| (拢 million unless otherwise specified) | Half-year 2015 | Half-year 20144,5 | ||
|---|---|---|---|---|
| Underlying3 | Total | Underlying3 | Total | |
| Revenue1,2 | 4,085 | 4,191 | 4,072 | 4,225 |
| (Loss)/profit from operations2(PFO) | (120) | (140) | 29 | (43) |
| Pre-tax (loss)/profit2 | (130) | (150) | 15 | (58) |
| Total (loss)/profit | (135) | (150) | 37 | (43) |
| (Loss)/earnings per share2 | (19.4p) | (22.0p) | 3.2p | (6.2p) |
| Dividends per share | 听 | - | 听 | 5.6p |
| Asset听 | Half-year 2015 | Full-year 2014 |
|---|---|---|
| Order book1,2 | 拢11.3产苍 | 拢11.4产苍 |
| Directors' valuation of Investments portfolio | 1,252 | 1,300 |
| Net cash/(borrowings) 鈥� recourse | 260 | 219 |
| Net cash/(borrowings) 鈥� non-recourse | 听(327) | (445) |
Financial Summary
- Order book1,2听stable at 拢11.3 billion (FY 2014: 拢11.4 billion).
- Underlying revenue1,2,3听stable at 拢4,085 million (2014: 拢4,072 million).
- Total underlying loss3听in the first half of 拢135 million (2014: profit 拢37 million). Total loss in the first half of 拢150 million (2014: 拢43 million).
- First half included 拢152 million shortfall, in line with indicated range of July trading update, reflecting historic issues in construction.
- >90% of historic UK problem contracts expected to be at practical or financial completion by end of 2016.
- Strong performance from Infrastructure Investments 鈥� Directors鈥� valuation 拢1,252 million (FY 2014: 拢1,300 million) after realising 拢112 million of disposal proceeds and 拢37 million in distributions, with 拢64 million of cash invested.
Build to Last
- Build to Last already delivering: 拢260 million net cash as at 26 June 2015 (FY 2014: 拢219 million) - 拢362 million cash flow improvement half on half (2015: 拢41 million inflow; 2014: 拢321 million outflow)
- Actions underway to achieve 拢100 million of cost out by end of 2016 鈥� annualised savings of 拢25 million executed in the first half.
- Favourable market trends 鈥� strong pipeline of opportunity, embedding 鈥楪ated Business Lifecycle鈥� approach to drive governance and control for project bidding and delivery.
Leo Quinn, Group Chief Executive commented: 鈥淪ix months in, our Build to Last transformation programme is gaining traction throughout the business. We have a new senior leadership team and an organisation re-aligned with key customer sectors. We are on course to meet our 24-month targets for 拢200 million cash in and 拢100 million cost out.
鈥淚n rising core markets, the Group is continuing to win business on better terms across our operations.听 In the last few months the awards of contracts or preferred bidder status for three landmark projects 鈥� Bergstrom Expressway in Austin Texas, nuclear new build Hinkley Point C power station electrical package and a UK smart motorway package 鈥� is a further endorsement of 333体育平台官网鈥檚 leading capabilities.
鈥淚nevitably the headline numbers set out the consequences of the historic issues that are now being tackled. However the continuing confidence of our customers in 333体育平台官网鈥檚 expertise, the positive response of our people to change, demonstrated by our excellent net cash performance, and the underlying strength of our balance sheet, supported by the Investments portfolio, all reinforce my conviction that over the medium term we can provide our customers, employees and shareholders with superior returns.鈥�
Notes:
1听including share of joint ventures and associates
2听from continuing operations
3听before non-underlying items (Note 7)
4听re-presented to classify Parsons Brinckerhoff as a discontinued operation; to include results of Rail Germany, which no longer meets the definition of a discontinued operation, as non-underlying items within continuing operations; and to show the results of certain legacy Engineering Services contracts as non-underlying items (Notes 1.9 and 9)
5听restated to correct prior period error relating to the recognition of contract losses in the UK construction business (Note 1.7)
Analyst/investor enquiries:
Peter Young
Tel. +44 (0)20 7216 6824
[email protected]
Media enquiries:
Louise McCulloch
Tel. +44 (0)20 7216 6846
[email protected]
Tulchan Communications:
Andrew Grant/David Allchurch
Tel. +44 (0) 207 353 4200
[email protected]
Analyst presentation:
A presentation to analysts and investors will be made at Bank of America Merrill Lynch, 2 King Edward Street, London EC1A 1HQ at 08:30 (UK time) on 12 August 2015.
