I am pleased to report that we have delivered 2014 results in line with expectations. Looking ahead, I believe our low-risk, multi-market model combined with the additional benefits from our integration and cost savings programmes, is a strong platform from which to create long-term value for shareholders.
2014 results:
Key performance measures1
| £m unless stated | 2014 | 2013 | Change | Underlying change |
|---|---|---|---|---|
| Continuing operations | ||||
| Scope revenue | 3,920 | 3,854 | +2% | +1% |
| Trading profit | 321 | 343 | -6% | |
| Trading margin | 8.2% | 8.9% | -70bps | |
| Adjusted profit before tax | 317 | 332 | -5% | |
| Trading cash flow | 283 | 341 | -17% | |
| Cash conversion | 88% | 99% | -110bps | |
| Adjusted earnings per share | 79.5p | 87.2p | -9% |
1 Adjusted performance measures used by the Group are reconciled to the equivalent IFRS measures in the section entitled ‘Performance measures’
Reported under IFRS
| £m unless stated | 2014 | 2013 | Change |
|---|---|---|---|
| Continuing operations | |||
| Revenue | 3,993 | 3,974 | - |
| Profit before net financing expense | 148 | 243 | -39% |
| Profit before tax | 155 | 255 | -39% |
| Cash flow from operations | 200 | 292 | -32% |
| Diluted earnings per share | 35.1p | 62.5p | -44% |
| Dividend per share | 43.3p2 | 42.0p | +3% |
2 Includes the proposed final dividend for 2014 of 28.5p per ordinary share
Outlook statement:
For 2015, we expect to see a continuation of recent trends – with growth in Clean Energy, downstream and Middle Eastern Oil & Gas markets offsetting tougher conditions elsewhere. This mix of performance, together with the increased customer pricing pressure and cost saving plans, is expected to lead to a modest reduction in like-for-like trading margins.
On current market forecasts, the reversal of the currency headwinds we experienced in 2014 will add approximately £150 million to scope revenue.