Interim Results for 6 months to 30 September 2014

Transcription

1 Interim Results for 6 months to 30 September 2014

2 Ian Lawson Chief Executive Officer 2

3 Overview Positive set of results Underlying profit before tax of 3.0m UK margins up at 3.7% Improved cash performance India: operating margins up at 4.3%, losses reduced to 0.3m Improved UK order book of 185m Consistent India order book of 38m Encouraging level of new opportunities in the pipeline 3

4 Our future Capitalising on an improving economy Improve margins to 5-6% over next 18 months Potential to improve margins further as order book grows Continue to develop India into a sustainable business Increase market share in UK Considering new market sectors Potential to grow the number of European contracts Capital investment of c 5m p.a. Continuing investment in our people and health and safety management 4

5 Alan Dunsmore Finance Director 5

6 Income statement ( m) 6 months to 30 Sept months to 30 Sept 2013 Revenue Underlying Group operating profit (before JVs and associates) 3.6 (3.7%) 3.0 (2.5%) Results of JVs and associates (0.3) (1.3) Net finance charges (0.3) (0.2) Underlying profit before tax Tax (0.6) (0.6) Underlying profit after tax

7 Revenue m Revenue and margin % 300 In line with stated target of 5-6 % in current market conditions. 6.0% % 2.0% % % % % H Margin recovery on track H % 7

8 Financial highlights - India Production volume 23,000 tonnes (2013: 10,000 tonnes) Revenue 20.8m (2013: 11.9m) Operating margins 4.3% (2013: -15.1%) Order book 38m (May 2014: 41m) Higher production volumes driven by lower margin industrial work Better overhead recovery to deliver stronger overall operating margins Order book held steady alongside increase in production Financing costs result in reported net share of loss 8

9 Statutory profit reconciliation ( m) 6 months to 30 Sept months to 30 Sept 2013 Underlying profit after tax Amortisation of acquired intangible assets (1.3) (1.4) Restructuring and redundancy costs - (2.6) Impairment of investment in associates - (0.4) Movements in value of derivative financial instruments Tax on non-underlying items Statutory profit/(loss) after tax 1.4 (2.5) Underlying EPS* 0.83p 0.28p EPS 0.48p (0.86p) * There is no difference between basic and diluted EPS in both years. 9

10 Balance sheet ( m) 30 Sept Mar 2014 Non-current assets Current assets: Inventories Trade & other receivables Cash & cash equivalents Total assets Less: Current liabilities (43.2) (52.7) Borrowings (1.0) (5.2) Retirement benefit obligations (13.7) (12.5) Deferred tax liabilities (4.8) (5.9) Total liabilities (62.6) (76.4) Net assets

11 Net funds - Mar 14 Operating cash flow Working capital improvement Sale of property Capex India equity Net funds - Sept 14 million Cash flow Net funds bridge period ended September Purchase of production machinery and site plant and equipment to improve efficiencies (3.2) 8.0 (1.7) Sale of investment properties New 25m RCF facility agreed with HSBC and National Australia Bank - matures in July 2019 Accordion facility of 20m available at Group s request Leverage covenant of <2.5x, interest cover covenant of >4x (0.7) 11

12 Ian Lawson Chief Executive Officer 12

13 Order book 250 Order book values ( m) Dec-12 May-13 Aug-13 Nov-13 May-14 Nov-14 13

14 Market sectors Power & Energy Stadia & Leisure Health Education Bridges City Centre & Retail Commercial Offices Industrial & Warehousing Transport Data Centres 14

15 UK order book Sector November m May m November m Commercial Offices 27% 31% 39% Transport 22% 16% 21% Industrial 16% 11% 16% Data Centres & Other 5% 7% 9% Stadia & Leisure 5% 18% 5% Retail 6% 4% 3% Bridges 3% 4% 3% Power & Energy 12% 7% 2% Health 3% 2% 2% Education 1% - - Future Trend 15

16 Current projects 1. Westfield Shopping Centre, Bradford 2. Nova, Victoria 3. Carrington Power Station 4. Manchester City Football Club 5. London Bridge Canopies 6. Microsoft, Amsterdam 7. LDC6 Data Centre, Slough 8. New London Embassy 9. WAV Bridge

17 UK production Current Group output 90,000 tonnes Total Group capacity 150,000 tonnes Severfield (UK) Dalton Total capacity 100,000 tonnes Severfield (UK) Lostock Severfield (Design & Build) Sherburn Total capacity 25,000 tonnes Severfield (NI) Enniskillen Total capacity 25,000 tonnes Capacity available to take work on at the right price 17

18 Prospects 1. Data Centre, Finland 2. Buchanan Galleries, Glasgow 3. Battersea, Phase 2 4. Newfoundland Tower, Canary Wharf 5. Westfield White City Retail Extension 6. Watermark West Quay, Southampton 7. Uniserve, Felixstowe 8. Waste to Energy Plant, Dublin

19 India Order book 38m Operating margin 4.3% Marketplace: Conversion of the market from concrete to steel Industrial vs commercial New government spend Our JV partners future spend 19

20 Current projects - India 1. JSW Barmill and Sinter Plant, Bellary ( 11.6m) 2. NetApp, Bangalore ( 10.3m) 3. Intel, Bangalore ( 7.6m) 4. Reliance, Mumbai ( 6.5m)

21 Prospects - India 1. Rajaswa Bhawan (Tax Office), New Delhi 2. Maker Maxity Hotel Building, Mumbai 3. Oberoi Car Park, Mumbai 4. ITC Food Factory, Chennai 5. Doosan Kurgi Project, Karnataka 6. Billet Caster Extension, Dolvi

22 Group outlook UK markets showing clear signs of growth evidenced by strengthening pipeline Available capacity within our facilities to take on work at the right price Strengthening operating performance Improving position in India 22

23 Thank you slide Thank you Interim Results for 6 months to 30 September 2014