- Good progress on executing the new strategy.
- Balance sheet strengthened: completed £701m rights issue and £416m expected proceeds from disposals.
- On track to realise £70m cost savings in 2018 and £175m by 2020.
- First investment decisions made to strengthen business.
- 2018 half year results are in line with expectations.
- Half year order intake £921m and order book £7.7bn at 30 June 2018.
- 2018 full year guidance unchanged, before adjustment for planned disposals.
- 2020 targets unchanged.
In April we set out our new strategy and received the support of shareholders to strengthen the balance sheet. Since then, we have continued to make good progress on the plans we set out to simplify and strengthen the business. It is still early days, but my team and I are very focused and confident in our ability to deliver those commitments.
Chief Executive Officer
|Half Year ended 30 June 2018|
|Financial highlights - continuing operations||Reported 2018||Reported 2017||Underlying1 2018||Underlying1 2017||Underlying YOY change|
|Profit before tax||£42.3m||£27.6m||£80.5m||£195.0m||(59)%|
|Earnings/(loss) per share||4.86p||(0.07)p||6.96p||13.99p||(50)%|
|Free cash flow||(£173.4m)||£182.0m||(£152.0m)||£179.2m||-|
|HY 2018 underlying profit before tax1 including trading result from businesses held for sale2|
|Underlying profit before tax1||£80.5m|
|Significant new contracts and restructuring||£49.1m|
|Underlying profit before tax1 before significant new contracts and restructuring||£129.6m|
|HY 2018 trading profit for Supplier Assessment Services and ParkingEye||£10.2m|
|Underlying profit before tax1 including businesses held for sale, before significant new contracts and restructuring||£139.8m|
1 Refer to appendix 1 for calculation of Alternative Performance Measures
2 At 30 June 2018, the recently announced disposals, Supplier Assessment Services (including Constructionline) and ParkingEye, are disclosed as held for sale and their trading profit for HY 2018 is no longer included in underlying performance. The FY 2018 profit guidance of £270-£300m included the trading profit from these two businesses. The table reconciles the HY 2018 underlying profit before tax1 to the half year equivalent of the FY 2018 guidance by including the trading result from these businesses.
A presentation for institutional investors and analysts hosted by Jon Lewis and Nick Greatorex will be held today, starting at 08.00. The presentation will be webcast live and subsequently available on demand. Access the webcast.