Presentation on theme: "Jarvis plc Financial Results July 2009. 2 Strategic Highlights Richard Entwistle to retire at September AGM succeeded by Stuart Laird currently Chief."— Presentation transcript:
Jarvis plc Financial Results July 2009
2 Strategic Highlights Richard Entwistle to retire at September AGM succeeded by Stuart Laird currently Chief Operating Officer Second half impacted by Network Rails decision to delay works and impact of global economic downturn. Successful completion of all West Coast works, especially the Rugby contract. Overhead reduced in line with plan. E.ON coal haulage contract added important new business and working well. Extension to contract awarded until December Existing working capital facility extended. Safety – Accident Frequency Rate (AFR) = 0.18.
3 Group Financial Highlights * From continuing operations, before exceptional items
4 Group Revenue Analysis
5 Revenue Analysis - Rail - West Coast modernisation projects completed on time - Busy and productive period for Electrical Projects Group and Scottish projects business - Decline in rail enhancement volumes H2 following successful completion of West Coast projects
6 Revenue Analysis - Plant -Strong performance in OTM – integral part in successful delivery of rail enhancement projects -Small Plant benefitted from higher rail volumes in H1 -E.ON coal haulage contract performing well
7 Revenue Analysis – Accommodation Services -Performance improved consistently throughout the year -Loss making FM contracts exited October 2007 and one further contract disposed during the year
8 Group Segmental Profit Analysis* 2009 £m 2008 £m 2009 % 2008 % Rail Plant Accommodation Services(0.1)(2.1)(0.2)(3.4) Central costs(10.2)(12.4)(2.9)(3.9) Total * From continuing operations, before exceptional items
10 Taxation 2009 £m 2008 £m Tax at standard rate Adjustment prior year Deferred tax Current period(3.3)(1.1) (3.3)(1.1) Total Income Tax (charge) / credit(3.3)5.2
11 Defined Benefit Pensions 2009 £m 2008 £m Pension obligations Railways Pension Scheme(147.0)(165.5) Other Pension Schemes(35.1)(44.3) (182.1)(209.8) Pension assets Railways Pension Scheme Other Pension Schemes Net Pension surplus/(deficit) Railways Pension Scheme Other Pension Schemes(9.9)(15.1) (6.7) 25.3
12 Net Debt 2009 £m 2008 £m Cash Debt due within one year(27.6)(10.6) Debt due after one year(0.1)(31.6) Total(21.5)(38.8) Debt facility subsequently extended to 31 January 2011
13 Rail Performed well but trading in the second half suffered as a result of Network Rails announcement to delay work. Electrical Projects Group (EPG) achieved a 45% growth in revenue. Scotland (strc) also performed well. London North East (LNE) Integrated Management Team (IMT) achieved the targets necessary to secure a 4 year extension to the contract (until 2014). Headcount reduction to reflect lower volumes in the latter part of the year were initiated at pace. Despite reduced volumes in the coming year, the prospects thereafter look good.
14 Plant (Fastline) Plant has had a mixed year. On Track Machines (OTM) performed well. Small Plant performed well. Specialist Plant did not meet expectations Transport performed poorly as a result of reduced volumes in Rail, the economic climate and low external demand. Network Rails decision to delay works will have impact in 2009/2010. We have already commenced downsizing.
15 Freight Intermodal (containers) business closed in March 2009 following massive reductions in import volumes due to global economic conditions. E.ON coal contract started well and reached full capacity by November Progressing well. E.ON has extended the contract until December 2015.
16 Accommodation Services Another year of excellent progress. Disposed of one further contract. Now consists of 24 contracts of which 22 are long term PFIs. Benchmarking process underway on many of the contracts.
17 In summary Strategy remains to focus on Rail, Plant and Freight. Network Rails decision to delay works and current economic conditions created a difficult trading environment in the second half and this is expected to continue through 2009/2010. Beyond 2009/2010 the prospects appear much more promising. We will start to look at international opportunities. In Freight, despite the short term difficulties, we believe that the longer term prospects are positive.