TIDMCLLN
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) GBP5,214.2m GBP4,586.9m +14%
-------------------------------- ------------ ------------ --------
Group revenue GBP4,394.9m GBP3,950.7m +11%
-------------------------------- ------------ ------------ --------
Underlying profit before
taxation(1) GBP178.0m GBP176.5m +1%
-------------------------------- ------------ ------------ --------
Underlying earnings per
share(1) 35.3p 35.0p +1%
-------------------------------- ------------ ------------ --------
Profit before taxation GBP146.7m GBP155.1m -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 GBP218.9 million at 31 December 2016
(2015: GBP169.8 million) and average net borrowing(1)
for 2016 of GBP586.5 million (2015: GBP538.9 million),
with the increases mainly reflecting adverse
movements in foreign exchange rates
* High-quality order book and strong pipeline of
contract opportunities
* GBP4.8 billion of new orders and probable orders in
2016 (2015: GBP3.7 billion)
* High-quality order book plus probable orders worth
GBP16.0 billion at 31 December 2016 (2015: GBP17.4
billion)
* Revenue visibility(2) for 2017 of 74 per cent (2015:
84 per cent for 2016)
* Expect over GBP1.5 billion of revenue from framework
agreements not yet included in orders, probable
orders or revenue visibility
* Substantial pipeline of contract opportunities worth
GBP41.6 billion (2015: GBP41.4 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 tel: +44 (0) 1902 422431
Director tel: +44 (0) 1902 422431
John Denning, Group Corporate
Affairs Director
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 GBP5.2 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 GBPm 5,214.2 4,586.9 +14%
Underlying operating
profit(1) GBPm 253.9 244.4 +4%
Underlying profit from
operations GBPm 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 GBPm 178.0 176.5 +1%
Profit before taxation GBPm 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) GBPm 277.1 244.9 +13%
Underlying profit from
operations cash
conversion Percentage 117 104 n/a
Pension deficit contributions GBPm (46.6) (47.4) +2%
Balance sheet
Net borrowing GBPm (218.9) (169.8) -29%
Committed borrowing facilities
maturing between 2017
and 2020 GBPm 870.0 870.0 -
Private placement borrowings
maturing between 2017
and 2024 (GBP135 million
and
US$ 280 million) GBPm (360.8) (325.5) -11%
Convertible bonds maturing
by 2019 GBPm (170.0) (170.0) -
Net retirement benefit
liability (net of taxation) GBPm (663.2) (317.6) -109%
Net assets GBPm 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
END
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