REG - Balfour Beatty PLC - Half Year Results <Origin Href="QuoteRef">BALF.L</Origin> - Part 5
12/08/2015 07:01
- Part 5: For the preceding part double click ID:nRSL7766Vd
Analysis of liability 2015first halfunaudited£m 2014first halfunaudited£m 2014yearaudited£m
Balfour Beatty Pension Fund (114) (284) (12)
Railways Pension Scheme^ (62) (39) (58)
Other schemes* (55) (74) (58)
Liability in the Balance Sheet (231) (397) (128)
* Other schemes include the Rail Germany pension scheme from the second half of 2014. This was held as a liability held for
sale at 27 June 2014. Other schemes also include the Group's deferred compensation obligations for which available-for-sale
investments in mutual funds of £20m (2014: first half £61m, full year £20m) are held by the Group to satisfy these
obligations.
^ The valuation of the Railways Pension Scheme as at 31 December 2013 is ongoing.
Movements in the retirement benefit liabilities for the period 2015first halfunaudited£m 2014first halfunaudited2,3£m 2014yearaudited£m
At beginning of period (128) (434) (434)
Currency translation differences 3 1 (1)
Current service cost - continuing operations (4) (3) (7)
Finance cost - continuing operations (62) (67) (135)
Interest income - continuing operations 60 59 119
Income statement costs relating to discontinued operations - (2) (5)
Actuarial movements - on obligations from reassessing the difference between RPI and CPI - - 31
- on obligations from changes to other financial assumptions (51) (58) (372)
- on obligations from changes in demographic assumptions - - 11
- on obligations from experience losses (2) (9) (7)
- on assets (80) 85 574
Contributions from employer - regular funding 2 2 5
- ongoing deficit funding - continuing operations 28 25 49
Benefits paid 2 3 9
Settlements 1 - 5
Reclassified to liabilities held for sale for Rail Italy - 1 1
Reclassified from liabilities held for sale for Rail Germany - - (21)
Reclassified to liabilities held for sale and subsequently sold - - 50
At end of period (231) (397) (128)
2 Re-presented to classify Parsons Brinckerhoff as a discontinued operation (Note 9).
3 Re-presented to include results of Rail Germany, which no longer meets the definition of a discontinued operation, as
non-underlying items within continuing operations (Note 7).
16 Retirement benefit liabilities continued
The investment strategy of the Balfour Beatty Pension Fund (BBPF) and the sensitivity analysis of the Group's retirement
benefit obligations and assets to different actuarial assumptions are set out in Note 28 on pages 133 to 134 and 139 of the
Annual Report and Accounts 2014.
A formal triennial funding valuation of the BBPF was carried out as at 31 March 2013. As a result the Group agreed with
effect from April 2013 to make ongoing deficit payments of £50m per annum, increasing to: £55m per annum from April 2016;
£60m per annum from April 2017; and £65m per annum from April 2018 to May 2020, increasing each year by CPI (minimum 0% and
capped at 5%) plus (in the period before the next actuarial valuation is agreed) 200% of any increase in the Company's
dividend in excess of capped CPI. If the Company makes any one-off return of value to shareholders in excess of £200m such
as a special dividend, share buy-back, capital payment or similar before the next actuarial valuation is agreed, there will
be an additional increase in the deficit payment for the following year only, calculated as the regular deficit payment for
that year multiplied by 75%, multiplied by the value of the one-off return of value, divided by the total of the regular
dividends for the year prior to the year in which the one-off return was made. This agreement constitutes a minimum
funding requirement under IFRIC 14 IAS 19: The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their
Interaction. Under the terms of the trust deed and subject to the agreement of the trustees (who would need to balance
their responsibility to set contribution rates in accordance with the trust rules together with the interests of the
beneficiaries at the time), the Group has the ability to use surplus funds, should they arise, in the defined benefit
section of the BBPF to pay its contributions towards further service benefits in the defined benefit and defined
contribution sections of the scheme. The Directors consider that, as the Group is permitted to assume that it would not be
required to make contributions to maintain a surplus, should one arise, these further service benefits will exceed the
minimum funding requirement.
In the first half of 2015, the Group continued a commutation exercise for pensioner members and dependants. This gave
members the option to extinguish their benefits within the BBPF in exchange for a cash lump sum and was offered to
pensioner members and dependants with benefits with a value of less than £10,000 and £18,000, respectively. The acceptance
of this offer by certain members and dependants gave rise to a settlement event resulting in a decrease in liabilities of
£1m in the period to 26 June 2015, which was recognised in non-underlying income. Refer to Note 7.1.4.5.
In anticipation of the disposal of Parsons Brinckerhoff (PB) and the then proposed £200m return of capital to shareholders,
and following the scheme apportionment arrangement made in relation to the disposal of Balfour Beatty WorkPlace (BBW),
agreement was reached on 24 September 2014 with the trustees of the BBPF for additional deficit payments of £100m in 2015,
of which £15m was in respect of BBW and £85m was in respect of PB. The £15m relating to BBW is being paid to the BBPF in
2015 in agreed monthly instalments.
On 1 July 2015 the Group established a Scottish Limited Partnership (SLP) structure into which its investment in Consort
Healthcare (Birmingham) Holdings Limited (Consort Birmingham), which owns the Group's 40% interest in the Birmingham
Hospital PFI investment, was transferred. The BBPF is a partner in the SLP and is entitled to a share of the income of the
SLP. In accordance with IFRS 10 Consolidated Financial Statements, the SLP is deemed to be controlled by the Group, which
retains the ability to substitute the investment in Consort Birmingham for other investments from time to time. Alongside
the establishment of the SLP, definitive documents were signed which defer the payment of £85m which had been due to be
paid to the BBPF in 2015 over the period to 2023, with the first payment of £4m due in 2016. Under IAS 19 the investment
held by the BBPF in the SLP does not constitute a plan asset and therefore the pension deficit presented in these financial
statements does not reflect the BBPF's interest in the SLP. Distributions from the SLP to the BBPF will be reflected in the
Group's financial statements as pension contributions on a cash basis.
17 Share capital
During the half-year ended 26 June 2015, 4,296 (2014: first half 73,862, full-year 101,540) ordinary shares were issued
following the exercise of savings-related share options and nil (2014: first half 318,840, full-year 318,840) ordinary
shares were issued following the exercise of executive share options for an aggregate cash consideration of £nil (2014:
first half £1m, full-year £1m).
During the half-year ended 26 June 2015, 3,340,737 (2014: first half 538,075, full-year 587,707) ordinary shares were
purchased for £7m (2014: first half £2m, full-year £2m) by the Group's employee discretionary trust to satisfy awards under
the Balfour Beatty Performance Share Plan and the Balfour Beatty Deferred Bonus Plan.
18 Notes to the Condensed Statement of Cash Flows
Continuing operations
18.1 Cash generated from/(used in) operations Underlying items2015first half unaudited1£m Non-underlying items2015first half unaudited£m Discontinuedoperations2015first half unaudited£m Total2015first half unaudited£m Total2014first halfunaudited2,3,5£m Total2014year audited£m
Loss from continuing operations (120) (20) - (140) (43) (281)
Profit from discontinued operations - - 1 1 1 238
Share of results of joint ventures and associates (8) - - (8) (41) (53)
Depreciation of property, plant and equipment 16 1 - 17 23 54
Amortisation of other intangible assets 8 5 - 13 14 25
Impairment of Oracle R12 intangible asset - - - - - 21
Pension deficit payments - ongoing deficit funding (28) - - (28) (25) (49)
Pension fund settlement gain - (1) - (1) - (2)
Movements relating to share-based payments 1 - - 1 4 5
Gain on disposals of interests in investments (84) - - (84) (51) (93)
(Profit)/loss on disposal of property, plant and equipment (1) - - (1) 1 (7)
Net gain on disposal of other businesses - (15) (2) (17) (4) (234)
Goodwill impairment in respect of Mainland European rail businesses - - - - 20 24
Impairment of assets in Rail Germany - - - - 10 30
Impairment of assets in Rail Italy - - - - - 2
Impairment of property, plant and equipment - - - - - 1
Other non-cash items - - - - - (2)
Operating cash flows before movements in working capital (216) (30) (1) (247) (91) (321)
Decrease/(increase) in operating working capital 218 (7) - 211 (195) (31)
Inventories and non-construction work in progress 16 3 - 19 (26) (30)
Due from construction contract customers 109 10 (1) 118 (99) (92)
Trade and other receivables 16 21 5 42 (130) (43)
Due to construction contract customers 47 (16) - 31 (10) 50
Trade and other payables 13 (39) (4) (30) 80 85
Provisions 17 14 - 31 (10) (1)
Cash generated from/(used) in operations 2 (37) (1) (36) (286) (352)
1 Before non-underlying items (Note 8).
2 Re-presented to classify Parsons Brinckerhoff as a discontinued operation (Note 9).
3 Re-presented to include results of Rail Germany, which no longer meets the definition of a discontinued operation, as
non-underlying items within continuing operations (Note 7).
5 Restated to correct prior period error relating to the recognition of contract losses in the UK construction business
(Note 1.7).
18 Notes to the statement of cash flows continued
18.2 Cash and cash equivalents 2015first halfunaudited£m 2014first halfunaudited£m 2014yearaudited£m
Cash and deposits 680 362 653
Term deposits 44 49 38
Bank overdrafts - (27) (4)
Cash and cash equivalents, excluding cash balances within infrastructure concessions 724 384 687
Cash balances within Infrastructure concessions 16 46 40
740 430 727
18.3 Analysis of net borrowings 2015first halfunaudited£m 2014first halfunaudited£m 2014yearaudited£m
Cash and cash equivalents, excluding cash balances within infrastructure concessions 724 384 687
US private placement (223) (206) (224)
Liability component of convertible bonds (230) (224) (227)
Loans under committed facilities expiring in more than one year - (262) -
Other short-term loans (10) (77) (16)
Finance leases (1) (2) (1)
260 (387) 219
Non-recourse infrastructure concessions project finance loans at amortised cost with final maturity between 2015 and 2027 (343) (270) (485)
Infrastructure concessions cash and cash equivalents 16 46 40
(327) (224) (445)
Net borrowings (67) (611) (226)
18.4 Analysis of movement in net (borrowings)/cash Infrastructureconcessionsnon-recourseproject finance2015first halfunaudited£m Other2015first halfunaudited£m Total2015first halfunaudited£m 2014first halfunaudited£m 2014yearaudited£m
Opening net (borrowings)/cash (445) 219 (226) (420) (420)
Currency translation differences - 7 7 (6) (21)
Net (decrease)/increase in cash and cash equivalents (24) 13 (11) (78) 212
Accretion on convertible bonds - (3) (3) (3) (6)
Proceeds from new loans (33) - (33) (281) (247)
Proceeds from new finance leases - - - - (1)
Repayments of loans 4 - 4 18 90
Repayments of finance leases - - - - 3
Disposal of non-recourse borrowings 177 - 177 163 163
Change of loan from recourse to non-recourse (6) 6 - - -
Net decrease/(increase) in cash within assets held for sale (Note 9) - 3 3 (4) 1
Cash previously held within assets held for sale disposed of during the period - 15 15 - -
Closing net (borrowings)/cash (327) 260 (67) (611) (226)
18.5 Borrowings
During the first half of 2015, the significant movements in net borrowings within the infrastructure concessions
non-recourse project finance were: a net decrease in cash of £24m (2014: first half £19m; full-year: £25m); an increase of
£33m (2014: first half £19m, full-year £236m) in non-recourse loans funding the development of financial assets in
infrastructure concession subsidiaries and joint ventures; and disposal of non-recourse borrowings in Thanet OFTO HoldCo
Limited £177m (2014: £163m on disposal of Transform Schools (Knowsley) Holdings Limited).
During the first half of 2015, significant movements in net cash within the Group's other financing arrangements were: a
net increase in cash of £13m (2014: first half £59m decrease, full-year £237m increase); a net decrease in cash within
assets held for sale of £3m (2014: first half £4m increase; full-year: £1m decrease) and cash which was previously held
within assets held for sale subsequently disposed of during the period of £15m (2014: first half £nil, full-year £nil).
19 Acquisitions and disposals
19.1 Acquisitions
No acquisitions were made in the first half of 2015 and in 2014.
Deferred consideration paid during the 2015 half-year in respect of acquisitions completed in earlier years was £3m.
19.2 Disposals
Notes Disposal date Entity/business Percentagedisposed % Gross cashconsideration£m Net assetsdisposed £m Amount recycled fromreserves£m Direct costs incurred,indemnityprovisionscreated andfair valueuplift £m Underlying gain £m Non-underlying gain £m
19.2.1 31 January 2015 Parts of Rail Germany# * 100 5 (5) (1) (1) - (2)
19.2.2 16 February 2015 Thanet OFTO HoldCo Limited# * 80 40 (29) 18 - 29 -
19.2.3 11 March 2015 Rail Italy# * 100 5 (6) (2) - - (3)
19.2.4 12 March 2015 Baoji BaoDeLi Electrification Limited ^ 25 4 (1) - (1) - 2
19.2.5 28 April 2015 Edinburgh Royal Infirmary ^ 50 72 (15) (1) (1) 55 -
19.2.6 27 May 2015 Signalling Solutions Limited ^ 50 17 (2) - - - 15
143 (58) 14 (3) 84 12
* Subsidiary.
^ Joint venture.
# Total net cash consideration received on the disposal of subsidiaries during the period after deducting cash disposed and
transaction costs paid, amounts to a cash outflow of £6m. During the period the Group also received net proceeds of £16m
relating to the disposal of Parsons Brinckerhoff and £1m of proceeds relating to the disposal of Balfour Beatty WorkPlace.
Separation costs relating to the disposal of Parsons Brinckerhoff of £8m were paid in the period. The total net cash
consideration received in respect of subsidiaries amounts to £3m.
19.2.1 On 31 January 2015, as part of the ongoing process to exit the Mainland European rail business, the Group disposed
of part of its Rail business in Germany and its Rail business in Austria for a cash consideration of £5m. The disposal
resulted in a £2m loss being recognised as a non-underlying item within continuing operations, comprising a £1m loss on
recycling currency translation reserves to the income statement and costs of disposal of £1m. The disposal included cash
disposed of £12m.
19.2.2 On 16 February 2015, the Group disposed of a 80% interest in Thanet OFTO HoldCo Limited (TOHL) for a cash
consideration of £40m. This infrastructure concession disposal resulted in a net gain of £29m being recognised within
underlying operating profit comprising: a gain of £11m in respect of the investment in the subsidiary, a £13m gain in
respect of revaluation reserves recycled to the income statement and a £5m gain recycled to the income statement
representing the fair value uplift of the interest retained. The Group retains a 20% interest in TOHL which will be
accounted for as a joint venture using the equity method. The disposal included cash disposed of £17m.
19.2.3 On 11 March 2015, as part of the ongoing process to exit the mainland European Rail business, the Group disposed of
its Rail business in Italy for a cash consideration of £5m. The disposal resulted in a £3m loss being recognised as a
non-underlying item within discontinued operations, comprising a £1m loss in respect of the fair value of net assets
disposed and a £2m loss on recycling currency translation reserves to the income statement. The disposal included cash
disposed of £3m.
19.2.4 On 12 March 2015, as part of the ongoing process to exit the mainland European Rail business, the Group disposed of
its 25% interest in Baoji BaoDeLi Electrification Equipment Limited for a cash consideration of £4m. The disposal resulted
in a £2m gain being recognised as a non-underlying item within continuing operations in respect of the investment in the
joint venture, after deducting disposal costs of £1m.
19 Acquisitions and disposals continued
19.2 Disposals continued
19.2.5 On 28 April 2015, the Group disposed of its 50% interest in Consort Healthcare (Edinburgh Royal Infirmary) Holdings
Limited (Edinburgh Royal Infirmary) for a cash consideration of £72m. This infrastructure concession disposal resulted in a
net gain of £55m being recognised within underlying operating profit, comprising: a gain of £57m in respect of the
investment in the joint venture, a £1m loss in respect of revaluation reserves recycled to the income statement and £1m
costs of disposal incurred.
19.2.6 On 27 May 2015, the Group disposed of its 50% interest in Signalling Solutions Limited for a cash consideration of
£17m. The disposal resulted in a £15m gain being recognised in non-underlying items within continuing operations in respect
of the disposal of the investment in the joint venture.
19.2.7 In the first half of 2015, the Group finalised the cash consideration due on the disposal of its professional
services business, Parsons Brinckerhoff (PB), amounting to an additional consideration for the Group of £16m of which £7m
was recognised as a receivable at the date of disposal in the prior period. Offsetting this net gain of £9m within
non-underlying items are separation costs of £5m which are being incurred in the year in relation to separation activities
to fully separate the remainder of the Group and PB, resulting in an overall net gain of £4m.
19.2.8 In the first half of 2015, the Group received a refund of £1m from pension contributions made in previous years in
relation to Balfour Beatty WorkPlace, which was the Group's UK facilities management business disposed in 2013.
20 Contingent liabilities
The Group and certain subsidiary undertakings have, in the normal course of business, given guarantees and entered into
counter-indemnities in respect of bonds relating to the Group's own contracts and given guarantees in respect of their
share of certain contractual obligations of joint ventures and associates and certain retirement benefit liabilities of the
Balfour Beatty Pension Fund and the Railways Pension Scheme. Guarantees are treated as contingent liabilities until such
time as it becomes probable payment will be required under the terms of the guarantee.
Provision has been made for the Directors' best estimate of known legal claims, investigations and legal actions in
progress. The Group takes legal advice as to the likelihood of success of claims and actions and no provision is made where
the Directors consider, based on that advice, that the action is unlikely to succeed, or that the Group cannot make a
sufficiently reliable estimate of the potential obligation.
21 Related party transactions
The Group has contracted with, provided services to, and received management fees from, certain joint ventures and
associates amounting to £235m (2014: first half £303m, full-year £673m). These transactions occurred in the normal course
of business at market rates and terms. In addition, the Group procured equipment and labour on behalf of certain joint
ventures and associates which were recharged at cost with no mark-up. The amounts due from or to joint ventures and
associates at the reporting date are disclosed in Notes 13 and 14 respectively.
The Group recharged the Balfour Beatty Pension Fund with the costs of administration and advisers' fees borne by the Group
amounting to £nil in the first half of 2015 (2014: first half £3m, full-year £7m).
22 Financial instruments
PPP financial assets
The fair value of the Group's PPP financial assets is determined in the construction phase by applying an attributable
profit margin by reference to the construction margin on non-PPP projects reflecting the construction risks retained by the
construction contractor, and fair value of construction services performed. In the operational phase it is determined by
discounting the future cash flows allocated to the financial asset at a discount rate which is based on long-term gilt
rates adjusted for the risk levels associated with the assets. The consequent movement in the fair value is taken to other
comprehensive income.
Investment in the Infrastructure Fund
The Group's investment in the Infrastructure Fund (the Fund) is subject to the terms and conditions of the Fund's offering
documentation. The investment in the Fund is primarily valued based on the latest available financial information provided
by the Fund's General Partner, which is a related party of the Group. Management reviews the details of the reported
valuation obtained from the Fund and considers: (i) the valuation of the underlying investments; (ii) the value date of the
net asset value (NAV) provided; (iii) cash flows (calls/distributions) since the latest value date; and (iv) the basis of
accounting and, in instances where the basis of accounting is other than fair value, fair value information provided by the
Fund's General Partner.
Where the information provided by the Fund's General Partner is not considered appropriate, management will make amendments
to the NAV obtained as noted above in order to present a carrying value that more appropriately reflects the fair value of
the Group's investment at the reporting date. In determining the continued appropriateness of the valuation, management
reviews the valuation reports received from the Fund's General Partner. The terms of the Fund's partnership agreement
require these valuation reports to be supported by an annual external valuation.
Fair value estimation
The Group holds certain financial instruments on the balance sheet at their fair values. The hierarchy level classifies
each class of financial asset or liability in accordance with the valuation technique applied in determining its fair
value.
Level 1 - The fair value is calculated based on quoted prices traded in active markets for identical assets or
liabilities.
The Group holds available-for-sale investments in mutual funds which are traded in active markets and valued at the closing
market price at the reporting date.
Level 2 - The fair value is based on inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly.
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows utilising yield
curves at the reporting date and taking into account own credit risk. Own credit risk for Infrastructure Investments' swaps
is not material and is calculated using the following credit valuation adjustment (CVA) calculation: loss given default
multiplied by exposure multiplied by probability of default.
The fair value of forward foreign exchange contracts is determined using quoted forward exchange rates at the reporting
date and yield curves derived from quoted interest rates matching the maturities of the foreign exchange contracts. Own
credit risk for the other derivative liabilities is not material and is calculated by applying a relevant credit default
swap (CDS) rate obtained from a third party.
Level 3 - The fair value is based on unobservable inputs.
There have been no transfers between these categories in the current period or preceding year.
22 Financial instruments continued
Financial instruments at fair value 2015first halfunaudited£m 2014first halfunaudited£m 2014yearaudited£m
Financial assets
Level 1
Available-for-sale mutual fund financial assets 20 61 20
Level 2
Financial assets - foreign currency contracts 1 1 2
Level 3
Available-for-sale PPP financial assets (Note 15) 365 287 559
Investment in the Infrastructure Fund (Note 4.3) 33 10 20
Total assets measured at fair value 419 359 601
Financial liabilities
Level 2
Financial liabilities - foreign currency contracts (4) (3) (2)
Financial liabilities - infrastructure concessions interest rate swaps (68) (49) (90)
Total liabilities measured at fair value (72) (52) (92)
The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash
flows at the current market interest rate that is available to the Group for similar financial instruments.
Level 3 financial assets
PPP financial assets
A change in the discount rate would have a significant effect on the value of the asset and a 50 basis points
increase/decrease, which represents management's assessment of a reasonably possible change in the risk adjusted discount
rate, would lead to a £15m decrease (2014: first half £14m; full-year £27m) / £15m increase (2014: first half £15m;
full-year £27m) in the fair value of the assets taken through equity. Refer to Note 15 for a reconciliation of the movement
from the opening balance to the closing balance.
Investment in the Infrastructure Fund
Management has determined that an absolute shift of 15% represents a reasonably possible change in the fair value of the
Group's investment in the Fund and would result in an absolute change of £5m (2014: first half £1m, full-year £3m). In
arriving at this value management have considered the economic assumptions and discount rates used in the valuation of the
underlying investments. Refer to Note 4.3 for a reconciliation of the movement from the opening balance to the closing
balance.
At 26 June 2015, management considered that the NAV provided by the Fund's General Partner appropriately reflected the fair
value of the Group's investment.
23 Principal risks and uncertainties
The Directors do not consider that the nature of the principal risks and uncertainties facing the Group has fundamentally
changed since the publication of the Annual Report and Accounts 2014. However, the Directors' assessment of their
likelihood and potential impact is an evolving and continuous process.
In the 2014 Annual Report and Accounts it was noted that performance of parts of the UK construction business had been very
poor and had a material impact on Group. KPMG's independent review identified the three main causes; tendering for lump sum
contracts at very low margins, inadequate contract management and commercial reporting processes and poor cost and
programme forecasting.
To address these issues and refocus the Group, several key steps have been taken including the appointment of a new
executive team and a refreshed Board; the launch of the transformation programme 'Build to Last' aimed at making the Group
more simplified and efficient; and the introduction of a revised and more challenging Group risk management framework.
Within Build to Last there are a number of initiatives underway to increase commercial awareness across the Group and to
drive the increased governance and operational controls into all of the Group's businesses to ensure project level
accountability is understood and evidenced.
As part of this ongoing commercial scrutiny of the Group's businesses, contract by contract in the UK and US, more prudent
judgements have been taken on contract positions compared to previous periods. This has resulted in an additional charge to
the income statement in the first half of 2015 of £39m (2014: first half £nil, full-year £51m).
In addition the disposals of Rail Italy and parts of Rail Germany have been concluded, thereby simplifying and de-risking
the Group's international rail operation.
The Board confirms that it is satisfied that the necessary actions, including the implementation of control enhancements,
have been taken or are being taken to rectify any weaknesses or failures in the application of procedural controls.
24 Seasonality
The Group's activities are generally not subject to significant seasonal variation.
25 Events after the reporting date
There are no material post balance sheet events between the balance sheet date and the date of this report.
26 Prior year comparisons
Income Statement As previously reported 2014first halfunaudited£m Effect of Parsons Brinckerhoff 2014 first half unaudited£m Effect of Rail Germany 2014 first halfunaudited £m Effect of certain legacy ES contracts 2014 first halfunaudited£m Effect of contract loss error 2014 first halfunaudited£m As re-presented 2014 first half unaudited£m
Continuing operations
Revenue including share of joint ventures and associates 4,851 (744) - (35) - 4,072
Share of revenue of joint ventures and associates (677) 7 - - - (670)
Group revenue 4,174 (737) - (35) - 3,402
Underlying group operating loss1 (5) (25) - 28 (11) (13)
Share of results of joint ventures and associates 42 - - - - 42
Underlying profit from operations1 37 (25) - 28 (11) 29
Investment income 30 - - - - 30
Finance costs (45) 1 - - - (44)
Underlying profit before taxation1 22 (24) - 28 (11) 15
Taxation on underlying profit 5 7 - (5) - 7
Underlying profit for the period1 27 (17) - 23 (11) 22
Non-underlying items after tax (16) 5 (26) (23) (5) (65)
Profit/(loss) for the period from continuing operations 11 (12) (26) - (16) (43)
Underlying (loss)/profit for the period from discontinued operations after tax1 (14) 17 12 - - 15
Non-underlying items from discontinued operations after tax (24) (5) 14 - - (15)
(Loss)/profit for the period from discontinued operations (38) 12 26 - - -
Loss for the period (27) - - - (16) (43)
1 Before non-underlying items (Note 7).
Earnings per share
Basic earnings/(loss) per ordinary share from continuing operations 1.6 (1.7) (3.8) - (2.3) (6.2)
Basic (loss)/earnings per ordinary share from discontinued operations (5.5) 1.7 3.8 - - -
Basic loss per ordinary share (3.9) - - - (2.3) (6.2)
Diluted earnings/(loss) per ordinary share from continuing operations 1.6 (1.7) (3.8) - (2.3) (6.2)
Diluted (loss)/earnings per ordinary share from discontinued operations (5.5) 1.7 3.8 - - -
Diluted loss per ordinary share (3.9) - - - (2.3) (6.2)
Statement of Comprehensive Income
Loss for the period (27) - - - (16) (43)
Total comprehensive expense for the period (16) - - - (16) (32)
Balance Sheet
Due to construction contract customers (342) - - - (16) (358)
Net assets 965 - - - (16) 949
Retained profits (70) - - - (16) (86)
Equity 965 - - - (16) 949
This information is provided by RNS
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