REG - Keller Group PLC - Results for the six months ended 30 June 2017 <Origin Href="QuoteRef">KLR.L</Origin> - Part 2
31/07/2017 07:06
- Part 2: For the preceding part double click ID:nRSe4717Ma
Total non-underlying items in operating profit 16.4 (4.7) (10.1)
Non-underlying finance costs (0.5) (0.5) (1.1)
Total non-underlying items 15.9 (5.2) (11.2)
Amortisation of acquired intangible assets primarily relate to the
acquisitions of Keller Canada, Franki Africa, Austral, Bencor and Tecnogeo.
The income relating to the contract dispute represents the gain on disposal of
the freehold of the processing and warehousing facility at Avonmouth, near
Bristol, acquired in 2016 (Note 10), rental income less operating costs to the
date of disposal and insurance recoveries in the period.
Non-underlying finance costs relate to the finance costs incurred to fund the
acquisition of the freehold of a processing and warehousing facility at
Avonmouth, near Bristol (Note 10) and the unwinding of discounted contingent
consideration for acquisitions.
6. Taxation
Taxation, representing management's best estimate of the average annual
effective income tax rate expected for the full year, based on the underlying
profit before tax, is 34.0% (half year ended 30 June 2016: 34.0%; year ended
31 December 2016: 35.0%).
7. Dividends payable to equity holders of the parent
Ordinary dividends on equity shares:
Half year to 30 June 2017£m Half year to 30 June 2016£m Year to 31 December 2016£m
Amounts recognised as distributions to equity holders in the period:
Interim dividend for the year ended 31 December 2016 of 9.25p (2015: 8.8p) per share - - 6.7
Final dividend for the year ended 31 December 2016 of 19.25p (2015: 18.3p) per share 13.8 13.1 13.1
13.8 13.1 19.8
In addition to the above, an interim ordinary dividend of 9.7p per share
(2016: 9.25p) will be paid on 5 September 2017 to shareholders on the register
at 11 August 2017. This proposed dividend has not been included as a liability
in these financial statements and will be accounted for in the period in which
it is paid.
8. Earnings per share
Earnings attributable to equity holders of the parent before non-underlying items Earnings attributable to equity holders of the parent
30 June 2017 30 June 2016 31 December 2016 30 June 2017 30 June 2016 31 December 2016
Basic and diluted earnings (£m) 25.2 19.7 54.5 41.0 15.7 47.2
Number of shares (million)
Basic number of ordinary shares outstanding 71.9 71.8 71.8 71.9 71.8 71.8
Effect of dilutive potential ordinary shares:
Share options and awards 1.3 1.1 1.1 1.3 1.1 1.1
Diluted number of ordinary shares 73.2 72.9 72.9 73.2 72.9 72.9
Earnings per share
Basic earnings per share (pence) 35.0 27.4 75.9 57.0 21.9 65.7
Diluted earnings per share (pence) 34.4 27.0 74.8 56.0 21.5 64.7
9. Analysis of closing net debt
As at 30 June 2017£m As at30 June 2016£m As at31 December 2016£m
Bank balances 60.0 73.9 82.8
Short-term deposits 1.9 1.4 1.6
Cash and cash equivalents in the balance sheet 61.9 75.3 84.4
Bank overdrafts (15.9) (1.5) (0.4)
Cash and cash equivalents in the cash flow statement 46.0 73.8 84.0
Bank and other loans (341.0) (409.1) (386.7)
Finance leases (2.3) (4.4) (2.9)
Closing net debt (297.3) (339.7) (305.6)
10. Non-current assets held for sale
On 11 May 2017, the group disposed of the freehold of a processing and
warehousing facility at Avonmouth, near Bristol, for a consideration of £62m.
A gain of £8m has been recognised within other non-underlying operating income
in the period to 30 June 2017.
11. Share capital and reserves
As at 30 June 2017£m As at30 June 2016£m As at31 December 2016£m
Allotted, called up and fully paidEquity share capital:73,099,735 ordinary shares of 10p each (30 June 2016: 73,099,735; 31 December 2016: 73,099,735) 7.3 7.3 7.3
The Company has one class of ordinary shares, which carries no rights to fixed
income. There are no restrictions on the transfer of these shares. The total
number of shares held in Treasury was 1.1m (30 June 2016: 1.3m; 31 December
2016: 1.1m).
12. Related party transactions
Transactions between the parent, its subsidiaries and jointly controlled
operations, which are related parties, have been eliminated on consolidation.
13. Post balance sheet events
There were no material post balance sheet events between the balance sheet
date and the date of this report.
Responsibility Statement
The half yearly financial report is the responsibility of the directors who
confirm that to the best of their knowledge:
(a) the condensed set of financial statements has been prepared in
accordance with IAS34 - Interim Financial Reporting;
(b) the interim management report includes a fair review of the
information required by DTR 4.2.7R - indication of important events during the
first six months and description of principal risks and uncertainties for the
remaining six months of the year; and
(c) the interim management report includes a fair review of the
information required by DTR 4.2.8R - disclosure of related party transactions
and changes therein.
The directors of Keller Group plc are listed in the Keller annual report for
2016; however, since the publication of the annual report, Ruth Cairnie has
retired from the Board and Eva Lindqvist has joined the Board as an
independent Non-Executive Director.
Approved by the Board of Keller Group plc and signed on its behalf by:
Alain Michaelis
Chief Executive
James Hind
Finance Director
31 July 2017
Adjusted performance measures
The group's results as reported under International Financial Reporting
Standards (IFRS) and presented in the financial statements (the "statutory
results") are significantly impacted by movements in exchange rates relative
to sterling, as well as by exceptional items and non-trading amounts relating
to acquisitions.
As a result, adjusted performance measures have been used throughout this
report to describe the group's underlying performance. The Board and Executive
Committee use these adjusted measures to assess the performance of the
business because they consider them more representative of the underlying
ongoing trading result and allow more meaningful comparison to prior year.
Underlying measures
The term "underlying" excludes the impact of exceptional items, amortisation
of acquired intangibles and other non-trading amounts relating to acquisitions
(collectively "non-underlying items"), net of any associated tax. Underlying
measures allow management and investors to compare performance without the
potentially distorting effects of one-off items or non-trading items.
Non-underlying items are disclosed separately in the financial statements
where it is necessary to do so to provide further understanding of the
financial performance of the group. They are items which are exceptional by
their size or are non-trading in nature, including those relating to
acquisitions.
Constant currency measures
The constant currency basis ("constant currency") adjusts the comparative to
exclude the impact of movements in exchange rates relative to sterling. This
is achieved by retranslating the 2016 results of overseas operations into
sterling at the 2017 average exchange rates.
A reconciliation between the underlying results and the reported statutory
results is shown on the face of the consolidated income statement, with
non-underlying items detailed in note 5. A reconciliation between the 2016
underlying result to the 2017 constant currency result is shown below and
compared to the underlying 2017 performance:
Revenue by segment
Statutory2017 Statutory2016 Impact of exchange movements2016 Constant currency 2016 Statutory change Constant currencychange
£m £m £m £m % %
North America 474.5 464.8 62.6 527.4 +2% -10%
EMEA 346.4 261.7 27.6 289.3 +32% +20%
APAC 170.2 123.2 16.9 140.1 +38% +21%
Group 991.1 849.7 107.1 956.8 +17% +4%
Underlying operating profit by segment
Underlying2017 Underlying2016 Impact of exchange movements2016 Constant currency 2016 Underlying change Constant currencychange
£m £m £m £m % %
North America 28.6 33.6 4.3 37.9 -15% -24%
EMEA 20.0 13.6 (0.3) 13.3 +47% +50%
APAC (3.8) (9.6) (1.6) (11.2) +60% +66%
Central items and eliminations (0.8) (2.0) 0.5 (1.5) +60% +47%
Group 44.0 35.6 2.9 38.5 +24% +14%
Underlying operating margin
Underlying operating margin is underlying operating profit as a percentage of
revenue.
Other adjusted measures
Where not presented and reconciled on the face of the consolidated income
statement, consolidated balance sheet or consolidated cash flow statement, the
adjusted measures are reconciled to the IFRS statutory numbers below:
EBITDA
30 June 30 June 31 December
2017 2016 2016
£m £m £m
Operating profit before non-underlying items 44.0 35.6 95.3
Depreciation 33.5 30.2 62.0
Amortisation 0.6 0.7 1.3
Underlying EBITDA 78.1 66.5 158.6
Non-underlying items in operating costs (0.1) (0.8) (18.9)
Non-underlying items in other operating income 21.0 1.1 18.5
EBITDA 99.0 66.8 158.2
Net finance costs
30 June 30 June 31 December
2017 2016 2016
£m £m £m
Finance income (1.8) (0.5) (1.6)
Finance costs before non-underlying items 6.5 5.9 11.8
Underlying net finance costs 4.7 5.4 10.2
Non-underlying finance costs 0.5 0.5 1.1
Net finance costs 5.2 5.9 11.3
Net capital expenditure
30 June 30 June 31 December
2017 2016 2016
£m £m £m
Acquisition of property, plant and equipment 33.6 33.4 78.2
Acquisition of intangible assets 0.4 0.2 0.6
Proceeds from sale of property, plant and equipment (2.5) (2.8) (5.8)
Net capital expenditure 31.5 30.8 73.0
Net debt
30 June 30 June 31 December
2017 2016 2016
£m £m £m
Current loans and borrowings 19.1 59.6 54.0
Non-current loans and borrowings 340.1 355.4 336.0
Cash and cash equivalents (61.9) (75.3) (84.4)
Net debt 297.3 339.7 305.6
For further information, please contact:
Keller Group plc
James Hind, Finance Director 020 7616 7575
Finsbury
Gordon Simpson/Theo Hildebrand 020 7251 3801
A presentation for analysts will be held at 9.30am at
One Moorgate Place - Chartered Accountants Hall,
1 Moorgate Place, London EC2R 6EA
A live webcast will be available from 9.30am and, on demand, from 2.00pm at
http://www.investis-live.com/keller/596cd927c6702b0a00524c2e/jtye
Print resolution images are available for the media to download from
www.vismedia.co.uk
Notes to Editors:
Keller is the world's largest geotechnical contractor, providing technically
advanced geotechnical solutions to the construction industry. With annual
revenue of around £2.0bn, Keller has approximately 10,000 staff world-wide.
Keller is the clear market leader in the US, Canada, Australia and South
Africa; it has prime positions in most established European markets and a
strong profile in many developing markets.
Cautionary statements:
This document contains certain 'forward looking statements' with respect to
Keller's financial condition, results of operations and business and certain
of Keller's plans and objectives with respect to these items.
Forward looking statements are sometimes, but not always, identified by their
use of a date in the future or such words as 'anticipates', 'aims', 'due',
'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans',
'potential', 'reasonably possible', 'targets', 'goal' or 'estimates'. By their
very nature forward-looking statements are inherently unpredictable,
speculative and involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future.
There are a number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to, changes in the
economies and markets in which the group operates; changes in the regulatory
and competition frameworks in which the group operates; the impact of legal or
other proceedings against or which affect the group; and changes in interest
and exchange rates.
All written or verbal forward looking statements, made in this document or
made subsequently, which are attributable to Keller or any other member of the
group or persons acting on their behalf are expressly qualified in their
entirety by the factors referred to above. Keller does not intend to update
these forward looking statements.
Nothing in this document should be regarded as a profits forecast.
This document is not an offer to sell, exchange or transfer any securities of
Keller Group plc or any of its subsidiaries and is not soliciting an offer to
purchase, exchange or transfer such securities in any jurisdiction. Securities
may not be offered, sold or transferred in the United States absent
registration or an applicable exemption from the registration requirements of
the US Securities Act of 1933 (as amended).
LEI number: 549300QO4MBL43UHSN10
Classification: 1.2 (Half yearly financial reports)
This information is provided by RNS
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