Presentation is loading. Please wait.

Presentation is loading. Please wait.

125 YEARS OF FORWARD THINKING Mouchel Annual Results 2013 Grant Rumbles, Chief Executive Paul Rayner, Finance Director.

Similar presentations


Presentation on theme: "125 YEARS OF FORWARD THINKING Mouchel Annual Results 2013 Grant Rumbles, Chief Executive Paul Rayner, Finance Director."— Presentation transcript:

1 125 YEARS OF FORWARD THINKING Mouchel Annual Results 2013 Grant Rumbles, Chief Executive Paul Rayner, Finance Director

2 GRANT RUMBLES CHIEF EXECUTIVE

3 Agenda Introduction Financial Review Business Review Our Strategy Summary and Outlook 3MouchelAnnual Results 2013

4 Introduction Restructuring programme completed in March 2013 Delivering on all strategic objectives with demonstrable evidence of profitability Strong and appropriately financed balance sheet Excellent performance against all KPIs and significant contract wins 4MouchelAnnual Results 2013

5 FINANCIAL REVIEW PAUL RAYNER GROUP FINANCE DIRECTOR

6 Results 2013 £m 2012 £m Revenue Operating Profit EBITDA Interest[7.3][0.4] Profit Before Tax Cash In/(Out) Flow From Operations 39.3[6.3] Net Debt All measures are underlying Results ahead of budget expectations EBIT margin of 5.1% EBITDA margin of 6.7% Interest cover of 5 times on EBITDA Strong cash from operations £12m on EM acquisition Net debt/EBITDA 1.2 times 6MouchelAnnual Results 2013

7 Divisional Performance 2013 £m 2012 £m Revenue Infrastructure Services Mouchel Business Services Total EBIT Infrastructure Services Mouchel Business Services Unallocated Corporate Cost[5.5][1.9] EBIT EBITDA EBIT Margin %5.1%2.2% EBITDA Margin %6.7%3.6% Infrastructure Services EBIT margin – 7.3% EBITDA margin – 8.0% Strong margins across the business Expectation of continued margin growth Mouchel Business Services EBIT margin – 3.2% EBITDA margin – 6.8% High depreciation charge in 2013 Challenging business environment 7MouchelAnnual Results 2013

8 Cash Flow 2013 £m 2012 £m Operating Profit Depreciation Working Capital In/(Out) Flow2.3[8.1] Underlying Operating Cash39.3[6.3] Capex[3.8]– Net Cash From Operations35.5[6.3] Strong cash flow resulting from strong working capital control Conversion of EBITDA to underlying cash 106% Conversion of EBITDA to net cash 96% All metrics compare favourably to peer group Modest capex requirements ongoing 8MouchelAnnual Results 2013

9 Other Cash Flows 2013 £m 2012 £m Deficit Pension Contributions Other Pension Costs5.1– Restructuring Costs Acquisition of EM (incl. costs)12.9– Agreed 25-year deficit reduction plan with Trustees –£4.3m deficit contributions until 2017 –Increasing after 2017 Other Pension costs – high PPF levy £2.5m, other fees £2.6m high level reducing in 2014 Restructuring costs completed in FY13 started in early 2012 under “old” Group –£3m anticipated in 2014 empty space and MBS final restructuring Acquisition of EM in February 2013 –£25m cost with £13m of cash acquired –Represents just over 1 times EBITDA multiple –Debt to acquire EM repaid in year 9MouchelAnnual Results 2013

10 Analysis of Borrowings 2013 £m 2012 £m Gross Debt60.0 RCF Cash[35.7][40.1] Net Debt £100m total facilities with lenders –3 years to July 2016 –£60m Term –£40m RCF Repayment of EM loan in year Covenants in full compliance 10MouchelAnnual Results 2013

11 Order Book and Pipeline – December 2013 Order book £2.0bn – very healthy 85% cover for FY14 revenue 66% cover for FY15 revenue 43% cover for FY16 revenue Pipeline £2.1bn Leads and prospects in excess of £5bn 11MouchelAnnual Results 2013

12 BUSINESS REVIEW GRANT RUMBLES CHIEF EXECUTIVE

13 Overview Key Strategic Actions – 2012/13 Business Highlights Our Strategy Summary and Outlook 13MouchelAnnual Results 2013

14 Key Strategic Actions – 2012/13 1)Simplify organisational structure, increasing operational focus at divisional level 2)Maintain and grow in markets where Mouchel is leading, focus on our core strengths 3)Reduce overhead costs to deliver the right cost base for Mouchel 4)Increase focus on our contracts to improve profitability and win additional work Sustainable growth Improved profitability 14MouchelAnnual Results 2013

15 1)Simplify organisational structure, increasing operational focus at divisional level Key Strategic Actions – 2012/13 15MouchelAnnual Results 2013

16 Key Strategic Actions – 2012/13 Achieved Won over £1bn of new work Order book £1.7bn Pipeline £2.4bn Leads over £5.0bn 1)Simplify organisational structure, increasing operational focus at divisional level 2)Maintain and grow in markets where Mouchel is leading, focus on our core strengths 3)Reduce overhead costs to deliver the right cost base for Mouchel 4)Increase focus on our contracts to improve profitability and win additional work 16MouchelAnnual Results 2013

17 Key Strategic Actions – 2012/13 Achieved The budget was to reduce cost by £18m Achieved over £21m reduction 1)Simplify organisational structure, increasing operational focus at divisional level 2)Maintain and grow in markets where Mouchel is leading, focus on our core strengths 3)Reduce overhead costs to deliver the right cost base for Mouchel 4)Increase focus on our contracts to improve profitability and win additional work 17MouchelAnnual Results 2013

18 Key Strategic Actions – 2012/13 Achieved Implemented IS and MBS transformation plans All major MBS contracts rebased Underlying EBITDA £37m EBITDA margin 6.7% 1)Simplify organisational structure, increasing operational focus at divisional level 2)Maintain and grow in markets where Mouchel is leading, focus on our core strengths 3)Reduce overhead costs to deliver the right cost base for Mouchel 4)Increase focus on our contracts to improve profitability and win additional work 18MouchelAnnual Results 2013

19 Infrastructure Services 2013 highlights: Acquired additional 50 percent of EnterpriseMouchel in February Business renamed EM Highway Services Ltd Won largest-ever contract with Highways Agency – Area 3 valued at circa £700m Won London Highways Alliance Contract (LOHAC) South with Transport for London valued at circa £400m Won Scottish trunk roads contract South West Scotland valued at circa £125m Since year-end: South East Queensland road maintenance contract valued at circa AUD$135m West Sydney roads maintenance contract valued at circa AUD$700m Norfolk County Council PSSC contract valued at circa £20m Water – bid preparation for AMP6 Middle East – targeting increasing turnover by 3 times over next three years 19MouchelAnnual Results 2013

20 Mouchel Business Services 2013 highlights: Rebased all of our main local authority contracts Implemented MBS transformation plan. Reorganised division to matrix model to drive best practices in service delivery Three-year contract extension with Oldham Council valued at circa £50m Won single supplier status on three-year Police Pensions Administration Service Framework for Cheshire and Merseyside Police worth circa £2.5m (option to extend) Broke into higher education sector winning a place on all, four lots of University of Liverpool Property Framework valued at circa £200m Won appointment to four-year Government Procurement Service Framework to deliver Estates Professional Services valued at circa £60m-£120m 20MouchelAnnual Results 2013

21 Our Strategy ClientsContinue to build great relationships by delivering collaborative thought leadership and excellent service Sustainable growth and profitability PeopleRetain and recruit “best in class” and assist them to excel GrowthFocus on core strengths Enhance our capabilities Maintain and grow in markets where Mouchel is leading Expand our market coverage OperationsDeliver One Mouchel excellence to our clients across the world 21MouchelAnnual Results 2013

22 Summary and Outlook 2013 successful year for Mouchel with strong performance across all KPIs Infrastructure Services markets are target-rich and growing Mouchel Business Services is well placed to capitalise on any opportunities in challenging local authority markets Expect further margin improvement due to additional cost synergies and economies of scale Strong platform for our ambitious growth plans 22MouchelAnnual Results 2013

23 Q&A


Download ppt "125 YEARS OF FORWARD THINKING Mouchel Annual Results 2013 Grant Rumbles, Chief Executive Paul Rayner, Finance Director."

Similar presentations


Ads by Google