Financial Highlights - Twelve months ended 31 December 2017
Underlying1 operating profit
1. Considered by the Board to be a key measure of performance
For the twelve months ended 31 December 2017
Underlying1 results £m
|Statutory results £m|
|Profit/(loss) before tax||257.7||(27.6)|
|Diluted earnings per share||9.8p||(1.2)p|
- Nortek underlying1 results are better on all measures; revenue growth is 2%2 with increased momentum in the second half of the year when sales were up 4%2, the operating margin is 15.2%, operating profit is up 52%2 on last year and up 67%2 on the last full year prior to acquisition
- The underlying1 results are a key measure of performance and are shown alongside the statutory results. As 2017 was the first full year of Nortek ownership by Melrose, significant restructuring costs were incurred and, following the structural decline of the core gas turbine market for Brush, its balance sheet value has been reduced to £300 million. These two items are included in the adjustments made between statutory and underlying1 results
- Consultations with employees have commenced to implement a restructuring plan which, when complete, will position Brush well for the future
- Cash generation is strong, with a record performance from Nortek. Net debt was £572 million representing leverage of 1.9x3 underlying1 EBITDA4, significantly lower than at the time of the Nortek acquisition only sixteen months previously
- In line with the Melrose strategy, advisors have been appointed to confirm the appropriate future process and timetable for the disposal of Ergotron, Inc
- The proposed final dividend of 2.8 pence (2016: 1.9 pence) per share together with the interim dividend of 1.4 pence (2016: 0.3 pence5) results in a 91% increase in the full year dividend of 4.2 pence per share (2016: 2.2 pence5)
- Considered by the Board to be a key measure of performance. Underlying measures are defined in the glossary to the Financial Statements.
- Proforma underlying1 growth as described in the glossary to the Financial Statements.
- Using net debt at average exchange rates.
- Underlying1 operating profit before depreciation and amortisation.
- 2016 interim dividend adjusted to include the effects of the 2016 Rights Issue.