Full- y ear results Twelve months ended 31 st December 2012 Adrian Rin g rose , Chief Executive Full year results Tim Haywood, Group Finance Director Full-year results Twelve months ended 31 December 2012 27 th February 2013 31 December 2012 Adrian Ringrose, Chief Executive Ti H d G Fi Di Tim Haywood, Group Finance Director 27 February 2013
46
Embed
Full year results Adrian Ringrose, Chief Executive g, Twelve … · 2015-03-10 · Tim Haywood, Group Finance Director-Twelve months ended 31 December 2012 Adrian Ringrose, Chief
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Full-year resultsyTwelve months ended 31st December 2012
Adrian Ringrose, Chief ExecutiveFull year resultsg ,Tim Haywood, Group Finance Director
Full-year resultsTwelve months ended 31 December 2012
27th February 201331 December 2012
Adrian Ringrose, Chief ExecutiveTi H d G Fi DiTim Haywood, Group Finance Director
27 February 2013
Delivering our strategy
Strategy Outcomes FY 2012 results
Building Strong Core businesses
Revenue +6%Revenue and profit growthbusinesses
Headline pre-tax profit +8%
growth
Capturing related expansion opportunities Strong three-year cash
conversion (117%)
Strong Cash Conversion
E d I i ll
£6.3bn future workload
F W kl d G hExpand Internationally Dividend +8%Future Workload Growth
Tim Haywood
Income statement£ million 2012 2011
Revenue 1,958.4 1,847.5 +6%
Total operating profit 80.4 73.8 +9%p g p
Interest (2.0) (1.0)
Headline profit 78.4 72.8 +8%
Amortisation of intangible assets (6.4) (5.7)
Exceptional items 110.9 -
Profit before taxation 182 9 67 1 +173%Profit before taxation 182.9 67.1 +173%
Taxation (11.2) (6.5)
Profit after taxation 171.7 60.6 +183%
Underlying Headline EPS 47.2p 43.7p +8%
d d h 8%Dividend per share 20.5p 19.0p +8%
Segmental analysisg y2012 2011 % growth
£ illi R TOP* M i R TOP* M i i TOP*£ million Revenue TOP* Margin Revenue TOP* Margin in TOP*
Support Services- UK 1,118.1 44.3 4.0% 1,007.3 36.4 3.6% +22%
- International** - 3.7 12.8% - 3.6 15.1% +6%
Construction – UK 737.2 14.6 2.0% 731.1 18.0 2.5% -19%
Alder Hey (preferred bidder) Health £3 3mAlder Hey (preferred bidder) Health £3.3m
Total commitment including
preferred bidder £10.6m
Acquisitions and disposals
Cash Headline Pension
EPS funding
Disposals £119m £55m3.5p
Acquisitions No change£67m 3.5p
Net t
No change£52m £55mmovementg£52m £55m
Summary• Strong trading performance
o Continued margin progression at UK Support Services
o Strategic progress in International Support Services
o Stable volumes at UK Construction
o Competitive pressures in International Construction
o Return to full year growth at Equipment Services with increased volumes and enhanced margins
• Robust balance sheeto Continued strong cash generation
o Realisation of £174m of value from PFI portfolio: £119m cash and £55m into pension scheme
o Reduced ongoing pension deficit contribution payments by £11m pa
o Programme of reinvestment started with 3 acquisitions totalling £67m
o Successful refinancing secured finances
Full-year dividend increased 8% to 20.5pps
Adrian Ringrose
Our Vision:
Redefining the future for people and places
Our Brand:
Sustainability:
Support Services UKpp
Rehab Jobfit, South WalesAlder Hey, Liverpool
Support Services UKpp
• Good work winning mitigating client expenditure pressures
• Won ~£1.8bn of new work
• Division’s future workload +16%
(FY 2012: ~£5.2bn, FY 2011: ~£4.5bn)
• Revenues +11% at £1,118.1m
(FY 2011: £1,007.3m)
Alliance Boots, UK
4.5%Operating margin (%)
• Strong FY margin performance (+0.4% vs FY 2011)
• Margin improvement programme2.5%
3.0%
3.5%
4.0%
• Procurement
• Cost efficiencies 2.4%
3.6% 4.0%
0.5%
1.0%
1.5%
2.0%
• Volume growth0.0%
0.5%
2010 2011 2012
FY
Support Services UK – Work winning in FY 2012winning in FY 2012
New public sector clients:New public sector clients:• West Yorkshire Police Authority• Alder Hey Hospital• Leicester, Leicestershire and Rutland NHS Trust• East Thames• London borough of Southwark• Department of EducationDepartment of Education
New private sector clients:• Scottish Power• University of OxfordUniversity of Oxford• Carphone Warehouse
• Margin development as expected in FY with good visibility of demand for 2013
Madina, Qatar
12.0%
14.0%
16.0%Operating margin (%)
2013
15.2% 15.1%12.8%
4.0%
6.0%
8.0%
10.0%
In January 2013 we expanded our oil and gas services offering through acquisition of TOCO
0.0%
2.0%
2010 2011 2012
Support Services International -Work winning in FY 2012Work winning in FY 2012• Education
• Doha College• Doha College• Compass international Schools of Doha• Sri Lankan school of Doha• British School Muscat• American School of DohaAmerican School of Doha
• Qatar Petroleum• Refinery Mesaieed, 3-year offshore shutdown • Construction and installation of 6 plant change requests, mechanical,
engineering and installation work engineering and installation work
• Qatar Shell GTL• Plant Change Construction Services framework• Shutdown of Liquid processing units and utilities
• Punj Lloyd Limited: Fabrication pipe work pre-commissioning on a • Punj Lloyd Limited: Fabrication, pipe work, pre-commissioning on a polysilicon plant
• Doha International Airport• Engineering, procurement, installation and commissioning for diesel storage
tankstanks
• Military training college: Gatehouse, airframe and vehicle maintenance workshop
• Specialist Training: Oman Emergency Response Team and Oman LNGT i D l t & I t t C (TDIC) F ll FM • Tourism Development & Investment Company (TDIC): Full FM –buildings and infrastructure, Manarat Al Saadiyat
Support Services - medium term outlookoutlook
UKUK• Future workload of £4.5bn • Sustainable margin of 5% in the medium term• Organic growth through structural market expansion opportunity• Continuing client efficiency imperatives• Adding reach and capabilityAdding reach and capability
InternationalF kl d f £51 • Future workload of £51m
• Sustainable margin of 13% in the medium term• Safety critical operating environmentsy p g• Young, fast-growing building services markets• Skills shortages
Construction UK
Advocates Close, Edinburgh Energy from waste plant, Westbury
Construction – UK
• Stable future workload of £0.9bn (FY 2011: £0.9bn)
• Well-positioned in health, education and infrastructureeducation and infrastructureLeeds East Primary School, UK
3.5%Operating margin (%)
• New markets, e.g. energy-from-waste
3 2%
2.0%
2.5%
3.0%
3.2%
2.5%2.0%
0.5%
1.0%
1.5%
0.0%2010 2011 2012
Construction UK work winning in FY 2012FY 2012
• New clientsNew clients• Jaguar Land Rover
• National Grid framework agreement
• Client development• NHS Wales
• St Luke’s Hospice
• Christie Hospital NHS Trust
• Northumbrian Water
• Corby A43
• Ministry of Justice
• New business streams• Waste to energy: Westbury, Glasgow,
• Dubai showing early signs of commercial g y gdevelopment
• Well positioned – focus on infrastructure, roads, rail, port schemes, power, water and drainageS i li t fit t b i f i g ll • Specialist fit-out businesses performing well (joinery, steelwork and specialist temporary buildings)
• Resilient margin, trending towards medium-term guidance
Operating margin (%)
6 0%7.0%8.0%9.0%
10.0%
Doha International Airport, Qatar8.7% 8.4%6.5%
2.0%3.0%4.0%5.0%6.0%
0.0%1.0%
2010 2011 2012
Construction International - Work winning in FY 2012winning in FY 2012
• Industry/Infrastructurey• Hyosung Corporation – GIS substations • Qatar Steel – foundations and Civil works• DP World – Gate 8 Jebel AliDP World Gate 8 Jebel Ali• Road & transport Authority, UAE
• Education• British School Muscat• British School, Muscat
• Commercial• Bank Nisswa branch and head office fit-out
B b Al B h H l fi Aj• Bab Al Bahr Hotel fit-out, Ajman• Emirates engine maintenance facility, Dubai
• Government• UAE Prime Ministers Office fit-out, Emirates
Towers, Dubai• Military Technical Office, Oman • Royal Omani Police, Al Sukri• Engineers Office, Dubai
Construction - medium term outlook
UK• On going demand challenge through 2013• On-going demand challenge through 2013• Medium term margin of 1.5 - 2.0%E i di t d i• Encouraging medium-term drivers• Demographics, infrastructure investment, proactive government policy
InternationalE i di t d i • Encouraging medium-term drivers • Demographics, infrastructure investment
• Medium-term margin of 6.0%
Equipment Services q p
Falsework at Mecca Mosque, Saudi ArabiaRMD at the Sphinx c.1950
Equipment Servicesq p• Continued growth in FY 2012 – revenues
+9% to £167.5m (FY 2011: £154.3m)9% to £167.5m (FY 2011: £154.3m)
• Changing geographic mix:
- Far East/Middle East strong and - Far East/Middle East strong and Australasia good (74% of division revenues)
- Saudi Arabia was largest Middle East Cruise ship terminal, Hong Kong
12.0%
Operating margin (%)
Saudi Arabia was largest Middle East market by revenues in FY 2012 (48%; FY 2011: 46%)
- Expansion into Colombia, Chile and
8.0%
10.0%
.0% Expansion into Colombia, Chile and Panama
- North America stabilising- Retrenchment in Europe
10.3%8.8% 9.6%
4.0%
6.0%
p
0.0%
2.0%
2010 2011 2012
Equipment Services - medium q pterm outlook
• Cyclical recovery in worldwide construction markets
• Selective geographic expansion
• Export growth from Middle East and EuropeExport growth from Middle East and Europe
• Return to medium term margin target of 15.0%
Summaryy
• Strong full year performance in mixed market conditions
Sig ifi t t t gi d li• Significant strategic delivery
• Confident in Group’s prospectsConfident in Group s prospects
• Strong balance sheetg
• Further increase in the dividend (+8%)
Questions
Appendix
Substantial future workload
2 500
3,000
2,000
2,500
1,000
1,500£m
0
500
02013 2014 2015 2016 2017 2018+
Support Services UK Construction UK Share of Associates
Strong near-term revenue gvisibility
2014
Forward Order BookForward Order Book
Pipeline
2013
0.0 500.0 1,000.0 1,500.0 2,000.0£m
Strong platform for growthg p gGroup revenue mix by typeGroup revenue mix by sector
EducationJustice
Health
Defence
EducationPrivate
Industry
Central /
Commerce
Public & privatised
Segmental operating profit - by activity Segmental operating profit – by geography
Local Government
Infrastructure
Rest ofEquipment Services
Rest of World
Support Services (UK)Construction
(Int'l)
UK
MENA
Support Services (Intl)
Construction (UK)
Divisional revenue analysis yRevenue mix by sector – Support Services UK
Revenue mix by sector –Construction UK
EducationJustice
l hJustice
Health
DefenceCommerce
Education Health
Defence
Industry
Education
Defence
Industry
Central / Local
Infrastructure
Industry
Central / Local GovernmentCommerce
Revenue mix by sector – Equipment Services
IndustryGovernment Infrastructure
Health Defence
IndustryEducation
Justice
Central / Local GovernmentCommerce
Infrastructure
Interserve Working Futuresg• Formerly known as Business
Employment Services Training Ltd (BEST Ltd)
Key acquisition facts
Acquisition date 4th May 2012
Ltd)
• Offers a range of welfare-to-work programmes including, but not limited to the Work Programme