Strong 2013 results for Interserve as company announces Initial Facilities acquisition
Interserve, the international support services and construction group, has reported strong performance and further progress with its annual results for the year ended 31 December 2013, as well as announcing the proposed acquisition of Initial Facilities for £250 million.
ANNUAL RESULTS 2013 & PROPOSED ACQUISITION
|
|
2013 |
2012 |
|
|
Revenue |
£2,192.6m |
£1,958.4m |
12.0% |
|
Headline total Operating Profit |
£86.7m |
£78.4m |
10.6% |
|
Headline Pre-tax Profit* |
£81.1m |
£75.3m |
7.7% |
|
Headline earnings per share* |
47.7p |
45.3p |
5.3% |
|
Net cash / (debt) |
£(38.6)m |
£25.8m |
|
|
Gross operating cash conversion (3yr average %) |
89.5% |
105.6% |
|
|
Full-year dividend |
21.5p |
20.5p |
4.9% |
|
Statutory Profit Measure |
|
|
|
|
Profit before tax [1] |
£68.1m |
£179.8m |
-62.1% |
HIGHLIGHTS
- Maintained strong revenue growth (12.0 per cent) and operational performance: headline EPS up 5.3 per cent per cent and dividend up 4.9 per cent
- Maintained record future workload at £6.4 billion and good revenue visibility (75 per cent of 2014 consensus revenue secured)
- £2.5 billion of new business won in the year, including work with the BBC, University of Sussex, HMRC, The Royal Navy, Ministry of Defence, DWP, Magnox, Jaguar Land Rover, the Lusail Tower in Qatar and the Emirates Engine Maintenance Centre in Dubai
- Completed the transfer of £55 million of PFI assets into the pension scheme
- Proposed acquisition of Initial Facilities for a cash consideration of £250 million funded by debt and an equity placing of 9.99 per cent of issued share capital
- The combination will position Interserve as one of the largest providers (top three by turnover) of facilities management services in the UK and drive future growth
- The acquisition is expected to be significantly earnings enhancing in the first full year
Chief Executive Adrian Ringrose commented:
"2013 has been another good year for the business, and despite challenging conditions in many of our markets, we delivered substantial growth in both revenue and headline profit, and made important strategic progress. Our focus on delivering the best possible service to our clients has resulted in strong work-winning in the year, from both new and existing customers, maintaining our record future workload at £6.4 billion.
"In our UK Support Services business we delivered our medium term objective of finishing the year with margins of five per cent. Our Construction division remained resilient and Equipment Services delivered strong results, while continuing to expand into new markets.
"We also completed a number of important acquisitions, further extending our capabilities in key areas for growth, both in the UK and the Middle East.
"We have confidence in the continued growth potential of the business, which is reflected by our proposed acquisition of Initial Facilities. The acquisition of such a complementary business allows us to deliver further against our growth strategy."
For further information, www.interserve.com/news.
