Today we have announced the Group’s preliminary financial results for 2016 which was a good year where we performed in line with our expectation and the guidance we set out at our half-year results in July. A testament to the skills, hard work and commitment of our employees.
Headline figures include:
- Sales increased by £1.1bn to £19bn, mainly due to exchange translation
- Underlying EBITA increased 6% to £1.9bn, or 7% on a constant currency basis
- Underlying EPS increased by 7% on an adjusted basis to 40.3p, in line with our guidance
- Order backlog increased over the year to £42bn
- Final dividend of 21.3 pence per share, up 2% from 2015
During the year we maintained our focus on delivering leading capabilities and operational excellence for our customers and continued to invest in technology and talent for the future.
We secured long-term positions on major defence programmes and strengthened our core franchises and grew our order backlog.
Our UK businesses performed strongly in the year, benefitting from good programme execution and stability in customer requirements and in the U.S. we are seeing encouraging signs of a return to growth in defence budgets and improved prospects for our core franchises.
Our strong franchises and good programme execution are underpinned by the quality of our technology and engineering capability.
We continue to add to our technology base with bolt-on acquisitions including the recent acquisition of IAP Research Inc which will enhance our electromagnet rail gun capabilities, as we look to further advance that programme.
Our strategy is well defined; we have a large order backlog, long term programme positions, a well balanced portfolio and a continued track record of strong operational performance. With an improved outlook for defence budgets in a number of our markets, we are well placed to continue to generate attractive returns for our shareholders.
For the year ending 31 December 2017, we expect the Group’s underlying earnings per share to be 5% to 10% higher than full-year underlying earnings per share in 2016 of 40.3p.*