Half year to 30 June
RevenueHeadline
operating profit
Headline
operating margin
2016
£m
2015
£m
2016
£m
2015
£m
2016
%
2015
%
ADE121.9128.827.431.522.524.5
AGI169.1171.027.927.616.516.1
291.0299.855.359.119.019.7
Central costs(6.0)(5.0)
Total291.0299.849.354.116.918.0

Aerospace, Defence & Energy (ADE)

Revenues for the ADE business were £121.9m in the six months to June 2016 compared with £128.8m in 2015, a decrease of 5.4%. At constant exchange rates revenues decreased 10.4%, driven by a 48% year-on-year reduction in sales to the oil & gas sector.

Headline operating profit1 was £27.4m (2015: £31.5m), a decrease of 13.0%, comprising an organic decline of 18.0% and a 5.0% increase resulting from favourable foreign currency movements. The headline operating margin fell from 24.5% to 22.5%. Despite reduced levels of trading, the Group's energy business continues to achieve high single-digit margins. Profitability has been maintained in other sectors.

Net capital expenditure was £10.3m (2015: £6.3m), representing a spend rate of 1.0 times depreciation (2015: 0.7 times). Notable projects include expansion of aerospace-focused heat treatment capacity in USA and France.

Average capital employed for the period was £242.7m (2015: £231.1m).

Automotive & General Industrial (AGI)

Revenues for the AGI business were £169.1m in the first half of 2016, compared with £171.0m in 2015, a decrease of 1.1%. Revenues decreased 6.3% at constant exchange rates as a result of widespread weakness in industrial production and, in particular, in capital equipment.

Headline operating profit1 was £27.9m (2015: £27.6m), an increase of 1.1%, made up of organic decline of 5.4% and a 6.5% increase due to favourable foreign currency movements. Headline operating margin improved from 16.1% to 16.5%.

Net capital expenditure was £16.6m (2015: £20.5m) representing a spend rate of 1.1 times depreciation (2015: 1.3 times). The Group continues to invest in its Specialist Technologies and other high value-added processes in developed markets and in additional greenfield capacity in Mexico.

Average capital employed for the period was £325.8m (2015: £296.3m).

  1. Headline operating profit is reconciled to operating profit in note 2. Bodycote plants do not exclusively supply services to customers of a given market sector (see note 2).