Seems yesterday's results story still strikes a chord with investors today. That's good as often initial, on the day enthusiasm drifts subsequently. I don't think this is a quick turnaround and no way are we powering up back to 600 but a quid is a decent price with a lot more upside than downside in the medium term. Chairman Soames seems to be getting it right.
Underlying Trading Profit of £96m, ahead of our guidance provided at the time of the Rights Issue of £90m. · Reported Trading Profit of £138m, significantly higher than Underlying Trading Profit, benefiting from £21m net release of Onerous Contract Provisions and Contract and Balance Sheet Review items, £9m one-off profit on a contract termination and £12m beneficial impact of assets held for sale. · Exceptional operating charge of £188m, of which £166m are non-cash losses on disposals and impairments. · Free Cash Outflow of £16m, better than previously anticipated. · Net Debt reduced by £605m to £78m, as a result of the Rights Issue and offshore BPO disposal proceeds. Net Debt:EBITDA around 0.5x. · £1.8bn total value of signed contracts, representing more than 700 individual customer orders of which 10 are worth more than £50m each. · Pipeline of larger new bid opportunities increases by approximately £1.5bn to £6.5bn. · Operating costs reduced by over £330m, broadly in proportion with revenue reduction. · Guidance for 2016 reiterated - Revenue expected to reduce to approximately £2.8bn and Underlying Trading Profit to around £50m as a result of BPO disposal and contract attrition.
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