REG - Costain Group PLC - Final Results <Origin Href="QuoteRef">COSG.L</Origin> - Part 2

CostainAnnouncement

03/03/2015 07:01

- Part 2: For the preceding part double click  ID:nRSC3212Ga 

                                                                                                                                                                                                                                                                                                                                                                                                                            
 Pension liabilities ·      Failure to manage the Group's pension scheme so that the liabilities are within a range appropriate to its capital base which could have an adverse impact on the Group's operational results                                                                                                     The Group manages a legacy defined benefit scheme and continually reviews the actions it can take to mitigate long-term risk and consults professional advisers, as necessary. The scheme was closed to new members from 1 June 2005 and  to future accrual on  
                                                                                                                                                                                                                                                                                                                              30 September 2009. A number of other actions have been taken to manage the obligations in the scheme, including the transfer of assets into the scheme and the implementation of Enhanced Transfer Value and Pension Increase Exchange exercises.A full         
                                                                                                                                                                                                                                                                                                                              actuarial valuation of the scheme as at 31 March 2013 was concluded during 2014 and the Group agreed a deficit recovery plan with the Trustee.                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 Acquisitions ·      Failure to integrate successfully an acquired business or recognise and mitigate new and related risks could have a damaging impact on the Group's future revenue and profits                                                                                                                            Full due diligence is carried out before any acquisition is made. Integration plans are put in place and managed by a dedicated team and progress monitored against pre-agreed performance indicators.                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 Failure of IT systems·      Failure of IT systems, inability to manage and/or to integrate IT systems, as well as the failure to store key documentation securely, could cause financial loss to the Group and expose the Group to breaches of legislation and fines.                                                        A senior executive is responsible for the IT systems and has a suitably qualified team in support. Critical areas are subject to testing and include rapid recovery as well as sound data backup procedures. Online security training is provided for safe usage 
                                                                                                                                                                                                                                                                                                                              and storage of documentation.The Group is accredited to ISO /IEC 27001:2005 Information Security Management System                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 
 
A senior executive is responsible for the IT systems and has a suitably
qualified team in support. Critical areas are subject to testing and include
rapid recovery as well as sound data backup procedures. Online security
training is provided for safe usage and storage of documentation.The Group is
accredited to ISO /IEC 27001:2005 Information Security Management System 
 
Results for the year ended 31 December 2014 
 
Consolidated income statement 
 
 Year ended 31 December                                                   2014                        2013       
                                                                   Notes  Before         Other items  Total        Before         Other items  Total    
                                                                           other items                              other items                         
                                                                          £m             £m           £m           £m             £m           £m       
 Continuing operations                                                                                                                                  
 Revenue                                                           2      1,122.5        -            1,122.5      960.0          -            960.0    
 Less: Share of revenue of joint ventures and associates           9      (50.7)         -            (50.7)       (74.8)         -            (74.8)   
 Group revenue                                                            1,071.8        -            1,071.8      885.2          -            885.2    
 Cost of sales                                                            (1,011.6)      -            (1,011.6)    (826.7)        -            (826.7)  
 Gross profit                                                             60.2           -            60.2         58.5           -            58.5     
                                                                                                                                                        
 Administrative expenses                                                  (31.5)         -            (31.5)       (31.1)         -            (31.1)   
 Exceptional transaction costs                                     2      -              -            -            -              (3.7)        (3.7)    
 Amortisation of acquired intangible assets                               -              (3.0)        (3.0)        -              (1.8)        (1.8)    
 Employment related and other deferred consideration                      -              (2.2)        (2.2)        -              (2.8)        (2.8)    
 Group operating profit                                                   28.7           (5.2)        23.5         27.4           (8.3)        19.1     
                                                                                                                                                        
 Profit on sales of interests in joint ventures and associates            4.0            -            4.0          9.1            -            9.1      
 Share of results of joint ventures and associates                 9      (1.3)          -            (1.3)        (1.5)          (9.8)        (11.3)   
 Profit from operations                                            2      31.4           (5.2)        26.2         35.0           (18.1)       16.9     
                                                                                                                                                        
 Finance income                                                    4      0.7            -            0.7          0.7            -            0.7      
 Finance expense                                                   4      (3.6)          (0.7)        (4.3)        (4.7)          -            (4.7)    
 Net finance expense                                                      (2.9)          (0.7)        (3.6)        (4.0)          -            (4.0)    
 Profit before tax                                                        28.5           (5.9)        22.6         31.0           (18.1)       12.9     
 Income tax                                                        5      (2.2)          0.6          (1.6)        (1.8)          1.4          (0.4)    
 Profit for the year attributable to equity holders of the parent         26.3           (5.3)        21.0         29.2           (16.7)       12.5     
                                                                                                                                                        
 Earnings per share                                                                                                                                     
 Basic*                                                            6      27.8p          (5.6)p       22.2p        41.0p          (23.4)p      17.6p    
 Diluted*                                                          6      27.2p          (5.5)p       21.7p        39.4p          (22.5)p      16.9p    
 
 
The impact of business disposals in either year was not material and,
therefore, all results are classified as arising from continuing operations. 
 
* 2013 has been restated for the bonus element in the 2014 capital raise. 
 
 Consolidated statement of comprehensive income and expense                            
                                                                                                                                                                                                
 Year ended 31 December                                                                
                                                                                                                                                                           2014          2013   
                                                                                                                                                                           £m            £m     
                                                                                                                                                                                                
 Profit for the year                                                                                                                                               21.0           12.5   
                                                                                                                                                                                                
 Items that may be reclassified subsequently to profit or loss:                                                                                                            
 Exchange differences on translation of foreign operations                                                                                                         (2.0)          (0.2)  
 Cash flow hedges                                                                                                                                                                        
                                                                                       Group:                                                                                                   
                                                                                       Effective portion of changes in fair value during year                              -             (0.1)  
                                                                                       Net changes in fair value transferred to the income statement               0.1            0.2    
                                                                                       Joint ventures and associates:                                                                           
                                                                                       Effective portion of changes in fair value (net of tax) during year         -              (0.2)  
                                                                                       Net changes in fair value (net of tax) transferred to the income statement  -              1.2    
 Total items that may be reclassified subsequently to profit or loss                   (1.9)                                                                               0.9    
 Items that will not be reclassified to profit or loss:                                                                                                                                  
 Remeasurement of defined benefit obligations                                                                                                                      (15.7)         8.6    
 Tax recognised on remeasurement of defined benefit obligations                        1.5                                                                                 (5.3)  
 Total items that will not be reclassified to profit or loss                           (14.2)                                                                              3.3    
 Other comprehensive (expense)/income for the year                                     (16.1)                                                                              4.2    
 Total comprehensive income for the year attributable to equity holders of the parent                                                                              4.9            16.7   
 
 
 Consolidated statement of changes in equity                                                                                     
                                                                                                                                                                                  
                                                             Share capital  Share premium  Translation reserve  Hedging reserve  Merger reserve  Retained earnings  Total equity  
                                                             £m             £m             £m                   £m               £m              £m                 £m            
 At 1 January 2013                                           32.8           3.7            5.0                  (1.2)            -               (8.5)              31.8          
 Profit for the year                                         -              -              -                    -                -               12.5               12.5          
 Other comprehensive (expense)/income                        -              -              (0.2)                1.1              -               3.3                4.2           
 Issue of ordinary shares under employee share option plans  0.5            0.6            -                    -                -               (0.3)              0.8           
 Shares purchased to satisfy employee share schemes          -              -              -                    -                -               (1.5)              (1.5)         
 Equity settled share-based payments                         -              -              -                    -                -               2.2                2.2           
 Dividends paid                                              0.1            0.4            -                    -                -               (7.2)              (6.7)         
 At 31 December 2013                                         33.4           4.7            4.8                  (0.1)            -               0.5                43.3          
 At 1 January 2014                                           33.4           4.7            4.8                  (0.1)            -               0.5                43.3          
 Profit for the year                                         -              -              -                    -                -               21.0               21.0          
 Other comprehensive (expense)/income                        -              -              (2.0)                0.1              -               (14.2)             (16.1)        
 Issue of ordinary shares under employee share option plans  0.4            0.2            -                    -                -               (0.3)              0.3           
 Issue of ordinary shares under capital raise (note 6)       16.7           -              -                    -                53.6            -                  70.3          
 Transfer (note 6)                                           -              -              -                    -                (53.6)          53.6               -             
 Shares purchased to satisfy employee share schemes          -              -              -                    -                -               (2.0)              (2.0)         
 Equity-settled share-based payments                         -              -              -