TIDMCLLN

RNS Number : 0809X

Carillion PLC

26 August 2015

26 August 2015

Half-yearly financial report for the six months ended 30 June 2015

Performance in line with expectations

 
                                            Six months      Six months 
                                                 ended           ended 
                                          30 June 2015    30 June 2014     Change 
--------------------------------------  --------------  --------------  --------- 
 Revenue                                   GBP2,258.6m     GBP1,871.0m       +21% 
--------------------------------------  --------------  --------------  --------- 
 Underlying profit from operations(1)        GBP112.5m        GBP97.4m       +16% 
--------------------------------------  --------------  --------------  --------- 
 Underlying operating margin(1)                   5.1%            5.5%        n/a 
--------------------------------------  --------------  --------------  --------- 
 Underlying profit before taxation(1)         GBP84.5m        GBP75.9m       +11% 
--------------------------------------  --------------  --------------  --------- 
 Underlying earnings per share(1)                15.9p           14.7p        +8% 
--------------------------------------  --------------  --------------  --------- 
 Profit before taxation                       GBP67.5m        GBP67.5m          - 
--------------------------------------  --------------  --------------  --------- 
 Basic earnings per share                        12.7p           13.2p        -4% 
--------------------------------------  --------------  --------------  --------- 
 Interim dividend per share                       5.7p            5.6p        +2% 
--------------------------------------  --------------  --------------  --------- 
 Underlying profit from operations 
  cash conversion(1)                              101%            127%        n/a 
--------------------------------------  --------------  --------------  --------- 
 
 
 
    *    First-half financial performance in line with 
         expectations 
 
 
    *    Strong first-half revenue growth reflected the 
         exceptional volume of new contracts won in 2014 
 
 
    *    Underlying profit and earnings grew strongly, despite 
         substantial costs of mobilising new contracts and the 
         expected effect of the margin in Construction 
         services (excluding the Middle East) trending down 
         towards a more normal level 
 
 
    *    Strong cash flow from operations with underlying 
         operating cash conversion(1) of 101% (2014: 127%) 
 
 
    *    Net borrowing at 30 June 2015 of GBP199.6 million (31 
         December 2014: GBP177.3 million) reflected increases 
         in non-operating cash flow items, including business 
         acquisition costs and other investments 
 
 
    *    Balance sheet remains strong with over GBP1.3 billion 
         of committed funding available to the Group 
 
    *    Strong, high-quality order book and growing pipeline 
         of contract opportunities 
 
 
    *    New first-half orders plus probable orders of GBP1.0 
         billion (2014: GBP3.2 billion) reflected the expected 
         pause in public sector contract awards due to the UK 
         General Election 
 
 
    *    Total secure orders plus probable orders remained 
         strong at GBP17.1 billion at 30 June 2015 (31 
         December 2014: GBP18.6 billion), after removing 
         GBP0.2 billion from the order book due to PPP equity 
         sales 
 
 
    *    Revenue visibility(2) for 2015 of 96% at 30 June 2015 
         (2014: 93%) 
 
 
    *    Framework contracts worth up to GBP2.5 billion, which 
         are not included in orders or probable orders 
 
 
    *    Pipeline of contract opportunities increased to 
         GBP40.5 billion (31 December 2014: GBP39.2 billion) 
 
   *    Interim dividend increased by 2% to 5.7p (2014: 5.6p) 
 
   *    On track to deliver full-year revenue growth with 
        profit and earnings in line with expectations 
      1. The underlying results stated above are based on the definitions 
       included in the key financial figures. 
       2. Based on expected revenue and secure and probable orders, which 
       exclude variable work, 
       frameworks and re-bids. 
 

Carillion Chairman, Philip Green, commented:

"I am pleased to report that Carillion has continued to perform in line with expectations, which reflects the actions we took during the economic downturn to position our businesses in markets where we can now achieve revenue growth, consistent with our targets for margins and cash flow. We have also made good progress with mobilising a number of major new contracts won in 2014. Therefore, with a strong order book, a growing pipeline of contract opportunities and the prospect of market conditions continuing to improve, our expectations for 2015 and the medium term remain unchanged."

There will be a presentation for analysts and investors today at 09.00am. A telephone dial in facility tel: +44 1296 311600 - Access Code: 318 357. A replay facility is also available for 30 days, the telephone number is +44 207 136 9233 - Access Code: 34863982 - if dialling in from overseas, please review the link attached for your dial in telephone number http://www.conferencingsupport.com/globalaccess/?bid=00&itfn=1&ddi=1&ref. Carillion Analyst Presentation will be available for analysts and investors who are unable to attend the presentation. The presentation can be viewed on Carillion's website at http://www.carillionplc.com/investors/reports-presentations.aspx

For further information contact:

 
 Richard Adam, Group Finance Director     tel: +44 (0) 1902 422431 
  John Denning, Group Corporate Affairs    tel: +44 (0) 1902 422431 
  Director                                 tel: +44 (0) 20 7251 3801 
  Finsbury - James Murgatroyd and 
  Gordon Simpson 
 

26 August 2015

Notes to Editors:

Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects, extensive construction capabilities and a sector leading ability to deliver sustainable solutions. The Group had annual revenue in 2014 of some GBP4.1 billion, employs around 46,000 people and operates across the UK, in the Middle East and Canada.

The Group has four business segments:

Support services - this includes facilities management, facilities services, energy services, utilities services, road maintenance, rail services and consultancy businesses in the UK, Canada and the Middle East.

Public Private Partnership (PPP) projects - this includes investing activities in PPP projects for Government buildings and infrastructure mainly in the Defence, Health, Education, Transport and Secure accommodation sectors in the UK and Canada.

Middle East construction services - this includes building and civil engineering activities in the Middle East.

Construction services (excluding the Middle East) - this includes building, civil engineering and developments activities in the UK and construction activities in Canada.

This and other Carillion news releases can be found at www.carillionplc.com.

Photographs:

High resolution photographs are available free of charge to the media at www.newscast.co.uk telephone + 44 (0) 208 886 5895.

Cautionary statement

This announcement may contain indications of likely future developments and other forward-looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. These and other factors could adversely affect the Group's results, strategy and prospects. Forward-looking statements involve risks, uncertainties and assumptions. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ materially from those currently anticipated. No obligation is assumed to update any forward-looking statements, whether as a result of new information, future events or otherwise.

For the full announcement please click on this link

http://www.rns-pdf.londonstockexchange.com/rns/0809X_1-2015-8-25.pdf

This information is provided by RNS

The company news service from the London Stock Exchange

END

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August 26, 2015 02:00 ET (06:00 GMT)

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