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Interim Results for the six months ended 30 June 2009

30/07/2009

Financial highlights

			Six months		Six months
			to 30.6.09		to 30.6.08
			£m		£m
Revenue			846.2		899.8		-6.0%
Adjusted operating profit1			66.3		108.1		-38.7%
Operating profit			51.3		107.4		-52.2%
Adjusted profit before tax2			63.7		109.6		-41.9%
Profit before tax			39.5		104.6		-62.2%
Cash flow from operations			106.6		38.7		+175.4%
			pence		pence
Earnings per share	Basic		14.6		47.9		-69.5%
	Adjusted2		28.5		51.0		-44.1%
Dividend per share	Interim		7.0		7.0

₁before exceptional items, acquisition costs and amortisation and impairment of acquired intangibles and goodwill
₂before exceptional items, acquisition costs, amortisation and impairment of acquired intangibles and goodwill, net financing charge on retirement benefit obligations and net losses on retranslation of intercompany loan balances

• Strong cash flow from operations of £106.6 million
• Solid funding position with net cash of £62.1 million and undrawn committed bank facilities of £145 million
• Adjusted earnings per share of 28.5 pence
• Interim dividend maintained at 7 pence per share
• ESAB operating margin of 6.6 per cent (2008: 13.6 per cent); revenue of £540.8 million and operating profit of £35.7 million (before exceptional items)
• Rapid restructuring underway in ESAB to save over £50 million of operating costs in 2009
• Howden order book at 30 June 2009 of £536 million
• Howden operating margin of 11.5 per cent (2008: 11.1 per cent); revenue of £305.4 million and operating profit of £35.2 million
• Revenue and operating profit have benefited by 15.8 per cent and 16.3 per cent respectively from movements in exchange rates

Michael Foster, Chief Executive, commented:

“Charter has demonstrated the fundamental strengths of both ESAB and Howden during this difficult period.

ESAB has remained profitable in every major region in every month, and has generated cash robustly. Restructuring has been timely and effective with cost savings, manning reductions and capacity reductions being delivered as planned; this work will continue as we progress towards delivering our long term strategic goals in order to ensure the operating model remains effective. Howden has produced a good result, with particularly high aftermarket sales, whilst preparing for what are likely to be more difficult times in 2010.

The performance of both businesses, the determination of management and the financial strength of Charter give the Board the confidence both to maintain the interim dividend and plan for future growth as economic conditions improve.”