Shanks Group plc. 2006/7 Interim Results

Transcription

1 Shanks Group plc 2006/7 Interim Results

2 2006/7 Interim Results Highlights Financial Review Operational Review Michael Averill Group Chief Executive Fraser Welham Group Finance Director Michael Averill 2

3 2006/7 Interim Highlights Headline profit* 19.7m (2005/6: 17.5m # ) Continuing turnover 247m (2005/6: 225m # ) Continuing PAT 14.7m (2005/6: 8.0m # ) Adjusted eps* 5.6p (2005/6: 4.9p # ) Interim dividend 1.9p (2005/6: 1.9p) * Before IAS39 fair value adjustment # Restated 3

4 Operating Highlights Overall performance in line with plan Recent acquisitions performing well ELWA Frog Island fully operational ELWA Jenkins Lane on schedule D&G commissioning ahead of plan Lower contribution from Scottish PFI landfills Benelux strong 4

5 Financial Review Fraser Welham

6 Continuing Business Summary - m 06/7 H1 05/6 H1 # 05/6 FY Turnover Operating Profit Finance Charges (3.0) (2.9) (4.9) Headline Profit IAS 39 adj. 2.3 (5.0) (3.7) PBT continuing # Restated for Financial Asset accounting & Flection disposal 6

7 Business Summary cont. - m 06/7 H1 05/6 H1 # 05/6 FY PBT continuing Tax - Headline 34% (6.6) (6.0) (11.6) Tax - IAS 39 adj. (0.7) PAT continuing PAT disc. - operations - (0.7) (0.7) PAT disc. - disposal Profit for Period # Restated for Financial Asset accounting & Flection disposal 7

8 Group Cash Flow - m 06/7 H1 05/6 H1 # Core PFI Total Total Diff Operating Profit Depn/Landfill Provs EBITDA W orking Cap (8) 1 (7) (18) 11 Capex/Acq (68) (12) (80) (34) (46) Int, Tax, Divs, Other (13) (4) (17) (19) 2 Underlying (50) (15) (65) (35) (30) Discontinued / Excep (32) Exchange Debt Movement (45) (15) (60) (1) (59) # Restated for Financial Asset accounting & Flection disposal 8

9 Net Debt - m Sept 06 Mar 06 Diff Core (121) (76) (45) PFI excl. IAS 39 adj. (121) (106) (15) Total excl. IAS 39 adj. (242) (182) (60) IAS 39 adj. (5) (7) 2 Total (247) (189) (58) 9

10 Group Balance Sheet - m Sept 06 Mar 06 Diff PFI Financial Assets PFI Net Debt (126) (113) (13) PFI Net Financial Assets Intangible Assets Non-current Assets Current Net Liabilities (28) (24) (4) Long Term Liabilities (63) (44) (19) Net Debt (121) (76) (45) Net Assets

11 Other Financial Information 06/07 H1 05/06 H1 Adjusted eps* 5.6p 4.9p # Basic eps (cont.) 6.3p 3.4p # Basic eps (total) 6.3p 5.9p + / exchange rate Average Trading Closing Balance Sheet * Eps from continuing operations before exceptional items # Restated for Financial Asset accounting & Flection disposal + Restated for Financial Asset accounting only 11

12 Operational Review Michael Averill

13 Segmental Analysis - m Turnover H1 Operating Profit H1 06/7 05/6 # % 06/7 05/6 # Var United Kingdom (0.2) Belgium Netherlands Central Services - - (2.6) (2.3) (0.3) Continuing Discontinued - 23 n/a (0.4) TOTAL n/a # Restated for Financial Asset accounting & Flection disposal 13

14 United Kingdom MFA - m 06/7 H1 05/6 H1 # Change Operating Profit (0.2) Major Factors: Collections and recycling 1.0 Overheads / Other 0.8 Contaminated Land (1.1) Joint Ventures 0.2 PFI - A&B / D&G (0.6) - ELW A (0.5) (0.2) # Restated for Financial Asset accounting 14

15 United Kingdom Core Joint Ventures up Contaminated Land down Solid Waste continues to improve Recycling increasing rapidly Scottish acquisitions integrating well 15

16 UK PFI ELWA Frog Island 16

17 UK PFI ELWA Frog Island 17

18 UK PFI ELWA Jenkins Lane 18

19 UK PFI - Dumfries & Galloway 19

20 UK PFI - D&G biofilter 20

21 United Kingdom PFI A&B ( 0.5m) and D&G ( 0.1m) lower 3 rd party volumes down Increased regulatory costs on landfill engineering and landfill restoration Mitigation programme commenced MBT process unaffected 21

22 United Kingdom PFI cont. ELWA 1 st phase fully operational ELWA 2 nd phase and D&G in H2 Fuel delivery commenced ELWA price increase in mid 2007 addresses current profit squeeze Cumbria decision imminent Bid pipeline significant 22

23 Local Authority Tenders Emerging Approximate annual volumes Due in 2007 Ktes Ktes Derbyshire 520 Northamptonshire 350 Neath Port Talbot 160 Edinburgh & Lothians 550 Essex 900 Bedfordshire 350 Merseyside 800 N&S Lanarkshire 380 Cheshire 450 Milton Keynes 100 Leeds 380 Norfolk Part B 250 North Yorkshire 500 Swansea

24 Belgium MFA - m 06/7 H1 05/6 H1 Change Operating Profit Major Factors Landfill (0.3) Solid W aste 0.5 Hazardous W aste 0.3 Liège contract 0.2 Other (incl. exchange)

25 Belgium Wallonia, Flanders and Brussels all improved Cont d bonus public sector landfill volumes Renewed Liège contract performing to plan Hazardous waste improving 25

26 Netherlands MFA - m 06/7 H1 05/6 H1 # Change Operating Profit Major Factors Smink (inc. synergies) 1.3 Solid W aste 0.6 ATM (0.5) Reym 0.5 Other (incl. exchange) (0.2) 1.7 # Restated for Flection disposal 26

27 Netherlands Smink acquisition 63m net acquisition price 5x EBITDA New contiguous geography Core business German effect reduced Construction industry buoyant Reym performing strongly ATM shutdown timing 27

28 Outlook Acquisitions contributing Further acquisitions under evaluation PFI bidding activity increasing Confidence in full year 28