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Charter, headquartered in Dublin, owns (through a number of intermediate companies) two international engineering businesses, one focused on welding, cutting and automation (‘ESAB’), and the other on air and gas handling (‘Howden’).

Financial highlights

The table below sets out the financial highlights of Charter for the years ended 31 December 2009 and 2008.

		2009 £m	2008 £m
Revenue		1,659.2	1,887.0	-12%
Operating profit		96.0	201.0	-52%
Adjusted profit before tax1		126.0	213.2	-41%
Profit before tax		92.7	197.7	-53%
Cash flow from operations		171.5	159.5	+8%
		pence	pence
Earnings per share	Adjusted1	55.0	99.2	-45%
	Basic	38.1	90.1	-58%
Intended Final dividend per share		14.5	14.0	+4%
Total dividend per share for year		21.5	21.0	+2%

1 before amortisation and impairment of acquired intangibles and goodwill, acquisition costs, exceptional items, net financing charge on retirement benefit obligations and gains/(losses) on retranslation of intercompany loan balances

View further financial information.

Businesses

1. ESAB

ESAB is a world-leading manufacturer and supplier of welding consumables and equipment, and cutting and automation solutions.

Key competitive advantages

• Market leadership based on technology, customer service and brand strength
• Clear market-leader in Europe and a strong position in North America
• Market leadership positions in Brazil, Russia and India; potential to develop its positions in China, Asia and Africa
• Largest end-user segment is energy, including oil and gas, nuclear and renewable
• Extensive research and development function maintains technical leadership and market responsiveness
• Manufacturing predominantly located in low cost areas
• Rapid response to lower levels of demand, with profitability maintained in its major markets throughout the downturn
• Strong environmental credentials

Revenue by destination

	2009 £m	2008 £m	Change %	Change at constant exchange rates %
Europe	424.6	594.7	-28.6	-35.4
North America	218.6	238.6	-8.4	-22.9
South America	171.9	198.0	-13.2	-19.4
China	27.1	36.4	-25.5	-45.9
Rest of world	189.2	192.1	-1.5	-14.7
Total	1,031.4	1,259.8	-18.1	-27.7

2. Howden

Howden is an international applications engineer with a world-leading position in the design, supply and servicing of air and gas handling equipment.

Key competitive advantages

• Market leadership based on technology, reputation and brand strength
• Global reach with strong positions in Europe, North America, China and South Africa
• Developing market positions in the Middle East, India, Russia and South America
• Customers in the power and energy industries account for over three-quarters of sales
• Growing aftermarket business accounted for 30 per cent of sales in 2009 with potential for further development
• Engineering centres of excellence provide bespoke solutions for customers
• Flexible business model with a manufacturing base predominantly located in low cost areas
• Restructuring has reduced manned capacity ahead of anticipated softer market for new equipment sales in 2010; growth expected to resume in 2011
• Strong environmental credentials

Revenue by destination

	2009 £m	2008 £m	Change %	Change at constant exchange rates %
Europe	171.1	165.3	3.5	-4.2
North America	149	181.5	-17.9	-34
China	123.1	136.6	-9.9	-28.1
South America	31.7	30.3	4.6	-1
Rest of world	152.9	113.5	34.7	23.5
Total	627.8	627.2	0.1	-12.9