HIGHLIGHTS
H1 2013 NSV broadly flat (down 3% on constant currency basis), outperforming weak underlying end-markets
Improving market conditions resulting in second quarter NSV up 4% (flat on constant currency), rate of improvement slower than original electronics industry forecasts
Pricing discipline maintained
Copper damascene volumes impacted by anticipated destocking and increased competition at larger feature nodes; mix impact on NSV margin
Adjusted free cash flow improved 81% with net debt of £145m
Continue to invest in future growth of the business
Interim dividend of 2.89 pence per share declared, equivalent to 35% of 2012 proforma full year dividend
FINANCIAL RESULTS:
|
H1 2013 |
H1 2012 |
% change Reported |
|
|
NSV1 (£m) |
209.2 |
210.7 |
(0.7) |
|
Adjusted operating profit2(£m) |
44.1 |
46.7 |
(5.6) |
|
NSV margin (%) |
21.1 |
22.2 |
(1.1)pts |
|
Adjusted profit before tax3(£m) |
41.1 |
42.4 |
(3.1) |
|
Adjusted earnings per share4(pence) |
11.4 |
11.7 |
(2.6) |
|
Adjusted free cash flow5(£m) |
16.5 |
9.1 |
81.3 |
|
Net debt (£m) |
144.6 |
N/A |
N/A |
|
Dividends per share (pence) |
2.89 |
2.75* |
5.1 |
|
Statutory profit before tax (£m) |
40.3 |
46.9 |
(14.1) |
|
Statutory basic earnings per share (pence) |
10.5 |
13.7 |
(23.4) |
Commenting on the Group's results, Steve Corbett, Chief Executive said:
"We are pleased to report a solid set of results in the context of end-markets that proved to be more challenging than were expected. The second quarter was better than the first, but underlying growth across the total electronics supply chain was more subdued. Declines in high margin copper damascene due to de-stocking were largely anticipated and should normalise in the second half, however lower sales to a single customer at the larger feature nodes compounded the impact on our NSV margin during the period.
"Against this backdrop we have outperformed a number of key end-market segments. We have maintained price and cost discipline whilst continuing to invest in our OEM marketing and selling initiative, and we are encouraged that our NSV margin, excluding the impact of copper damascene, remained flat despite lower volumes in the period. Our financial position has remained strong and free cash flow improved significantly against the prior year. Meanwhile our research and development team continues to deliver the new products required to meet the ever increasing demands of our customers.
"We believe Alent has a strong foundation from which to grow. The long term drivers for this business are unchanged. We are confident of delivering further sustainable NSV and margin improvement from underlying market growth, improved product mix, focus on our OEM strategy and new product pipeline."
OUTLOOK
We expect an improvement in the second half on the back of the normal seasonal cycle in electronics and new product launches from our customers. The positive impact of these industry drivers is expected to be tempered by continuing macroeconomic headwinds and subdued global consumer confidence, but we continue to work to overcome these challenges. Continued pricing discipline and cost focus, together with Alent's strong positions in its electronics applications with a broad group of leading edge end-customers, positions us to grow NSV and to improve margins on higher volumes during the second half.
