TIDMSSV
RNS Number : 1057U
Siteserv PLC
15 December 2011
Siteserv plc
Half Year Results Announcement
For the six months ended 31 October 2011
Dublin, 16 December 2011: Siteserv plc ("Siteserv" or the
"Group"), a leading support services group, announces its unaudited
half year results for the six months ended 31 October, 2011. (ESM:
STV; AIM: SSV)
Results Summary Unaudited Unaudited Audited
Half Year Half Year Year Ended
Ended Ended 30 April
31 October 31 October 2011
2011 2010
------------------------------------- ------------ ------------ ------------
Revenue EUR92.2m EUR84.5m EUR168.5m
EBITDA EUR8.3m EUR8.3m EUR15.5m
Operating Profit EUR4.8m EUR4.6m EUR8.3m
Profit Before Tax EUR1.1m EUR0.5m EUR0.1m
Profit After Tax EUR0.8m EUR0.5m EUR0.2m
Cash Flow from Operating Activities EUR2.7m EUR6.6m EUR13.4m
Net Debt EUR150.3m EUR148.8m EUR144.5m
Adjusted Fully Diluted EPS* 0.8 cent 0.6 cent 0.6 cent
------------------------------------- ------------ ------------ ------------
*Excludes amortisation of intangible assets
Financial Highlights
v Revenue growth of 9% to EUR92.2m as the Group continues to
secure new contract wins and renewals in Ireland and the UK
v Operating profit growth of 4% to EUR4.8m
v Profit after tax up 60% to EUR0.8m
v As at 31 October 2011, the group had revenue visibility of
circa EUR265m up to October 2014
Strategic Highlights
Delivering on the stated commitment to drive organic growth and
to diversify revenue by sector & geography, Siteserv secured a
number of significant contract wins and renewals in the period.
These include:
v UK Industrial Services business:
v Awarded 3 year extension to a maintenance contract at the
Petroplus Coryton Refinery in the UK with an estimated value of
EUR40m over 3 years
v Secured a 3 year framework contract for access and insulation
services to the ESB in Ireland with at a potential value of EUR2m
over 3 years; its second major contract since its recent launch in
Ireland
v The business also secured maintenance contracts worth over
EUR10m from Centrica in Humberside for three Combined Cycle Gas
Turbine (CCGT) Power Stations in the period
v Irish Support Services business:
v Awarded a contract, in partnership with RTE, to provide
wireless signal remediation services in Ireland and the UK which
has a potential value of EUR1m. This is an important strategic win
for the business as it embarks on its market entry into the UK
utilities sector
v Recently secured a contract for the management of Home
Emergency Services on behalf of AA Ireland. This uniquely positions
the business to provide a nationwide range of facility maintenance
services to both the domestic and commercial sectors and provides a
platform for further growth in the facility maintenance arena
v Launched a state of the art customer service call centre to
manage over 350,000 customer calls per annum for BSkyB, Bord Gais
and AA Ireland. The Irish Support Services business now visits
50,000 homes a month on the island of Ireland.
v Awarded a contract to install 150km of back bone fibre from
Ennis to Cork on behalf of Aurora, the telecommunications division
of Bord Gais, at an estimated value of EUR1.4m
v Roan Building Systems (manufacturer of modular accommodation
in Ireland and the UK) awarded a contract for a 24 bed ward for the
NHS at North Walsham Hospital in the UK worth EUR2.5m
Operating Highlights
v The previously announced All Ireland BSkyB residential
contract was successfully rolled out during the period with all key
performance indicators being achieved. The contract is valued at
over EUR60m over 3 years
v Roan Building Systems is now an approved supplier to the
Government Procurement Service , the national procurement agency
for the UK public sector, enabling it to tender for a broad range
of public sector modular building contracts
v Irish Support Services business, Sierra, received the overall
'Irish Construction Utility Services Award' at the annual NISO
awards reflecting a relentless commitment to best-in-class health
and safety management
v Siteserv's commitment to safety is also reflected in industry
leading safety standards: in the first half of 2012, Siteserv
recorded an Accident Rate Frequency ('ARF') of 0.25 over 2 million
man-hours, significantly better than the industry norms in both the
UK (ARF 4.73) and Ireland (ARF 12.8)
Performance Review & Outlook
Siteserv Chief Executive, Brian Harvey commented:
"We are pleased to report revenue and operating profit growth
against a difficult market backdrop. We continue to deliver on our
stated corporate objectives; our revenue performance is consistent
with our goal to drive organic growth and geographically diversify
our revenue. We recorded a number of new contract wins across
Ireland and the UK in the period and retain visibility over a
significant revenue and profit stream for the next 3 years.
In Ireland, our Support Services business continues to build on
its market leading position servicing over 50,000 homes per month
across Ireland and Northern Ireland. We now manage over 350,000
customer calls each year from our new state of the art customer
contact centre as we extend our range of services to consolidate
our relationships with key customers. The breath of our service
offering ensures that the business is uniquely positioned to
capitalise on emerging opportunities in the utilities sector.
Our modular accommodation, civil engineering and motorway
barrier businesses continues to be adversely affected by austerity
measures in Ireland and these businesses are increasingly focused
on further expansion into the UK market. Roan Building Systems
continues to win contracts in the UK and is now an approved
supplier for the UK Government Procurement Service which should
secure further contract wins, particularly in the education sector,
where it has a leading position in Ireland.
The UK Division delivered a strong performance in the period
with revenues and profits up by 17% and 20% respectively on a
constant currency basis. The Industrial Services business continues
to secure new contracts and renewals and has made a strong start in
Ireland having secured a 3 year framework contract for the ESB, its
second major contract in the country this year. The hire and sales
business also increased revenues and profits.
We are very pleased to receive further recognition for our
commitment to health and safety as our employees continue to
deliver one of the best safety records in our industry. Our ability
to maintain such a safe working environment is a key component of
our ability to win and retain contracts".
Full Year Outlook
Although the trading environment remains challenging, we expect
the UK Division to continue to outperform last year and deliver
revenue and earnings growth. The Irish Support Services business
will continue to benefit from the All Ireland BSkyB contract award,
which will have a more pronounced impact on the second half of the
year given that the contract for the Northern Ireland only
commenced on October 1. Performance in the modular accommodation,
civil engineering and motorway barrier businesses will remain
subdued given the constraints on Irish government spending on road,
hospital and education infrastructural projects.
The reduction in interest costs arising from the renegotiated
banking facilities at the end of July will have a greater impact in
the second half of the year.
Siteserv's diverse range of services and increasing long-term
contractual revenue streams will continue to play a key role in
offsetting the impact of economic uncertainty on the Group's
performance. We will continue to diversify our revenue by geography
and sector and generate free cash flow to drive organic growth.
Note regarding forward-looking statements:
This press release includes forward-looking statements,
including statements concerning expectations about future financial
performance, economic and market conditions, etc. These statements
are neither promises nor guarantees, but are subject to risks and
uncertainties that could cause actual results to differ materially
from those anticipated.
Contacts
Siteserv plc FTI Consulting Davy
Brian Harvey | Chief Jonathan Neilan | Des Carville +353
Executive Jenny Kilroy 1 679 6363
Niall Devereux | Group +353 1 6633686 | +353
Finance Director 1 6633683
+353 1 6011550
------------------------ ----------------------- -------------------
Results Overview
UK Division
6 Months 6 Months 12 Months
to 31 October to to 30 April
2011 31 October 2011
2010
------------------ --------------- ------------ -------------
EURm EURm EURm
Revenue 53.1 47.3 95.9
EBITDA 4.7 4.3 8.6
Operating profit 2.8 2.5 4.8
------------------ --------------- ------------ -------------
The UK Division comprised 58% of Group revenue and 57% of Group
EBITDA in the period. Excluding the impact of currency movements,
revenues and profits are up 17% and 20% respectively on last year,
with all three business reporting revenue and bottom line
improvements.
The Industrial Services business accounted for approximately 57%
of the UK Division's revenue and continues to provide Siteserv with
long-term maintenance contracts and future revenue and earnings
visibility. It secured a 3 year extension to its existing
maintenance contract for the provision of access, insulation and
asbestos removal for Petroplus at the Coryton Refinery site in
Essex, where the company has been working since 1996, initially for
Mobil Oil and subsequently for Petroplus after they acquired the
refinery from BP in May 2007. The business continues to expand into
Ireland having secured a national framework agreement in August for
both access and insulation services for ESB Energy
International.
The Hire & Sales business, which operates from 24 depots
across the UK, continues to show encouraging signs of growth whilst
the Contract Scaffolding business remains challenging with further
branch closures announced in the period. The business is now
serviced from five regional depots.
Infrastructure & Utilities Support Services Division
6 Months 6 Months 12 Months
to 31 October to to 30 April
2011 31 October 2011
2010
------------------ --------------- ------------ -------------
EURm EURm EURm
Revenue 32.4 31.8 62.2
EBITDA 4.2 4.7 8.8
Operating profit 3.2 3.7 6.7
------------------ --------------- ------------ -------------
The Infrastructure & Utilities Support Services Division
comprised 35% of Group revenue and 51% of Group EBITDA in the
period.
The impact of reduced Irish Government and local authority
spending continues to adversely affect this Division, particularly
in the motorway barrier, civil engineering and modular
accommodation businesses. The BSkyB contract increased from 13
counties to all 26 counties in the Republic of Ireland in May 2011,
with the six counties of Northern Ireland going live on October 1.
The value of this exclusive 3 year contract is estimated at circa
EUR60m.
The UPC contract, which was awarded in September 2010 to install
cable TV, broadband and telephony services to Dublin customers,
also boosted growth as this contract was only operational for one
month in the previous period. Growth in the Bord Gais home energy
services contract, which commenced in April 2010, also positively
impacted performance in the period.
Access Division
6 Months 6 Months 12 Months
to 31 October to to 30 April
2011 31 October 2011
2010
--------------------------- --------------- ------------ -------------
EURm EURm EURm
Revenue 6.8 5.4 10.4
EBITDA 0.5 0.4 0.2
Operating profit / (loss) 0.2 0.0 (0.6)
--------------------------- --------------- ------------ -------------
The Access Division comprised 7% of Group revenue and 6% of
Group EBITDA in the period.
The results include the revenues and profits arising from
Eventserv's contracts for the provision of staging and crowd
control barriers for the state visits to Ireland of Queen Elizabeth
II and President Barack Obama.
New Banking Facilities to Support Continuing Growth and Cash
Flow Generation
During the first half of the year, the Group put in place new
banking facilities of up to EUR10 million, with its current lender,
to provide the Group with increased financial flexibility and to
fund continuing organic growth.
As part of this new banking agreement, the Group has also
re-negotiated its existing facilities through to December 2012.
There are no capital repayments during the term. Reduced debt
servicing costs improve cash flow generation to fund additional
growth.
Cash Flow and Net Debt Position
Net cash flow from operating activities of EUR2.7m reduced by
EUR3.9m on the prior year.
Working capital had a negative impact on cash flow in the period
reflecting the Group's continuing focus on driving revenue growth.
Net capital expenditure reduced from EUR5.8m in the prior year,
where the capex programme was front loaded, to EUR3.3m in the first
half. This investment also reflects the Group's commitment to fund
growth.
Net debt at period end was EUR150.3m. The Group had a closing
cash balance of EUR6.1m at the period end.
Consolidated Income Statement
for the six months ended
31 October 2011
Unaudited Unaudited Audited
Half Year Half Year Year Ended
Ended Ended 30 April
31 October 31 October 2011
2011 2010 EUR'000
EUR'000 EUR'000
Revenue 92,243 84,456 168,460
---------------------------------------- ------------ ------------ ------------
Trading Profit 5,069 4,896 8,778
Intangible asset amortisation (259) (259) (517)
Operating Profit 4,810 4,637 8,261
Finance costs (3,715) (4,096) (8,130)
------------ ------------ ------------
Profit Before Taxation 1,095 541 131
Income tax (expense) / credit (293) - 87
------------ ------------ ------------
Profit After Taxation and Attributable
to Equity Shareholders 802 541 218
---------------------------------------- ------------ ------------ ------------
Earnings Per Ordinary Share
Basic earnings per ordinary share 0.6c 0.4 c 0.2 c
Fully diluted earnings per ordinary
share 0.6c 0.4 c 0.2 c
Consolidated Balance Sheet
as at 31 October 2011 Unaudited Unaudited Audited
Half Year Half Year Year Ended
Ended Ended 30 April
31 October 31 October 2011
2011 2010 EUR'000
EUR'000 EUR'000
---------------------------------------- ------------ ------------ ------------
Non-Current Assets
Intangible assets 96,999 97,594 96,863
Property, plant and equipment 48,199 50,043 47,807
Financial asset investments 200 200 200
------------ ------------ ------------
145,398 147,837 144,870
------------ ------------ ------------
Current Assets
Inventories 15,826 13,811 13,343
Trade and other receivables 34,386 30,717 29,801
Cash and cash equivalents 6,104 4,691 5,512
56,316 49,219 48,656
------------ ------------ ------------
Total Assets 201,714 197,056 193,526
------------ ------------ ------------
Current Liabilities
Trade and other payables 32,485 28,659 31,041
Provisions for liabilities and charges 826 2,162 990
Current tax liabilities 426 502 75
Deferred consideration 500 899 813
Interest bearing loans and borrowings 911 1,057 2,284
35,148 33,279 35,203
------------ ------------ ------------
Non-Current Liabilities
Provisions for liabilities and charges 3,270 4,149 3,761
Interest bearing loans and borrowings 155,516 152,474 147,764
Deferred tax liabilities 344 - 340
159,130 156,623 151,865
------------ ------------ ------------
Total Liabilities 194,278 189,902 187,068
------------ ------------ ------------
Net Assets 7,436 7,154 6,458
------------ ------------ ------------
Capital and Reserves
Share capital 202 202 202
Share premium account 28,520 28,520 28,520
Share based payment reserve 1,035 958 1,003
Retained earnings (14,063) (14,542) (14,865)
Foreign currency translation reserve (8,258) (7,984) (8,402)
------------ ------------ ------------
Shareholders' Equity 7,436 7,154 6,458
------------ ------------ ------------
Consolidated Cash Flow Statement
for the six months ended 31 October
2011
Unaudited Unaudited Audited
Half Year Ended Half Year Year Ended
31 October Ended 30 April
2011 31 October 2011
EUR'000 2010 EUR'000
EUR'000
----------------------------------------- ----------------- -------------------- ------------
Cashflows From Operating Activities
Profit before taxation 1,095 541 131
Depreciation of property, plant
and equipment 3,190 3,349 6,587
Amortisation of share based payments
and intangibles 291 351 654
Interest received (20) (6) (23)
Finance costs 3,735 4,101 8,153
Profit on disposal of property,
plant and equipment - - (134)
----------------- -------------------- ------------
Operating Cashflow Before Changes
in Working Capital 8,291 8,336 15,368
Movement in inventories (2,389) (5,631) (5,368)
Movement in trade and other receivables (4,338) (2,370) (1,975)
Movement in trade and other payables 1,051 5,941 5,328
----------------- -------------------- ------------
Cash Generated From Operations 2,615 6,276 13,353
Income tax repaid 57 285 284
----------------- ------------
Net Cash From Operating Activities 2,672 6,561 13,637
Financing Costs
Interest received 20 6 23
Finance costs (4,233) (4,099) (6,244)
(4,213) (4,093) (6,221)
Investing Activities
Capital expenditure (3,292) (5,776) (7,564)
Investment in associate - (200) (200)
----------------- -------------------- ------------
(3,292) (5,976) (7,764)
Financing Activities
Other loans - (444) (443)
Net finance lease payments (575) (338) (877)
Net bank loan drawdowns 6,313 3,345 1,631
Deferred consideration paid (313) (226) (313)
----------------- -------------------- ------------
Net Cash Used In Financing Activities 5,425 2,337 (2)
Net increase / (decrease) in cash
and cash equivalents 592 (1,171) (350)
Cash and cash equivalents at beginning
of period 5,512 5,862 5,862
----------------- -------------------- ------------
Cash and Cash Equivalents at End
of Period 6,104 4,691 5,512
----------------- -------------------- ------------
Consolidated Statement of Comprehensive
Income Unaudited Unaudited Audited
for the six months ended 31 October Half Year Half Year Year Ended
2011 Ended Ended 30 April
31 October 31 October 2011
2011 2010 EUR'000
EUR'000 EUR'000
Items of Income / (Expense) Recognised
Directly in Equity
Currency translation adjustments 144 (23) (441)
------------ ------------ ------------
Net Income / (Expense) Recognised
Directly in Equity 144 (23) (441)
Profit for the period 802 541 218
------------ ------------ ------------
Net Income / (Expense) Recognised
for the Period 946 518 (223)
------------ ------------ ------------
Consolidated Statement of Changes in Equity
for the six months ended 31 October 2011
Unaudited Unaudited Audited
Half Year Half Year Year Ended
Ended Ended 30 April
31 October 31 October 2011
2011 2010 EUR'000
EUR'000 EUR'000
At beginning of year 6,458 6,544 6,544
Profit for the period 802 541 218
Share based payment reserve 32 92 137
Foreign currency translation reserve 144 (23) (441)
At End of Period 7,436 7,154 6,458
------------ ------------ ------------
Segmental Analysis
(i) Unaudited Unaudited Audited
Half Year Half Year Year Ended
Ended Ended 30 April
31 October 31 October 2011
2011 2010 EUR'000
EUR'000 EUR'000
Revenue
Infrastructure & Utilities 32,371 31,796 62,234
UK 53,108 47,296 95,899
Access 6,764 5,364 10,327
------------ ------------
Total 92,243 84,456 168,460
------------ ------------ ------------
Operating Profit
Infrastructure & Utilities 3,229 3,651 6,724
UK 2,844 2,462 4,841
Access 214 (14) (648)
Head Office (1,477) (1,462) (2,656)
------------ ------------ ------------
Total 4,810 4,637 8,261
------------ ------------ ------------
Finance costs (3,715) (4,096) (8,130)
------------ ------------ ------------
Profit Before Taxation 1,095 541 131
Income tax (expense) / credit (293) - 87
------------ ------------ ------------
Profit After Taxation Attributable
to Equity Shareholders 802 541 218
------------ ------------ ------------
Earnings Per Ordinary Share
for the six months ended 31 October 2011
Unaudited Unaudited Audited
Half Year Half Year Year Ended
Ended Ended 30 April
31 October 31 October 2011
2011 2010 EUR'000
EUR'000 EUR'000
Earnings
Profit after tax attributable to
ordinary shareholders 802 541 218
Amortisation of intangibles 259 259 517
Adjusted profit after taxation attributable
to ordinary shareholders 1,061 800 735
------------- ------------- -------------
Number of Shares
Weighted average number of ordinary
shares in issue during the year 126,392,041 126,178,889 126,392,041
Dilutive effect of outstanding share - - -
options
------------- ------------- -------------
Diluted weighted average number
of ordinary shares 126,392,041 126,178,889 126,392,041
------------- ------------- -------------
Earnings Per Ordinary Share
Basic earnings per ordinary share 0.6 cent 0.4 cent 0.2 cent
Fully diluted earnings per ordinary 0.6 cent 0.4 cent 0.2 cent
share
Adjusted Earnings Per Ordinary Share
Adjusted basic earnings per ordinary 0.8 cent 0.6 cent 0.6 cent
share
Adjusted fully diluted earnings 0.8 cent 0.6 cent 0.6 cent
per ordinary share
This information is provided by RNS
The company news service from the London Stock Exchange
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