DARTFORD, England, Sept. 6, 2013 /PRNewswire/ --
Financial Highlights
- Managed revenue increased 2 per cent to GBP4.4 billion (GBP4.3 billion: 2011/12).
- Pre-exceptional EBIT increased 45.2% to GBP78.0 million (GBP54.0 million: 2011/12).
- Pre-exceptional EBIT for Europe Hub to GBP49.0 million and Australia Hub at GBP29.4 million.
- Profit before tax increased 144% to GBP57.0 million (GBP23.4 million: 2011/12)
- Group tax charge of GBP13.2 million, which equates to an effective tax rate of 23.2% in 2012/13.
- Maintained strong gross cash position of GBP684 million.
- Improvement in net cash position of GBP89 million to GBP410 million.
- Exceptional costs before tax of GBP23.4 million in the period, almost entirely related to a non-cash impairment against the land & development portfolio.
- High quality order book of GBP8.2 billion creating good medium-term earnings visibility.
- 91% of revenue secured for 2013/14 performance period.
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Performance Review
- Strategy execution gathering pace across Europe and Australia Hubs.
- Prestigious project wins from new clients in key sectors and markets.
- Increasing repeat orders and contract extensions from existing clients up to 71%.
- Commercial discipline converting opportunity pipeline into higher-value project portfolio.
- Mission Zero health and safety campaign now firmly embedded globally, following successful roll-out across the Australia Hub with a reduced Accident Frequency Rate of 0.21 (AFR 0.24: 2011/12).
- Digital engineering and Design for Manufacture and Assembly (DfMA) methodology creating efficiencies in project delivery and operational performance.
- Continued focus on human capital agenda, with substantial commitment to enhancing engineering capability and education partnerships.
- Strengthened corporate governance framework through better integration of core processes, senior appointments - Anna Stewart as Group Chief Executive, David Stewart as Chief Executive of Australia Hub and Callum Tuckett, Group Director, Finance and Commerce - and creation of Group Management Committee.
Outlook
- Drive the competitive advantage of our Unique Business Offering despite continuation of challenging market conditions.
- Moderate growth in managed revenue and pre-tax earnings can be expected for the Group through to 2015, given the prevailing market conditions.
- Group well positioned to achieve its medium-term goals in the period to 2015.
- Good future revenue visibility and an attractive pipeline of contract opportunities in key sectors, including nuclear, mining, rail, and oil and gas.
- A higher rate of return on equity is planned for the Group with the anticipated benefit of delivery efficiencies derived from the widespread deployment of Design for Manufacture and Assembly (DfMA), plus greater cost efficiencies in Group overheads providing a more competitive price point to customers
- Laing O'Rourke remains on track to deliver its 2013/14 financial targets and, beyond these, is well positioned to achieve its strategic objectives over the medium to long-term.
Commenting Ray O'Rourke, Group Executive Chairman said:
"Laing O'Rourke has delivered another creditable performance, generating strong cash flows, earnings and forward orders. We also made good progress against our strategic mission to become an enduring engineering enterprise that delivers Excellence Plus performance for our clients, and on the key actions that we are taking to deliver strong, stable and sustainable revenues over time."
Anna Stewart, Group Chief Executive said:
"In 2012, we established our Group Strategic Roadmap, putting in place the right foundations to deliver on our 2020 objectives over the next three to five years. We delivered another resilient performance and made strong progress against the key elements of our strategic plan to become the first choice engineering and construction partner for clients."
Callum Tuckett, Group Finance and Commerce Director said:
"The Group has performed well and, as we had planned, built additional resilience in 2012/13. We have an appropriate capital structure, good cash flows and a strong order book providing sufficient financial resources, which combined with a Unique Business Offering and long term relationships with major clients across high value sectors, puts us in a strong position to move forward with confidence."
The full 2013 Annual Review is now available to read and download on the Laing O'Rourke website (http://www.laingorourke.com).
