2020 Half Year Results
|HY 2020||HY 2019||% change||OCC3 % change|
|Adjusted2 operating profit||£61.2m||£67.2m||-8.9%||-8.0%|
|Adjusted2 operating margin||21.6%||21.1%||+50bps||+40bps|
|Profit before tax||£50.0m||£52.2m||-4.3%||-4.0%|
|Basic earnings per share||4.4p||4.6p||-4.3%||-3.9%|
|Adjusted2 basic earnings per share||5.4p||5.8p||-7.3%||-7.1%|
1 Order intake represents the value of orders received during the period.
2 Adjusted4 figures exclude the amortisation of acquired intangible assets and restructuring costs (see note 2).
3 OCC4 is organic constant currency results excluding discontinued businesses and restated at 2019 exchange rates.
4Adjusted and OCC figures are alternative performance measures and are used consistently throughout these half year results. They are defined in full and reconciled to the statutory measures in note 2.
5Flow through is calculated as the change in adjusted operating profit as reported, divided into the change in revenue.
- Order intake was lower year-on-year, reflecting a sharp reduction in global economic activity, the strong comparative period and extreme volatility in hydrocarbon prices
- Revenues declined in the period, largely due to COVID-19 disruption to production facilities and Rotork Site Services, but increased sequentially through May and June
- Water & Power provides essential products and services and reported an encouraging performance with sales growing 7% OCC driven by increased refurbishment activity
- Flow through5 of lower revenue to adjusted operating profit from H1 2019 was limited to just 17%, and from H2 2019 was 33%, demonstrating improved cyclical resilience
- Profit margins benefited from continued execution of our Growth Acceleration Programme, cost mitigation actions, reduced discretionary spend and mix
- Strong balance sheet maintained, bolstered by 116% cash conversion, with period end net cash of £144m. ROCE 30.7%, +100 bps compared with H1 2019