2013 Half year results

  • 28 Aug 2013 06:51
Investing in sustainable, profitable growth

  • Sales up 7.2%, organic growth of 5.4%. Organic growth of 13% in developing markets 
  • Underlying PBITA of £201 million (2012: £202 million1) 
  • Strong and growing global contract pipeline of £4 billion per annum across a diverse range of sectors and regions, supports prospects for sustainable profitable growth 
  • Cash generated from operations £218 million 
  • A review of the group’s assets and liabilities has resulted in a one-off charge of £180 million 
  • Net debt position as at 30 June 2013 was £1,950 million, the group is intending to raise funds via a 9.99% placing of new ordinary shares today 
  • Agreed sale of Canadian Cash solutions business and Colombia Data solutions for proceeds of around £100 million, sale of US businesses progressing to schedule 
  • Interim dividend unchanged at 3.42p (DKK 0.2972)

Underlying Results 1                                                                                          

 

 

 

 

 

 

 

 

 

 

 

Restated

 

 

 

 

 

 

 

 

 

H1 2013

 

H1 2012

Turnover

 

 

 

 

 

 

 

 

£3,648m

 

£3,402m

Organic growth

 

 

 

 

 

 

 

 

+5.4%

 

 

PBITA

 

 

 

 

 

 

 

 

£201m

 

£202m

Operating margin

 

 

 

 

 

 

 

 

5.5%

 

5.9%

Underlying EPS

 

 

 

 

 

 

 

 

6.6p

 

7.6p

 

 

 

 

 

 

 

 

 

 

 

 

 1at constant exchange rates, excluding acquisition items and discontinued operations and non-underlying items. H1 2012 PBITA excludes PBITA from businesses subsequently classified as discontinued (£16 million) and has been restated principally to exclude impairments and other items (£19 million) – see page 4 for details.

Total results 2  

 

 

 

 

 

 

 

 

 

H1 2013

H1 2012

Turnover

 

 

 

 

 

 

 

 

£3,648m

£3,449m

PBITA

 

 

 

 

 

 

 

 

£65m

£147m

Total EPS

 

 

 

 

 

 

 

 

(14.7)p

1.6p

 

2 at actual exchange rates, including acquisition items and discontinued operations and non-underlying items. See pages 14 and 15 for details.

Ashley Almanza, Group Chief Executive, commented:

“There was strong demand for our services across key markets and industry sectors in the first half of the year which resulted in continued revenue growth. Growth was particularly strong in developing markets where we have excellent market positions. There are significant growth opportunities in our key markets and this is reflected in our growing contract pipeline of around £4 billion per annum.

On a like-for-like basis, half-year profits were in line with the same period in 2012 against a background of challenging trading conditions in Europe and in our cash solutions businesses in the UK and Ireland.
We are divesting a number of non-core businesses, which will improve our strategic focus and realise substantial cash proceeds.

We have announced two disposals today with combined cash proceeds of around £100 million and we have a well advanced process to sell two other businesses in the US. We are also considering other disposals and these together with those already announced have the potential to raise up to £250 million.

We need to strengthen our balance sheet to be able to realise the group’s opportunity for substantial value creation. Today we have announced our intention to raise funds via a 9.99% placing of new ordinary shares. This, together with our disposals program and a renewed focus on cash flow management will enable us to invest in sustainable, profitable growth and reduce our debt to a level which supports our goal of maintaining a long term net debt to EBITDA ratio of less than 2.5x.

On the operational front, we plan to introduce systems and processes to improve efficiency and risk management and we will be restructuring a number of businesses to ensure that they are more competitive and able to deliver improved margins.

Our unique geographic footprint, strong market positions and the skills and capabilities embodied in our employees, coupled with our diverse and global customer base provide us with a solid foundation from which we can continue to build the business.

Our strong contract pipeline, strengthened balance sheet, focused investment programme and improved operational and financial management all support the delivery of revenue growth, operational efficiencies and improved cash generation. In the near term, 2013 will be a year of consolidation for the group with the actions we are now taking starting to deliver tangible benefits during 2014.”

Download the full Half Yearly Results Announcement

Download the full presentation slides

Download the transcript

 

Presentation of Results:

A presentation to investors and analysts is taking place today at 0900hrs at the London Stock Exchange.

Webcast 

http://view-w.tv/p/707-803-12766/en  

Telephone Dial-in Facility

The details for the telephone dial-in facility are as follows:

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Replay Details

To listen to a replay of the presentation which will be available for 7 days after the event, here are the details:

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Dividend payment information
Ex date – Wednesday 11 September 2013
Record date – Friday 13 September 2013
Pay date – Friday 18 October 2013

Q3 IMS and Strategy Update

A presentation for the Q3 2013 trading update and group strategy update will be held in London on 5th November 2013.

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