Dowlais Group PLC

Latest Results (13.06.2024):

Revenue Growth

In the full year of 2023, Dowlais Group PLC reported a notable increase in adjusted revenue, reaching £5,489 million, which represents a 6.3% growth compared to the previous year. This increase was primarily driven by volume growth in the Automotive sector and inflation recoveries across the Group.

Profitability Enhancement

Dowlais Group PLC achieved an adjusted operating profit of £355 million in 2023, marking a significant 20% increase from the previous year when excluding incremental stand-alone plc costs. The adjusted operating margin also expanded by 30 basis points to 6.5%, driven by operational efficiencies and improved commercial pricing with customers.

Dividend and Share Buy-Back

Reflecting confidence in its financial health and long-term outlook, Dowlais Group PLC's Board recommended a final dividend of 2.8 pence per share for 2023, resulting in total dividends of 4.2 pence per share for the year. Additionally, the Board announced a share buy-back programme of up to £50 million to commence in April 2024.

Automotive and Powder Metallurgy Performance

The Automotive sector of Dowlais Group PLC saw a 7.0% increase in adjusted revenue and a 27% increase in adjusted operating profit, achieving a margin improvement of 110 basis points to 6.9%. Meanwhile, the Powder Metallurgy sector grew its adjusted revenue by 3.5% and its adjusted operating profit by 3.1%, achieving a 9.2% adjusted margin.

Future Outlook

For 2024, Dowlais Group PLC anticipates Group revenues to be similar to the previous year at constant currency, with a modest reduction in the first half offset by improvements in the second half due to new programme launches. The company remains focused on expanding operating margins and growing free cash flow, supported by ongoing operational efficiencies.