contract received by the Group
to date and the signing of the partnership intent memorandum on
sonobuoys with the Defence Procurement Agency of the UK Ministry
of Defence (MoD).
RESULTS
Sales increased to #260.4m, (2001: #239.5m), a rise of 8.7%, of
which 5.8% was organic. This encouraging sales increase was
achieved despite the translation impact of the weaker US dollar
without which growth would have been 2% higher. Sales growth was
driven primarily by a rising demand for Battlespace IT systems, an
increase in the delivery of anti-submarine warfare equipment and
higher production of the HiPPAG missile cooling product. Sales of
civil aerospace products declined in line with both the reduction
of Airbus aircraft deliveries and the reduced demand for spares
and repairs from airlines as they attempted to move back into
profit. However, Ultra's civil aerospace business, including the
airport IT activity, represented less than 12% of the Group's 2002
sales.
The operating margin, before the amortisation of goodwill, was
12.9%, slightly below that recorded in 2001. This margin
reduction resulted mainly from the lower level of civil aerospace
spares and repairs activity during the period together with the
currency effect noted above. Operating profit, before the
amortisation of goodwill, increased by 5.6%, while profit before
tax and amortisation rose by 10.6% to #29.9m (2001: #27.1m). The
effective tax rate for the Group was 1% higher at 27.1%. As a
result, earnings per share before goodwill amortisation were 9.1%
higher at 33.2p (2001: 30.5p, as restated following the adoption
of FRS19).
Operating cash flow was very strong at #38.7m (2001: #35.2m) after
capital expenditure, with an operating profit (before goodwill
amortisation) to operating cash flow conversion of 115.7%. This
brings the average conversion ratio over the past five years to
85%. Despite the acquisition of TCS for #21.5m (before expenses),
net debt during the year decreased by over #1m to #39.3m (2001:
#40.6m).
The Group's order book at the year-end stood at a record level of
#348m, an increase of 10% compared to the same point last year
(2001: #315m). This represents the equivalent of approximately 15
months of future sales.
Dividend
The proposed final dividend is 7.5p, bringing the total dividend
for the year to 11.2p (2001: 10.4p). This represents an annual
increase of 8% and reflects the Board's confidence in Ultra's
future prospects. The dividend is covered 3.0 times by earnings
per share before amortisation. If approved, the dividend will be
paid on 6 May 2003 to shareholders on the register on 11 April
2003.
STRATEGY
The Group continues to focus its strategy on being a niche
supplier of electronic systems and products in defence and
aerospace markets. In order to strengthen its niche positions,
the Group continued its high level of investment in the
application of advanced technology to create new products in its
chosen markets, coupled with the acquisition of complementary
businesses. Ultra's 2002 results show the success of this
strategy through both the operating results reported and the
Group's record order book at the year-end.
ACQUISITION
In accordance with its strategy, in September 2002 Ultra completed
the acquisition of MilComm, now renamed Tactical Communication
Systems (TCS), for C$53m (#21.5m) before expenses. TCS, based in
Montreal, Canada, designs and manufactures military high bandwidth
line-of-sight radios, a critical part of command and control
systems. Major customers include the US DoD, the UK MoD and the
Korean armed forces. TCS strengthens Ultra's position in
Battlespace IT, an area of increasing military expenditure, and
complements its existing data link activities.
OPERATIONAL REVIEW
Air & Land Systems
Air and Land Systems, with the addition of TCS, comprises eleven
businesses in the UK and North America that supply advanced
technology products for military aircraft and land vehicles, the
anti-submarine warfare market and the civil aerospace market.
Sales growth in the division was 7.5% to #177.5m (2001: #165.1m).
Organic growth was 3.4%. Operating profit before goodwill
amortisation was #22.5m (2001: #24.1m). Reduced civil aerospace
spares and repair activity, combined with the completion of
deliveries to the US Navy of sonobuoys on older low margin
contracts, contributed to the reduction in operating margin to
12.7% (2001: 14.6%). The effect was somewhat mitigated, however,
by the excellent growth of HiPPAG deliveries for both the US Navy
and the Eurofighter programme.
The year produced a number of notable successes. In March, Ultra
was awarded a #20m contract to develop and deliver the bow sonar
for the Royal Navy's Type 45 destroyer. This was Ultra's first
major ship sonar contract and was achieved in collaboration with
our US partner, EDO Corporation. Further success in an associated
field came with the award of the main part of the Surface Ship
Torpedo Defence contract in July, bringing the total contract
value to #54m, Ultra's largest single contract to date.
In anti-submarine warfare, where Ultra is the world's largest
supplier of sonobuoys, the Group continued to increase its market
share of new orders with major contracts being won in the US, the
UK, Canada, France and Australia. Ultra's traditional dominance
of the export market for passive sonobuoys is now being
complemented by its ability to win major active sonobuoy awards
with a competitive new design which recently entered production.
In recognition of Ultra's record in meeting its commitments as a
supplier of sonobuoys to the MoD, a memorandum of intent to
partner has been signed between Ultra and the MoD. The final
agreement, when signed, will bind Ultra and the MoD together, with
Ultra being the developer and supplier of all sonobuoys and
derivative products to the MoD for a period of at least ten years.
During the year, Ultra's commitments were met on the Nimrod,
Eurofighter and Engineer Tank System programmes, with development
milestones being achieved and deliveries being made in a timely
manner.
Information & Sea Systems
Information and Sea Systems consists of seven businesses in the UK
and North America that supply information management and power
products for defence, commercial and airport applications
worldwide.
Divisional turnover was #82.9m (2001: #74.4m), an increase of
11.3%, all of which was organic. Operating profit, before the
amortisation of goodwill, rose by 43.9% to #11.0m (2001: #7.6m).
The operating margin before amortisation was 13.3%, up from 10.3%
in 2001. This resulted from increased Battlespace IT activity,
improved profitability at the airport information systems business
and the completion of a number of Astute equipment development
programmes allowing higher margins to be taken.
The division benefited from a rise in government expenditure on
Battlespace IT. There was significant growth in Ultra's US
activity in this area as efforts are made to improve the
situational awareness of operating forces. Progress was also made
in the UK with the first order from the MoD for the Group's Air
Defense Systems Integrator. In a related area, BAE Systems
ordered command systems equipment for the third contract of the
Korean KDX destroyer programme.
Ultra provides power systems for naval and rail transit
applications and in October, initial contracts were placed with
the Group by Network Rail to provide trackside power equipment as
part of the rail infrastructure upgrade for the south of England.
This is expected to lead to an increasing involvement by Ultra in
this high investment sector.
While civil aerospace continues to operate in a difficult
environment, the need for long-term investment in airport
infrastructure remains, supplemented by security concerns.
Ultra's work defining the IT infrastructure for London Heathrow's
new fifth terminal continued throughout the year. In addition,
there was an upturn in demand for Ultra's baggage reconciliation
system, and equipment was installed for British Airways and Virgin
Atlantic in their North American terminals.
Finally, Ultra again met its commitments by delivering on time
initial equipment for the Astute class submarine, equipment for
the US Virginia class submarine and Air Defense Systems
Integrators for the DoD.
PENSIONS
The retirement benefits of Ultra's UK workforce are funded by a
combination of defined benefit and defined contribution pension
schemes, with most staff participating in a defined benefit
scheme. This scheme was actuarially assessed in April 2001 when
its solvency was 105%, or 115% on an MFR basis. As a result of
stockmarket falls since then, the Company raised its contributions
to the scheme by #0.5m in 2002. A further increase of #0.4m is
planned for 2003. The scheme is relatively immature, with just
13% of retired members, and remains strongly cash positive.
REPORTING IN 2003
Ultra has expanded in capability, in products and in the number of
operating businesses since its flotation in 1996. Ultra's two-
divisional reporting structure therefore no longer adequately
presents the Group in a format related to its activities, neither
does it provide sufficient detail. From the beginning of 2003,
the Group will report on the basis of three divisions, with the
objective of making Ultra easier to understand. The three
divisions will be Tactical & Sonar, Aircraft & Vehicle Systems and
Information & Power, representing 39%, 29% and 32% of Ultra's 2002
sales respectively.
PROSPECTS
Increasing concerns about the activities of rogue states and
terrorist organisations is driving an increase in defence
expenditure in many countries. In the US, the defence procurement
budget for 2003 has risen by 11%, while in the UK defence
procurement is also growing in real terms. Expenditure is being
concentrated on Battlespace IT, unmanned vehicles for air, land
and sea and highly mobile systems. Through its continuing
investments, Ultra is well positioned to benefit from this
activity.
Major UK opportunities include:
- control electronics for the UK's submarine fleet
- a new active search sonobuoy system
- electronics for new armoured vehicles
- Network Rail track-side power equipment
In the US, new opportunities for Ultra are presented through:
- the F-35 Joint Strike Fighter programme
- the Small Diameter Bomb programme
- increased Battlespace IT activity
The civil aerospace market is not expected to recover for at least
the next twelve months with Ultra's sales in this market likely to
remain static over this period. However, with this sector
representing less than 12% of Ultra's total sales, this will not
have a major impact on performance. Overall, non-military
activity is expected to rise in absolute terms as rail transit,
airport IT and security product sales increase.
The outlook for the Group remains strong, with recent important
contract wins in the UK and in export markets laying the
foundations for further business growth. With interest cover
before goodwill amortisation of 9.5 times in 2002, Ultra enters
2003 with the capacity to continue its strategy of organic growth
and acquisition of complementary businesses in order to strengthen
its market niches. These factors, coupled with the record closing
order book, give the Board confidence in the performance of the
Group in 2003.
- Ends -
Enquiries:
Ultra Electronics Holdings plc (24.02.03) 020 7067 0700
Dr Julian Blogh, Chief Executive Thereafter 020 8813 4321
David Jeffcoat, Finance Director www.ultra-electronics.com
Weber Shandwick Square Mile 020 7067 0700
Susan Ellis or Susanne Walker
Notes to editors:
Ultra Electronics is a group of specialist businesses designing,
manufacturing and supporting electronic and electromechanical
systems, sub-systems and products for international defence and
aerospace markets. The Group, which employs 2,600 people in the
UK and North America, focuses on high integrity sensing, control,
communication and display systems with an emphasis on integrated
Information Technology solutions.
The Group concentrates on obtaining a technological edge in niche
markets, with many of its products and technologies being market
leaders in their field. Ultra has an increasing role of
supporting prime contractors by undertaking specialist system and
sub-system integration using the combined expertise of the Group
businesses.
Ultra Electronics Holdings plc
Preliminary Results for the Year Ended 31 December 2002
Consolidated Profit and Loss Account
Restated
(Note 8)
2002 2001
Note #000 #000
---------------------------------------------------------------------
Turnover
- existing operations 1,2 253,521 239,540
- acquisition 6,831 -
---------------------------------------------------------------------
Continuing operations 260,352 239,540
---------------------------------------------------------------------
Cost of sales
- existing operations (189,967) (178,446)
- acquisition (5,751) -
---------------------------------------------------------------------
Continuing operations (195,718) (178,446)
---------------------------------------------------------------------
Gross profit
- existing operations 63,554 61,094
- acquisition 1,080 -
---------------------------------------------------------------------
Continuing operations 64,634 61,094
---------------------------------------------------------------------
Other operating expenses (net) (35,056) (33,061)
---------------------------------------------------------------------
Operating profit
- existing operations 29,323 28,033
- acquisition 255 -
---------------------------------------------------------------------
29,578 28,033
Finance charges (net) (3,533) (4,624)
---------------------------------------------------------------------
Profit on ordinary activities before
taxation 26,045 23,409
Tax on profit on ordinary activities 3 (8,099) (7,086)
---------------------------------------------------------------------
Profit on ordinary activities after
taxation, being profit for the financial
year 17,946 16,323
Dividends paid and proposed on equity
shares (7,385) (6,835)
---------------------------------------------------------------------
Retained profit for the year 10,561 9,488
=====================================================================
Earnings per ordinary share (pence)
After goodwill amortisation
- Basic 27.3 24.9
- Diluted 27.3 24.8
Before goodwill amortisation
- Basic 33.2 30.5
=====================================================================
Ultra Electronics Holdings plc
Preliminary Results for the Year Ended 31 December 2002
Group Balance Sheet at 31 December 2002
Restated
(Note 8)
2002 2001
Note #000 #000
---------------------------------------------------------------------
Fixed assets
Tangible assets 15,180 15,426
Intangible assets - patents and
trademarks 605 650
Intangible assets - goodwill 80,871 64,412
Investments 1,050 836
---------------------------------------------------------------------
97,706 81,324
=====================================================================
Current assets
Stocks 4 23,834 22,030
Debtors: amounts falling due within
one year 5 57,579 55,147
Debtors: amounts falling due after
more than one year 5 - 77
Cash at bank and in hand 8,132 15,992
---------------------------------------------------------------------
89,545 93,246
=====================================================================
Creditors: amounts falling due
within one year 6 (80,622) (94,834)
---------------------------------------------------------------------
Net current assets/(liabilities) 8,923 (1,588)
=====================================================================
Total assets less current
liabilities 106,629 79,736
Creditors: amounts falling due after
more than one year (46,126) (32,907)
Provisions for liabilities and
charges 7 (4,822) (3,165)
---------------------------------------------------------------------
Net assets 55,681 43,664
=====================================================================
Capital and reserves
Called-up share capital 3,302 3,288
Share premium account 8 26,891 25,788
Profit and loss account 8 25,488 14,588
---------------------------------------------------------------------
Equity shareholders' funds 55,681 43,664
=====================================================================
Ultra Electronics Holdings plc
Preliminary Results for the Year Ended 31 December 2002
Consolidated Cash Flow Statement
Note 2002 2001
#000 #000
---------------------------------------------------------------
Net cash inflow from operating
activities 9 42,765 39,328
Returns on investments and
servicing of finance (3,414) (4,972)
Taxation (7,279) (8,383)
Capital expenditure and financial
investment (4,076) (4,172)
Acquisitions (21,996) (130)
Equity dividends paid (7,045) (6,485)
---------------------------------------------------------------
Cash (outflow)/inflow before use
of liquid resources and financing (1,045) 15,186
Financing (6,381) (11,963)
---------------------------------------------------------------
(Decrease)/increase in cash in
the year (7,426) 3,223
===============================================================
Consolidated statement of total recognised gains and losses
Restated
(Note 8)
2002 2001
#000 #000
---------------------------------------------------------------
Group profit for the financial year 17,946 16,323
Gain/(loss) on foreign currency
transaction 474 (480)
Adjustment in respect of the adoption
of FRS 19 for prior periods 1,162 -
---------------------------------------------------------------
Total recognised gains and losses
relating to the year 19,582 15,843
---------------------------------------------------------------
Notes:
1. Turnover by geographical destination
2002 2001
#000 #000
----------------------------------------------------------
United Kingdom 110,547 110,680
Continental Europe 33,700 32,014
North America 100,549 84,144
Rest of World 15,556 12,702
----------------------------------------------------------
260,352 239,540
----------------------------------------------------------
Turnover, trading profit and net operating assets by
geographical source
United Kingdom North America Group
Restated
2002 2001 2002 2001 2002 2001
#000 #000 #000 #000 #000 #000
Turnover 167,061 167,528 93,291 72,012 260,352 239,540
-----------------------------------------------------------------------------
Trading profit 23,940 24,303 9,513 7,382 33,453 31,685
Goodwill
amortisation (3,875) (3,652)
Operating -------------------
profit 29,578 28,033
Interest (net) (3,533) (4,624)
-------------------
Profit before
tax 26,045 23,409
-----------------------------------------------------------------------------
Net operating
assets 13,548 16,283 11,150 12,925 24,698 29,208
-----------------------------------------------------------------------------
2. Turnover and trading profit by division
Turnover Profit
Restated
2002 2001 2002 2001
#000 #000 #000 #000
-----------------------------------------------------------------------------
Air and Land Systems 177,493 165,121 22,464 24,050
Information and Sea
Systems 82,859 74,419 10,989 7,635
-----------------------------------------------------------------------------
260,352 239,540 33,453 31,685
Goodwill amortisation (3,875) (3,652)
Operating profit 29,578 28,033
-----------------------------------------------------------------------------
3. Taxation
Restated
2002 2001
#000 #000
-------------------------------------------------------------
UK tax 6,662 6,146
Overseas tax 895 1,192
Deferred tax 542 (252)
-------------------------------------------------------------
8,099 7,086
-------------------------------------------------------------
4. Stocks
2002 2001
#000 #000
-------------------------------------------------------------
Raw materials and consumables 15,696 15,457
Work-in-progress 14,070 20,315
Finished goods and goods for
resale 2,045 1,235
Payments on account (8,514) (15,064)
-------------------------------------------------------------
23,297 21,943
-------------------------------------------------------------
Long-term contract balances
- costs less
foreseeable losses 766 522
- less payments
on account (229) (435)
-------------------------------------------------------------
537 87
-------------------------------------------------------------
23,834 22,030
-------------------------------------------------------------
5. Debtors
Restated
2002 2001
#000 #000
-----------------------------------------------------------
Amounts falling due within one
year:
Trade debtors 34,615 35,933
Amounts recoverable on
contracts 17,284 14,233
Deferred tax assets 1,036 1,243
Other debtors 2,045 1,867
Prepayments and accrued income 2,599 1,871
-----------------------------------------------------------
57,579 55,147
-----------------------------------------------------------
Amounts falling due after more
than one year:
Amounts recoverable on
contracts - 77
-----------------------------------------------------------
6. Creditors: Amounts falling due within one year
2002 2001
#000 #000
-----------------------------------------------------------
Obligations under finance leases 43 111
Bank loans and overdraft 1,219 23,536
Payments received on account 27,078 23,131
Trade creditors 20,161 19,811
Other creditors:
- Corporation tax payable 5,930 5,650
- VAT 1,173 1,168
- social security and PAYE 2,176 1,818
- other creditors 4,278 4,732
Pension related liabilities 282 331
Accruals and deferred income 13,336 9,940
Proposed dividends 4,946 4,606
-----------------------------------------------------------
80,622 94,834
-----------------------------------------------------------
7. Provisions for liabilities and charges
Deferred
Taxation Warranties Total
#'000 #'000 #'000
-----------------------------------------------------------------------
Beginning of year (as
restated) 421 2,744 3,165
Exchange differences (37) (43) (80)
Acquisition of subsidiary
undertaking - 1,109 1,109
Transfer to deferred tax
assets (106) - (106)
Utilised during the year - (585) (585)
Charge to the profit and loss
account 549 770 1,319
-----------------------------------------------------------------------
End of year 827 3,995 4,822
-----------------------------------------------------------------------
8. Reserves
Share Profit and
Premium loss account
#000 #000
-----------------------------------------------------------------
Beginning of year 25,788 13,426
Prior year adjustment (see
below) - 1,162
Retained profit for the year - 10,561
Amounts gifted to Employee
Share Ownership Trust - (135)
Issue of new shares 1,103 -
Foreign exchange differences - 474
-----------------------------------------------------------------
End of year 26,891 25,488
-----------------------------------------------------------------
Prior year adjustment
In previous years, the Group complied with the Statement of
Standard Accounting Practice 15 - Deferred Tax (SSAP 15)
which has been superseded by the introduction of the Financial
Reporting Standard 19 - Deferred Tax (FRS 19). FRS 19 has been
adopted for the first time by the Group in 2002. SSAP 15
required provision for deferred tax to be made using the
liability method to the extent that net deferred tax assets or
liabilities were likely to crystallise in the foreseeable
future, i.e. a partial provisioning approach. FRS 19 requires
a full provisioning approach.
The effect of the implementation of FRS 19 on the reported
results is as follows:
2002 2001
#000 #000
Profit and Loss Account
Goodwill amortisation (19) (33)
Tax on profits (542) 252
------------------------------------------------------
(Reduction)/increase in
retained profits (561) 219
------------------------------------------------------
Balance Sheet
Increase in goodwill 321 340
Increase in deferred tax
assets 1,036 1,243
Increase in deferred tax
liabilities (827) (421)
------------------------------------------------------
Increase in net assets 530 1,162
------------------------------------------------------
The adoption of FRS 19 has resulted in the recognition of
additional deferred tax assets primarily in respect of timing
differences and tax deductible goodwill in the US. In
addition, deferred tax liabilities arise on accelerated capital
allowances and other short-term timing differences which were
not recognised previously under SSAP 15.
The increase in goodwill is in respect of deferred tax
liabilities previously unrecognised on the acquisition of the
DF Group Limited in 2000.
9. Cash flow information
Reconciliation of operating profit to operating cash flow
Restated
2002 2001
#000 #000
------------------------------------------------------------
Operating profit 29,578 28,033
Depreciation and amounts
written off tangible fixed
assets 3,771 4,024
Amortisation of goodwill 3,875 3,652
Amortisation of patents and
trademarks 45 37
Provision against investments 604 372
(Profit)/loss on disposal of
tangible fixed assets (11) 56
Decrease/(increase) in stocks 623 (2,649)
Increase in debtors (3,240) (2,520)
Increase in creditors 6,161 8,366
Increase in provisions 1,410 95
Other (51) (138)
------------------------------------------------------------
Net cash inflow from operating
activities 42,765 39,328
------------------------------------------------------------
Reconciliation of net cash flow to movement in net debt
2002 2001
#000 #000
----------------------------------------------------------
(Decrease)/increase in cash in
the year (7,426) 3,223
Cash outflow from decrease in
debt and lease financing 7,369 12,689
----------------------------------------------------------
Change in net debt resulting
from cash flows (57) 15,912
Amortisation of finance costs
of debt (196) (57)
Translation difference 1,559 (521)
==========================================================
Movement in net debt in the
year 1,306 15,334
Net debt at start of year (40,562) (55,896)
----------------------------------------------------------
Net debt at end of year (39,256) (40,562)
----------------------------------------------------------
10. Five year review
Restated Restated
1998 1999 2000 2001 2002
#m #m #m #m #m
----------------------------------------------------------------------------------
Turnover
Air and Land Systems 110.2 129.4 158.3 165.1 177.5
Information and Sea Systems 48.5 63.6 68.6 74.4 82.9
----------------------------------------------------------------------------------
Total turnover 158.7 193.0 226.9 239.5 260.4
----------------------------------------------------------------------------------
Operating profit (before
goodwill amortisation)
Air and Land Systems 14.5 18.0 22.1 24.1 22.5
Information and Sea Systems 6.4 6.5 8.2 7.6 11.0
----------------------------------------------------------------------------------
Total 20.9 24.5 30.3 31.7 33.5
----------------------------------------------------------------------------------
Operating profit margin %
(before goodwill amortisation) 13.2% 12.7% 13.4% 13.2% 12.9%
----------------------------------------------------------------------------------
Profit before goodwill
amortisation and tax 21.1 23.2 25.6 27.1 29.9
Profit after taxation 14.6 15.6 15.8 16.3 17.9
----------------------------------------------------------------------------------
Cash inflow from operating
activities (see note 1) 21.8 8.2 16.5 35.2 38.7
Free cash flow before dividends
and acquisitions 15.5 (0.8) 7.5 21.8 28.0
Net debt at year-end (0.1) (11.7) (55.9) (40.6) (39.3)
----------------------------------------------------------------------------------
Headline earnings per share (p)
(see note 2) 22.6 25.9 28.7 30.5 33.2
Dividends per share (p) 8.1 9.0 9.7 10.4 11.2
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
Average employee numbers 1,707 2,079 2,303 2,376 2,395
----------------------------------------------------------------------------------
Notes
1. Cash flow from operating activities is stated after capital
expenditure and financial investments.
2. Headline earnings per share is calculated before goodwill
amortisation and earnings dilution.
3. 2000 and 2001 have been restated following the adoption of
FRS 19. It has not been possible to restate earlier years with
respect to this Financial Reporting Standard.
11. The consolidated financial information has been prepared on a
basis consistent with the consolidated accounts for the year ended
31 December 2001, with the exception of the adoption of FRS 19 for
the first time (see note 8).
12. The financial information set out above does not comprise the
Company's statutory accounts. Statutory accounts for the previous
financial year ended 31 December 2001 have been delivered to the
Registrar of Companies. The accounts for the year ended 31
December 2002 have not been delivered to the Registrar of
Companies.
13. Copies of the annual report will be sent to shareholders in
due course and will also be available from the Company's
registered office at 417 Bridport Road, Greenford, Middlesex, UB6
8UA.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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