Half Yearly Report

RNS Number : 0809X

Carillion PLC

26 August 2015

 



26 August 2015

Half-yearly financial report for the six months ended 30 June 2015

Performance in line with expectations

	Six months ended 30 June 2015	Six months ended 30 June 2014	Change
Revenue	£2,258.6m	£1,871.0m	+21%
Underlying profit from operations(1)	£112.5m	£97.4m	+16%
Underlying operating margin(1)	5.1%	5.5%	n/a
Underlying profit before taxation(1)	£84.5m	£75.9m	+11%
Underlying earnings per share(1)	15.9p	14.7p	+8%
Profit before taxation	£67.5m	£67.5m	-
Basic earnings per share	12.7p	13.2p	-4%
Interim dividend per share	5.7p	5.6p	+2%
Underlying profit from operations cash conversion(1)	101%	127%	n/a

·    First-half financial performance in line with expectations -       Strong first-half revenue growth reflected the exceptional volume of new contracts won in 2014 -     Underlying profit and earnings grew strongly, despite substantial costs of mobilising new contracts and the expected effect of the margin in Construction services (excluding the Middle East) trending down towards a more normal level -     Strong cash flow from operations with underlying operating cash conversion(1) of 101% (2014: 127%) -     Net borrowing at 30 June 2015 of £199.6 million (31 December 2014: £177.3 million) reflected increases in non-operating cash flow items, including business acquisition costs and other investments -     Balance sheet remains strong with over £1.3 billion of committed funding available to the Group

·    Strong, high-quality order book and growing pipeline of contract opportunities -     New first-half orders plus probable orders of £1.0 billion (2014: £3.2 billion) reflected the expected pause in public sector contract awards due to the UK General Election  -     Total secure orders plus probable orders remained strong at £17.1 billion at 30 June 2015 (31 December 2014: £18.6 billion), after removing £0.2 billion from the order book due to PPP equity sales -     Revenue visibility(2) for 2015 of 96% at 30 June 2015 (2014: 93%) -     Framework contracts worth up to £2.5 billion, which are not included in orders or probable orders -     Pipeline of contract opportunities increased to £40.5 billion (31 December 2014: £39.2 billion)

·    Interim dividend increased by 2% to 5.7p (2014: 5.6p)

·    On track to deliver full-year revenue growth with profit and earnings in line with expectations

1.     The underlying results stated above are based on the definitions included in the key financial figures. 2.     Based on expected revenue and secure and probable orders, which exclude variable work, frameworks and re-bids.

Carillion Chairman, Philip Green, commented:

"I am pleased to report that Carillion has continued to perform in line with expectations, which reflects the actions we took during the economic downturn to position our businesses in markets where we can now achieve revenue growth, consistent with our targets for margins and cash flow.  We have also made good progress with mobilising a number of major new contracts won in 2014.  Therefore, with a strong order book, a growing pipeline of contract opportunities and the prospect of market conditions continuing to improve, our expectations for 2015 and the medium term remain unchanged."

There will be a presentation for analysts and investors today at 09.00am.   A telephone dial in facility tel: [phone] - Access Code: 318 357.  A replay facility is also available for 30 days, the telephone number is [phone] - Access Code: 34863982 - if dialling in from overseas, please review the link attached for your dial in telephone number http://www.conferencingsupport.com/globalaccess/?bid=00&itfn=1&ddi=1&ref.  Carillion Analyst Presentation will be available for analysts and investors who are unable to attend the presentation. The presentation can be viewed on Carillion's website at http://www.carillionplc.com/investors/reports-presentations.aspx   

For further information contact:

Richard Adam, Group Finance Director John Denning, Group Corporate Affairs Director Finsbury - James Murgatroyd and Gordon Simpson

tel: [phone] tel: [phone] tel: [phone]

26 August 2015

Notes to Editors:

Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects, extensive construction capabilities and a sector leading ability to deliver sustainable solutions.  The Group had annual revenue in 2014 of some £4.1 billion, employs around 46,000 people and operates across the UK, in the Middle East and Canada.

The Group has four business segments:

Support services - this includes facilities management, facilities services, energy services, utilities services, road maintenance, rail services and consultancy businesses in the UK, Canada and the Middle East.

Public Private Partnership (PPP) projects - this includes investing activities in PPP projects for Government buildings and infrastructure mainly in the Defence, Health, Education, Transport and Secure accommodation sectors in the UK and Canada.

Middle East construction services - this includes building and civil engineering activities in the Middle East.

Construction services (excluding the Middle East) - this includes building, civil engineering and developments activities in the UK and construction activities in Canada.

This and other Carillion news releases can be found at www.carillionplc.com.

Photographs:

High resolution photographs are available free of charge to the media at www.newscast.co.uk telephone + 44 (0) 208 886 5895.

Cautionary statement

This announcement may contain indications of likely future developments and other forward-looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. These and other factors could adversely affect the Group's results, strategy and prospects. Forward-looking statements involve risks, uncertainties and assumptions. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ materially from those currently anticipated. No obligation is assumed to update any forward-looking statements, whether as a result of new information, future events or otherwise. 

                   For the full announcement please click on this link


                   http://www.rns-pdf.londonstockexchange.com/rns/0809X_1-2015-8-25.pdf

 

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