Half Year Results 2024

Companies

Dowlais Group (DWL)

UK 100

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£ millions	Adjusted¹				Statutory
£ millions	H1 2024	H1 2023	Change	Constant FX¹	H1 2024	H1 2023	Change
Revenue	2,571	2,830	-9.2%	-5.1%	2,289	2,552	-10%
Operating profit/(loss)	151	177	-15%	-9.0%	(57)	(40)	-43%
Operating margin	5.9%	6.3%	-40bps	-30bps	-2.5%	-1.6%	-90bps
Profit/(loss) before tax	95	139	-32%	-26%	(123)	(55)	-124%
Basic EPS	4.9p	7.2p	-32%	-30%	(7.3)p	(6.1)p	-20%
Free cash flow	10	33	-70%	-	-	-	-

-	Adjusted revenue of £2,571 million, a reduction of 5.1% on prior year, driven by weakness in the ePowertrain product line of the Automotive business. Driveline, China and Powder Metallurgy, totalling more than 75% of the Group's revenues, performing above their markets.
-	Adjusted operating profit of £151 million, including £7 million of operating losses from Hydrogen operations, a decline of 9.0% compared to prior year, driven by lower volumes. Adjusted operating margin of 5.9%, 30bps lower than prior period, as the impact from lower volume was partially offset by proactive actions to manage the cost base and by pricing recoveries.
-	Automotive adjusted revenue decreased by 6.3% and adjusted operating profit declined by 13%, resulting in an adjusted operating margin of 6.0%, down 50bps versus prior period. This decrease was primarily driven by lower revenues in the ePowertrain product line largely due to BEV production schedules.
-	Powder Metallurgy had a good start to the year, as adjusted revenue grew by 0.2%, ahead of the market, while adjusted operating profit increased by 6.0%, resulting in an adjusted operating margin expansion of 50bps, to 9.5%.
-	Adjusted basic earnings per share of 4.9 pence, down 30% largely as a result of lower earnings and higher finance costs. Statutory loss per share of 7.3 pence.
-	£10 million of adjusted free cash flow, down from £33 million in H1 2023, mainly due to lower earnings, higher interest costs and restructuring outflows. Net debt of £915 million, up from £847 million at year end, with leverage of 1.6x compared to a year end position of 1.4x.
-	In line with the Group's dividend policy, the Board has declared an interim dividend of 1.4 pence per share, same as prior year, reflecting confidence in the medium-term outlook.

£ millions	Adjusted¹				Statutory
£ millions	H1 2024	H1 2023	Change	Constant FX¹	H1 2024	H1 2023	Change
Revenue	2,571	2,830	-9.2%	-5.1%	2,289	2,552	-10%
Automotive	2,044	2,283	-10%	-6.3%	1,780	2,018	-12%
Powder Metallurgy	527	545	-3.3%	0.2%	509	532	-4.3%
Hydrogen	-	2	-100%	-100%	-	2	-100%
Operating expenses	(243)	(238)	-2.1%	-5.0%	(432)	(441)	2.0%
EBITDA	291	316	-7.9%	-3.2%	-	-	-
Depreciation and amortisation²	(140)	(139)	-0.7%	-4.3%	(226)	(228)	0.9%
Operating profit/(loss)	151	177	-15%	-9.0%	(57)	(40)	-43%
Operating margin	5.9%	6.3%	-40bps	-30bps	-2.5%	-1.6%	-90bps
Net finance costs	(56)	(38)	-47%	-53%	(66)	(15)	-340%
Profit/(loss) before tax	95	139	-32%	-26%	(123)	(55)	-124%
Tax	(24)	(36)	33%	17%	25	(27)	193%
Profit/(loss) after tax	71	103	-31%	-29%	(98)	(82)	-20%
Non-controlling interest	(3)	(3)	0%	0%	3	3	0%
Profit/(loss) attributable to owners	68	100	-32%	-30%	(101)	(85)	-19%

Weighted average shares	1,385	1,392	-0.5%	-	1,357	1,364	-0.5%
Basic EPS	4.9p	7.2p	-32%	-	(7.3)p	(6.1)p	-20%
Free cash flow	10	33	-70%	-	-	-	-
Capex	103	122	-16%	-	103	122	-16%
Net debt	915	849	7.8%	-	-	-	-
Leverage	1.6x	1.4x	0.2x	-	-	-	-

Adjusted revenue share by region	H1 2024	% Change
Americas	42%	0.4%
Europe, Middle East & Africa	33%	-1.9%
China¹	13%	1.5%
Asia (ex China)	12%	0.1%

£ millions	Assets	Liabilities	Accounting Surplus/(Deficit)
UK plans¹	630	(627)	3
European plans	16	(393)	(377)
US plans	75	(112)	(37)
Other Group pension schemes	12	(20)	(8)
Total Group pension schemes	733	(1,152)	(419)

-	Strong Automotive performance with business wins of over £2.4 billion of forecast lifetime revenue, well balanced across regions, customers and product groups.
-	Powder Metallurgy order book up 10%, with 53% of new business wins being for EV or propulsion agnostic products.

-	Commenced a strategic review of Powder Metallurgy, considering a range of options, including a potential sale of the business.
-	Disposal of GKN Hydrogen operations in July 2024, which will eliminate cash future losses associated with the business.

-	Industry forecasts no longer expect the second half of the year to improve and now predict a 3.6% decline in the second half, leading to a 2% decline of light vehicle production in 2024, with the ongoing BEV volatility expected to continue to affect our ePowertrain business in the second half.
-	Consequently, we expect a mid to high single-digit adjusted revenue decline for 2024 and an adjusted operating margin between 6.0% and 7.0% at constant currency, given the benefits of commercial recoveries, restructuring savings and performance initiatives

•	the condensed set of financial statements has been prepared in accordance with UK-adopted IAS34 'Interim Financial Reporting'; and
•	the interim management report includes a fair review of the information required by DTR 4.2.7 (indication of important events and their impact, and a description of principal risks and uncertainties for the remaining six months of the financial year) and DTR 4.2.8 (disclosure of related parties' transactions and changes therein).

	Notes	6 months ended 30 June 2024 Unaudited £m	6 months ended 30 June 2023 Unaudited £m	Year ended 31 December 2023 Audited £m
Revenue	3	2,289	2,552	4,864
Cost of sales		(1,943)	(2,164)	(4,107)
Gross profit		346	388	757
Share of results of equity accounted investments	9	29	13	51
Operating expenses		(432)	(441)	(809)
Impairment of goodwill	4	-	-	(449)
Operating loss	3,4	(57)	(40)	(450)
Finance costs	5	(68)	(40)	(101)
Finance income	5	2	25	29
Loss before tax		(123)	(55)	(522)
Tax	6	25	(27)	27
Loss after tax for the period		(98)	(82)	(495)
Attributable to:
Owners of the parent		(101)	(85)	(501)
Non-controlling interests		3	3	6
		(98)	(82)	(495)
Earnings per share
- Basic	8	(7.3)p	(6.1)p	(36.0)p
- Diluted	8	(7.3)p	(6.1)p	(36.0)p

Adjusted⁽¹⁾ results
Adjusted revenue	3	2,571	2,830	5,489
Adjusted operating profit	3,4	151	177	355
Adjusted profit before tax	4	95	139	264
Adjusted profit after tax	4	71	103	198
Adjusted basic earnings per share	8	4.9p	7.2p	13.8p
Adjusted diluted earnings per share	8	4.9p	7.2p	13.8p

	Notes	6 months ended 30 June 2024 Unaudited £m	6 months ended 30 June 2023⁽¹⁾ Unaudited £m	Year ended 31 December 2023 Audited £m
Loss after tax for the period		(98)	(82)	(495)

Items that will not be reclassified subsequently to the Income Statement:
Net remeasurement gain/(loss) on retirement benefit obligations		31	(6)	(22)
Income tax (charge)/credit relating to items that will not be reclassified	6	(8)	1	4
		23	(5)	(18)
Items that may be reclassified subsequently to the Income Statement:
Currency translation		(52)	(154)	(152)
Impact of hyperinflationary economies		7	4	8
Share of other comprehensive expense from equity accounted investments		(5)	(38)	(32)
Derivative and exchange gains on hedge relationships		12	32	21
Income tax (charge)/credit relating to items that may be reclassified	6	(1)	(5)	4
		(39)	(161)	(151)
Other comprehensive expense for the period		(16)	(166)	(169)
Total comprehensive expense for the period		(114)	(248)	(664)
Attributable to:
Owners of the parent		(112)	(248)	(668)
Non-controlling interests		(2)	-	4
		(114)	(248)	(664)

	Notes	30 June 2024 Unaudited £m	30 June 2023⁽¹⁾⁽²⁾ Unaudited £m	31 December 2023⁽¹⁾ Audited £m
Non-current assets
Goodwill and other intangible assets		2,242	2,901	2,365
Property, plant and equipment		1,707	1,738	1,751
Interests in equity accounted investments		351	383	397
Deferred tax assets		149	161	146
Derivative financial assets		20	22	8
Other financial assets		-	32	28
Retirement benefit surplus	12	31	35	27
Other receivables		12	13	12
		4,512	5,285	4,734
Current assets
Inventories		480	495	510
Trade and other receivables		625	720	628
Derivative financial assets		20	53	45
Other financial assets		19	-	-
Current tax assets		43	43	21
Cash and cash equivalents	13	298	300	313
		1,485	1,611	1,517
Total assets	3	5,997	6,896	6,251
Current liabilities
Trade and other payables		1,110	1,211	1,179
Interest-bearing loans and borrowings	13	10	8	2
Lease obligations	14	22	22	25
Derivative financial liabilities		8	6	4
Current tax liabilities		95	126	100
Provisions	10	140	148	136
		1,385	1,521	1,446
Net current assets		100	90	71
Non-current liabilities
Other payables		16	14	18
Interest-bearing loans and borrowings	13	1,203	1,141	1,158
Lease obligations	14	120	133	126
Derivative financial liabilities		10	1	4
Deferred tax liabilities		235	360	248
Retirement benefit obligations	12	450	488	486
Provisions	10	156	214	182
		2,190	2,351	2,222
Total liabilities	3	3,575	3,872	3,668
Net assets		2,422	3,024	2,583
Equity
Issued share capital		14	14	14
Share premium account		-	1,070	-
Own shares		(7)	(7)	(7)
Translation reserve		(123)	(113)	(81)
Hedging reserve		9	24	1
Retained earnings		2,495	1,997	2,620
Equity attributable to owners of the parent		2,388	2,985	2,547
Non-controlling interests		34	39	36
Total equity		2,422	3,024	2,583

	Issued share capital £m	Share premium account £m	Own shares £m	Translation reserve £m	Hedging reserve £m	Retained earnings £m	Equity attributable to owners of the parent £m	Non- controlling interests £m	Total equity £m
At 1 January 2023 (as previously reported)	-	-	-	69	-	4,885	4,954	39	4,993
Restatement of equity accounted investments⁽¹⁾	-	-	-	-	-	17	17	-	17
At 1 January 2023 (as restated)	-	-	-	69	-	4,902	4,971	39	5,010
(Loss)/profit for the period	-	-	-	-	-	(85)	(85)	3	(82)
Other comprehensive (expense)/income⁽²⁾	-	-	-	(182)	24	(5)	(163)	(3)	(166)
Total comprehensive (expense)/income	-	-	-	(182)	24	(90)	(248)	-	(248)
Dividends paid to Related Parties⁽³⁾	-	-	-	-	-	(1,675)	(1,675)	-	(1,675)
Effect of change of ultimate holding company⁽⁴⁾	14	1,070	-	-	-	(1,084)	-	-	-
Purchase of own shares by Employee Benefit Trust⁽⁵⁾	-	-	(7)	-	-	-	(7)	-	(7)
Transactions with Related Parties⁽³⁾	-	-	-	-	-	(57)	(57)	-	(57)
Equity-settled share-based payments	-	-	-	-	-	1	1	-	1
At 30 June 2023 (unaudited)⁽¹⁾	14	1,070	(7)	(113)	24	1,997	2,985	39	3,024
Loss for the period	-	-	-	-	-	(416)	(416)	3	(413)
Other comprehensive income/(expense)	-	-	-	32	(23)	(13)	(4)	1	(3)
Total comprehensive income/(expense)	-	-	-	32	(23)	(429)	(420)	4	(416)
Capital reduction	-	(1,070)	-	-	-	1,070	-	-	-
Dividends paid to equity shareholders	-	-	-	-	-	(19)	(19)	(7)	(26)
Equity-settled share-based payments	-	-	-	-	-	1	1	-	1
At 31 December 2023 (audited)⁽¹⁾	14	-	(7)	(81)	1	2,620	2,547	36	2,583
(Loss)/profit for the period	-	-	-	-	-	(101)	(101)	3	(98)
Other comprehensive (expense)/income	-	-	-	(42)	8	23	(11)	(5)	(16)
Total comprehensive (expense)/income	-	-	-	(42)	8	(78)	(112)	(2)	(114)
Dividends paid to equity shareholders	-	-	-	-	-	(39)	(39)	-	(39)
Equity-settled share-based payments	-	-	-	-	-	1	1	-	1
Purchase of own shares⁽⁶⁾	-	-	-	-	-	(9)	(9)	-	(9)
At 30 June 2024 (unaudited)	14	-	(7)	(123)	9	2,495	2,388	34	2,422

-	Amendments to IAS 1 Classification of Liabilities as Current or Non-current
-	Amendments to IAS 1 Non-current Liabilities with Covenants
-	Amendments to IAS 7 and IFRS 7 Supplier Finance Arrangements - The amendments to IAS 7 require disclosure of information about the Group's supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the entity's liabilities and cash flows. In addition, IFRS 7 is amended to add supplier finance arrangements as an example within the requirements to disclose information about an entity's exposure to concentration of liquidity risk. The Group will provide the required disclosures in its 2024 Annual Report.
-	Amendments to IFRS 16 Lease Liability in a Sale and Leaseback

-	Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
-	Amendments to IAS 21 Lack of Exchangeability
-	Amendments to IFRS 9 Amendments to the Classification and Measurement of Financial Instruments

-	Amortisation of intangible assets that are acquired in a business combination, excluding computer software and development costs;
-	Significant restructuring project costs and other associated costs, including losses incurred following the announcement of closure for identified businesses, and pre-operational losses for new operating sites, arising from significant strategy changes that are not considered by the Group to be part of the normal operating costs of the business;
-	Acquisition and disposal related gains and losses;
-	Costs relating to or resulting from the demerger of the Group from Melrose Industries PLC;
-	Impairment charges that are considered to be significant in nature and/or value to the trading performance of the business;
-	Movement in derivative financial instruments not designated in hedging relationships, including revaluation of associated financial assets and liabilities;
-	Removal of adjusting items, interest and tax on equity accounted investments to reflect operating results; and
-	The net release of loss-making contract provision fair value items booked on acquisitions.

		Revenue⁽¹⁾ from external customers			Segment assets
	6 months ended 30 June 2024 £m		6 months ended 30 June 2023 £m	Year ended 31 December 2023 £m	30 June 2024 £m	30 June 2023⁽²⁾⁽³⁾ £m	31 December 2023⁽³⁾ £m
UK	108		91	192	600	691	633
Rest of Europe	749		891	1,676	1,566	1,883	1,637
North America	990		1,084	2,053	1,292	1,443	1,298
Other	442		486	943	842	1,005	945
Total	2,289		2,552	4,864	4,300	5,022	4,513

a.	The amortisation charge on intangible assets acquired in business combinations of £96 million (2023: £99 million), is excluded from adjusted results due to its non-trading nature. Where intangible assets are trading in nature, such as computer software and development costs, the related amortisation is not excluded from adjusted results.
b.	Costs associated with restructuring projects in the period totalling £49 million (2023: £88 million) are shown as adjusting items due to their size and non-trading nature. During the period these included:
	-	A charge of £43 million (2023: £86 million) within the Automotive division, primarily relating to significant footprint consolidation actions as the business continues to address its cost base and deliver transformational programmes. Significant costs incurred include direct costs relating to the closure of an Automotive plant in Roxboro, North Carolina and direct costs of expansion in Mexico as new product lines are added to the facility, and continued transfer of manufacturing from Mosel, Germany to Miskolc, Hungary.
	-	A charge of £4 million (2023: £2 million) within the Powder Metallurgy division and £2 million (2023: £nil) of Corporate costs.
c.	Movements in the fair value of derivative financial instruments (primarily forward foreign currency exchange contracts where hedge accounting is not applied) entered into to mitigate the potential volatility of future cash flows, on long-term foreign currency customer and supplier contracts, including foreign exchange movements on the associated financial liabilities, are shown as an adjusting item. This totalled a charge of £35 million (2023: credit of £21 million). Movements in fair value are treated as an adjusting item due to their volatility. Any gains and losses on settlement are recorded in underlying results to give a better understanding of how the gains and losses on currency contracts relate to the trading cashflows.
d.	The Group has a number of equity accounted investments ("EAIs") in which it does not hold full control, the largest of which is a 50% interest in Shanghai GKN HUAYU Driveline Systems ("SDS"), within the Automotive business. EAIs in the Group generated £282 million (2023: £278 million) of revenue in the period, which is not included in the statutory results but is shown within adjusted revenue so as not to distort the operating margins reported in the businesses when the adjusted operating profit earned from these EAIs is included.
	In addition, the profits and losses of EAIs, which are shown after amortisation of intangible assets arising on acquisition, interest and tax in the statutory results, are adjusted to show the adjusted operating profit consistent with the adjusted operating profits of the subsidiaries of the Group. The revenue and profit of EAIs are adjusted because they are considered to be significant in size and are important in assessing the performance of the business.
e.	An impairment charge totalling £10 million (2023: £nil) has been recorded against the value of inventory and property, plant and equipment held by the Hydrogen division to write down the net asset value of the division to £nil. This follows the decision made in late June 2024 to close or dispose of the business. On 29 July 2024 the Group disposed of the Hydrogen business to Langley Holdings plc for nominal consideration. The impairment charge has been recognised as an adjusting item due to its non-trading nature.
f.	Litigation costs of £3 million (2023: £nil) which relate to a legacy legal claim in respect of a prior business disposal have been treated as an adjusting item due to their historical and non-trading nature.
g.	One-off costs relating to the demerger of the Group from Melrose Industries PLC of £1 million (2023: £39 million) were incurred during the period to 30 June 2024. Costs incurred were incremental and directly associated with the transaction. These items have been excluded from adjusted results due to their non-recurring nature. Minimal demerger costs are expected to be incurred going forward.
h.	No impairment to goodwill was recorded in the current period. In the year ended 31 December 2023, the Group recognised an impairment charge of £449 million in relation to goodwill held in the Powder Metallurgy cash-generating unit ("CGU").
i.	In the prior period, a net release of £2 million relating to loss-making contract provisions which were initially recorded as fair value items on historical acquisitions, were resolved for more favourable amounts than first anticipated. These items are shown as adjusting to avoid positively distorting the adjusted results. No loss-making contract provisions were resolved in the current period.

-	The fair value changes on cross-currency swaps, relating to cost of hedging which are not deferred in equity;
-	The movement in loans with Related Parties as a result of changes in foreign currency exchange rates; and
-	The fair value changes on remeasurement of non-trading financial assets.

-	The net effect on tax of significant restructuring from strategy changes that are not considered by the Group to be part of the normal operating costs of the business;
-	The net effect of significant new tax legislation; and
-	The tax effects of adjustments to profit before tax, described above.

6 months ended 30 June 2024	Notes	Automotive £m	Powder Metallurgy £m	Hydrogen £m	Total £m
Adjusted revenue		2,044	527	-	2,571
Equity accounted investments	9	(264)	(18)	-	(282)
Revenue		1,780	509	-	2,289

6 months ended 30 June 2023	Notes	Automotive £m	Powder Metallurgy £m	Hydrogen £m	Total £m
Adjusted revenue		2,283	545	2	2,830
Equity accounted investments	9	(265)	(13)	-	(278)
Revenue		2,018	532	2	2,552

Year ended 31 December 2023	Notes	Automotive £m	Powder Metallurgy £m	Hydrogen £m	Total £m
Adjusted revenue		4,437	1,047	5	5,489
Equity accounted investments	9	(594)	(31)	-	(625)
Revenue		3,843	1,016	5	4,864

6 month ended 30 June 2024	Automotive £m	Powder Metallurgy £m	Hydrogen £m	Corporate⁽²⁾ £m	Total £m
Adjusted operating profit/(loss)	122	50	(7)	(14)	151

Items not included in adjusted operating profit⁽¹⁾:
Amortisation of intangible assets acquired in business combinations	(72)	(24)	-	-	(96)
Restructuring costs	(43)	(4)	-	(2)	(49)
Movement in derivatives and associated financial assets and liabilities	(4)	-	-	(31)	(35)
Equity accounted investments adjustments	(14)	-	-	-	(14)
Impairment of assets	-	-	(10)	-	(10)
Litigation costs	-	-	-	(3)	(3)
Demerger costs	-	-	-	(1)	(1)
Operating (loss)/profit	(11)	22	(17)	(51)	(57)
Finance costs					(68)
Finance income					2
Loss before tax					(123)
Tax					25
Loss after tax for the period					(98)

		Total assets			Total liabilities
	30 June 2024 £m	30 June 2023⁽¹⁾⁽²⁾ £m	31 December 2023⁽²⁾ £m	30 June 2024 £m	30 June 2023 £m	31 December 2023 £m
Automotive	4,390	4,713	4,578	1,934	2,244	2,059
Powder Metallurgy	1,251	1,746	1,268	391	410	404
Hydrogen	4	15	14	4	6	6
Corporate	352	422	391	1,246	1,212	1,199
Total	5,997	6,896	6,251	3,575	3,872	3,668

		Capital expenditure⁽¹⁾			Depreciation of owned assets⁽¹⁾				Depreciation of leased assets
	6 months ended 30 June 2024 £m	6 months ended 30 June 2023 £m	Year ended 31 December 2023 £m	6 months ended 30 June 2024 £m		6 months ended 30 June 2023 £m	Year ended 31 December 2023 £m	6 months ended 30 June 2024 £m		6 months ended 30 June 2023 £m	Year ended 31 December 2023 £m
Automotive	92	97	217	94		90	187	7		8	15
Powder Metallurgy	21	12	42	24		26	50	5		5	10
Hydrogen	-	2	3	-		-	-	-		-	-
Total	113	111	262	118		116	237	12		13	25

	Notes	6 months ended 30 June 2024 £m	6 months ended 30 June 2023 £m	Year ended 31 December 2023 £m
Operating loss		(57)	(40)	(450)
Amortisation of intangible assets acquired in business combinations	a	96	99	197
Restructuring costs	b	49	88	120
Movement in derivatives and associated financial assets and liabilities	c	35	(21)	(16)
Equity accounted investments adjustments	d	14	14	30
Impairment of assets	e	10	-	-
Litigation costs	f	3	-	-
Demerger costs	g	1	39	42
Impairment of goodwill	h	-	-	449
Net release and changes in discount rates of certain fair value items	i	-	(2)	(17)
Total adjustments to operating loss		208	217	805
Adjusted operating profit		151	177	355

Analysis of the (credit)/charge in the period:	6 months ended 30 June 2024 £m	6 months ended 30 June 2023 £m	Year ended 31 December 2023 £m
Current tax	2	25	53
Deferred tax	(27)	2	(80)
Total tax (credit)/charge	(25)	27	(27)

Earnings attributable to owners of the parent	6 months ended 30 June 2024 £m	6 months ended 30 June 2023 £m	Year ended 31 December 2023 £m
Net loss attributable to shareholders	(101)	(85)	(501)
Adjustment for earnings attributable to shares subject to recall	2	2	10
Earnings for basis of earnings per share	(99)	(83)	(491)

	6 months ended 30 June 2024 Number	6 months ended 30 June 2023 Number	Year ended 31 December 2023 Number
Weighted average number of ordinary shares (million)	1,385	1,392	1,390
Adjustment for shares subject to recall (million)	(28)	(28)	(28)
Weighted average number of ordinary shares for the purposes of basic earnings per share (million)	1,357	1,364	1,362
Weighted average number of ordinary shares for the purposes of diluted earnings per share (million)	1,357	1,364	1,362

	Loss-making contracts £m	Property related costs £m	Environmental and litigation £m	Warranty related costs £m	Restructuring £m	Other £m	Total £m
At 1 January 2024	17	5	46	141	78	31	318
Utilised	(3)	-	(2)	(5)	(51)	(6)	(67)
Charge to operating profit⁽¹⁾	-	-	4	3	46	1	54
Release to operating profit⁽²⁾	-	-	-	(5)	(3)	(2)	(10)
Transfers	-	-	1	1	5	-	7
Exchange adjustments	(1)	-	(1)	(2)	(2)	-	(6)
At 30 June 2024	13	5	48	133	73	24	296
Current	4	1	25	70	30	10	140
Non-current	9	4	23	63	43	14	156
	13	5	48	133	73	24	296

	Current £m	Non-current £m	Total £m
30 June 2024
Financial assets
Classified as amortised cost:
Cash and cash equivalents	298	-	298
Net trade receivables	494	-	494
Classified as fair value:
Derivative over own equity⁽¹⁾	19	-	19
Derivative financial assets:
Foreign currency forward contracts	20	6	26
Interest rate swaps	-	14	14
Financial liabilities
Classified as amortised cost:
Interest-bearing loans and borrowings	(10)	(1,203)	(1,213)
Lease obligations	(22)	(120)	(142)
Other financial liabilities	(1,063)	(12)	(1,075)
Classified as fair value:
Derivative financial liabilities
Foreign currency forward contracts	(8)	(9)	(17)
Interest rate swaps	-	(1)	(1)

30 June 2023
Financial assets
Classified as amortised cost:
Cash and cash equivalents	300	-	300
Net trade receivables	583	-	583
Classified as fair value:
Derivative over own equity⁽¹⁾	-	32	32
Derivative financial assets:
Foreign currency forward contracts	53	9	62
Interest rate swaps	-	13	13
Financial liabilities
Classified as amortised cost:
Interest bearing loans	(8)	(1,141)	(1,149)
Lease obligations	(22)	(133)	(155)
Other financial liabilities	(1,170)	(10)	(1,180)
Classified as fair value:
Derivative financial liabilities
Foreign currency forward contracts	(6)	(1)	(7)
31 December 2023
Financial assets
Classified as amortised cost:
Cash and cash equivalents	313	-	313
Net trade receivables	460	-	460
Classified as fair value:
Derivative over own equity⁽¹⁾	-	28	28
Derivative financial assets:
Foreign currency forward contracts	43	4	47
Interest rate swaps	2	4	6
Financial liabilities
Classified as amortised cost:
Interest-bearing loans and borrowings	(2)	(1,158)	(1,160)
Lease obligations	(25)	(126)	(151)
Other financial liabilities	(1,063)	(11)	(1,074)
Classified as fair value:
Derivative financial liabilities
Foreign currency forward contracts	(4)	(1)	(5)
Interest rate swaps	-	(3)	(3)

30 June 2024	UK plans £m	US plans £m	European plans £m	Other plans £m	Total £m
Plan assets	630	75	16	12	733
Plan liabilities	(627)	(112)	(393)	(20)	(1,152)
Net assets/(liabilities)	3	(37)	(377)	(8)	(419)
Analysed as:
Retirement benefit surplus⁽¹⁾					31
Retirement benefit obligations					(450)
Net liabilities					(419)

	Rate of increase of pensions in payment % p.a.	Discount rate %	Price inflation % (RPI/CPI)
30 June 2024
GKN UK - Group Pension Schemes (No.2 and No.3)	2.5	5.1	3.1/2.7
GKN US plans	n/a	5.3	n/a
GKN Europe plans	2.2	3.7	2.2/2.2

30 June 2023
GKN UK - Group Pension Schemes (No.2 and No.3)	2.7	5.2	3.2/2.7
GKN US plans	n/a	4.9	n/a
GKN Europe plans	2.6	3.7	2.6/2.6

31 December 2023
GKN UK - Group Pension Schemes (No.2 and No.3)	2.5	4.5	3.0/2.6
GKN US plans	n/a	4.8	n/a
GKN Europe plans	2.1	3.3	2.1/2.1

Reconciliation of cash and cash equivalents, net of bank overdrafts	6 months ended 30 June 2024 £m	6 months ended 30 June 2023 £m	31 December 2023 £m
Cash and cash equivalents per Balance Sheet	298	300	313
Bank overdrafts included within current Interest-bearing loans and borrowings	(9)	(7)	-
Cash and cash equivalents, net of bank overdrafts per Statement of Cash Flows	289	293	313

	At 31 December 2023 £m	Cash flow £m	Other non-cash movements £m	Effect of foreign exchange £m	At 30 June 2024 £m
External debt (excluding bank overdrafts)	(1,160)	(44)	(2)	2	(1,204)
Cash and cash equivalents, net of bank overdrafts	313	(10)	-	(14)	289
Net debt	(847)	(54)	(2)	(12)	(915)

Minimum lease payments	30 June 2024 £m	30 June 2023 £m	31 December 2023 £m
Amounts payable:
Within one year	26	28	31
After one year but within five years	71	68	73
Over five years	84	105	92
Less: future finance charges	(39)	(46)	(45)
Present value of lease obligations	142	155	151
Analysed as:
Amounts due for settlement within one year	22	22	25
Amounts due for settlement after one year	120	133	126
Present value of lease obligations	142	155	151

Accident Frequency Rate or AFR	A safety key performance indicator, calculated as the number of lost time accidents (whether serious or minor) divided by the total number of hours worked multiplied by 200,000.
Additive Manufacturing	The product line within Powder Metallurgy which manufactures metal and polymer components and materials using additive manufacturing processes.
Automotive	The GKN Automotive business operated by the Group.
Board	The board of directors of the Company.
bps	Basis points.
BEV	Battery electric vehicles.
CEO	Chief Executive Officer.
CFO	Chief Financial Officer.
China	The Equity Accounted Investments in our Chinese joint ventures with Hasco Group that operate within the Automotive segment.
Company or Dowlais	Dowlais Group plc.
demerger	The demerger of the Company from Melrose Industries PLC on 20 April 2023.
Director	A director of the Company.
Driveline	The product line within Automotive which manufactures components that transmit power from the engine to a vehicle's driving wheels, such as side shafts and prop shafts.
drop-through margin	The margin at which incremental sales volumes contribute incremental operating profit.
DTR	The disclosure guidance and transparency rules made by the FCA under Part VI of the Financial Services and Markets Act 2000.
EBITDA	Earnings before interest, tax, depreciation and amortisation.
EMEA	Europe, Middle East and Africa.
ePowertrain	The product line within Automotive which manufactures all wheel drive systems, torque management systems, electric drive systems and components thereof.
EPS	Earnings per share.
ESG	Environmental, Social and Governance.
EVs	BEVs and HEVs.
FX	Foreign exchange.
Group	The Company, its direct and indirect subsidiaries and other investments.
GLVP	Global light vehicle production.
H1 or H2	The first or second half (as applicable) of the relevant financial year.
HEV	Hybrid electric vehicles.
Hoeganaes	The product line within Powder Metallurgy which manufactures metal powder.
Hydrogen	The GKN Hydrogen business previously operated by the Group.
ICE	Internal combustion engine.
IFRS	International Financial Reporting Standards.
lifetime revenue	In respect of a contract, the revenue earned over the life of that contract.
LFP	Lithium iron phosphate.
M&A	Mergers and acquisitions.
market	Global light vehicle market.
Melrose	Melrose Industries PLC.
OEM	Original equipment manufacturer, typically of light vehicles.
Powder Metallurgy	The GKN Powder Metallurgy business operated by the Group.
Q1, Q2, Q3 or Q4	The 1^st, 2^nd, 3^rd or 4^th quarter (as applicable) of the relevant year.
S&P	S&P Global.
Sinter	The product line within Powder Metallurgy which manufactures high precision metal components using powder metallurgy processes.
SUV	Sport utility vehicle.
US	Unites States of America.
year-on-year	In comparison to the immediately preceding financial year (or relevant period thereof).