Redefining the future for people and places 1

Transcription

1 Redefining the future for people and places 1

2 Strategic Development HY2015 Significantly enhanced Group 2015 Headline EPS 67.9p +68% vs 2010 (40.3p) Headline EBIT +72% (c50% of this growth organic) Attractive growth fundamentals & opportunities Evolution in business mix Support Services 32% 65% Construction 52% 8% Equipment Services 16% 27% Disciplined performance management Strategic t review of the Equipment Services business Redefining the future for people and places 2

3 Tim Haywood Redefining the future for people and places 3

4 Income statement million Revenue 3, , % Total operating profit % Interest (16.4) (11.0) Headline profit % Amortisation of intangible assets (31.1) (24.5) Exceptional items (4.8) (19.8) Profit before taxation % Taxation (9.3) (12.0) Profit after taxation Headline EPS 67.9p 58.8p +15% Dividend per share 24.3p 23.0p +6% Redefining the future for people and places 4

5 Segmental analysis million Support Services Revenue TOP* Margin Revenue TOP* Margin %growth in TOP -UK 1, % 1, % +13% -International ti % 4.1% % 4.8% +11% Construction -UK 1, % -International % % +20% Equipment Services % % +58% Group Services (52.0) (23.6) (50.6) (24.4) 3, % 2, % +12% *Total operating profit Redefining the future for people and places 5

6 Taxation million Profit Tax Rate Profit Tax Rate Subsidiary companies 92.8 (15.7) 16.9% 89.7 (18.7) 20.8% Joint Ventures and associates Headline profit (15.7) 13.6% (18.7) 17.6% Amortisation of intangible assets (31.1) % (24.5) % Exceptional items (4.8) % (19.8) % 1% Group companies effective rate 79.5 (9.3) 11.7% 61.9 (12.0) 19.4% Redefining the future for people and places 6

7 Balance Sheet million 31 Dec 31 Dec Goodwill and intangible assets Property, plant and equipment Joint Ventures and associates Working capital (66.0) (121.3) Pension asset / (deficit) 17.2 (4.8) Cash / (net debt) (308.8) (268.9) Net assets Redefining the future for people and places 7

8 Investment Portfolio million YE 2015 Addiewell Prison Justice 2.9 West Yorkshire Police Justice 4.0 Haymarket Property 22.8 Scottish National Blood Transfusion Services Health 1.6 Alder Hey Health 3.3 Invested 34.6 Committed 29.3 Committed and invested 63.9 Redefining the future for people and places 8

9 IAS19 Pensions million YE 2015 YE 2014 Gross liabilities (880.9) (924.9) 9) Insurance buy-in asset Obligations net of insurance buy-in (544.9) (564.2) Other assets Gross asset / (deficit) 17.2 (4.8) Triennial valuation completed and agreed 64m actuarial deficit (Dec 2011: 150 million deficit) Contributions maintained at 12m p.a. until the next triennial Redefining the future for people and places 9

10 Continuing i investment Trading m Investing m Financing m Redefining the future for people and places 10

11 Gross operating cashflow million Group JVs and Associates Total Total Headline total operating profit Depreciation & amortisation Net capital expenditure (51.2) - (51.2) (54.3) Other (12.4) - (12.4) (8.9) Working capital investment (53.5) (9.0)* (62.5) (52.0) Gross operating cash flow Closing net debt *JVA dividends in deficit of profit Redefining the future for people and places 11

12 Gross operating cashflow million Net capital expenditure Group JVs and Total Total Associates 14.2m UK Support Services (vs 11.9m depreciation) Headline total operating profit IT & System investments, growth in the business Depreciation & amortisation m Equipment Services (vs 16.9m depreciation) Net capital expenditure (51.2) - (51.2) (54.3) further investment in the Hire Fleet Other (12.5) - (12.5) (8.9) 9.4m Group Services (vs 1.0m depreciation) Working capital investment (53.5) (8.9)* (62.4) (52.0) Investment in our Midland Hub, expected funding & Gross operating cash reimbursement flow Q Remaining Group 7.5m (vs 6.3m depreciation) Closing net debt *JVA dividends in deficit of profit Redefining the future for people and places 12

13 Gross operating cashflow million Working Capital investment Group JVs and Associates Total Total Headline total operating Middle profit East investment (Equipment Services 22.5 net investment, other operations cash received > profit) Depreciation & amortisation Net capital expenditure Support Services UK investment (51.2) (change in - mix with (51.2) (54.3) reduced Defence work, business growth) Other (12.5) - (12.5) (8.9) Working capital investment Construction UK investment (53.5) (supply chain (8.9)* payment (62.4) (52.0) demands, close out of problematic EfW contracts) Gross operating cash flow Closing net debt *JVA dividends in deficit of profit Redefining the future for people and places 13

14 Di Driving i Shareholder h value 12% growth in operating profit 15% growth in Headline EPS 6% growth in DPS Redefining the future for people and places 14

15 Adrian Ringrose Redefining the future for people and places 15

16 Support Services London Underground MoD - Gibraltar Interserve Healthcare Interserve Learning & Employment Redefining the future for people and places 16

17 Strong growth, broader offering Strong growth, broader offering Revenue +9% Total operating profit +13% Further margin development to 5.0% (2014: 4.8%) Workload 5.6bn (YE bn) Highlights Mobilisation of Probation Further Frontline Services opportunities Building the private sector business Redefining the future for people and places 17

18 Our customers Redefining the future for people and places 18

19 Support Services International King Abdullah Financial District, Saudi Arabia Abu Dhabi Equestrian Club, UAE Adyard, UAE Safah Wadi Latham, Oman Redefining the future for people and places 19

20 Volume growth Volume growth Revenues* increased to 224.3m (YE 2014: 157.2m) Total operating profit increased to 8.2m (YE2014: 7.4m) Future workload* increased at 304m (YE2014: 286m) Outlook Resilient demand Further integration of offering Growing FM presence * Incl share of associates results Redefining the future for people and places 20

21 Our customers Redefining the future for people and places 21

22 Construction UK Torbay Hospital Solent University Paragon Factory 2050 Redefining the future for people and places 22

23 Growing orderbook Growing orderbook Good revenue growth (+7%) Full order books with workload +14% to 1.6bn (YE2014: 1.4bn) Issues on 3 Energy from Waste contracts Highlights ht Demand continuing to improve Focus on technology (BIM) Strong fit out performance Redefining the future for people and places 23

24 Our customers Redefining the future for people and places 24

25 Construction International Serenia Residences, Dubai Dubai World Trade centre Siemens Substations, Qatar Mall of the Emirates, UAE Redefining the future for people and places 25

26 Resilient markets Resilient markets Revenues* +34% to 279.0m (YE 2014: 207.9m) Total operating profit increased to 13.0m (YE2014: 10.8m) Strong order book Highlights Qatar strong (Vision 2030, World Cup 2022) UAE strong (Expo 2020) Oman steady * Share of associates results Redefining the future for people and places 26

27 Our customers Redefining the future for people and places 27

28 Equipment Services Virtual reality modelling Innovative design Rustenburg Road bridge, South Africa West Corridor road, Qatar Redefining the future for people and places 28

29 A Global l business A Global business Revenue +8% Operating profit +58% to 41.9m Driving innovation, driving margin New services (Groundshoring) Embracing technology (3D imaging) Better supply chain management Highlights Broad based performance Middle East UK Far East Sustainable higher h margins Redefining the future for people and places 29

30 Outlook Good near-term visibility despite mixed market backdrop Growing demand in UK Support Services Impact of NLW previously flagged Expect improved performance in UK Construction Middle East lead indicators resilient despite market uncertainty Continued strong momentum in Equipment Services Long term growth drivers intact Demographic changes Infrastructure investment Increased public sector outsourcing Confident of delivering sustainable total shareholder returns Redefining the future for people and places 30

31 Growth across the Group Revenue +10% HY2015 Major player in all our markets Strong market position Future Workload 7.7bn 1 2 Attractive growth fundamentals & opportunities Sustained demand growth Demographic change Infrastructure Efficiency Sustainability Headline EPS +15% Dividend +6% 6% DPS CAGR last 5 years Headwinds & tailwinds Strong growth record 4 3 Disciplined performance management Key metrics Flexible capital allocation Delivering sustained growth

32 Questions Redefining the future for people and places 32

33 Appendix 1 Workload and revenue Redefining the future for people and places 33

34 Substantial future workload Redefining the future for people and places 34

35 Strong near-term revenue visibility Redefining the future for people and places 35

36 Strong Platform for Growth Group revenue mix by sector Redefining the future for people and places 36

37 Strong Platform for Growth Operating profit by activity i Operating profit by geography Redefining the future for people and places 37

38 Appendix 2 Exceptional items Redefining the future for people and places 38

39 Exceptional items million 2015 Initial (1.5) esg (1.5) Paragon earnout charge (1.8) Exceptional charge (4.8) Redefining the future for people and places 39