Full-year results & proposed acquisition of Initial Facilities acquisition of Initial Facilities T Twelve months ended l th d d 31 December 2013 Adrian Ringrose, Chief Executive Tim Haywood, Group Finance Director
Delivering our strategy Strategy FY 2013 results IF Acquisition Building Strong Core Increased service offering businesses Revenue +12% and capabilities Headline pre-tax profit +8% +8% Capturing related expansion opportunities Solid three-year cash Broader customer base conversion (90% ) £6.4bn future workload Expand Internationally Dividend +5% Multiple growth platforms
Tim Haywood
Income statement Income statement £ million 2013 2012 +12% Revenue 2,192.6 1,958.4 +11% Total operating profit p g p 86.7 . 78.4 . Interest (5.6) (3.1) +8% Headline profit 81.1 75.3 Amortisation of intangible assets (8.9) (6.5) Exceptional items (4.1) 111.0 Profit before taxation P fit b f t ti 68 1 68.1 179 8 179.8 Taxation (13.1) (10.5) Profit after taxation Profit after taxation 55.0 55.0 169.3 169.3 +5% Headline EPS 47.7 45.3 +5% Dividend per share 21.5p 20.5p Redefining the future for people and places | 4
Segmental analysis g y £ million 2013 2012 Revenue Revenue TOP* TOP Margin Margin Revenue Revenue TOP TOP* Margin Margin %growth %growth in TOP S upport S ervices 4.7% 4 7% 4 0% 4.0% +26% 26% -UK UK 1,196.6 1 196 6 56.0 56 0 1 118 1 1,118.1 44 3 44.3 Redefining the future for people and places | 5 *Total operating profit
Segmental analysis Segmental analysis £ million 2013 2012 Revenue Revenue TOP* TOP Margin Margin Revenue Revenue TOP* TOP Margin Margin %growth %growth in TOP S upport S ervices 4 7% 4.7% 4.0% 4 0% +26% 26% -UK UK 1 196 5 1,196.5 56.0 56 0 1,118.1 1 118 1 44 3 44.3 -International 57.5 4.1 4.4% - 3.7 12.8% +11% Redefining the future for people and places | 6 *Total operating profit
Segmental analysis g y £ million 2013 2012 Revenue Revenue TOP* TOP Margin Margin Revenue Revenue TOP* TOP Margin Margin %growth %growth in TOP S upport S ervices 4.7% 4 7% 4.0% 4 0% +26% 26% -UK UK 1 196 5 1,196.5 56 0 56.0 1,118.1 1 118 1 44 3 44.3 -International 57.5 4.1 4.4% - 3.7 12.8% +11% Construction 1.8% 2.0% +1% -UK 802.2 14.7 737.2 14.6 Redefining the future for people and places | 7 *Total operating profit
Segmental analysis g y £ million 2013 2012 Revenue Revenue TOP* TOP Margin Margin Revenue Revenue TOP* TOP Margin Margin %growth %growth in TOP S upport S ervices 4 7% 4.7% 4.0% 4 0% +26% 26% -UK UK 1,196.5 1 196 5 56.0 56 0 1 118 1 1,118.1 44 3 44.3 -International 57.5 4.1 4.4% - 3.7 12.8% +11% Construction 1.8% 2.0% +1% -UK 802.2 14.7 737.2 14.6 5.1% 6.5% -8% -International - 13.1 - 14.3 Redefining the future for people and places | 8 *Total operating profit
Segmental analysis g y £ million 2013 2012 Revenue Revenue TOP* TOP Margin Margin Revenue Revenue TOP TOP* Margin Margin %growth %growth in TOP S upport S ervices 4.7% 4 7% 4 0% 4.0% +26% 26% -UK UK 1,196.5 1 196 5 56.0 56 0 1 118 1 1,118.1 44 3 44.3 -International 57.5 4.1 4.4% - 3.7 12.8% +11% Construction 1.8% 2.0% +1% -UK 802.2 14.7 737.2 14.6 5.1% 6.5% -8% -International - 13.1 - 14.3 11.9% 11 9% 9 6% 9.6% +26% 26% Equipment E i t 169.6 169 6 20 1 20.1 167 5 167.5 16 0 16.0 S ervices Redefining the future for people and places | 9 *Total operating profit
Segmental analysis g y £ million 2013 2012 Revenue Revenue TOP* TOP Margin Margin Revenue Revenue TOP TOP* Margin Margin %growth %growth in TOP S upport S ervices 4 7% 4.7% 4.0% 4 0% +26% 26% -UK UK 1,196.6 1 196 6 56.0 56 0 1 118 1 1,118.1 44 3 44.3 -International 57.5 4.1 4.4% - 3.7 12.8% +11% Construction 1.8% 2.0% +1% -UK 802.2 14.7 737.2 14.6 5.1% 6.5% -8% -International - 13.1 - 14.3 11 9% 11.9% 9.6% 9 6% +26% 26% Equipment E i t 169 6 169.6 20.1 20 1 167.5 167 5 16 0 16.0 S ervices Investments - 0.8 - 6.6 -88% -5% Group S ervices (33.3) (22.1) (64.4) (21.1) 4.0% 4.0% +11% 2,192.6 86.7 1,958.4 78.4 JVs and JVs and 389.3 389.3 411.2 411.2 associates 2,581.9 2,369.6 *Total operating profit
Group interest charge Group interest charge £ £ million illi 2013 2013 2012 2012 Group net interest payable G t i t t bl (4.8) (4 8) (6 6) (6.6) Investments sub debt interest receivable 0.6 5.4 Pension finance charge (1.4) (1.9) Net interest charge (5.6) (3.1) Redefining the future for people and places | 11
Exceptional items Exceptional items £ £ million illi 2013 2013 Exit Indian construction associate Exit Indian construction associate (5 1) (5.1) Net profit on disposal of PFI assets 1.5 Paragon earnout charge (0.5) Net Exceptional charge (4.1) Redefining the future for people and places | 12
Taxation Taxation £ million £ million 2013 2013 2012 2012 Profit Tax Rate Profit Tax Rate Total per income statement 68.1 (13.1) 19.2% 179.8 (10.6) 5.9% Gross profit on disposal of PFI (3.6) - - (114.9) - - Disposal Interserve India 5.1 - - - - - Less : Joint Ventures and associates (17.2) - - (25.0) - - Prior period adj ustment Prior period adj ustment - (0.9) (0 9) - - (2 3) (2.3) - Group companies’ effective rate 52.4 (14.0) ( ) 26.7% 39.9 (12.9) ( ) 32.3% Redefining the future for people and places | 13
Balance sheet summary Balance sheet summary £ million £ million 31 Dec 31 Dec 30 June 30 June 31 Dec 31 Dec 2013 2013 2012 Goodwill and intangible assets 286.6 277.7 265.8 Property, plant and equipment 155.9 148.2 137.8 Joint Ventures and associates 94.5 84.7 84.2 Assets held for sale 0.0 0.0 51.2 Working capital Working capital (136 1) (136.1) (149 7) (149.7) (162.2) (162 2) Taxation 13.9 15.8 6.0 Pension obligations (net of tax) Pension obligations (net of tax) (5 9) (5.9) (7.3) (7 3) (77 8) (77.8) Cash / (net debt) (38.6) 0.7 25.8 Net assets 370.3 370.1 330.8 Redefining the future for people and places | 14
Movement in net cash / (debt) Movement in net cash / (debt) Free cashflow of £24.0m Redefining the future for people and places | 15
Cash flow £ million 2013 2012 Group Group JVs and JVs and Total Total Total Total Associates Total operating profit 69.4 17.3 86.7 78.4 Depreciation & amortisation Depreciation & amortisation 33 8 33.8 - 33.8 33 8 29 3 29.3 Net capital expenditure (33.7) - (33.7) (14.9) Dividends in excess / (deficit) of profits - (3.6) (3.6) (5.6) Other non cash Oth h (10 0) (10.0) - (10 0) (10.0) (10 0) (10.0) Working capital movement (19.7) - (19.7) 0.2 Operating cash flow 39.8 13.7 53.5 77.4 Pension deficit payments, tax, interest (29.5) - (29.5) (44.9) Free cash flow 11.3 13.7 24.0 32.5 Dividends (29.1) ( ) - (29.1) ( ) ( (27.0) ) Acquisitions and investments (59.9) - (59.9) 63.0 Other 0.6 - 0.6 1.5 Movement in net debt Movement in net debt (78.1) (78 1) 13 7 13.7 (64 4) (64.4) 70 0 70.0 3 year Gross operating cash conversion 90% 106% Redefining the future for people and places | 16
Banking facilities Banking facilities Previous £250m facility replaced with: • £200 £200m club facility until February 2019 l b f ilit til F b 2019 • One £50m bilateral facility until February 2016 • £200m bridge facility until February 2016 • Aggregate £450m of facilities • Weighted average cost of debt LIBOR +2% Covenants as previously: • Net debt : EBITDA < 3.0x (2013: 0.4x) • I t Interest cover > 3.5x (2013: 21.2x) t 3 5 (2013 21 2 ) Redefining the future for people and places | 17
IAS 19 Pensions IAS 19 Pensions £ £ million illi 2013 2013 2012 2012 Defined benefit obligations (826.9) (799.3) S cheme assets 819.2 698.2 Total deficit (7.7) (101.1) Deferred tax thereon 1.8 23.3 Net deficit (5.9) (77.8) Redefining the future for people and places| 18
Acquisitions and disposals Acquisitions and disposals Cash Cash Headline Headline Pension Pension EPS funding 2.7p £119m £55m Disposals p Acquisitions No change £94m 4.0p Net £55m £55m movement movement 1 3p 1.3p £25m £25m Redefining the future for people and places | 19
Summary • Strong trading performance • 11% growth in Group operating profit • UK S UK S upport S upport S ervices achieved their margin target with 5.1% ervices achieved their margin target with 5 1% margin in the margin in the second half of 2013 • S trong profit growth in Equipment services, stable margins & volumes in UK construction. S hort term weakness in international markets • Broadening our capabilities • Building an oil and gas maintenance footprint with the acquisitions of TOCO & Adyard TOCO & Adyard • Increased UK capability with the acquisition of Paragon • Strong Balance Sheet; Investing for the Future • Reduced pension deficit • Increased capital investment • Year on year growth in EPS of 5% Year on year growth in EPS of 5% • Year on year growth in DPS of 5% Redefining the future for people and places | 20
Adrian Ringrose g
Recommend
More recommend
