Final Results
Carillion PLC
13 March 2002
Carillion plc 2001 preliminary results
Highlights
UK support services and construction group Carillion plc announces its
preliminary results for the year ended 31 December 2001
• Pre-tax profit, before exceptional items, increased by 8% to £45.1 million
• Investments and Business Services generated over 60% of pre-tax profit
• Operating cash flow of £54 million
• Group net interest positive and net cash of £51.6 million after
acquisitions
• Acquisition of GT Railway Maintenance successfully completed for £34.5
million
• Order book up 30% to £5.2 billion - 83% in Business Services and
Investments and 75% for 2003 and beyond
• Full year dividend up 7% to 4.4 pence
Commenting, Carillion Chairman Sir Neville Simms said, 'The Group has made
substantial progress in 2001, with cash backed profits before tax up by 8% and
over 60% of profit coming from Investments and Business Services.
The outlook for Carillion is encouraging. The size and quality of our order book
continues to improve. We have leading positions in all our main markets, which
overall are expected to grow. Therefore, with the benefits of our Business
Improvement Programme yet to come, the Group is in a good position to deliver
further, sustainable profitable growth in 2002 and beyond.'
For further information contact
Chris Girling Finance Director 01902 422431
John Denning Director Group Corporate Affairs 01902 316426
John Davies Corporate Communications Manager 01902 316444
High resolution photographs are available to the media at www.newscast.co.uk
CHAIRMAN'S STATEMENT
In 2001, Carillion's new senior management team made substantial progress with
the Group's strategy for growing visible and predictable earnings through
developing our growth sectors of Public Private Partnerships, Infrastructure
Management and Facilities Management services, while continuing to focus
selectively on higher value added work in construction.
The acquisition of GT Railway Maintenance Holdings Limited, the signing of a
£500 million contract to provide facilities management services to BT and the
continued development of our portfolio of PPP projects were particular
highlights. These successes not only contributed to improved financial
performance in 2001, but strengthened the foundations for further, sustainable
success in 2002 and beyond.
In order to bring greater clarity and consistency to the way we report our
results and to assist shareholders in understanding the origin and quality of
our earnings, we are now reporting our results in three segments: Investments,
Business Services and Construction Services.
Financial Performance
Although turnover was broadly unchanged at £1.9 billion, profit before tax and
exceptional items increased by 8 per cent to £45.1 million, of which over 60 per
cent came from our Investments and Business Services activities. As indicated at
the half year, an exceptional charge of £10.1 million has been taken, largely to
meet the costs of restructuring as a result of the major Business Improvement
Programme, launched during the year by our new Chief Executive.
A continuing focus on cash management resulted in positive Group net interest,
excluding interest payable on debt associated with our expanding portfolio of
PPP projects. Furthermore, strong cash flow from operating activities resulted
in net cash at 31 December 2001 of £51.6 million (2000 £50.8 million), after
investing £34.5 million in the purchase of GT Railway Maintenance, £17.6 million
in PPP concessions and the receipt of £5.3 million from the sale of Carillion
Housing.
As a result of the Group's financial performance and the positive outlook and
prospects for sustainable profitable growth in 2002, the Board is recommending
the payment of a final dividend of 3.02 pence, making the total for the year of
4.4 pence, a 7 per cent increase on 2000. The final dividend will be paid on 28
June to shareholders on the register at close of business on 3 May. A Dividend
Reinvestment Plan will also be offered.
Order Book
The success of our strategy continues to be reflected in the size and length of
our record £5.2 billion order book, which has increased by around 30 per cent
since 31 December 2000. Significantly, 83 per cent of the order book is in our
growth segments of Investments and Business Services and 75 per cent is for 2003
and beyond.
Corporate Responsibility
Carillion continues to be an industry leader in Health and Safety and in seeking
to improve the Environmental and Social aspects of our performance, on which we
shall be reporting separately in our Sustainability Report. We believe that the
emphasis we place on Sustainability differentiates us from our competitors and
will play an increasingly important role in the long-term success of our
business.
Business Improvement
During the year our new senior management team launched a major Business
Improvement Programme aimed at improving the way we live up to our core values
and the efficiency and effectiveness of service delivery to our customers. This
has involved extensive changes to the way we do business and it is testimony to
the enthusiastic response and commitment of our employees that we are on course
to deliver in full the objectives and benefits of this programme over the next
two years.
Board Membership
Executive directors, Euan McEwan and John Sharples resigned in May and
September, respectively. Roger Brooke, senior non-executive director and deputy
chairman, and Alan Coppin, non-executive director, both retired in December. Our
company secretary, Dirk FitzHugh, also retired during the year. On behalf of the
Board, I should like to thank them all for the valuable contributions they have
made to Carillion's success. Richard Tapp has been appointed Company Secretary
and we are delighted to welcome him to the Group.
Outlook and Prospects
I am pleased to report that the outlook for Carillion is encouraging. The size
and quality of our order book continues to improve. We have leading positions in
all our main markets, which, overall, are expected to grow. Therefore, with the
benefits of our Business Improvement Programme yet to come, the Group is in a
good position to deliver further, sustainable profitable growth in 2002 and
beyond.
CHIEF EXECUTIVE'S REVIEW
In 2001 we made further progress with our strategy for growing good quality
earnings through changing the Group's business mix, increasing efficiency and
strengthening our focus on delivering solutions that exceed our customers'
expectations.
This progress is evident in our improved financial performance, our leading
positions in all our main markets, which are growing or firm, and our record
order book that puts us in a strong position to deliver more predictable
long-term earnings.
Our new reporting segments will make our strategic progress more visible and
bring greater clarity and consistency to the way we report our financial
results, because all activities of a similar nature are now reported in the same
segment. The new segments are:
Investments - the equity returns on our investments in Public Private
Partnership projects.
Business Services - rail and road infrastructure services, facilities management
and support services, including Public Private Partnership projects.
Construction Services - all contracting and related activities, including
mechanical and electrical engineering, in building and infrastructure, both on
traditional and Public Private Partnership projects.
Strategic progress
• Through organic growth and acquisition, we have accelerated the
development of our Private Finance and Business Services activities, which
generated over 60 per cent of the Group's profit before tax, exceeding our
initial target of 50 per cent.
• In March, we signed a five-year contract worth over £500 million to
provide facilities management services to BT. This ground-breaking contract
is the largest FM contract to be awarded by the private sector in the UK to
date and is therefore a major addition to our Business Services activities,
where the compound annual growth rate in turnover has been over 10 per cent
for the last five years.
• Consistent with adopting a more selective approach in Construction
Services, we sold our social housing business in July 2001 for £5.3 million.
• In September 2001, we purchased the remaining 51 per cent of GT Railway
Maintenance for £34.5 million, to become the sole owner of one of the UK's
leading rail maintenance companies. This not only strengthened our position
in the growing rail maintenance market, but enabled us to bring all our rail
activities together into one business, releasing synergies and improving our
ability to offer fully integrated solutions.
• In Construction Services, we have continued to target higher added value
work in our chosen market sectors. For example around 80 per cent of
turnover in Building and Infrastructure Projects in this segment came from
20 key customers. Our more selective approach, together with improved risk
management, has continued to generate better quality earnings.
• We are using the leading positions we have in all our markets to promote
our full range of services and our ability to offer integrated solutions -
from project finance, through design, construction and maintenance to
facilities management and support services - a capability that underpins our
success in delivering Public Private Partnership projects on time and to
budget.
• We have increased our order book to a new record level of £5.2 billion,
most of which relates to longer term contracts in Business Services and
Investments.
Financial performance
A stronger second half performance increased full year profit before exceptional
items and tax by 8 per cent. The quality of our earnings also continued to
improve as a result of our strategic progress coupled with strong cash
management. Group net interest was positive, excluding interest payable on debt
associated with our portfolio of PPP projects of £3.4 million. Net cash at the
year end was broadly unchanged at £51.6 million, despite significant investment
in the development of the business, including the purchase of GT Railway
Maintenance and equity investments in PPP projects, totalling £52.1 million.
Adding to our portfolio of sixteen financially closed PPP projects has continued
to be a key part of our strategy for long-term, quality earnings growth. Our
committed equity investment in these projects increased from £30 million to £45
million in 2001. Although the net cost of bidding for a growing number of PPP
projects increased substantially in 2001, this increase was more than offset by
improved performances in a number of our businesses, including Building
Developments, Rail and Facilities Management.
Pensions
Our 2001 Annual Report and Accounts will include the disclosures required under
FRS 17, which will be fully implemented for the year ending 31 December 2003
when defined benefit pension scheme surpluses or deficits will be recognised in
the employer's balance sheet. At 31 December 2001, the various defined benefit
schemes operated by Carillion had assets of £881 million with a surplus of £85
million, both valued on an FRS 17 basis.
Management
In May, we restructured our senior management team, including a reduction in the
number of executive directors from five to three and the introduction of a
flatter and more efficient structure. We also launched a major Business
Improvement Programme during the year that is on course to deliver significant
benefits: these include driving forward the cultural changes necessary to 'live'
our Core Values and deliver solutions that consistently exceed our customers'
expectations, as well as reducing costs and increasing efficiency.
As indicated at the half year, an exceptional charge of £10.1 million has been
taken, £8.9 million of which was needed to meet the costs of restructuring
arising from our Business Improvement Programme. In 2002, the savings from this
programme will be largely reinvested in upgrading our Information and Knowledge
Management Systems, which will play a major role in improving efficiency and the
quality of service delivery. In addition, a charge of £1.2 million has been
taken for restructuring our joint venture plant hire company Maxxiom.
Health and Safety
In Health and Safety we have continued to improve our own performance as well as
working with other companies and stakeholders to help improve the overall
performance of our industry. Improving our Health and Safety performance is one
of our key strategic objectives. Responsibility for this rests at main Board
level and is exercised through our Safety Policy and integrated management
system, based on a Total Quality Management approach, in order to ensure that
Health and Safety is a priority for every employee.
Sustainability
We continue to be the leader in our sector in targeting, monitoring, measuring
and reporting the environmental and social aspects of our performance and how
they can affect our financial performance. In 2001, Carillion was selected for
membership of FTSE 4 Good, an index of leading companies doing the most to take
account of social responsibility and sustainable development. We believe that
this is making an increasingly significant contribution to delivering
sustainable, profitable growth, through offering customers solutions that
incorporate best environmental and social practice and minimise the whole life
costs of the services we provide.
INVESTMENTS
£m 2001 2000
Turnover 43.9 25.8
Operating profit 5.5 4.9
The results in this segment reflect the equity returns from our investments in
PPP projects. They do not include profits from the construction and facilities
management of these projects that are now reported in our Construction Services
and Business Services segments, respectively.
Our success in delivering PPP projects is based on our ability to offer
integrated solutions, from project finance through design and construction to
maintenance and facilities management, that minimise the whole-life costs of
providing high quality services. We have extended our portfolio of financially
closed projects to 16, of which 11 are now fully operational with construction
of the remaining five progressing well. This growing and maturing portfolio is
generating more predictable, long term earnings.
Turnover increased by 70 per cent as a result of four more projects moving
successfully from construction to operation, the point at which we begin to
receive payments from our customers for the services we provide and profit on
our equity investments begins to accrue. However, the full benefit of this
increase in turnover is not yet fully reflected in operating profit and margins,
because the net cost of bidding for a growing number of projects also increased
significantly. Going forward, we expect to accelerate profit growth as
investment revenues increase.
We achieved financial close on our fifteenth project, Manchester Magistrates
Court, worth £30 million, and we were selected as the preferred bidder for a
project to provide accommodation and sports facilities for the University of
Hertfordshire - a £190 million project, which reached financial close in
February 2002. Our committed equity investment in PPP projects rose during 2001
from £30 million to £45 million. In addition to the investment made in the
Manchester Magistrates Court project on reaching financial close, we have
purchased additional equity from our partners in two operational road projects,
the M40 and A55. We have also made further scheduled investments in financially
closed projects on completion of the construction phase.
We are also currently shortlisted for 15 further projects with an estimated
value of some £3 billion, particularly in the transport, health, secure
establishments and defence sectors, where there is growing demand as the
Government expands its PPP programmes. Interest in Private Finance projects in
our International Regions has also continued to grow and the projects for which
we are currently shortlisted include three toll roads in the Republic of Ireland
and the Triservices Defence College in Oman.
BUSINESS SERVICES
£m 2001 2000
Turnover 609.3 524.9
Operating profit* 29.8 22.8
Margins % 4.9 4.3
* Before exceptional items
In this segment we report the results of our facilities management, support
services and infrastructure services businesses.
Growth in facilities management, primarily as a result of Monteray's contract
with BT, and in rail infrastructure services, resulted in a 16 per cent increase
in turnover in this segment. Operating profit before exceptional items rose by
over 30 per cent, with margins increasing to 4.9 per cent, as a result of this
growth and improved operating performances.
Our success in this segment continues to be driven by a total commitment to
exceeding our customers expectations through the highest standards of safety,
quality and service delivery.
Facilities Management and Support Services
Carillion Services had a very successful year, securing a number of new
contracts and almost doubling its turnover. Monteray, a company 51 per cent
owned and led by Carillion, signed the largest ever private sector outsourcing
contract in March 2001. Under this five-year contract with BT, worth over £500
million, Monteray is now successfully providing a wide range of property and
facilities management services to around 8,000 BT properties.
Carillion Services also consolidated its position in other key markets, securing
new contracts for the provision of non- clinical FM services for two new
hospitals - Glasgow Southern General and Princess Margaret Hospital, Swindon -
and successfully retendering its Royal Parks Agency contract for property
management services. Markfield Insurance, Carillion Fleet Management and
SkyBlue, our recruitment services business, also performed well in 2001.
Rail
In 2001, the performance of all our rail businesses continued to improve,
maintaining a clear focus on providing efficient, high-quality maintenance,
enhancement and track renewal services to our customers. Our trading with
Railtrack has not been directly affected by the company being placed in Railway
Administration. The new forms of contract, under which we are working in
alliance with Railtrack, are delivering significant benefits through improving
the efficiency and effectiveness of infrastructure service delivery.
GTRM was awarded contracts worth over £360 million during the year, the largest
being a five-year contract for maintenance of the West Coast Mainline, and now
maintains around 21 % of the rail network. We also benefited from increasing
expenditure on maintenance work, especially in the fourth quarter of the year.
As the Government has publicly reaffirmed its commitment to spending £31 billion
on the national rail network over the next 10 years and to securing £30 billion
of private sector investment, the outlook in the rail market appears very
positive in both the short and longer term.
Sole ownership of GTRM is enabling us to release synergies through consolidating
all our rail activities into one business - Carillion Rail - capable of offering
integrated solutions spanning design and consultancy services, maintenance,
track renewal and enhancement projects, particularly PPP projects.
Highways
Our highways maintenance business also had a successful year, reinforcing its
position as a leading supplier in this important growth market. We were awarded
a number of major new contracts and contract extensions for the Highways Agency,
worth over £300 million, and now have contracts for maintaining more than 25 %
of the motorway and trunk road network in England. The Highways Agency also
appointed Carillion as a Technology Framework contractor and renewed its
contract for maintenance of 123 km of the M40 between the M25 and Warwick, a PPP
project in which Carillion is an equity partner.
We were especially pleased to be awarded two ground breaking 7-year contracts
with the Highways Agency for Maintenance Areas 5 and 8, each worth over £100
million and covering 1500 km of motorway and trunk roads in the Home Counties
and East Midlands, including the whole of the M25. Quality of service, not
price, was the main factor in awarding these contracts, which recognised our
commitment to innovation and professional delivery, 7 days a week, 365 days a
year, through working in open relationships and using the latest GPS technology.
CONSTRUCTION SERVICES
£m 2001 2000
Turnover 1335.9 1487.5
Operating profit * 22.3 25.7
Margins % 1.7 1.7
Margins % (before net PPP 2.4 1.9
bid costs)
* Before exceptional items
In this segment we report the results of all our construction activities,
including construction work associated with Public Private Partnership projects.
Turnover was some 10 per cent lower, primarily as a result of disposing of
Carillion Housing in July 2001, curtailing our UK civil engineering activities
on smaller projects, and rigorously adopting a more selective approach by
targeting larger, higher value added projects and minimising our exposure to
risk. For example around 80 per cent of turnover in Building and Infrastructure
Projects in this segment came from 20 key customers.
Margins before net PPP bid costs improved from 1.9 per cent to 2.4 per cent,
largely due to a good performance in Building Developments, coupled with the
effect of continuing project selectivity. However, our design and construction
businesses incurred significantly higher costs in 2001 in bidding for a growing
number of PPP projects in order to develop our PPP portfolio, a key part of our
strategy for future growth. These design costs are written off until we become
the preferred bidder, at which point they are capitalised. As we became
preferred bidder on only one project in 2001, few of these costs were
capitalised during the year. Consequently, overall operating profit reduced in
2001, but we expect it to move ahead in 2002 as underlying margins continue to
improve.
Maintaining a strong construction capability in our chosen market sectors,
enables us to promote our full range of services and offer integrated solutions,
from design through construction to maintenance and operation, that minimise the
whole-life costs of the services we provide.
Building
Carillion Building, the UK market leader in commercial building, continued to
focus selectively on higher value added contracts for long-term key customers,
primarily in the office and retail sectors. Building Developments, which
specialises in managing developments where risk is minimised by pre-letting to
occupiers and by focusing on sectors where there is strong institutional demand,
had a good year.
Building activity on PPP projects has continued to increase and now accounts for
around a third of the output of our building businesses. We believe that our
strong design and construction capability is fundamental to continuing our
success in securing and delivering PPP projects that provide high quality
services.
Infrastructure Projects
Carillion's infrastructure activities in the UK are increasingly focused on
larger contracts where our skills and resources enable us to offer higher added
value services and minimise our exposure to risk.
Our recently completed £100 million plus contract to refurbish a large submarine
dry dock at Devonport is an excellent example of higher quality work. Managed in
alliance with our customer, DML, this complex and sensitive project was
completed to an exacting timetable and to the highest standards.
The £485 million M6 Toll motorway, currently being built by Carillion and its
three joint venture partners, is a good example of a major contract for which
relatively few contractors could offer the skills and resources necessary to
deliver the project. Construction started in Spring 2001 and is ahead of
schedule.
Our infrastructure design and construction skills are also important to our
success in delivering PPP projects, such as the A55 in North Wales, which was
completed during the year, and Nottingham Express Transit, a light rail PPP
project in which we are an equity partner and on which good progress is being
made.
International Regions
Our International Business, which has well established operations in Canada, the
Middle East, the Caribbean, France and the Republic of Ireland, has continued to
perform well. This business has built a strong reputation for quality, safety
and efficiency, which provides an excellent basis for promoting our PPP and
Business Services skills to overseas customers. In 2001, our Canadian joint
venture highways maintenance company was awarded a further highways maintenance
contract in Ontario worth £25 million. We are also partners in consortia that
have been shortlisted for four overseas private finance projects - three major
toll roads in Ireland and the Triservices Defence College in Oman. Early in
2002, we formed joint ventures with Emaar Properties PJSC in Dubai and Guardian
Properties in Trinidad, which together could lead to facilities management
business worth up to £500 million over the next 10 years.
Crown House Engineering (CHE)
The restructuring of our mechanical and electrical engineering business, CHE was
completed successfully and on time in 2001. The management team has implemented
the strategic and operational changes we announced in 2000 and is building a
profitable portfolio of new contracts, which is driving a steady improvement in
CHE's performance.
Consolidated Profit and Loss Account
for the year ended 31 December 2001
2001 2000
Before Exceptional Before Exceptional Total
exceptional items Total exceptional items As restated
items £m £m items £m (see Note 2)
£m as restated £m
(see Note 2)
£m
Total turnover 1,889.8 - 1,889.8 1,909.0 - 1,909.0
Less: share of joint (191.0) - (191.0) (223.4) - (223.4)
ventures turnover
1,698.8 - 1,698.8 1,685.6 - 1,685.6
Continuing operations 1,627.6 - 1,627.6 1,685.6 - 1,685.6
Acquisitions 71.2 - 71.2 - - -
Group turnover 1,698.8 - 1,698.8 1,685.6 - 1,685.6
Cost of sales (1,556.4) - (1,556.4) (1,542.9) (25.0) (1,567.9)
Gross profit 142.4 - 142.4 142.7 (25.0) 117.7
Administrative expenses (115.1) (8.9) (124.0) (115.3) (5.0) (120.3)
Group operating 27.3 (8.9) 18.4 27.4 (30.0) (2.6)
profit/(loss)
Continuing operations 20.8 (8.9) 11.9 27.4 (30.0) (2.6)
Acquisitions 6.5 - 6.5 - - -
Share of operating 21.1 (1.2) 19.9 17.8 (2.0) 15.8
profit in joint
ventures
Total operating profit 48.4 (10.1) 38.3 45.2 (32.0) 13.2
Result/profit on sale - - - - 3.1 3.1
of businesses
Net interest
receivable/(payable)
Group 0.3 - 0.3 (1.5) - (1.5)
Joint ventures (3.6) - (3.6) (1.8) - (1.8)
(3.3) - (3.3) (3.3) - (3.3)
Profit on ordinary 45.1 (10.1) 35.0 41.9 (28.9) 13.0
activities before
taxation
Tax on profit on (14.5) 3.3 (11.2) (13.8) 9.2 (4.6)
ordinary activities
Profit on ordinary 30.6 (6.8) 23.8 28.1 (19.7) 8.4
activities after
taxation
Equity minority (3.1) - (3.1) (1.0) - (1.0)
interests
Profit for the 27.5 (6.8) 20.7 27.1 (19.7) 7.4
financial year
Equity dividends (8.9) - (8.9) (8.6) - (8.6)
Retained profit/(loss) 18.6 (6.8) 11.8 18.5 (19.7) (1.2)
for the Group and its
share of joint ventures
Earnings per ordinary
share
- Basic 13.4p (3.3p) 10.1p 13.3p (9.7p) 3.6p
- Diluted 13.3p (3.3p) 10.0p 13.3p (9.7p) 3.6p
Dividends per ordinary 4.4p 4.12p
share
Consolidated Balance Sheet
At At
31 December 2001 31 December
£m 2000
as restated
(see Note 2)
£m
Fixed assets
Intangible assets 42.8 1.6
Tangible assets 53.0 47.1
Investments in joint ventures:
Share of gross assets 572.0 517.5
Share of gross liabilities (516.7) (485.8)
55.3 31.7
Loan advances 5.5 17.3
60.8 49.0
Other Investments 2.7 1.9
Total Investments 63.5 50.9
159.3 99.6
Current assets
Stocks 53.4 46.4
Debtors 572.5 517.4
Investments 9.4 8.0
Cash at bank and in hand 94.5 84.3
729.8 656.1
Creditors: amounts falling due within one year
Borrowings (45.2) (16.3)
Other creditors (678.3) (584.0)
(723.5) (600.3)
Net current assets
Due within one year (24.9) 36.1
Debtors due after more than one year 31.2 19.7
6.3 55.8
Total assets less current liabilities 165.6 155.4
Creditors: amounts falling due after more than one year
Borrowings (4.6) (19.0)
Other creditors (8.6) (6.8)
(13.2) (25.8)
Provisions for liabilities and charges (5.8) (0.9)
Net assets 146.6 128.7
Financed by:
Capital and reserves
Called up share capital 106.3 105.3
Share premium account 5.3 3.0
Revaluation reserve - 0.1
Merger reserve 8.2 8.2
Profit and loss account 23.5 11.1
Equity shareholders' funds 143.3 127.7
Equity minority interests 3.3 1.0
146.6 128.7
Consolidated Cash Flow Statement
Year ended 31 Year ended
December 2001 31 December 2000
£m as restated
(see Note 2)
£m
Net cash inflow/(outflow) from operating activities 53.8 (64.6)
Dividends received from joint ventures 13.8 7.9
Returns on investments and servicing of finance
Dividend paid to minority interests (0.8) -
Interest paid (4.5) (5.9)
Finance lease charges (0.2) (0.1)
Interest received 5.0 5.2
Net cash outflow from returns on investments and (0.5) (0.8)
servicing of finance
Corporate taxation paid (2.3) (1.1)
Capital expenditure and financial investment
Payments to acquire fixed assets (18.1) (8.3)
Payments to acquire current asset investments (1.4) (2.7)
Payments to acquire fixed asset investments (0.3) (0.2)
Purchase of own shares by ESOP (3.0) (3.0)
Sale of tangible fixed assets 6.9 2.0
Net cash outflow from capital expenditure and financial investment (15.9) (12.2)
Acquisitions and disposals
Purchase of business (31.3) -
Sale of businesses 5.1 3.4
Equity investment in joint ventures (17.6) (3.5)
Loan repayments by/(advances to) joint ventures 2.6 (6.8)
Net cash outflow from acquisitions and disposals (41.2) (6.9)
Equity dividends paid (5.3) (4.6)
Net cash inflow/(outflow) before management of liquid resources and financing 2.4 (82.3)
Management of liquid resources
Decrease/(increase) in short term deposits 4.2 (0.3)
Net cash inflow/(outflow) from management of liquid resources 4.2 (0.3)
Financing
Drawdown of debt - 6.4
Repayment of finance leases (1.9) (0.8)
Net cash (outflow)/inflow from financing (1.9) 5.6
Increase/(decrease) in cash in the year 4.7 (77.0)
Cash Flow Notes
Reconciliation of operating profit to net cash inflow/ (outflow) from operating activities
2001 2000
£m as restated
£m
Carillion Group operating profit before exceptional items 27.3 27.4
Depreciation 12.5 13.7
Impairment of tangible fixed assets 3.5 -
Profit on disposal of fixed assets (1.1) (0.3)
Decrease in market value of listed current asset investments - 0.1
Amortisation of goodwill 0.5 0.1
Amortisation of own shares 2.0 -
Provision against other fixed asset investments 0.5 -
Decrease in provisions - (3.0)
Decrease in stocks 0.1 13.5
Increase in debtors (11.2) (6.0)
Increase/(decrease) in creditors due within one year 25.8 (110.3)
Increase in creditors due after more than one year 0.1 1.2
Increase in bills of exchange 0.6 0.8
Net cash inflow/(outflow) from operating activities before exceptional items 60.6 (62.8)
Exceptional operating cash spend (6.8) (1.8)
Net cash inflow/(outflow) from operating activities 53.8 (64.6)
Analysis of changes in net funds
As at Cash flows Acquisitions Exchange rate As at 31 December
1 January 2001 movements 2001
as restated
£m £m £m £m £m
Cash at bank and in 59.4 14.8 - (0.1) 74.1
hand
Bank overdrafts (15.6) (10.1) - - (25.7)
43.8 4.7 - (0.1) 48.4
Short term deposits 24.9 (4.2) - (0.3) 20.4
Bank loans (17.9) - - 0.7 (17.2)
Finance Leases (1.8) 1.9 (7.0) - (6.9)
Net funds 49.0 2.4 (7.0) 0.3 44.7
Reconciliation of net cash flow to movement in net funds
2001 2000
£m as restated
£m
Increase/(decrease) in cash and bank overdrafts 4.7 (77.0)
(Decrease)/increase in short term deposits (4.2) 0.3
Cash inflow from drawdown of debt - (6.4)
Cash outflow from finance leases 1.9 0.8
Movement in net funds resulting from cash flows 2.4 (82.3)
Finance leases of subsidiary undertakings acquired (7.0) -
Exchange rate movements 0.3 1.7
Other non-cash movements - (0.3)
Movement in net funds in the year (4.3) (80.9)
Net funds at 1 January 49.0 129.9
Net funds at 31 December 44.7 49.0
1. Analysis of total turnover, operating profit and net assets
Total turnover Net assets/(liabilities)
Class of business 2001 2000 2001 2000
£m £m £m £m
Investments 43.9 25.8 28.7 12.9
Business Services 609.3 524.9 45.9 5.0
Construction Services 1,335.9 1,487.5 29.4 50.5
Internal trading (99.3) (129.2) - -
Corporate centre - - (9.0) 9.5
Net cash - - 51.6 50.8
1,889.8 1,909.0 146.6 128.7
Geographical origin:
UK 1,573.7 1,573.1 106.9 78.7
Europe 150.9 157.3 (23.8) (39.2)
Other 165.2 178.6 11.9 38.4
Net cash - - 51.6 50.8
1,889.8 1,909.0 146.6 128.7
The analysis of turnover by geographical market served is not materially
different from that by geographical origin.
Operating profit
2001 2000
Class of business Before Exceptional Total Before Exceptional Total
Exceptional Operating Items £m Exceptional Operating Items £m
Operating Items £m Operating Items £m
£m £m
Investments 5.5 - 5.5 4.9 - 4.9
Business Services 29.8 (0.4) 29.4 22.8 (2.0) 20.8
Construction 22.3 (4.7) 17.6 25.7 (30.0) (4.3)
Services
Corporate centre (9.2) (5.0) (14.2) (8.2) - (8.2)
48.4 (10.1) 38.3 45.2 (32.0) 13.2
Geographical
origin:
UK 41.2 (9.1) 32.1 35.0 (32.0) 3.0
Europe 1.6 (1.0) 0.6 2.9 - 2.9
Other 5.6 - 5.6 7.3 - 7.3
48.4 (10.1) 38.3 45.2 (32.0) 13.2
Total turnover and operating profit of the Business Services segment disclosed
above includes turnover of £71.2m and operating profit of £6.5m arising solely
in the UK relating to the post acquisition trading of GT Railway Maintenance
Holdings Limited and subsidiaries which was acquired on 26 September 2001.Cost
of sales and administration costs for the same period amounted to £62.6m and
£2.1m respectively.
The group's share of the turnover and net assets in joint ventures was as follows:
Turnover Net assets/(liabilities)
Class of business 2001 2000 2001 2000
£m as restated £m as restated
£m £m
Investments 43.7 25.1 33.4 15.7
Business Services 108.2 128.8 - 8.3
Construction Services 46.1 79.2 27.4 25.0
Internal trading (7.0) (9.7) - -
191.0 223.4 60.8 49.0
Geographical origin:
UK 167.4 176.1 56.2 45.2
Europe 9.1 7.1 (2.3) (2.5)
Other 14.5 40.2 6.9 6.3
191.0 223.4 60.8 49.0
The group's share of the operating profit in joint ventures was as follows:
2001 2000
Class of business Before Exceptional Total Before Exceptional Total
Exceptional Operating Items Exceptional Operating Items As Restated
Operating Items £m Operating Items £m £m
As restated
£m £m £m
Investments 10.4 - 10.4 5.1 - 5.1
Business Services 5.7 - 5.7 8.1 (2.0) 6.1
Construction 5.0 (1.2) 3.8 4.6 - 4.6
Services
21.1 (1.2) 19.9 17.8 (2.0) 15.8
Geographical
origin:
UK 20.1 (1.2) 18.9 15.0 (2.0) 13.0
Europe 0.3 - 0.3 0.7 - 0.7
Other 0.7 - 0.7 2.1 - 2.1
21.1 (1.2) 19.9 17.8 (2.0) 15.8
2. Basis of preparation
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 December 2001 and 2000. The statutory
accounts for the year ended 31 December 2000 have been delivered to the
Registrar of Companies and those for the year ended 31 December 2001 will be
delivered following the Company's Annual General Meeting. The auditors have
reported on those accounts; their reports were unqualified and did not contain
statements under section 237(2) or (3) of the Companies Act 1985.
Following the completion and settlement of certain power and process contracts
of the kind the Group no longer undertakes, it has been determined that the
joint ventures involved were acting as agent for the principal companies and
therefore the contracts should be accounted for as joint arrangements. As a
result, the joint venture balances have been reclassified primarily into stock,
debtors and creditors with the comparative figures adjusted accordingly. The
profit and loss account and cash flow statement have also been restated. This
reclassification has no effect on the Group's profit or net assets for either
the current or preceding year.
3. Posting of statutory accounts to shareholders
The Company's report and accounts will be posted to shareholders by 6 April
2002. From that date copies will be available from the registered office,
Carillion plc, Birch Street, Wolverhampton, WV1 4HY.
4. Annual General Meeting
A resolution will be put to shareholders at the AGM on 15 May 2002 for the
Company to be authorised generally to purchase its own shares. The Board has no
present intention of making any such purchase and the resolution is in keeping
with the practice of other companies.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 10th January 2025
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