Concept design. Operate client-side - Navigate the route to asset creation & change implementation

Transcription

1

2 Who we are Strategic definition Preparation Concept design Navigate local regulations and industry practices Supervise implementation Programme Management & Technical Consultancy Specialize in Asset Creation and International Development Operate client-side - Navigate the route to asset creation & change implementation Strategic relationships based on value High Margins / Low Risk Multi-year contracts and long-term framework agreements Delivered by a team of c.1,500 across UK, Europe, Africa & Asia A global consultancy with a leading position in International Development 2

3 Spread of the business Turnover by region for the 6 months ended 30 September 2014 MENA 13% EAA 30% UK 57% Seven core sectors Urban and Commercial Development Social Development and Infrastructure Defence and Justice Turnover by funding sector Energy and Waste International Development Sector 36% Public Sector 33% Transportation Environment Mining and Metals Private Sector 31% 3

4 Recent achievements Strong momentum following turnaround Transformed the Group: new management team appointed in 2009 reduced headcount by c.60%; closed 40 offices introduced critical risk management and governance processes Adjusted profit / loss before tax () Capital restructuring and refinancing Returned to profitability and improving cash generation New 15m credit facility and return to dividend list FY12 FY13 FY14 Adjusted profit / loss before tax () Accelerating organic and acquisitive growth of the business 4

5 Highlights Strong profit and order book growth with further improvement expected in the second half of the year 13% increase in UK revenue to 40.0m driven by buoyant infrastructure and planning markets Strong contract wins in EEA and MENA following diversification strategy; revenue held back by EU Budget hiatus Prior period focus on quality revenues underpinned improvement in group profitability Acquisition of Alliance Planning creates one of the largest planning businesses in the UK Order book increased by 10% to 95.5m at 30 September 2014 (31 March 2014: 86.8m) International development opportunities have grown post period end 5

6 Consolidated income statement H1 6 months to Sep 2014 H1 6 months to Sep 2013 Revenue Operating profit* Finance costs (0.1) (0.3) Profit before tax* Tax credit/ (charge) 0.1 (0.2) Profit after tax* Adjusted earnings per share* 2.9p 1.8p Revenue in line with H impacted by delayed signing of EU 7 year budget 20% increase in operating profit 0.2m reduction in finance costs reflects tapering cost of legacy bonds Adjusted EPS based on 64.7m shares * before separately disclosed items 6

7 Consolidated balance sheet 30 Sep 2014 actual 30 Sep 2013 actual Goodwill Fixed assets Debtors and WIP Fees in advance (10.4) (13.8) Net working capital Creditors (37.3) (37.2) Legacy provisions (10.4) (16.0) Net cash unrestricted Net cash restricted Total net cash Shareholders funds Conditional fees in advance reduced as expected Debtors and WIP reductions fund fees in advance; target of <90 days achieved 5.6m decrease in legacy provisions; 2.5m decrease due to new sub lease agreements in vacant properties Unrestricted cash impacted in the short term by two contracts in Turkey and mobilization on large scale projects 7

8 Consolidated cash flow statement 12 months to September months to September 2013 Operating profit (before separately disclosed items) Depreciation and amortisation Movement in working capital (1.5) Interest and tax (0.2) (0.7) Capex (2.1) (0.9) Cash flow before legacy issues & acquisitions Movement in bonded fees in advance (3.4) (2.9) Legacy cash costs (3.6) (4.5) Cash flow before acquisitions & disposal costs (3.8) (0.3) Acquisitions and disposals (inc costs) (2.1) (0.6) Net cash flow (5.9) (0.3) Cash reduction driven by: Short term investment in working capital will reverse in Q3 Investment in IT infrastructure across the Group Continued unwind in bonded fees in advance new bonding facility and project pipeline should reverse this trend Investment in acquisitions Reducing legacy cash cost 8

9 Guidance Revenue trend continuation of modest growth in revenues at this stage Gross margin focus on quality revenues; should improve margin by c.1% over last year Operating costs very modest reduction, until we see step change down in property costs in 2017 Interest costs continued reduction as EU bonds mature offset by increased use of new (cheaper) facility Tax still settling down, but sub 10% expected with benefit of UK tax losses Capex slight increase from previous year as we upgrade our IT software, then more like depreciation Debtor & WIP days having reduced to <90 days at 31 March 2014, now targeting further modest improvement Legacy cash costs continues to unwind, annual balance reducing Cash flows underlying cash flows continue to strengthen FY15 should be positive, subject to any investments eg. acquisitions 9

10 Segmental Operating Profit change of format 6 months to 30 Sep months to 30 Sep 2013 m Revenue Operating Profit Margin % Revenue Operating Profit UK EAA MENA Central overhead - (2.0) - (2.0) Total Margin % 10

11 Strategy in action Harnessing our UK expertise and relationships to grow internationally Asset Creation & Development International Development Predominantly UK but moving into Europe / Gulf Strong asset creation & development reputation Blue chip public & private sector client base Transferring core skill set internationally Follow major clients e.g. DFID into fragile states Deliver large scale projects for major funders e.g. EU UK EAA MENA 11

12 UK significantly improved in all key metrics H H Experiencing high demand for services Order book growth of 35% in 12 months ( 50.0m) Revenue Operating profit* Operating margin* 6.8% 6.4% Secured 6 out of 7 key frameworks including MOD PSP Acquisition of Alliance Planning Residential, Energy and Education markets growing significantly UK government agencies and corporates remain core clients Army Basing Programme, UK: optimising the British Army s estate so personnel and their families have a stable base from which to live and work, while Britain as a whole benefits from the economic savings delivered by the project *before separately disclosed items 12

13 EAA EU budget delay offset by growth in Africa H H Revenue* Operating profit** Operating margin** 4.6% 5.9% Europe Order book now increasing - to 34.4m Diversified into commercial development, defence, transport and water sectors Won Poland s first nuclear new build project with Amec Foster Wheeler Localization strategy driving growth - WYG Croatia now market-leader Africa and Asia Delivering challenging programmes for UK plc across fragile states Strengthened operational footprint with investments in Upper Quartile and Delta Partnership Solutions Significant future pipeline of opportunities estimated in excess of 130m International Technical Assistance Programme of Support to Local Economic Development in the Eastern Cape Province, South Africa: tackling poverty through the empowerment of local people *including share of joint venture revenues **before separately disclosed items 13

14 MENA increased profits despite EU budget delays H H Revenue Operating profit* Operating margin* 8.4% 2.6% Market sentiment improving and funding increasing Delivering improved margins Turkey EU budget approval now unlocking key projects with strong future pipeline - order book increased by 25% Diversification continues with success in water and commercial sectors No impact from geo-political situation evident Gulf / MENA Support to UK government agencies and corporates now expanding beyond Afghanistan (KSA and Bahrain) Pursuing project/development manager roles with major UAE investors Murooj, formerly Wadi Al Asla, 25km east of Jeddah, will be home to 170,000 people in a new, sustainable city and regional economic hub. Covering 120km 2 This 15 to 20 year masterplanning project is one of many needed to address the twin issues of population expansion and urbanisation in a sustainable way *before separately disclosed items 14

15 Key growth themes Fragile States & Stabilisation Identified DFID as potential key client (links with existing clients: MOD and FCO) Successful in gaining access to a number of frameworks (GEFA and Wealth Creation) Previously not on the FCAS framework investment in Upper Quartile LLP in May 2013 brought access; acquisition of Delta Partnership Solutions September 2013 awarded first contract in Libya May 2014 awarded up to 28m 3 year, Libya security, justice and defence programme Preserving the Global Environment Linking clients and programmes such as UK Met Office and climate resilience o Tajikistan building climate resilience in the Pyanj River Basin, home to more than 1.2m people, funded by ADB o Southern Africa CRIDF working in consortium on 18.2m contract over 2 years with potential to extend o Turkey various water, waste water and projects using technical references gained in UK and around the world Urban Development & Connected Cities Deploying UK masterplanning and transportation expertise around the world o Murooj, Jeddah, Saudi Arabia masterplanning and infrastructure design for a new city of 170,000 residents, 41,000 houses and associated infrastructure o Bulgaria advising the municipalities of Burgas and Plovdiv on new integrated public transport systems as part of investment programmes totalling c. 75m o Prospects in Qatar, Southern Africa & Turkey 15

16 Conclusion and outlook Further progress, delivering on our strategy with return to profit and improved margin growth Substantial uplift in order book and pipeline Strong cash and working capital management together with new credit facility enabling accelerated investments Improving trading environment both UK and internationally Different from its peers: a highly diversified consultancy Management incentivised to deliver shareholder value Strong platform from which to focus on achieving sustainable growth in asset creation and international development 16

17 Appendices Crown Copyright 17

18 Current and Recent Projects Basing Optimisation Programme UK Region MOD Army Basing Plan: 1.6bn programme to support the return of 16,000 soldiers, their families and equipment from Germany to the UK by 2020 MOD Defence Technical Training Change Programme - November 2013 construction management on 150m major base redevelopment RAF Lyneham Hinkley Point C: First new nuclear power station in the UK for 20 years. From 2023 it will provide sufficient power for almost 6 million homes Liverpool Waters: Regeneration of sixty hectares of historic docklands to bring 5.5bn of inward investment and up to 20,000 jobs to the area Wadi Al Asla International IPF (Infrastructure Projects Facility) Western Balkans: 130 projects leveraging 4.5bn of infrastructure investment. November m extension to 2018 CRIDF (Climate Resilient Infrastructure Development Facility) Southern Africa: 18.2m programme to improve access to water for many of the 95 million population of the region Murooj, Jeddah, Saudi Arabia: Masterplanning and infrastructure design for a new city of 170,000 residents, 41,000 houses and associated infrastructure Covasna Romania: Integrated waste management system to benefit a population of over 200,000 18

19 Shareholders As at 30 September 2014 Shareholder % Cumulative % Robert Keith Hargreave Hale GoldenPeaks Capital River & Mercantile Asset Management Artemis Investment Management Soros Fund Management Henderson Global Investors Fidelity Worldwide Investment Franklin Templeton Fund Management Majedie Asset Management Unicorn Asset Management Others

20 The team Paul Hamer, Chief Executive Officer Appointed Chief Executive in March 2009 Previously Managing Director of VT Nuclear Services, part of Babcock International, and brings with him over 20 years experience in business management, leadership and project delivery Held several senior executive positions in the contracting, nuclear, oil, chemical and petrochemical sectors Chairman of Green Economy Panel Leeds City Region LEP Sean Cummins, Group Finance Director Joined WYG in Dec 2011 as Group Finance Director Previously Group Finance Director at Scott Wilson Group plc and Yule Catto & Co plc 25 years' experience of commercial and operational financial management, including the last 13 years as Finance Director of a plc Graham Olver, Chief Operating Officer Joined WYG in August years UK and International experience as a contractor, developer, investor and COO of a portfolio of high profile innovative infrastructure projects around the world including PPP, Concessions and project finance projects in Energy, Transport, Water, Schools and Hospitals and related international mergers and acquisitions, joint ventures and partnerships Held senior director positions at ALSTOM, RWE Thames Water, Skanska Infrastructure Development Chairman of British Expertise the leading UK private sector organisation for British companies offering professional services internationally 20