Recovering consumer demand for bigger vehicles, a robust aerospace sector and the surprising resilience of farming were the diverse reasons for GKN's decent operating profits growth, up 14 per cent to £468m. The improved performance has allowed GKN to extend its balance sheet to fund acquisitions, which should help it handle mixed trading conditions this year.
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The driveline division, which makes driveshafts and gears, was the main engine of growth, with a 10 per cent increase in underlying sales lifting its trading profits by 12 cent per cent to £195m. Exports were a big factor in the recovery as, even though eurozone demand was muted by the debt crisis, the resultant currency weakness helped boost overseas sales.