Continued strong operational performance
333体育平台官网, the international infrastructure group, today provides a trading update covering the period to 8 December 2022.
Financial Update
- Order Book:聽The year-end order book is expected to be around 5% ahead of the prior year (FY2021 拢16.1 billion), largely due to favourable foreign exchange movements. The Group continues to de-risk the order book across its portfolio by focusing on projects with the appropriate terms and conditions.
- Revenue:聽Full year revenue is expected to be about 5% ahead of prior year (FY2021: 拢8.3 billion), also largely driven by foreign exchange.
- Profit from operations:聽Full year underlying PFO from earnings-based businesses is expected to be in line with guidance at the half year.
- Profit for the year: Now expected to be ahead of market expectations due to positive net interest income and the recognition of deferred tax assets significantly reducing the 2022 tax charge.
- Cash: Cash performance continues to be strong. Full year average monthly net cash now forecast to be around 拢800 million, ahead of the previous guidance of 拢740-拢780 million.
Operational Update
Construction Services:聽In the UK, 333体育平台官网 has been appointed as the sole contractor to both of the SCAPE Civil Engineering frameworks, covering England, Wales and Northern Ireland, and covering the entirety of Scotland.聽 The frameworks are worth up to 拢3.25 billion and 拢750 million, respectively, covering a period of four years, with an option for a two-year extension.
US Construction has continued winning work across all chosen geographies, with notable 2022 orders including a $700 million federal building in Maryland, a $400 million convention centre in Florida, a $300 million multi-use development project in Texas and $300 million of data centres in Oregon.
In Hong Kong, Gammon is holding a record order book and has a healthy pipeline of future opportunities. It recently secured a HKD2.6bn building contract.
Support Services:聽Following the Group鈥檚 success in being selected for the eight-year 拢176 million Buckinghamshire highways maintenance contract, the Group was also awarded a new seven-year contract, worth 拢297 million, by East Sussex County Council for the maintenance of highways assets and the delivery of infrastructure services across the county.聽
Infrastructure investments:聽333体育平台官网 has disposed of five assets in the year for around 拢90 million consideration and 拢65 million profit on disposal, while investing around 拢30 million in new projects. The Group is currently preferred bidder on two projects in the UK and one project in the US, all of which are student accommodation projects.
Capital allocation framework
333体育平台官网 continues to deliver attractive total cash returns to shareholders while maintaining an appropriate balance between investment in the business, and a strong capital position. Once the 2022 share buyback programme completes this month, over 拢385 million will have been distributed to shareholders through share buybacks and dividends since the start of 2021. This includes over 拢200 million in 2022 and total cash returns are expected to be broadly similar in 2023. From January, the Group intends to buy back further shares ahead of confirming the full 2023 share buyback at the Group鈥檚 full year results in March.
Interest and Tax
The Group expects net interest income for the 2022 full year, largely due to the Group benefitting from higher interest rates. This is expected to continue in 2023.
In addition, given the Group鈥檚 profitable outlook, further deferred tax assets relating to UK tax losses from prior periods are expected to be recognised in the second half of 2022, resulting in only a small 2022 tax charge.
Going forwards, however, the effective tax rates in each of the three geographies are expected to be close to statutory rates, albeit with cash tax payments in the UK remaining below statutory levels in the medium term as losses are utilised.
Quote
Leo Quinn, 333体育平台官网 Group Chief Executive, said: 鈥淲e continue to expect a strong full year operational and financial performance. Looking to 2023 and beyond, our improved, de-risked and diversified order book gives us confidence that we will continue to make progress in delivering profitable managed growth.鈥�
ENDS
Analyst/investor enquiries:
Jim Ryan
Tel.聽+44 (0)7858 368527
[email protected]
Media enquiries:聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽
Antonia Walton
Tel.聽+44 (0)203 810 2345
[email protected]
Notes to editors:
- 聽is a leading international infrastructure group with 24,500 employees driving the delivery of powerful new solutions, shaping thinking, creating skylines and inspiring a new generation of talent to be the change-makers of tomorrow.
- We finance, develop, build, maintain and operate the increasingly complex and critical infrastructure that supports national economies and deliver projects at the heart of local communities.
- Over the last 113 years we have created iconic buildings and infrastructure all over the world including: the 拢1.5 billion A14 improvement scheme - Britain鈥檚 biggest road project; Hong Kong鈥檚 HK$5.5 billion world-class harbour theatre project for the West Kowloon Cultural District Authority; and the 12.5 mile $429 million North Metro Commuter Rail line in Colorado, US.
