1 / 29

February 2005

Investor Relations Presentation. February 2005. Disclaimer.

garlow
Download Presentation

February 2005

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. Investor Relations Presentation February 2005

  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 2001 (the “Order”) or (b) any other persons to who it may otherwise lawfully be communicated, falling within Article 49(1) 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 2004, 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. Record results again driven by operational performance Construction Generated good cash flow Margins up to 1.2% Order book up to £957m Housebuilding Margins up to 13.3% Expansion going to plan Encouraging level of sales since Christmas Management succession Good growth opportunities Introduction Overview

  4. Turnover steady at £347 million Profit before tax up 22% at £11.7 million Earnings per share up 19% at 3.7p Interim dividend up 9% at 0.60p per share Net debt of £10.3 million represents gearing of 13% Financial Review Highlights

  5. Financial Review Summary Profit & Loss Account For the half year ended 31 December 2004 (£m) Dec 2004 (£m) Dec 2003 Turnover (including joint ventures) 347.6 356.4 Profit before interest 12.8 11.4 Interest (1.1) (1.8) Profit before tax 11.7 9.6 Diluted earnings per share 3.5p 2.9p Dividend per share 0.60p 0.55p

  6. Financial Review Segmental Analysis For the half year ended 31 December2004 Group Turnover (£m) (including joint ventures) Profit/(loss) (£m) Dec 2003 Dec 2004 Dec 2004 Dec 2003 Construction 256.1 268.7 3.0 2.0 Housebuilding 91.1 87.6 12.1 11.2 Group 0.3 0.1 (2.3) (1.8) 347.5 356.4 12.8 11.4 Less net interest payable (1.1) (1.8) Profit before tax 11.7 9.6

  7. Financial Review Cash Flow Summary For the half year ended 31 December 2004 Dec 2003 (£m) Dec 2004 (£m) Group operating profit 12.7 11.0 Increase in stock and developments (10.0) (6.1) (Decrease)/increase in land creditors (3.7) 1.9 Decrease in debtors 21.1 1.7 (Decrease)/increase in other creditors (10.6) 2.3 Interest, tax, dividends, share capital & other movements (7.5) (4.6) Net inflow 2.0 6.2 Net debt brought forward (12.3) (17.8) Net debt carried forward (10.3) (11.6)

  8. Financial Review Balance Sheet, Financing Dec 2004 (£m) Dec 2003 (£m) Shareholders’ funds 79.4 65.5 Net debt 10.3 11.6 Total capital employed 89.7 77.1 Gearing 13% 18% Interest cover 11.6 6.3

  9. Construction Key Highlights • United Utilities AMP4 • Three LIFT schemes closed • Caludon Castle, Coventry PFI on site • Scottish Water • Regeneration Contractor of the Year • Wimbledon redevelopment

  10. Construction Profitability % Net Margin 1.2% 0.9% 0.8% 0.6% -0.9%

  11. Construction Market Overview • General market set for 2% - 3% in growth medium term • Health & Education remain strong • Rail opportunities increasing • Affordable Housing • Some signs of recovery in commercial market • Water - AMP 4 revenues maintained

  12. Construction Water • United Utilities - AMP 4 • Scottish Water performing to expectations • Welsh Water - Holyhead • Activity levels unchanged AMP 3 - AMP 4

  13. Construction Health • Three LIFTS now closed • Seven projects on site • Next tranche about to commence • Significant opportunities emerging • Government announce next LIFT schemes

  14. Construction Education • Acknowledged as education specialists • Northampton Schools – Preferred Bidder • Both Rochdale & Bromsgrove at ITN stage • Building Schools for the Future

  15. Construction Affordable Housing • Significantly increased forward order book • Strengthened senior management team • Further potential in strategic alliances • Regeneration Contractor of the Year

  16. Construction Commercial • Recent contract awards • Prestigious client base • Technically challenging • Mixed use schemes more common • Selectivity still essential

  17. Construction Forward Order Book Work In Hand (£m) Turnover (£m) Half Year to Dec 04 Total Work In Hand Non Price Competitive Market Sectors Total Non Price Competitive 54.5 Water 334.0 334.0 15.6 Rail 52.3 52.3 19.1 Infrastructure 53.7 50.6 9.0 Health 126.6 123.3 38.2 Education 134.6 119.2 52.2 Commercial 120.1 75.5 23.8 Interiors 22.4 20.8 22.8 Affordable Housing 103.7 101.7 13.3 Telecommunications 6.1 6.1 7.6 Ground Engineering 3.1 2.4 256.1 956.6 885.9 93%

  18. Construction Summary and Outlook • Profit progression maintained • Quality of order book across chosen markets • Preferred bidder opportunities • All business units performing to expectation • Growth in profits set to continue

  19. Record profits and improved margins Cost reductions achieved Land bank increased Excellent customer satisfaction results Strong “in-hand” position Expansion going to plan Housebuilding Housing Highlights

  20. Housebuilding Key Statistics 6 months to December 2004 2003 Increase % Units 387 367 5.4 ASP £000 228 228 - Income per Sq. Ft. £ 220 197 11.7 Turnover £m 91.1 87.6 4.0 Operating Profit £m 12.1 11.2 8.0 Margin % 13.3 12.8 3.9 ROCE % 22.5 21.6 4.2 Sales in hand February 05 £m 165.6 171.1 (3.2) Landbank February 05 units 2,4642,3425.2 Strategic land February 05 acres 666 676 (1.5)

  21. Minimal house price inflation Increased use of sales incentives Sub-contractors becoming more competitive Shortage in supply continues to underpin market Encouraging sales rate since Christmas Good opportunities in affordable housing Individually designed schemes and conversion Housebuilding Market Conditions and Focus

  22. Units 60 Average selling price £000 268 Brownfield and conversion 100% Customer satisfaction 98% Achieved planned performance Housebuilding Try Homes Thames Valley

  23. Units 76 Average selling price £000 278 Brownfield and conversion 100% Customer satisfaction 90% Exceeded planned performance Housebuilding Try Homes Southern

  24. Housebuilding Stamford Homes • Units 130 • Average selling price £000 176 • Brownfield and conversion 58% • Customer satisfaction 92% • Exceeded planned performance • New management team performing well

  25. Housebuilding Midas & Gerald Wood Homes • Units 121 • Average selling price £000 232 • Brownfield and conversion 59% • Customer satisfaction 95% • Exceeded planned performance • Geographic expansion proceeding to plan

  26. Large growth area Important part of business Expertise in collaborative developments Market leader in Southwest Housebuilding Affordable Housing

  27. Expect to achieve full year planned performance All business units performing well Current market conditions sustainable Stringent land buying criteria with market more realistic Well placed to maximise opportunities from affordable housing Confident of achieving expansion plan Housebuilding Summary & Outlook

  28. Summary and Outlook David Calverley - Chief Executive

  29. Construction prospects underpinned by: Improving profit margins Balanced workload Housebuilding: Current market conditions sustainable Development led affordable housing a growth area Strength and depth of management team Business well positioned for further growth Summary and Outlook

More Related