Presentation is loading. Please wait.

Presentation is loading. Please wait.

Jarvis plc 2007 Half Year Results Presentation 27 November 2007.

Similar presentations

Presentation on theme: "Jarvis plc 2007 Half Year Results Presentation 27 November 2007."— Presentation transcript:

1 Jarvis plc 2007 Half Year Results Presentation 27 November 2007

2 2 Group Financial Highlights 2007 £m 2006 £m Revenue* (Loss)/Profit before tax* Loss for the period Net cash used in operating activities Net debt Loss per share * Continuing operations (0.6) 0.5 (2.5) (11.6) (19.1) (25.6) (41.4) (45.8) (1.2)p (7.5)p

3 3 First Half Financial Performance –Loss before tax in first half ahead of management budget expectations –Underperformance in Plant offset by additional volume and margin in Rail, and additional central costs and interest savings, compared to budget –Net debt at 30 September circa £5m higher than budget, mostly due to earlier than anticipated settlement of historic provisions

4 4 Group Segmental Analysis - Revenue 2007 £m 2006 £m Rail % Plant % Accommodation Services % Eliminations (14.2) (16.6) Total %

5 5 Revenue Analysis - Rail 2007 £m 2006 £m Track Renewals Enhancement Projects Electrical Projects Other/eliminations (4.3) (6.2) Total Increased enhancement project volumes in second quarter driven by Rugby Remodelling contract - Electrical project volumes down due to delay in awards of Category C signalling contracts

6 6 Revenue Analysis - Plant 2007 £m 2006 £m On Track Machines Specialist Plant Small Plant Transport Total Reduced volumes on heavy duty machines in OTM - Small plant reduced external sales matched by lower costs - Transport turnover reduced following expiry of back to back lease contracts with major client

7 7 Revenue Analysis – Accommodation Services 2007 £m 2006 £m Facilities Management Construction Total

8 8 Group Segmental Profit Analysis* 2007 £m 2006 £m Rail Plant Accommodation Services (1.4) 1.0 Central costs (5.9) (10.6) Operating profit Net finance costs (Loss)/Profit before tax (0.9) (0.6) (1.8) 0.5 * Before exceptional items

9 9 Shareholders equity 30 Sept 07 £m 2 April 07 £m Share capital 10.2 Share premium Special reserve3.7 - Capital redemption reserve7.2 Other reserve89.7 Accumulated losses (188.2) (702.8) Equity shareholders deficit (16.7) (14.3)

10 10 Net Debt 30 Sept 07 £m 2 April 07 £m Cash Borrowings due within one year (14.2) (18.3) Borrowings due after one year (32.1) (32.9) Total (41.4) (23.6)

11 11 Working Capital Facility –Asset backed facility secured on plant and receivables –Maximum loan originally £67m –Current maximum loan, after amortisation and repayments following disposals, is £63.9m –Further amortisation in equal instalments to June 2008 of £2.1m –Loan also subject to reduction on any future asset disposals –Facility expires July 2009 –Blended average interest rate approximately 11% –Rolling 12 month EBITDA financial covenant (absolute amount). No breaches anticipated

12 12 Movement in Net Debt + £m Net Debt 2 April 2007 (23.6) Underlying EBITDA (2.4) Working capital movements(7.4) Legacy provision settlements (4.2) Redundancy payments (1.8) Capital expenditure (1.1) Interest costs (2.8) Proceeds from business disposals 1.9 Net Debt at 30 September 2007(41.4) + Un-audited extract from group management accounts

13 13 Rail –Selected by Network Rail as one of their 4 preferred suppliers for track renewals –Workload has picked up during the second quarter as expected and volumes in the second half are secure –Reduced revenue in signalling business as the Category C workload has not come through as anticipated –Completed 200 yards of track in 8 hours at Heaton Sidings proving that we can achieve 7 Day Railway targets

14 14 Plant –Utilisation pattern for On Track Machines causing difficulty –Limited visibility and mix of plant demand on new rail work –Small plant revenues impacted by 6-4 competition, but costs reduced in line –Transport – reduced volumes following major contact expiry –Specialist plant has performed ahead of expectation –Continue to develop and invest in new products

15 15 Accommodation Services – Terminated 3 significant loss making contracts in October (plus 1 profitable contract for geographical reasons) – a very significant achievement – Business has stabilised, but one remaining poorly performing contract that we need to resolve – Remaining construction defects have been agreed with clients and provided for

16 16 Summary – Business is recovering not recovered – Success in the 6-4 competition – major achievement – Termination of the loss making facilities management contracts – a major step forward – Rail revenues look strong – Plant revenues visibility and mix an issue – Government/Network Rail forecasting substantial future enhancement programme – Overhead reduction progressing well

Download ppt "Jarvis plc 2007 Half Year Results Presentation 27 November 2007."

Similar presentations

Ads by Google