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Carillion PLC  -  CLLN   

Final Results

Released 07:00 01-Mar-2017

RNS Number : 1423Y
Carillion PLC
01 March 2017
 

                  

1 March 2017

Results for the year ended 31 December 2016

Performance in line with expectations

 


2016

2015

  Change

Total revenue(1)

£5,214.2m

£4,586.9m

+14%

Group revenue

£4,394.9m

£3,950.7m

+11%

Underlying profit before taxation(1)

£178.0m

£176.5m

+1%

Underlying earnings per share(1)

35.3p

35.0p

+1%

Profit before taxation

£146.7m

£155.1m

-5%

Basic earnings per share

28.9p

30.9p

-6%

Proposed full-year dividend per share

18.45p

18.25p

+1%

Underlying profit from operations cash conversion(1)

117%

104%

n/a

 

 

·      Financial performance in line with expectations


·      Total revenue growth of 14 per cent, primarily organic(1)  

·      Performance led by growth in support services

·      Support services contributed over two thirds of total operating profit and more than offset expected reductions in profit from Public Private Partnership projects and Middle East construction services

·      Underlying operating margin(1) lower as expected at 4.9 per cent (2015: 5.3 per cent)

·      Underlying profit from operations(1) fully cash-backed - cash conversion(1) 117 per cent

·      Net borrowing of £218.9 million at 31 December 2016 (2015: £169.8 million) and average net borrowing(1) for 2016 of £586.5 million (2015: £538.9 million), with the increases mainly reflecting adverse movements in foreign exchange rates

 

·      High-quality order book and strong pipeline of contract opportunities


·      £4.8 billion of new orders and probable orders in 2016 (2015: £3.7 billion)

·      High-quality order book plus probable orders worth £16.0 billion at 31 December 2016 (2015: £17.4 billion)

·      Revenue visibility(2) for 2017 of 74 per cent (2015: 84 per cent for 2016)

·      Expect over £1.5 billion of revenue from framework agreements not yet included in orders, probable orders or revenue visibility

·      Substantial pipeline of contract opportunities worth £41.6 billion (2015: £41.4 billion) 

·  Proposed full-year dividend increased by one per cent to 18.45p (2015: 18.25p)

·  Begin reducing average net borrowing over medium term

 

Carillion Chairman, Philip Green, commented:

 

"In 2016, Carillion's performance was led by revenue growth and an increased margin in support services, together with good cash flow. Given the size and quality of our order book and pipeline of contract opportunities, our customer-focused culture and integrated business model, we have a good platform from which to develop the business in 2017.  We will accelerate the rebalancing of our business into markets and sectors where we can win high-quality contracts and achieve our targets for margin and cash flows, while actively managing the positions we have in challenging markets.  We will also begin reducing average net borrowing by stepping up our ongoing cost reduction programmes and our focus on managing working capital."

 

(1)

Alternative Performance Measures are defined in note 15 on pages 40 to 45.

(2)        

Based on expected revenue and secure and probable orders, which exclude variable work, frameworks and re-bids.

 

There will be a presentation for analysts and investors today at 09.00am with a telephone facility available tel: primary number +44 (0) 844 800 3850 - Access Code: 256001.  A replay facility is also available for 30 days, the telephone number is +44 (0) 207 136 9233 - Access Code: 65326681.

 

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's 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:

Zafar Khan, Group Finance Director

John Denning, Group Corporate Affairs Director

 

tel: +44 (0) 1902 422431

tel: +44 (0) 1902 422431

 

1 March 2017

                                                                                                                                                                                                                            

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 2016 of some £5.2 billion, employs around 48,500 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, remote site accommodation services and consultancy services 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.

 

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.

 

 



 

Key financial figures

 



2016

2015

Change

 

Income statement





 

Total revenue

£m

5,214.2

4,586.9

+14%

 

Underlying operating profit(1)

£m

253.9

244.4

+4%

 

Underlying profit from operations

£m

235.9

234.4

+1%

 

Total Group underlying operating margin

Percentage

4.9

5.3

n/a

 

Support services underlying operating

margin

Percentage

6.7

5.8

n/a

 

Middle East construction services underlying operating margin

 

Percentage

 

2.4

 

4.2

 

n/a

 

Construction services (excluding the Middle East) underlying operating margin

 

Percentage

 

2.7

 

3.0

 

n/a

 

Underlying profit before taxation

£m

178.0

176.5

+1%

 

Profit before taxation

£m

146.7

155.1

-5%

 

Underlying earnings per share

Pence

35.3

35.0

+1%

 

Basic earnings per share

Pence

28.9

30.9

-6%

 

Diluted earnings per share

Pence

25.9

28.2

-8%

 

Dividends





 

Proposed full-year dividend per share

Pence

18.45

18.25

+1%

 

Underlying proposed dividend cover(1)

Times

1.9

1.9

n/a

 

Basic proposed dividend cover

Times

1.6

1.7

n/a

 

Cash flow statement





 

Underlying cash flow from operations(1)

£m

277.1

244.9

+13%

 

Underlying profit from operations cash

conversion

 

Percentage

 

117

 

104

 

n/a

 

Pension deficit contributions

£m

(46.6)

(47.4)

+2%

 

Balance sheet





 

Net borrowing

£m

(218.9)

(169.8)

-29%

 

Committed borrowing facilities maturing between 2017 and 2020

 

£m

 

870.0

 

870.0

 

-

 

Private placement borrowings maturing between 2017 and 2024 (£135 million and

US$ 280 million)

 

£m

 

(360.8)

 

(325.5)

 

 

-11%

 

Convertible bonds maturing by 2019

£m

(170.0)

(170.0)

-

 

Net retirement benefit liability (net of taxation)

£m

(663.2)

(317.6)

-109%

 

Net assets

£m

729.9

1,016.6

-28%

 

(1)

 

Alternative Performance Measures are defined in note 15 on pages 40 to 45.

 



 

 

 

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/1423Y_-2017-3-1.pdf

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Final Results - RNS