10 August 2016 – interim results
The international support services and construction group has announced its half yearly results for the six months to 30 June which have shown a modest increase in revenues to £1.63bn (2015: £1.60bn), whilst adjusted pre-tax profits were at a similar level to the first half of 2015 at £53.8m (2015: £53.3m). Earnings per share on the same basis were 31.3p (2015: 31.0p) and the interim dividend was raised to 8.1p (2015: 7.9p). Net debt at the end of the period was £275.6m from £308.8m at the start of the year although it is expected to move up again by the end of the year to between £300m/£320m. The group has decided to exit from the Energy from Waste business although the cost of this is included in the £70m provision revealed in May. These are good results in challenging conditions and the group continues to win new business. Despite the uncertainty following the EU referendum the group has confirmed its guidance for the full year whilst a confident statement regarding future prospects is encouraging. The announcement has been well received with the shares rising strongly on the back of it. BUY.