19 Nov 2024
Full Year Results 2024
Chief Executive Officer, Johnny Thomson, gives an overview of the Group's performance.
Strong, volume-led organic revenue growth of 6%
Reported revenue growth of 14%: 10% from acquisitions, partially offset by FX
Adjusted operating margin up 120 basis points to 20.9%, reflecting our value-add proposition; operational leverage; disciplined cost management; and accretive acquisitions
Highly effective capital allocation: £293m invested in seven quality businesses at 6x EBIT. Disposal of three non-core business entities after the year end for £45m at 7x EBIT
Excellent return on capital across the Group with ROATCE up 100 basis points to 19.1%
Strong free cash flow conversion of 101% reflecting disciplined working capital management
Positive outlook for FY25
Read the full announcement:
“Thanks to my brilliant colleagues for another excellent year. Whilst some markets have been a little tougher this year, the quality of the team, our businesses, and the diversified portfolio have driven a strong performance. I am pleased with our organic growth, our margin progress, and the acquisitions we've made. Our discipline has been equally important: delivering great returns, cash flows, and selling some non-core businesses.”
Revenue diversification driving organic growth and increasing resilience
Controls +10%: Driven by market share gains and structural tailwinds
Seals +1%: Resilient performance in challenging markets
Life Sciences +6%: Outperformance in stabilised markets
Complementary acquisitions driving future organic growth at excellent returns
Peerless acquired for £243m, performing very well
PAR Group acquired for £37m, adding scale to R&G’s Seals & Gaskets division
Five additional bolt-on acquisitions for a total of £13m
Highly effective allocation of capital, acquisitions together delivering 20% ROATCE in year one
Healthy M&A pipeline diversified by sector, size and geography. Strong cash flow and balance sheet provide capacity to self-fund disciplined acquisitive growth
Scaling effectively for sustainable growth
Continued focus on management development initiatives to sustain growth
Three new state-of-the-art facilities opened to support future growth in the UK and Europe, making it ten new facilities in the last five years
Continued improvements against our Delivering Value Responsibly targets
Further strengthened balance sheet: committed facilities of £880m with maturities up to 2036
FY25 guidance
At constant currency, we expect: organic growth of c.6%; acquisitions announced to date (net of disposals) to add c.2% to reported revenue; and an operating margin of c.21%