333体育平台官网 today provides an update on current trading, following the Group鈥檚 previous statement on 27 March 2020.
Health and Safety
The primary focus for 333体育平台官网 will always be the health, safety and wellbeing of the Group鈥檚 employees, customers, partners and the general public.
In May, 83% of 333体育平台官网鈥榮 UK and US construction sites were operational, while the Group adhered to all regulation and government guidance across each of its markets. In the UK, the Group is implementing聽333体育平台官网鈥檚 COVID-19 Site Operating Procedures聽which are fully aligned to the latest UK Government guidance.听 In the US, the Group is adhering to regulations on a state by state basis, whilst in Hong Kong operations are following all local government guidance.
Liquidity
333体育平台官网 continues to benefit from the strong financial position that it has built up over the last five years.
As at 27 May 2020, the Group had 拢452 million of net cash and 拢375 million of undrawn facilities.听 The average net cash for the first four months of the year was 拢464 million (2019: 拢325 million). Cash discipline remains the Group鈥檚 principal financial priority at this time. 聽
Order book
The Group鈥檚 order book as at 30 April 2020 was聽拢17.4 billion (2019: 拢14.3 billion), over 20% higher than the prior year end position.
This increase is due to the addition of over 拢3 billion of HS2 contracts following Notice to Proceed in April. 聽333体育平台官网, in joint venture with VINCI, will deliver Lots N1 and N2 south of Birmingham 鈥� comprising extensive earthworks, ground engineering, viaducts and tunnels along a 90 kilometre stretch 鈥� and the London hub station at Old Oak Common. Also in April, Highways England named 333体育平台官网 as a contractor partner to deliver the future smart motorway programme (southern area) via a ten year framework.
In the current uncertainty, the approval of HS2 provides critical visibility and impetus not only for 333体育平台官网 but also for the UK construction industry and its supply chain partners. 聽In combination with increased funding for road and other rail programmes, the UK government鈥檚 decision on HS2 demonstrates its commitment to stimulate economic recovery.
In the US, 333体育平台官网 was awarded c.$450 million of additional work on two significant ongoing projects in March: an office campus redevelopment in Seattle, Washington and the Broward Country Convention Center extension in Fort Lauderdale, Florida.听聽聽
In May, Gammon, the Group鈥檚 50:50 joint venture based in Hong Kong, was awarded a HK$7.2 billion (c. 拢760 million) contract to deliver tunnels and associated works for an automatic people mover and baggage handling system at Hong Kong International Airport.
Operational update
333体育平台官网 had a strong first quarter of the financial year, building on the positive momentum from 2019. Thereafter the impact of COVID-19 and the resulting lockdown have had a material impact on financial performance across all divisions.
Nonetheless, the Group has achieved important successes through the determination and dedication of its people. Acting as principal contractor, 333体育平台官网 converted Glasgow鈥檚 Scottish Events Campus (SEC) into the NHS Louisa Jordan hospital providing 1,300 beds for patients requiring treatment for COVID-19.听 In Pennsylvania, the Pavilion at Penn Medicine project opened 120 patient rooms 15 months ahead of the facility鈥檚 planned opening, with 333体育平台官网 employees working around the clock for 17 days to deliver 122,000 square feet of space in the emergency department.听聽聽聽
滨苍听Construction, the majority of 333体育平台官网鈥檚 projects have remained operational throughout the period with the trend now improving week to week. In April, 78% of the Group鈥檚 sites, across the UK and US, were open.听 In May, whilst 83% of sites were open and 17% were closed, of those open 17% experienced significant disruption due to the availability of employees, subcontractors or materials. 聽
The most affected areas in the UK have been Scotland, where the devolved Government administration required the closure of all non-essential construction works, and London where public transport availability has been a significant challenge.听 In the US, the most affected areas have been Washington State and Florida.听 In Hong Kong, there were minimal site closures and the business has largely returned to normal, albeit operating below optimum productivity.听
滨苍听Support Services, many of the Group鈥檚 employees were designated as key workers.听 Whilst still somewhat negatively affected by COVID-19, Support Services has shown good resilience with limited closures, and in some circumstances an opportunity to accelerate maintenance works on road, rail and power assets.
滨苍听Infrastructure Investments, operations in the UK have continued as normal supported by the Government advice that PFI contractors should consider themselves to be part of the public sector response to COVID-19.听 In the US, 333体育平台官网 Communities continues to work with its partners to support military families.听 Employees are working to social distancing rules, as agreed with the military, which restricts access to properties and thus maintenance activity. 聽
Given current market uncertainty, and the strong liquidity position of the Group, in the first five months of the year, the Group has not disposed of any material Infrastructure Investment assets. In line with its strategy to maximise shareholders鈥� returns the Board will only resume disposals when market conditions, which are expected to be favourable in the medium term, return to more normal levels.
Revised AGM date, cancellation of dividend and intention to redeem preference shares
On 27 March 2020, 333体育平台官网 announced the postponement of its Annual General Meeting (AGM) given the uncertainty arising from COVID-19 and the limitations on gatherings of people.听 The Group also stated that the Board would keep the appropriateness of paying the final dividend for 2019 under review until the rescheduled AGM, with a final decision dependant on the prevailing circumstances at the time.听
The re-scheduled date of the AGM is 25 June 2020 at 12:00 noon to be held at 333体育平台官网鈥檚 offices located at The Curve, Axis Park, Hurricane Way, Slough, SL3 8GA. The Board has been required to put in place alternative arrangements for the AGM to comply with the restrictions on public gatherings. As a result, the AGM will be a closed meeting, whilst satisfying the minimum quorum of shareholders as stated in the Group鈥檚 articles of association.
The Board welcomes engagement with the Company鈥檚 shareholders and, as they will not be permitted to attend in person, shareholders are encouraged to vote in advance by proxy and also to submit any questions on the business of the meeting.听 Provision will be made for questions to be received from shareholders from today until 10:00 on 25 June 2020 by email to聽[email protected].听
In line with the current environment, the Board has prudently decided to cancel the final dividend for 2019. However, 333体育平台官网 will shortly be giving notice to preference shareholders of its intention to redeem in full the 拢112 million of preference shares that fall due on 1 July 2020.
As stated in 333体育平台官网鈥檚 2019 full year results announced on 11 March 2020, the Board will continue to review the Group鈥檚 capital structure and the potential for further distributions to shareholders, as and when the impacts of COVID-19 on the Group are clearer.
Outlook
On 27 March 2020, the Board announced that it was suspending all forward guidance until such time as the overall impact of COVID-19 became clearer. At this time, therefore, the Group remains unable, as yet, to reinstate financial guidance. 聽聽
The key driver of performance for the rest of the year will be improving current productivity, which will depend on the availability of employees, subcontractors and materials, whilst maintaining social distancing rules and ensuring satisfactory contractual resolution on projects impacted by COVID-19.听
Whilst working in the 鈥榥ew normal鈥� will present challenges, it will also offer opportunities for innovation and efficiencies. Last month, the Group established a New Normal Taskforce that has generated over 450 ideas from across the business through an employee engagement campaign. These ideas are being taken forward for implementation under four strategic themes (working environment, new markets and capability, digital enhancement and rapid return to work) and will be incorporated to deliver operational and financial efficiencies.
Despite the difficulties faced at this time, 333体育平台官网 continues to demonstrate to its employees, customers and supply chain partners that the Group is well positioned financially, operationally and culturally to weather the complex and evolving situation and deliver on its market leading strengths.
Leo Quinn, Group Chief Executive, said:
鈥淭hese remain challenging and uncertain times. Our priority will always be the safety and health of all our employees, customers, partners and the public.
鈥淏uild to Last has made 333体育平台官网 a resilient organisation with a high-quality order book and a strong balance sheet. As we navigate the Group through this exceptional year, we will maintain our focus on the longer term to ensure we are ready to capitalise fully on the significant opportunities in our chosen markets.鈥� 聽聽聽
ENDS
Analyst/investor enquiries:
Angus Barry
Tel.听+44 (0)20 7216 6824
[email protected]
Media enquiries:聽聽聽聽聽聽聽聽聽聽聽
Antonia Walton
+44 (0)203 810 2345
[email protected]
Notes to editors:
- 333体育平台官网 () is a leading international infrastructure group. With 26,000 employees, we provide innovative and efficient infrastructure that underpins our daily lives, supports communities and enables economic growth. We finance, develop, build and maintain complex infrastructure such as transportation, power and utility systems, social and commercial buildings.
- Our main geographies are the UK, US and Hong Kong. Over the last 100 years we have created iconic buildings and infrastructure all over the world including the London Olympics鈥� Aquatic Centre, Hong Kong鈥檚 first Zero Carbon building, the National Museum of the Marine Corps in the US and the Channel Tunnel Rail Link.
