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Highlights

  • Dowlais Group reported H1 FY24 adjusted revenue of GBP 2,571 million, a 9.2% decline compared to pcp
  • Adjusted operating profit fell to GBP 151 million, down 14.7% from pcp
  • The company expects adjusted revenue to drop by mid-to-high single digits percentage in FY24

Dowlais Group PLC (LSE: DWL) is a United Kingdom based engineering firm listed on the FTSE 250. It focuses on the automotive industry and has a market cap of GBP 820.18 million.

In H1 FY24, Dowlais Group reported adjusted revenue of GBP 2,571 million, a decline of 9.2% compared to GBP 2,830 million in the previous corresponding period (pcp). This decrease was primarily attributed to volatility in battery electric vehicle (BEV) production schedules, particularly within the ePowertrain product line across Europe and the Americas.

Adjusted operating profit also saw a decline, falling to GBP 151 million, down 14.7% from GBP 177 million in pcp. This decline was influenced by lower volumes and GBP 7 million in losses from Hydrogen operations. Consequently, the adjusted operating margin decreased to 5.9%. While proactive cost management and pricing recoveries helped mitigate some losses, they were not enough to fully offset the downturn.

Company Outlook

According to the company, industry forecasts now imply a 3.6% drop in the second half of the year. This decline is expected to contribute to a 2% decrease in light vehicle production for 2024. The ePowertrain segment is facing challenges due to volatility in BEV production, leading to a 5.1% drop in adjusted revenue.

The company predicts a mid-to-high single-digit percentage decline in adjusted revenue. It also predicts an adjusted operating margin of 6.0% to 7.0%. Additionally, adjusted free cash flow is likely to decrease due to reduced volumes and higher restructuring costs.

Top 10 Shareholders:

The top 10 shareholders of Dowlais Group own about 37.10% of the total shares. Fidelity International holds the maximum stake, with around 5.11%. Select Equity Group, L.P. follows closely with about 5.05%. The chart below shows these details.

Price Performance

The stock price of DWL has fallen by about 13.79% in the past month. It has tumbled by approximately 25.89% over the past six months. The stock reached a 52-week low of GBX 50.74 and a 52-week high of GBX 109.95. As of 01 Oct 2024, the stock’s closing price is GBX 55.95.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 01 October 2024. The reference data in this report has been partly sourced from EODHD/Others.