Last checked at 3 Mar 2016 07:00
3 March 2016
Annual results for the year ended 31 December 2015
Performance in line with expectations
2015 |
2014 |
Change | |
Revenue | £4,586.9m | £4,071.9m | +13% |
Underlying profit from operations(1) | £234.4m | £216.9m | +8% |
Underlying operating margin(1) | 5.3% | 5.6% | n/a |
Underlying profit before taxation(1) | £176.5m | £172.9m | +2% |
Underlying earnings per share(1) | 35.0p | 33.7p | +4% |
Profit before taxation | £155.1m | £142.6m | +9% |
Basic earnings per share | 30.9p | 28.0p | +10% |
Proposed full-year dividend per share | 18.25p | 17.75p | +3% |
Underlying profit from operations cash conversion(1) | 104% | 119% | n/a |
· Financial performance in line with expectations
- Strong revenue growth of 13%, of which 10% was organic, with organic growth in all business segments
- Good growth in underlying profit before taxation and earnings per share
- Strong underlying cash flow from operations
- Net borrowing reduced to £169.8 million at 31 December 2015 (2014: £177.3 million)
- Considerable financial strength with some £1.4 billion of funding available to support our strategy for growth
· Robust, high-quality order book and a growing pipeline of contract opportunities
- New orders and probable orders worth £3.7 billion (2014: £5.1 billion), reflecting the expected impact in the first half of the UK General Election, with £2.7 billion secured in the second half of the year
- Total value of secured and probable orders remained strong at £17.4 billion (2014: £18.6 billion), after removing £0.3 billion from the order book due to selling equity investments in Public Private Partnership projects
- Strong revenue visibility(2) for 2016 of 84% (2014: 85% for 2015)
- Awarded framework agreements worth over £2.0 billion, which is not yet included in the order book or in probable orders, but will give further revenue growth opportunities
- Pipeline of specific contract opportunities increased to £41.4 billion (2014: £39.2 billion) in markets offering good growth potential
· Proposed full-year dividend increased by 3% to 18.25p (2014: 17.75p)
· Well positioned to make further progress in 2016
(1) | The underlying results stated above are based on the definitions included in the key financial figures on page 3. |
(2) | Based on expected revenue and secure and probable orders, which exclude variable work, frameworks and re-bids. |
Carillion Chairman, Philip Green, commented:
"Our performance in 2015 reflects the benefits of our consistent and successful strategy, which enabled us to rescale and reposition our business during the economic downturn in order to take advantage of opportunities for growth as market conditions improve. Growth in revenue, underlying profit before taxation and earnings per share was primarily organic, following the successful mobilisation of a number of major new contracts, supplemented by two bolt-on acquisitions, the Rokstad Corporation and the Outland Group, which have significantly enhanced our support services business in Canada. With a strong, high-quality order book, a large and growing pipeline of contract opportunities and the financial strength to support our strategy for growth, the Group is well positioned to make further progress in 2016."
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: 635 277. A replay facility is also available for 30 days, the telephone number is +44 (0) 207 136 9233 - Access Code: 21434873.
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:
Richard Adam, Group Finance Director John Denning, Group Corporate Affairs Director Finsbury - James Murgatroyd and Gordon Simpson | tel: +44 (0) 1902 422431 tel: +44 (0) 1902 422431 tel: +44 (0) 20 7251 3801 |
3 March 2016
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 2015 of some £4.6 billion, employs around 46,000 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.
Photographs:
High resolution photographs are available free of charge to the media at www.newscast.co.uk telephone + 44 (0) 208 886 5895.
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.