Financial performance in line with expectations
- Revenue was lower as expected, primarily due to the rescaling of UK construction
- Underlying operating margin maintained at 5.6%
- The reductions in underlying profit before taxation and underlying earnings per share reflected business rescaling and an increase in the net financial expense
- Reported profit before taxation and basic earnings per share reflected the £42.9 million charge for restructuring energy services
Strong work-winning performance
- £4.9 billion of additional orders and probable orders in the year
- Order book plus probable orders of £18.0 billion (2012: £18.1 billion), after deducting £1.7 billion due to
selling equity investments in Public Private Partnership (PPP) projects and reduced expectations from the
Green Deal and Energy Company Obligation markets, partially offset by the addition of £0.8 billion of orders
acquired with John Laing Integrated Services
- Substantial framework contracts secured in 2013 whose value is not included in the order book
- 81% revenue visibility for 2014 (2012: 75% for 2013)
- Pipeline of contract opportunities worth some £37.5 billion (2012: £35.2 billion)
Net borrowing reduced from half-year peak
- Net borrowing of £215.2 million (2012: £155.8 million), down from £270.8 million at the half year, despite the additional second-half costs of restructuring energy services and of acquiring John Laing Integrated Services, with a significantly improved working capital performance in the second half of the year, reflecting completion of the rescaling of UK construction
- Main revolving credit facility of £770 million extended from 2016 to 2018
- Over £1.1 billion of committed borrowing facilities and private placement funding to support strategy for growth over the medium term
Business rescaling complete with Group now well positioned for the future
- Planned rescaling of UK construction complete with revenue run-rate stabilised by the year end
- UK energy services restructured as previously announced to reflect lower expectations for Green Deal and
Energy Company Obligation markets
Proposed full-year dividend increased by 1% to 17.50p (2012: 17.25p)
Carillion Chairman, Philip Rogerson, commented"In 2013, Carillion has continued to respond decisively to challenging market conditions, including completing the rescaling of its UK construction activities and the restructuring of its energy services business, which are now aligned in size to their respective markets, while continuing to develop and strengthen its positions in new and existing markets that offer good opportunities for growth. Overall, we expect market conditions to remain challenging in 2014, but with a strong order book, good revenue visibility and substantial pipeline of contract opportunities the Group is now well positioned for the future."
