Keller Group Plc · LSE:KLR
Keller — H1 2002 Earnings Presentation
23 slides from Keller's earnings presentation, August 2002
Slide 1: Interim results Half year ended 30 June 2002
Interim results Half year ended 30 June 2002 August 2002
Slide 2: Highlights
Highlights Another record set of Keller results PBT up 41% EPS up 38% Strong cash generation and interest cover Continued strong performance from US Foundation businesses Positive result from Europe and Overseas Suncoast performing to expectations Continued bolt-on acquisitions programme Management
Slide 3: Contents
Contents Financial results Geographic and segmental review Recent bolt-on acquisitions Management and structure Business and strategy overview Current trading and outlook 2
Slide 4: Profit and Loss Account
Profit and Loss Account Half Year Half Year % Year to £millions 2002 2001 Change 2001 Turnover 250.5 189.2 +32 422.2 Operating profit pre-goodwill 13.8 9.0 +53 25.4 Operating profit post goodwill 12.2 8.7 +40 24.2 Interest (1.8) (0.5) (1.8) Profit before tax 10.4 8.2 +27 22.4 Taxation (4.1) (3.2) (8
Slide 5: Group Balance Sheet
Group Balance Sheet £millions At June 2002 At June 2001 At Dec 2001 Fixed assets Goodwill 58.4 12.0 60.6 Other intangibles 0.3 0.4 0.4 Investments in associates 1.4 - - Tangible assets 61.6 52.6 59.2 121.7 65.0 120.2 Current assets Stocks 12.1 6.6 12.5 Debtors 124.8 105.9 120.3 Cash 7.9 8.7 12.2 144
Slide 6: Group Cash Flow Statement
Group Cash Flow Statement £millions Half Year 2002 Half Year 2001 Year to 2001 Net cash inflow from operating 18.3 7.8 32.2 activities Returns on investment and servicing (2.2) (0.5) (3.3) of finance Taxation (5.8) (3.4) (8.2) Capital expenditure (6.3) (4.9) (10.3) Acquisitions and disposals (0.6) (
Slide 7: Product / Customer Analysis
Product / Customer Analysis Half Year 2002 Turnover Products Customers Refurbishment Ground Concrete post private New build Improvement tension 14% public Products 18% 23% 20% Refurbishment Refurbishment 12% public 19% Geotech 27% Piling New build 20% private 47% Specialist services now 30% of the G
Slide 8: Geographical Analysis
Geographical Analysis Half year 2002 Turnover Half year 2002 Operating profit Australia Australia Continental Continental 3% 1% Europe and Europe and Overseas Overseas 22% 26% USA 51% UK 12% USA 65% UK 20% Strong US margins German sales 8% of Group 7
Slide 9: Segmental Analysis
Segmental Analysis Half Year Half Year % Full Year £millions 2002 2001 Change 2001 Sales Foundation Services 173.8 162.2 +7 347.8 Specialist Services 76.7 27.0 +184 74.4 250.5 189.2 +32 422.2 Operating profit pre-goodwill Foundation Services 10.6 9.1 +16 23.5 Specialist Services 4.4 0.8 +450 3.7 15.
Slide 10: Recent Bolt-on Acquisitions
Recent Bolt-on Acquisitions Vibropile (Australia) Assets acquired August 2002 for cash consideration of AU$5.3m (£1.9m) Sales of c.AU$17.5m (£6.3m) Third largest general foundations contractor in Australia Consolidates our position as foundations market leader in Australia Accrete (UK) Acquired Augu
Slide 11: Structured for Growth
Structured for Growth. Tom Dobson Chief Executive Justin Atkinson Finance Director Non Executives Foundation Services Specialist Services MD, Bob Rubright MD, Rob Ewen USA Europe & UK Australia Makers Suncoast Overseas Our strategic aim: to develop further global leadership in our core foundations b
Slide 12: Foundation Services
Foundation Services A Different Kind of Construction Business Specialist equipment and people support niche position Regionalisation offers clients a local presence Predominance of small and medium - sized contracts spreads the risk and enhances margins Average time on site 4 to 6 weeks; at early co
Slide 13: Foundation Services
Foundation Services Market growth Increase in use of marginal land including brownfield sites Land reclamation Seismic design Environmental considerations Market share Fragmented market offers bolt-on opportunities Virtuous acquisition circle Continued sourcing and development of new systems and tec
Slide 14: Specialist Services
Specialist Services Makers - Servicing the Built Environment Social housing Car parks Infrastructure Support services 13
Slide 15: Specialist Services
Specialist Services Makers - Servicing the Built Environment Market Growth Social housing – UK’s “Decent Homes” initiative: £19bn over 10 years Move to partnering Increased infrastructure and utilities spend Increased requirement for car parking Market Share Strong relationships with Local Authoriti
Slide 16: Specialist Services
Specialist Services Suncoast - Technical Expertise in Reinforced Concrete Post-tension engineering design, fabrication, supply and installation Acquired October 2001 Leading supplier to US housing (56%) and high-rise construction (24%), with a rebar design and supply offering (20%) US network of loc
Slide 17: Specialist Services
Specialist Services Suncoast - Technical Expertise in Reinforced Concrete Performance since acquisition in line with expectations Market Growth Market demographics New geographic markets Additional products Market Share Further market penetration SOG High rise Bolt-on acquisitions New markets Commer
Slide 18: Current Trading and Prospects
Current Trading and Prospects Current order book 13% ahead of last year’s exceptional level, on a like-for-like basis, of which most is expected to be completed this year Tender levels continue to be high US construction market remains strong Good organic growth opportunities within Makers and Sunco
Slide 19: Summary
Summary Strong set of results Excellent track record Industry leading margins Strong operating cash flows Clear growth strategy focusing on two distinct profit streams Foundation Services – a different kind of construction business Specialist Services – exciting organic growth opportunities Continue
Slide 20: Interim results Half year ended 30 June 2002
Interim results Half year ended 30 June 2002 August 2002
Slide 21: Appendix
Appendix 20
Slide 22: Ten year track record
Ten year track record Turnover 1992 - 2001 450 422.2 18.3 400 350 313.0 100.1 314.9 14.2 300 266.9 20.8 244.6 12.3 250 225.0 239.0 82.3 91.0 £m 202.0 35.8 41.7 65.1 67.7 188.8 200 33.3 148.4 107.4 150 131.8 24.1 58.7 69.1 87.2 85.1 98.5 110.1 29.1 29.6 100 27.2 120.1 115.0 50 75.5 94.7 110.0 110.1 9
Slide 23: Ten year track record
Ten year track record Operating Profit 1992 - 2001 30 25.4 0.5 25 3.4 19.4 0.7 20 17.0 3.0 *17.7 0.9 4.3 14.3 3.4 15 12.8 17.4 11.5 £m 10.2 1.9 3.4 4.3 12.0 10 8.3 1.2 9.7 9.9 7.3 0.7 3.8 5.0 0.5 6.1 7.7 2.2 1.9 5 5.2 5.6 5.6 5.4 5.5 5.1 5.9 3.9 4.1 3.0 0 -0.3 -0.2 -0.4 -0.8 -0.6 -0.7 -1.1 -1.8 -1.6