Group trading profits* and margins are ahead of last year. Primarily due to the adverse currency movement against the equivalent period last year, revenue is down 3.4%.
Healthcare revenue grew 0.2% (3.4% on a constant currency basis). We anticipate the tech transfers and new programs will, as previously announced, start to benefit revenues during the second half of the year.
Industrial profit and margin improved on lower revenue, and we continue to make good progress toward the medium term margin target of 15%. The integration of Markel Industries is nearly complete and we expect the synergy benefit to come through during the second half of the year. We also announced the closure of our Liverpool facility in New York, USA.
Our cash generation remains strong and the Group ended the first six months with a net debt of £5.2m.
We remain confident of strong progress for the year and we anticipate the profit for the year will be in line with expectations, excluding the impact of the recently announced Gargrave healthcare transaction. Further details and the impact of this transaction will be included in the half year results which we expect to announce on 20 November 2018.
*Before exceptional items, amortisation of intangible assets and legacy pension costs and finance charges