Response to COVID-19

The COVID-19 pandemic has led to significant challenges across the world. We continue to work hard to respond to these unprecedented circumstances and actively manage the ongoing risks to our people, our operations and our customers.

In the short-term we took immediate action to reduce costs, improve cash flow and increase liquidity. To support our plans to emerge stronger from COVID-19 we set out a Group restructuring and efficiency programme.

The programme is underway, accelerating our existing plans to further simplify our structure, and drive efficiency in our operations as well as to align our capacity with the anticipated lower demand levels across the business. These plans allow us to expand our margins when volumes return to previous levels.

In response to the significant downturn in aerospace demand, and the anticipated long-tail effect of this, the Group announced the closure of Technical Ceramics ceramic cores manufacturing sites in the UK and North America. We are also closing sites and closing under-utilised production lines in the Thermal Ceramics business. This aligns our capacity to lower industrial and automotive demand.

The restructuring programme is ahead of plan and we increased our cost savings target to £23 million per annum by 2022 for a cash cost of £30 million.

 

FY 2020

£m

FY 2021

£m

FY 2022

£m

Total

£m

Headline operating profit1 benefits (incremental) 6 17 23 -
Cash cost to specific adjusting items (24) (6) - (30)
1. Definitions of these non-GAAP measures can be found in our 2020 full year results statement.

 

Find out more about our performance in our 2020 Full Year results.