Dowlais is an automotive components group with two core divisions: GKN Automotive is the market leader in drive systems for both ICEs and electric vehicles (EVs), and GKN Powder Metallurgy is the leader in sintered component manufacture and number two in metal powders.

Automotive markets are improving, with the latest S&P forecasts upgraded to +5.6%. Inflationary pressures remain a challenge – these were successfully passed through by Dowlais in 2022 and a combination of pricing and productivity is expected to provide similar benefits in 2023. The recent trading update for the first four months reported sales growth of 9% and margins up 200bp on the weak comparator, and flat versus the full year 2022. The Automotive division was the key driver with 11% growth, while the performance of Powder Metallurgy was similar to the weaker H222 but restructuring benefits are starting to deliver momentum.