Continued strong financial performance, with a £4.3bn forward work position:
- Revenue of £639.3m (H1 23: £664.4m) reflecting growth in Natural Resources, and as expected, a small reduction in Transportation.
- Adjusted operating profit up 8.7% to £16.3m (H1 23: £15.0m) reflecting an increased operating margin in Transportation and increasing volumes and margin in Natural Resources. Reported operating profit was £13.9m (H1 23: £7.6m).
- On course to meet margin targets of 3.5% and 4.5% during FY 24 and FY 25 respectively. Adjusted operating margin increase of 20bps to 2.5% (H1 23: 2.3%), with margin growth in both divisions.
- Adjusted EPS up 27.3% to 5.6p (H1 23: 4.4p) driven by interest earned on stronger net cash position and adjusted operating profit increase. Reported EPS was 5.0p (H1 23: 1.9p).
- Increased high quality forward work position of £4.3bn of more than three times FY 23 revenue (FY 23: £3.9bn; H1 23: £4.0bn), with contract wins across all sectors and significant growth in Water. At least a further £500m of Water contracts won post half year.
- Interim dividend payment of 0.4p (H1 23: 0.4p), in line with H1 23.
- Strong balance sheet and as separately announced today, a £10m on-market share buyback launched.
“We are performing strongly and are progressing with our strategic priorities in our chosen growth markets, including broadening our customer and service mix. In the first half we have delivered a further significant increase in operating profit together with a sharp growth in earnings per share. The net cash balance grew to £166m, adjusted operating margin increased as expected, and due to the quality of our earnings, we remain on track to deliver our margin targets during FY 24 and FY 25.
“As a result of our strong performance and valued long-term relationships with our customers, we have increased our forward work position to a very healthy £4.3bn at the half year, with contract wins across all our sectors. Our focus on industry-leading solutions, predictable performance and long-term established customer relations has seen us win further significant Water contracts post period end and we expect further wins for the Group in the second half of the year. The quality and customer balance of our forward work position across our two divisions, together with strong highly visible market investment, gives us good visibility on future revenue and margin. We continue to deliver improvements in the business and remain confident in the Group’s prospects."
“As a result of our confidence in our long-term prospects, and our strong cash position, we have today announced a £10m share buyback which will commence with immediate effect.”
Alex Vaughan Chief Executive Officer
Please click here for the full announcement.