Group highlights:
Continued tough market conditions throughout the year:
o Some signs of increased activity and market confidence through the second half
o Order book up 8%. Regeneration & development pipeline up 23%
Margins remain under pressure, mainly in Construction & Infrastructure and Affordable Housing, due to high
competition and increased input costs
Strategic focus on:
o Maximising returns from existing schemes - regeneration developments and construction frameworks
o Differentiation through complex construction and development schemes, requiring an integrated Group
approach
Strong cash management with average debt levels showing improvement on 2012. Net cash of £70m at year end
£1.7m increase in exceptional charge to £14.7m (in relation to four old construction contracts announced at the half year) due to commercial settlement of one contract in the second half
Total dividend of 27.0p per share, level with prior year
Commenting on today's results, Chief Executive, John Morgan said:
"2013 has seen challenging conditions predominate across most of our markets, with competitive pressures impacting on margins and profitability. Notwithstanding this, the positive operating cash flow generated by the business has allowed us to make further investment in strategic assets, key skills and resources, which positions the Group well to benefit from future growth opportunities.
Looking ahead to 2014, although there are signs of improving conditions in some of our markets, it is anticipated that upward pressure on supply chain costs and skills availability will provide additional management challenges. Against this backdrop, we remain confident that our robust order book and on-going disciplined approach to contract selectivity will support the delivery of growth in this year and beyond."
