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Preliminary Results for the year ended 31 December 2008

27/02/2009

Highlights of 2008

			2008		2007
			£m		£m
Revenue			1887.0		1451.1		+30%
Operating profit			201.0		173.3		+18%
Adjusted profit before tax			212.5		181.1		+17%
Profit before tax			197.7		178.1		+11%
Cash flow from operations			159.5		149.1		+7%
			pence		pence
Earnings per share			99.2		84.7		+17%
	Basic		90.1		82.7		+9%
Dividend per share	Recommended final		14.0		12.0		+17%
	Total for the year		21.0		12.0		+75%

¹before amortisation and impairment of acquired intangibles and goodwill, exceptional items and (losses)/gains on retranslation of intercompany loan balances

• Total revenue increased by 30 per cent, with ESAB’s revenue increased by 30 per cent and Howden’s revenue increased by 31 per cent before amortisation and impairment of acquired intangibles and goodwill, exceptional items and (losses)/gains on retranslation of intercompany loan balances
• Adjusted profit before tax of £212.5 million, an increase of 17 per cent
• Adjusted EPS of 99.2 pence, an increase of 17 per cent
• Balance sheet continues to strengthen with shareholders’ funds of £578 million
• Net cash of £52 million and £145 million of committed bank facilities
• Directors intend to declare final dividend of 14 pence per share (2007: 12 pence), making a total for the year of 21 pence (2007: 12 pence)
• Howden order book at a year end record of £499 million, including £110 million of orders for delivery beyond 2009

Michael Foster, Chief Executive, commented:

“Charter’s results for 2008 show material growth compared with 2007 in terms of revenue, profit and earnings per share, and further demonstrate the progress which has been made in developing both ESAB and Howden.

Since October 2008 there has been a marked deterioration in global economic and financial conditions which had led to reduced demand for ESAB welding consumables and equipment. Notwithstanding this slowdown, as we progress through 2009, we can take confidence from the global presence, market leadership positions, strong technology and flexible cost bases of both ESAB and Howden, which are supported by Charter’s strengthened balance sheet and positive long-term dynamics in the businesses’ key end-user segments. All of these we believe will assist Charter to resume growth as and when economic and financial conditions improve.”

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