Results for the year
Underlying profit before tax was £436 million, up 18 per cent over 1999. Underlying earnings per share grew by 10.8 per cent, to 21.63p.

Group turnover increased by 27 per cent to £5,864 million (1999 £4,634 million), largely as a result of the inclusion of a full year's turnover in respect of the businesses acquired towards the end of 1999.

Civil aerospace sales grew by 24 per cent. This included growth in aftermarket sales of 27 per cent.

Defence sales increased by 23 per cent as a result of the inclusion of a full year of Vickers Defence Systems.

Marine sales grew by 95 per cent, reflecting the enlarged business following the acquisition of Vickers.

Energy sales were unchanged, reflecting delays in sales of the industrial Trent and the depressed oil and gas markets, offset by the contribution from acquisitions.

Financial services sales increased by 8 per cent, reflecting the increasing maturity of these businesses.

The company maintained its position as a leading UK exporter, with 82 per cent of sales delivered to overseas customers.

Underlying trading margins, before restructuring and non-trading items, and after the net impact of risk and revenue sharing partners, reduced from 16.7 per cent to 15.4 per cent, as a result of the increased loss in the energy business and the lower defence profits.

The interest charge increased from £53 million to £123 million. This reflected the higher level of average debt which resulted from the acquisitions made in 1999 and the growth in the financial services businesses, the gross assets of which are primarily funded by debt.

Group interest was covered 5.7 times, based upon underlying profit before interest, excluding joint ventures.

An exceptional provision of £120 million was made to cover the costs associated with the introduction of new combustion technology on the industrial Trent. Of this, £55 million was utilised during the year. The balance is expected to be utilised in 2001.

The Group made an underlying profit before tax of £436 million (1999 £368 million). After including exceptional and non-trading items, profit before tax was £166 million (1999 £360 million).

A final dividend of 5.00p per share is proposed, making 8.00p per share for the year, an increase of 10.3 per cent over 1999. The dividend is covered 2.7 times by underlying earnings and 0.7 times after exceptional and non-trading items.

The number of Group employees reduced by 5,900 during the year.

The firm order book was £13.1 billion (1999 £11.5 billion). In addition a further £1.4 billion had been announced but not yet included in the order book (1999 £1.7 billion). Total care packages for aftermarket services represented almost ten per cent of the order book. These are long-term contracts where only the first seven years' revenue is included in the order book.