Total dividend per share
Group trading margin (excluding the impact of Fokker)
In light of our performance during the year, we have again increased our dividend and are recommending a final dividend of 5.8 pence per share, making a total of 8.7 pence per share for the year, an increase of approximately 4% over the prior year.
Andrew Reynolds Smith stepped down from the Board in September 2015 to take up the role of Chief Executive at Smiths Group plc. We thank Andy for his contribution to the Group and wish him well for the future. We take succession planning very seriously and work hard to ensure that we have a strong talent pipeline. We were pleased to be able to fill Andy’s role with an internal successor. Phil Swash, latterly Chief Executive GKN Land Systems, took over as Chief Executive GKN Driveline from September 2015. Adam Walker assumed executive responsibility for GKN Land Systems, in addition to his role as Group Finance Director, which will further strengthen Adam’s operational experience. Both Phil and Kevin Cummings, Chief Executive GKN Aerospace, were subsequently appointed to the Board in January 2016, having been members of the Executive Committee since October 2014. Their extensive operational experience and indepth knowledge of the Group’s markets will be a great asset to the Board.
Our people are key to the successful execution of our strategy and we will continue to identify, retain and develop talent at all levels in GKN. In a year that contained many external challenges, GKN employees have worked very hard to deliver a satisfying set of results and I would like to take this opportunity to thank them for their hard work and perseverance.
This year we will continue to emphasise all that is good about GKN's strong culture, reminding our people what is important to us and what makes GKN such an enduring and successful company.
I reported last year that we continued to develop our risk management processes and systems. In 2015 we made further significant progress. During the year the Board expanded the remit of the Audit Committee to include greater responsibility for the review of risk management systems and controls. The Committee subsequently reviewed three of our main operational risks across all divisions: product quality, programme management and contract management. These reviews represented a significant step forward in our approach and enabled us to develop further our risk management processes. We also spent more time reviewing our strategic risks as well as discussing and setting the risk appetite for the Group.
2015 was a pleasing year. We outgrew our automotive markets and made aerospace acquisitions which position us well for the future. As always, we worked hard on continuous improvement and cost control across the Group. GKN entered 2016 as a stronger company.
Political and economic uncertainty is likely to have an effect closer to home in 2016 as the debate continues on the UK’s potential exit from the European Union. However, with a clear strategy and sustained focus on operational excellence and technology, I am confident that GKN will continue to show its resilience.
Mike Turner CBE Chairman
I reported last year that we had revised our Code of Conduct to reinforce our tone from the top and ensure that our employees know the behaviour that is expected of them. We worked hard to ensure that the Code is engaging and easy to understand. I am pleased to report that the Code was communicated to all GKN employees during the year and was very well received. We continue to drive home our key message – that in GKN we do the right thing.
GKN plc Annual Report and Accounts 2015