1 / 37

Interim Results Presentation, Half Year to 31 December 2007 Greg Fitzgerald - Chief Executive

Interim Results Presentation, Half Year to 31 December 2007 Greg Fitzgerald - Chief Executive Frank Nelson - Finance Director. Disclaimer.

duard
Download Presentation

Interim Results Presentation, Half Year to 31 December 2007 Greg Fitzgerald - Chief Executive

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Interim Results Presentation, Half Year to 31 December 2007 Greg Fitzgerald - Chief Executive Frank Nelson - Finance Director

  2. Disclaimer This presentation is being made only to and is directed at (a) persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (b) any other persons to who it may otherwise lawfully be communicated, falling within Article 49(2) of the Order (all such persons being referred to as “relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its comments. The financial information set out in this document does not constitute the Company’s statutory accounts. Statutory accounts for 2007, which received an auditors’ report that was unqualified and did not contain any statement concerning accounting records or failure to obtain necessary information and explanations, have been filed with the Registrar of Companies.

  3. Agenda • Key Highlights • Financial Overview • Operating Review • Summary and Outlook Marks and Spencer, Cheshunt

  4. Key Highlights

  5. Key Highlights • Strong financial results • Significant increase in Earnings Per Share • Forward Order Book in construction maintained • Affordable Housing and Regeneration growing strongly • Acquisition of Kendall Cross • Low gearing supported by construction cash flows • Successful integration of Linden Homes

  6. Financial Overview

  7. Financial Overview Highlights • Group revenue £898m, 48% increase • Profit before tax £33.8m • 63% increase on 2006 pre-exceptional, 56% on 2006 post-exceptional • Earnings Per Share 6.4p • 21% increase on 2006 pre-exceptional, 14% on 2006 post-exceptional • Dividend 0.9p, 12.5% increase

  8. Financial Overview Highlights • Net debt £46m representing gearing of 14% • Return on average shareholders’ funds of 22% • Tax charge of 29% • 5 year Bank facility to 2012 • Joint Venture with Bank of Scotland in place

  9. Financial Overview Income Statement: 6 months to 31 December 2007 * Profit from operations is stated before finance costs, exceptional items, amortisation and share of joint ventures’ interest and tax

  10. Financial Overview Segmental Analysis: Operating Profit - 6 months to 31 December 2007 *Profit from Operations

  11. Financial Overview Segmental Analysis: Profit Before Tax - 6 months to 31 December 2007 *Management estimate of interest allocation

  12. Financial Overview Share of the Cake: Net Profits for 6 months to 31 December * 2007 2006 * Excludes Group and PPP Investments

  13. Financial Overview Finance Costs: 6 months to 31 December 2007

  14. Financial Overview Balance Sheet Highlights: As at 31 December 2007 * Includes £19m net pension deficit (2006: £35m)

  15. Financial Overview Cash Flow Summary: 6 months to 31 December 2007

  16. Operating Review - Building

  17. Operating Review - Building Key Highlights • Good market conditions although commercial slowing • Strong performance from all business units • Secured 60% of next year’s workload • Increased market presence in the North • FM business encouraging start Westminster Academy, London

  18. Operating Review - Building Key Highlights • Major contracts proceeding well • Longer lead time to commencement • Strong cash generation • Good pipeline of opportunities Centre Court, Wimbledon

  19. Operating Review - Building Forward Order Book: February 2008 * Excludes Affordable Housing

  20. Operating Review - Infrastructure

  21. Operating Review - Infrastructure Key Highlights • Strong market conditions • Growth of over 25% in current year • Delivering upper quartile returns • Secured 58% of next year’s workload • Industry leading performance in Water Whitelee Windfarm, Scotland

  22. Operating Review - Infrastructure Key Highlights • Further Flood Alleviation workload through Environment Agency framework • Development and growth of Renewables capability • Good progress on Whitelee and Olympic contracts • Excellent customer satisfaction results Olympic Park

  23. Operating Review - Infrastructure Forward Order Book: February 2008

  24. Operating Review - Investments

  25. Operating Review - Investments Key Highlights • Achieved financial closeon £32m St Andrews Community Hospital • Directors’ valuation continues to show significant uplift • £50m Worcester Library bid submitted • £1.2bn Birmingham BSF bid submitted • Good pipeline of future projects in England Community Hospital & Health Centre, St Andrews

  26. Operating Review - Affordable Housing and Regeneration

  27. Operating Review - Affordable Housing and Regeneration Key Highlights • Awaiting confirmation of HC Grant 08-11 • Increase in number of frameworks • Expansion into North East through acquisition of Kendall Cross • Hybrid model attractive in the market place • Greater market coverage post Linden Homes Housing Corporation NAHP Prospectus

  28. Operating Review - Affordable Housing and Regeneration Key Highlights • Well positioned for future releases of public sector land • Secured largest site in EP Hospital disposal Programme • Estate regeneration schemes in Grimsby and Plymouth contracted • National regeneration award winner • Enhanced revenues achieved Graylingwell, Chichester

  29. Operating Review - Affordable Housing and Regeneration Key Statistics: including share of joint ventures

  30. Operating Review - Housebuilding

  31. Operating Review - Housebuilding Key Highlights • Record results • Bank of Scotland Joint Venture • Low levels of stock property • Development portfolio helping to mitigate difficult market conditions • Industry leading customer satisfaction • National Housebuilder of the Year second year running Tides Reach, Wadebridge

  32. Operating Review - Housebuilding Key Statistics: including share of joint ventures *Includes private housing, S106 and regeneration (excluding contracting)

  33. Operating Review - Housebuilding Linden Homes Integration • Forecast synergy savings exceeded • Delivering procurement savings from enlarged housebuilding division • Linden London acquired first site • Low levels of staff turnover • Best practice rolled out Watercolour, Redhill Surrey Watercolour, Redhill Surrey

  34. Operating Review - Housebuilding Market Outlook • Market not expected to recover in short term • South East market more robust and less price sensitive • Part exchange – important tool in current market • Business units targeting reduction in supply chain prices • Land market starting to soften • Market fundamentals in medium term remain sound Fairfield Park, near Letchworth Fairfield Park, near Letchworth

  35. Summary and Outlook

  36. Summary and Outlook • Strong half year performance • Hybrid model working well • Good market conditions in Building, Infrastructure and Affordable Housing • Difficult housing market • Strong team focussed on challenges ahead

  37. Interim Results Presentation, Half Year to 31 December 2007 Greg Fitzgerald - Chief Executive Frank Nelson - Finance Director

More Related