Trading Statement

Dowlais Group PLC

23 May 2023

 

23 May 2023

Dowlais Group plc

Trading update

Encouraging start to the year, full year expectations unchanged

Dowlais Group plc ("Dowlais" or the "Group"), the specialist engineering group focussed on the Automotive sector, provides a trading update for the four month period to 30 April 2023 ("the period"). 

The Group delivered £1.9bn of adjusted revenue in the period or 9% growth at constant currency, in line with our expectations. Adjusted operating margins in the period were in line with those delivered in full year 2022 but significantly up (over 200 bps) over the same period of the prior year. Cash conversion continues to be strong.

Automotive has had a good start to the year with 11% growth at constant currency led by Europe and the US. This has resulted in significant operating margin expansion in the period, when compared to the same period of the prior year, as well as margins slightly above full year 2022. Bookings were healthy with the majority relating to BEV platforms, underlining our strong market position as the transition to electrification continues.

Powder Metallurgy revenue in constant currency was flat versus prior year, with similar operating margins to those seen in H2 2022. More encouragingly, the period ended with positive momentum.

The Group has made an encouraging start to 2023, increasing our confidence in achieving adjusted operating margin expansion (pre-central costs) in the full year. Our full year expectations are unchanged.

The Group's interim results will be announced on 12 September 2023.

Liam Butterworth, CEO of Dowlais, said:

"We have had a very encouraging start to the year. As markets continue to recover, we are increasingly confident of delivering sector leading financial performance, based on our proven financial model and continued execution of our restructuring programs. We remain excited about the future."

Enquiries

Teneo:
Olivia Peters/Harry Cameron
[e-mail]
[phone]

Investor Relations:
Chris Dyett
[e-mail]
[phone]

Forward-Looking Statements

This trading update includes certain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond Dowlais' control and all of which are based on Dowlais' current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of terminology such as "believe", "expects", "may", "will", "would", "could", "should", "shall", "risk", "intends", "estimates", "aims", "plans", "predicts", "goal", "continues", "assumes", "positioned", "anticipates" or "targets" or the negative thereof, other variations thereon or comparable terminology. These forward-looking statements include matters that are not historical facts, statements regarding the intentions, beliefs or current expectations concerning, among other things, the future results of operations, financial condition, prospects, growth, strategies, and dividend policy and industry of Dowlais.   These forward-looking statements and other statements contained in this trading update regarding matters that are not historical facts involve predictions. No assurance can be given that such future results will be achieved and actual events or results may differ materially as a result of risks and uncertainties facing Dowlais. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed or implied in such forward-looking statements.  Forward-looking statements contained in this trading update speak only to the date of this trading update. Dowlais and its directors expressly disclaim any obligation or undertaking to update these forward-looking statements to reflect any change in their expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law.

 

END