Interim Results Presentation 2004
Interim Results Presentation 2004
Galliford Try plc
Interim Results Presentation 2004
Introduction David Calverley
Financial Review Frank Nelson
Construction Andy Sturgess
Housebuilding Greg Fitzgerald
Summary and Outlook David Calverley
Agenda
Interim Results Presentation 2004
David Calverley - Chief Executive
Introduction
Interim Results Presentation 2004
• Housebuilding:• A leading regional developer with strong local brands,
specialising in individually designed developments with expertise in brownfield, conversion and a strong focus on customer service.
Introduction - Strategy
• Construction• A market leader in the delivery of a complete construction
service through a partnership approach, with a strong sector focus.
Interim Results Presentation 2004
Introduction – Strategic Review
• Plan For Growth - Construction
• Partnership approach & sector focus
• Build on recent successes in public and regulated sectors
• Emphasis on sustainable predictable profits
• Margins in medium term to be in upper quartile of 2%
• Plan for Growth - Housebuilding
• Build on success as strong regional developer
• Emphasis on mainstream market
• Expand unit sales by 50% over next 3 years
• Finance from internal resources
Interim Results Presentation 2004
Frank Nelson – Finance Director
Financial Review
Interim Results Presentation 2004
Financial Review – Summary Profit & Loss Account
For the half year ended 31 December 2003
(£m)
Dec 2002
(£m)
Dec 2003
Profit before interest (pre exceptional) 11.4 7.0
Interest (1.8) (1.5)
Turnover (including joint ventures) 356.4 299.9
Profit before tax (pre exceptional) 9.6 5.5
Exceptional charge - (2.0)
Profit before tax (post exceptional) 9.6 3.5
Earnings per share:
Pre exceptional 3.1p 1.7p
Post exceptional 3.1p 1.1p
Dividend per share 0.55p 0.5p
Interim Results Presentation 2004
Financial Review – Segmental Analysis
For the half year ended 31 December 2003
Dec 2002 Dec 2003
Construction 268.7 226.2 2.0 (2.0)
Dec 2002 Dec 2003
Group Turnover (£m)(including joint ventures)
Profit/(loss) (£m)
Housebuilding 87.6 73.2 11.2 10.5
Group 0.1 0.5 (1.8) (1.5)
Exceptional charge - (2.0)
356.4 299.9 11.4 5.0
Less net interest payable (1.8) (1.5)
Profit before tax 9.6 3.5
£1.5m of the exceptional charge in the half year to 31 December 2002 is in construction and £0.5m is in group.
Interim Results Presentation 2004
Financial Review – Cash Flow Summary
Dec 2003 (£m)
Depreciation and amortisation 0.9 0.9
Net land spend (6.0) (7.1)
Work in progress movement 2.1 (9.9)
Other working capital 3.8 (2.3)
Interest (1.2) (1.3)
Tax (2.1) (2.1)
Dividends (2.2) (2.2)
Net cash flow from operating activities 11.8 (13.5)
Movement in net debt 6.2 (22.3)
Capital expenditure (0.3) (0.9)
Other 0.2 (2.3)
For the half year ended 31 December 2003
Group operating profit (post exceptional) 11.0 4.9
Dec 2002 (£m)
Interim Results Presentation 2004
Financial Review – Balance Sheet, Financing
Jun 2003 (£m) Dec 2003 (£m)
Net debt 11.6 17.8
Shareholders’ funds 65.5 59.7
Total capital employed 77.1 77.5
Gearing 18% 30%
Interest cover (post exceptional charge) 6.3 5.2
Interim Results Presentation 2004
Andy Sturgess – Managing Director
Construction
Interim Results Presentation 2004
-1
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
1
Dec-01 Jun-02 Dec-02 Jun-03 Dec-03
% Net Margin
0.4%
-0.3%
-0.9%
0.6%
0.8%
Construction - Profitability
Interim Results Presentation 2004
Infrastructure
Health & Education
Business Units
Commercial
Interiors
PFI/PPP
Telecommunications
Affordable Housing
Rail
Ground Engineering
Market Sectors Ce
ntr
al
No
rth
So
uth
Pa
rtn
ers
hip
s
Co
mm
un
ica
tio
ns
Ro
ck
& A
llu
viu
m
Water
Growth >10% Growth 5-10% Growth 0-5% Decline 5-10%
Construction – Economic Forecasting
Interim Results Presentation 2004
• Scottish Water
• AMP 4 Renewals
• Welsh Water
• United Utilities
• Anglian Water
• Yorkshire Water
Construction - Water
Interim Results Presentation 2004
• LIFT Programme
• Liverpool & Sefton (£60m)
• Barnet, Enfield & Haringey (£32m)
• Coventry (£42m)
• DTC Frameworks
Construction - Health
Interim Results Presentation 2004
• Bedford Schools PFI – On Site
• Caludon Castle School & Community College PFI Project, Coventry – Preferred Bidder
• Northampton PFI – One of Two (£100m)
• Birmingham Schools PFI 2 – One of Two (£55m)
• Building Schools for the Future
Construction - Education
Interim Results Presentation 2004
• Frameworks Continue
• TOC’s
• Virgin Rail Framework
Construction - Rail
Interim Results Presentation 2004
Construction – Affordable Housing
• Changes in Procurement Route
• PFI
• Joint Development
• Key Worker Accommodation
Interim Results Presentation 2004
15.3 Infrastructure 48.0 42.0
35.7 Education 98.9 50.1
35.0 Water 213.6 213.6
63.8 Commercial 48.2 17.3
34.0 Interiors 24.2 20.1
13.5 Health 136.8 136.8
20.8 Telecommunications 6.5 6.5
27.2 Affordable Housing 28.5 27.6
17.2 Rail 65.6 65.6
6.2 Ground Engineering 3.3 3.3
Market SectorsTurnover (£m)
Half Year to Dec 03
268.7 673.6 580.1
Total Work In HandNon Price Competitive
86%
Work In Hand (£m)
Non Price Competitive
Construction – Forward Order Book
Total
Interim Results Presentation 2004
• Sector Focus
• Earliest Involvement in Life Cycle of Project
• Collaborative Working
• Design Management
• Our People
• Risk Management
• Ability to Say No
Construction – Key Success Factors
Interim Results Presentation 2004
Greg Fitzgerald – Managing Director
Housebuilding
Interim Results Presentation 2004
Housebuilding – Strong Regional Brands
31% 39%
30%
Interim Results Presentation 2004
• Increased profits
• Performance of Midas again equal to the very best in the industry
• Good progress with infrastructure works at Fairfield
• Margin enhancement measures introduced which will show significant savings
• Monthly performance measures proving effective
• Awards received recognising company performance
• Value of current order book 22% above last year
Housebuilding - Highlights
Interim Results Presentation 2004
Housebuilding – Key Statistics
6 months to 31st Dec
2003 2002 Increase %
Units 367 318 15.4
ASP (£000) 228 206 10.7
Income per sq foot (£) 197 171 15.2
Operating Profit (£m) 11.2 10.5 6.7
Margin (%) 12.8 14.3 (1.5)
ROCE (%) 21.6 21.8 (0.2)
Turnover (£m) 87.6 73.2 19.7
Order book at Feb 04 (£m) 83.5 68.6 21.7
Land Bank - Units 2282 2380 (4.1)
Strategic Land – Acres 676 622 8.7
Interim Results Presentation 2004
Housebuilding – Planned Growth
Units Completed
June 03
Targeted Numberof UnitsJune 07
South West Region 266 425
Stamford 285 375
Try Southern 93 225
Try Thames Valley 97 225
TOTAL 741 1250
Interim Results Presentation 2004
• New management in place at Stamford
• Expertise in affordable housing
• Sustainable levels of house price inflation in the mainstream market
• Expansion plan agreed and being implemented
• Expect to achieve full year planned performance
Housebuilding - Summary
Interim Results Presentation 2004
David Calverley - Chief Executive
Summary and Outlook
Interim Results Presentation 2004
Summary and Outlook
• Plan for growth
• Experienced and ambitious management team
• Robust finances
• Stringent programme of cost control and risk management
• Construction
• Success in securing work in target markets
• On track with margin improvement
• Housebuilding
• Market conditions remain healthy
• Forward order book up 22% on last year
• Board confident of delivering increasing value to shareholders
Interim Results Presentation 2004
Interim Results Presentation 2004
Interim Results Presentation 2004
Galliford Try plc