Charter plc - Interim Results for six months ended 30 June 2008

Interim Results for six months ended 30 June 2008

28/08/2008

Financial highlights

		Six months to 30.6.08	Six months to 30.6.07
		£m	£m


Revenue		899.8	691.5	+30%

Operating profit		107.4	85.4	+26%

Profit before tax		104.6	92.1	+14%


Adjusted profit before tax₁		109.6	88.9	+23%

Profit after tax		84.5	75.4	+12%

		Pence	Pence

Earnings per share	Basic	47.9	43.3	+11%

	Adjusted₁	51.0	41.6	+23%

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

Strong growth in revenue and profits
ESAB revenue up 33 per cent and Howden up 25 per cent (22 per cent and 19 per cent respectively at constant exchange rates)
Key international markets of energy and infrastructure remain strong
Strong market positions in developed markets of Europe and North America as well as in growth markets, particularly BRIC countries, supported performance
Howden record order book at end of June 2008 of £530.5 million
Adjusted earnings per share up 23 per cent
Interim dividend of 7 pence per share declared
Balance sheet continues to strengthen, with equity shareholders’ funds in excess of £500 million and net cash of £36.0 million
As separately announced, revisions to group structure planned with new UK listed holding company, headquartered in Dublin

Michael Foster, Chief Executive, commented:

“The performance in the first half of 2008 has been excellent, as ESAB and Howden have made the most of strong trading conditions in growth economies and the energy and infrastructure markets, whilst meeting the challenges of input cost increases and growing inflation.

ESAB has benefited from the operational improvements made over the last five years and additional capacity in both welding consumables and equipment. Cost increases have been recovered in the market. The acquisitions made during 2007 and 2008 are being integrated into the business and are producing the expected benefits. Howden continues to benefit from its established position in the power industry, from its increased focus on the petrochemical sector, and from a growing aftermarket business.

With a strong balance sheet and the trading performance to date, the Board continues to view the prospects for 2008 with confidence.”

Contact
Andrew Fenwick; Pamela Small, Brunswick +44 (0) 20 7404 5959
Michael Foster, Chief Executive; Robert Careless, Finance Director +44 (0) 20 7404 5959

Internet users will be able to view this announcement, together with other information
about Charter plc at the company’s web site www.charterplc.com

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