7th Mar 2007 07:04
Carillion PLC07 March 2007 Consolidated income statementFor the year ended 31 December 2006 2006 2005 Note £m £m--------------------------------------- ------ ------- -------Total revenue 3,593.4 2,284.2Less: Share of jointly controlled entities revenue (528.5) (258.7)--------------------------------------- ------ ------- -------Revenue 2 3,064.9 2,025.5Cost of sales (2,862.2) (1,888.6) ------- -------Gross profit 202.7 136.9Administrative expenses (170.8) (104.6) ------- -------Group operating profit before restructuring costs 31.9 32.3Restructuring costs (22.6) - ------- -------Group operating profit 9.3 32.3--------------------------------------- ------ ------- -------Jointly controlled entitiesOperating profit 47.7 20.3Net financing (expense)/income (8.0) 1.1Non-operating items - (0.8)Income tax (8.1) (5.0)--------------------------------------- ------ ------- -------Share of results of jointly controlled entities 3 31.6 15.6 ------- -------Profit from operations 40.9 47.9Non-operating items 4 25.3 ---------------------------------------- ------ ------- -------Financial income 5 87.1 54.4Financial expenses 5 (85.7) (50.4)--------------------------------------- ------ ------- -------Net financial income 1.4 4.0 ------- -------Profit before tax * 67.6 51.9Income tax (7.2) (11.1) ------- -------Profit for the year 60.4 40.8 ------- ------- Attributable to:Equity holders of the parent 58.2 39.3Minority interests 2.2 1.5 ------- -------Profit for the year 60.4 40.8 ------- ------- Earnings per share * 7Basic 21.6p 18.7pDiluted 21.3p 18.4pTotal dividend declared for the year 6 9.0p 8.0p ------- ------- The above results for both years derive from continuing operations.* A reconciliation of the reported result to the underlying result is given inNote 7(b) Consolidated statement of recognised income and expenseFor the year ended 31 December 2006 2006 2005 £m £m Foreign exchange translation adjustments (2.9) 1.6Actuarial gains and losses on defined benefit pension schemes 34.6 6.7Share of change in fair value of effective cash flow hedgeswithin jointly controlled entities (net of tax) 0.2 (1.3) ------- ------- 31.9 7.0Tax in respect of the above (11.5) (1.5) ------- -------Income and expense recognised directly in equity 20.4 5.5Profit for the year 60.4 40.8 ------- -------Total recognised income and expense for the year 80.8 46.3 ------- ------- Attributable to:Equity holders of the parent 78.6 44.8Minority interests 2.2 1.5 ------- -------Total recognised income and expense for the year 80.8 46.3 ------- ------- Consolidated balance sheet As at 31 December 2006 2006 2005 £m £mAssetsNon-current assetsProperty, plant and equipment 146.6 100.9Intangible assets 596.1 62.3Retirement benefit assets 10.9 6.4Investments in jointly controlled entities 178.8 62.7Other investments 15.0 4.7Deferred tax assets 55.4 35.2 ------- -------Total non-current assets 1,002.8 272.2 ------- ------- Current assetsInventories 38.5 21.2Income tax receivable 0.2 0.2Trade and other receivables 875.3 459.7Cash and cash equivalents 144.5 180.9Derivative financial instruments 0.8 - ------- -------Total current assets 1,059.3 662.0 ------- -------Total assets 2,062.1 934.2 ------- ------- LiabilitiesCurrent liabilitiesBorrowings (12.6) (17.0)Derivative financial instruments - (0.3)Trade and other payables (1,195.8) (600.4)Provisions (2.4) -Income tax payable (13.0) (13.3) ------- -------Total current liabilities (1,223.8) (631.0) ------- ------- Non-current liabilitiesBorrowings (239.9) (73.1)Retirement benefit liabilities (123.8) (74.3)Deferred tax liabilities (37.4) (6.0)Provisions (3.5) - ------- -------Total non-current liabilities (404.6) (153.4) ------- -------Total liabilities (1,628.4) (784.4) ------- -------Net assets 433.7 149.8 ------- ------- EquityIssued share capital 140.6 107.4Share premium 199.9 8.2Reserves (3.9) (1.0)Retained earnings 96.1 34.1 ------- -------Equity attributable to equity holders of the parent 432.7 148.7 Minority interests 1.0 1.1 ------- -------Total equity 433.7 149.8 ------- ------- Consolidated statement of cash flowsFor the year ended 31 December 2006 2006 2005 £m £mCash flows from operating activitiesProfit for the year 60.4 40.8 Depreciation, amortisation and impairment 36.9 20.5Profit on disposal of property, plant and equipment (1.9) (0.9)Share based payment expense 1.3 1.2Other non-cash movements - (3.2)Share of results of jointly controlled entities (31.6) (15.6)Non-operating profit on disposal of investments in jointlycontrolled entities (25.3) -Restructuring costs 22.6 -Net financing income (1.4) (4.0)Income tax expense 7.2 11.1 ------- -------Operating profit before changes in working capital andprovisions 68.2 49.9Increase in inventories - (2.6)Increase in trade and other receivables (57.8) (26.4)Increase in trade and other payables 80.5 65.1Decrease in provisions 0.1 (2.2) ------- -------Cash generated from operations before pension deficitrecovery payments and restructuring costs 91.0 83.8Deficit recovery payments to pension schemes (31.8) (10.0)Restructuring costs (18.2) - ------- -------Cash generated from operations 41.0 73.8Financial expenses paid (17.4) (4.6)Income tax received/(paid) 1.7 (19.5) ------- -------Net cash flows from operating activities 25.3 49.7 ------- ------- Cash flows from investing activitiesDisposal of property, plant and equipment 12.1 7.3Disposal of investments in jointly controlled entities 47.3 0.6Disposal of other non-current investments - 3.4Financial income received 15.4 7.4Dividends received from jointly controlled entities 15.7 8.4Disposal of businesses, net of cash disposed of 30.4 -Acquisition of subsidiary, net of cash acquired (122.3) (37.1)Acquisition of intangible assets (1.8) (4.3)Acquisition of property, plant and equipment (39.1) (34.2)Acquisition of equity in and loan advances to jointly controlled entities (19.7) (2.3)Acquisition of non-current investment (0.5) - ------- -------Net cash flows from investing activities (62.5) (50.8) ------- ------- Cash flows from financing activitiesProceeds from the issue of share capital 0.4 1.7Draw down of bank and other loans 321.3 3.4Repayment of bank loans (276.6) (2.8)Payment of finance lease liabilities (9.6) (3.7)Dividends paid to equity holders of the parent (23.2) (16.1)Dividends paid to minority interests (2.3) (2.5) ------- -------Net cash flows from financing activities 10.0 (20.0) ------- ------- Net decrease in cash and cash equivalents (27.2) (21.1)Cash and cash equivalents at beginning of year 169.7 189.6Effect of exchange rate fluctuations on cash held (1.1) 1.2 ------- -------Cash and cash equivalents at end of year 141.4 169.7 ------- ------- Cash and cash equivalents comprise:Cash and cash equivalents 144.5 180.9Bank overdrafts (3.1) (11.2) ------- ------- 141.4 169.7 ------- ------- Notes 1. Basis of preparation Carillion plc (the "Company") is a company domiciled in the United Kingdom (UK).The consolidated financial statements of the Company for the year ended 31December 2006 comprise the Company and its subsidiaries (together referred to asthe "Group") and the Group's interest in jointly controlled entities.The financial information set out herein (which was approved by the Board on 7March 2007) does not constitute the company's statutory accounts for the yearsended 31 December 2006 and 2005 but is derived from the 2006 statutory accounts.The statutory accounts for the year ended 31 December 2005 have been reported onby the company's auditors and delivered to the registrar of companies. Thestatutory accounts for the year ended 31 December 2006 will be deliveredfollowing the Company's Annual General Meeting. The auditors have reported onthose accounts; their reports were unqualified, did not include references toany matter which the auditors drew attention by way of emphasis withoutqualifying their reports and did not contain statements under section 237(2) or(3) of the Companies Act 1985. 2. Segment reporting Segment information is presented in respect of the Group's business segments,which are the primary basis of segment reporting. The business segment reportingformat reflects the Group's management and internal reporting structure. Inter-segment pricing is determined on an arm's length basis. Segment results include items directly attributable to a segment as well asthose that can be allocated on a reasonable basis. Business segments The Group is comprised of the following main business segments: * Construction Services: UK building, development and civil engineering activities and international regional construction activities. * Support Services: Rail infrastructure, roads maintenance, facilities management and other support services. * Investments: Equity returns on investments in Public Private Partnership (PPP) projects. Construction Support Investments Eliminations Consolidated Services Services and unallocated head office 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 £m £m £m £m £m £m £m £m £m £m Revenue fromexternalcustomers 1,667.8 1,050.1 1,395.8 974.6 1.3 0.8 - - 3,064.9 2,025.5Inter-segmentrevenue 4.0 0.3 30.2 28.6 - - (34.2) (28.9) - - ------ ------- ------ ------ ------ ------ ------ ------ ------ -----Segmentrevenue 1,671.8 1,050.4 1,426.0 1,003.2 1.3 0.8 (34.2) (28.9) 3,064.9 2,025.5 ------ ------- ------ ------ ------ ------ ------ ------ ------ ----- Segmenttrading result 11.4 4.8 50.9 39.9 7.1 0.8 - - 69.4 45.5Amortisation/impairmentof intangibleassets (3.6) - (11.9) (2.5) (0.4) (0.3) (1.3) - (17.2) (2.8)Unallocatedexpenses - - - - - - (20.3) (10.4) (20.3) (10.4) ------ ------- ------ ------ ------ ------ ------ ------ ------ -----Groupoperatingprofit beforerestructuringcosts 7.8 4.8 39.0 37.4 6.7 0.5 (21.6) (10.4) 31.9 32.3Restructuringcosts (1.5) - (6.0) - (0.2) - (14.9) - (22.6) - ------ ------- ------ ------ ------ ------ ------ ------ ------ -----Share ofresults of jointlycontrolled entities 19.1 8.2 5.2 0.5 7.3 6.9 - - 31.6 15.6 ------ ------- ------ ------ ------ ------ ------ ------ ------ -----Profit fromoperations 25.4 13.0 38.2 37.9 13.8 7.4 (36.5) (10.4) 40.9 47.9 ------ ------- ------ ------ ------ ------ ------ ------Non -operatingitems 25.3 -Net financingincome 1.4 4.0Income taxexpense (7.2) (11.1) ------ -----Profit forthe 60.4 40.8year ------ ----- Construction Services Support Services Investments Unallocated Consolidated Head Office 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 £m £m £m £m £m £m £m £m £m £m Segment assets 832.0 306.3 761.5 323.0 7.0 5.3 - - 1,600.5 634.6Investmentinjointlycontrolled entities 45.8 33.6 2.1 1.2 130.9 28.3 - (0.4) 178.8 62.7Unallocatedassets - - - - - - 282.8 236.9 282.8 236.9 ------ ------- ------ ------ ------ ------ ------ ------ ------ -----Total assets 877.8 339.9 763.6 324.2 137.9 33.6 282.8 236.5 2,062.1 934.2 ------ ------- ------ ------ ------ ------ ------ ------ ------ -----Segmentliabilities (709.9) (340.7) (420.2) (229.0) (22.0) (4.3) - - (1,152.1) (574.0)Unallocatedliabilities - - - - - - (476.3) (210.4) (476.3) (210.4) ------ ------- ------ ------ ------ ------ ------ ------ ------ -----Totalliabilities (709.9) (340.7) (420.2) (229.0) (22.0) (4.3) (476.3) (210.4) (1,628.4) (784.4) ------ ------- ------ ------ ------ ------ ------ ------ ------ -----Netassets/(liabilities) 167.9 (0.8) 343.4 95.2 115.9 29.3 (193.5) 26.1 433.7 149.8 ------ ------- ------ ------ ------ ------ ------ ------ ------ -----Capitalexpenditure 4.7 4.0 29.5 29.9 - - 19.7 20.1 53.9 54.0 ------ ------- ------ ------ ------ ------ ------ ------ ------ -----Depreciationandamortisation 8.1 2.4 25.2 12.7 - - 5.3 4.1 38.6 19.2 ------ ------- ------ ------ ------ ------ ------ ------ ------ -----Impairmentlosses/(reversals) (1.1) - (1.0) 1.0 0.4 0.3 - - (1.7) 1.3 ------ ------- ------ ------ ------ ------ ------ ------ ------ -----Unallocated assets include cash and cash equivalents, Group retirement benefitassets and taxation related assets. Unallocated liabilities include current andnon-current borrowings, Group retirement benefit deficits and taxation relatedliabilities. Geographic segments United Kingdom Europe Rest of the World Consolidated 2006 2005 2006 2005 2006 2005 2006 2005 £m £m £m £m £m £m £m £mRevenuefromexternal customers 2,781.2 1,796.7 84.3 40.2 199.4 188.6 3,064.9 2,025.5 ------- ------- ------- ------- ------- ------- ------- ------Segment assets 1,798.2 747.5 73.7 19.7 190.2 167.0 2,062.1 934.2 ------- ------- ------- ------- ------- ------- ------- ------Capitalexpenditure 31.7 32.7 0.7 0.6 21.5 20.7 53.9 54.0 ------- ------- ------- ------- ------- ------- ------- ------ 3. Share of results of jointly controlled entitiesThe Group's share of results of jointly controlled entities is analysed below: 2006 2005 £m £mRevenue 528.5 258.7 ------- -------Operating profit 47.7 20.3Net financing (expense)/income (8.0) 1.1 ------- -------Profit before tax and non operating items 39.7 21.4Non-operating items (see note 4) - (0.8) ------- -------Profit before tax 39.7 20.6Income tax (8.1) (5.0) ------- -------Profit for the year 31.6 15.6 ------- ------- The Group's share of the operating profit of jointly controlled entities arisesin the following business segments: 2006 2005 £m £mConstruction Services 21.0 12.1Support Services 7.3 0.7Investments 19.4 7.5 ------- ------- 47.7 20.3 ------- ------- 4. Restructuring costs and non-operating items Restructuring costsRestructuring costs of £22.6m includes redundancy, property exit and associatedcosts of £18.4m arising from a review of the enlarged Group's requirementsfollowing the acquisition of Mowlem plc on 23 February 2006. In addition,redundancy costs of £4.2m have been incurred following a strategic review of theGroup's rail activities. A tax credit of £5.0m in relation to these costs hasbeen included within income tax in the income statement. 2006 2005 Gross Tax Gross Tax credit/ credit/ (charge) (charge)Non-operating items £m £m £m £mGroup:Profit on disposal of investmentsin jointly controlled entities 26.0 - - -Loss on closure of business (0.7) - - - ------- ------- ------- ------- 25.3 - - -Jointly controlled entities:Loss on disposal of business - - (0.8) - ------- ------- ------- -------Total 25.3 - (0.8) - ------- ------- ------- ------- The loss on closure of £0.7m principally relates to a small rail business inNorway. The loss on disposal of business in jointly controlled entities of £0.8m in 2005relates to the sale of a small non-core plant hire business. 5. Financial income and expenses 2006 2005 £m £mFinancial incomeBank interest receivable 8.1 4.3Other interest receivable 7.3 3.1Expected return on retirement plan assets 71.7 47.0 ------- ------- 87.1 54.4 ------- -------Financial expensesInterest payable on bank loans and overdrafts (13.3) (1.7)Other interest payable and similar charges (4.2) (2.9)Interest cost on retirement plan obligations (68.2) (45.8) ------- ------- (85.7) (50.4) ------- -------Net financial income 1.4 4.0 ------- ------- Other interest payable and similar charges includes finance lease charges of£2.7m (2005: £1.5m). 6. DividendsThe following dividends were paid by the Company: 2006 2005 £m Pence per £m Pence per share ShareCurrent year interim 8.7 3.1 6.0 2.8Previous year final 14.5 5.2 10.1 4.825 ------- ------- ------- ------- 23.2 8.3 16.1 7.625 ------- ------- ------- ------- 6. Dividends (continued)The following dividends were proposed by the Company in respect of eachfinancial year: 2006 2005 £m Pence per £m Pence per Share shareInterim 8.7 3.1 6.0 2.8Final 16.6 5.9 14.6 5.2 ------- ------- ------- ------- 25.3 9.0 20.6 8.0 ------- ------- ------- ------- The final dividend for 2006 of 5.9 pence per share was approved by the Board on7 March 2007, and in accordance with IFRS's, has not been included as aliability as at 31 December 2006. 7. Earnings per share(a) Basic earnings per shareThe calculation of basic earnings per share at 31 December 2006 is based on theprofit attributable to equity holders of the parent of £58.2m (2005: £39.3m) anda weighted average number of ordinary shares outstanding during the year ended31 December 2006 of 269.5m (2005: 210.5m), calculated as follows: Weighted average number of ordinary sharesIn millions of shares 2006 2005Issued ordinary shares at 1 January 214.9 214.3Effect of own shares held by ESOP and QUEST (1.9) (4.1)Effect of shares issued in the year 56.5 0.3 ------- -------Weighted average number of ordinary shares at 31 December 269.5 210.5 ------- ------- (b) Underlying performanceA reconciliation of profit before tax and basic earnings per share, as reportedin the income statement, to underlying profit before tax and basic earnings pershare is set out below. The adjustments made in arriving at the underlyingperformance measures are made to illustrate the impact of non-trading andnon-recurring items. 2006 2005 £m £mProfit before taxProfit before tax as reported in the income statement 67.6 51.9Restructuring costs 22.6 -Amortisation of intangible assets arising from businesscombinations 16.8 2.5Impairment of goodwill 0.4 0.3(Profit)/loss on disposal of investments and businesses (25.3) 0.8 ------- -------Underlying profit before tax 82.1 55.5Underlying income tax (16.6) (11.1)Minority interests (2.2) (1.5) ------- -------Underlying profit attributable to shareholders 63.3 42.9 ------- ------- 2006 2005 Pence per share Pence per share Basic earnings per shareBasic earnings per share as reported inthe income statement 21.6 18.7Restructuring costs 6.5 -Amortisation of intangible assets arisingfrom business combinations 4.6 1.2Impairment of goodwill 0.2 0.1(Profit)/loss on disposal of investmentsand businesses (9.4) 0.4 ------- -------Underlying basic earnings per share 23.5 20.4 ------- ------- 7. Earnings per share (continued)c) Diluted earnings per shareThe calculation of diluted earnings per share at 31 December 2006 is based onprofit as shown in note 7(a) and a weighted average number of ordinary sharesoutstanding calculated as follows: Weighted average number of ordinary shares (diluted)In millions of shares 2006 2005 Weighted average number of ordinary shares at 31 December 269.5 210.5Effect of share options in issue 3.1 3.1 ------ -------Weighted average number of ordinary shares (diluted) at 31December 272.6 213.6 ------ ------- 8. Reconciliation of movements in consolidated equity shareholders' funds 2006 2005 £m £mRecognised income and expense 78.6 44.8New share capital subscribed 224.9 1.7Share options exercised by employees 2.8 0.7Equity settled transactions (net of deferred tax) 0.9 0.9Dividends paid to equity holders of the parent (23.2) (16.1) ------- -------Net addition to equity shareholders' funds 284.0 32.0Opening equity shareholders' funds 148.7 116.7 ------- -------Closing equity shareholders' funds 432.7 148.7 ------- ------- 9. Posting of statutory accounts to shareholders The Company's report and accounts will be posted to shareholders on 3 April2007. From that date copies will be available from the registered office,Carillion plc, Birch Street, Wolverhampton, WV1 4HY. 10. Annual General Meeting The Company's Annual General Meeting will be held on 9 May 2007. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Carillion Plc