Interim Results Presentation 2004

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Galliford Try plc
Interim Results Presentation 2004
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Agenda

• Introduction David Calverley
• Financial Review Frank Nelson
• Construction Andy Sturgess
• Housebuilding Greg Fitzgerald
• Summary and Outlook David Calverley

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David Calverley - Chief Executive
Introduction
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Introduction - Strategy

• Construction
• A market leader in the delivery of a complete
  construction service through a partnership
  approach, with a strong sector focus.

• 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.

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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
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• 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

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Financial Review
Frank Nelson Finance Director
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Financial Review Summary Profit Loss Account
For the half year ended 31 December 2003
(m) Dec 2002
(m) Dec 2003
Turnover (including joint ventures) 356.4 299.9
Profit before interest (pre exceptional) 11.4
7.0 Interest (1.8) (1.5)
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 Po
st exceptional 3.1p 1.1p
Dividend per share 0.55p 0.5p
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Financial Review Segmental Analysis
For the half year ended 31 December 2003
Group Turnover (m) (including joint ventures)
Profit/(loss) (m)
Dec 2002
Dec 2003
Dec 2002
Dec 2003
Construction 268.7 226.2 2.0 (2.0)
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.
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Financial Review Cash Flow Summary
For the half year ended 31 December 2003
Dec 2002 (m)
Dec 2003 (m)
Group operating profit (post exceptional) 11.0
4.9
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)
Net cash flow from operating activities 11.8 (13.
5)
Interest (1.2) (1.3)
Tax (2.1) (2.1)
Capital expenditure (0.3) (0.9)
Dividends (2.2) (2.2)
Other 0.2 (2.3)
Movement in net debt 6.2 (22.3)
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Financial Review Balance Sheet, Financing
Jun 2003 (m)
Dec 2003 (m)
Shareholders funds 65.5 59.7
Net debt 11.6 17.8
Total capital employed 77.1 77.5
Gearing 18 30
Interest cover (post exceptional charge) 6.3
5.2
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Construction
Andy Sturgess Managing Director
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Construction - Profitability
Net Margin
0.8
0.6
0.4
-0.3
-0.9
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Construction Economic Forecasting
Business Units
Communications
Rock Alluvium
Partnerships
Central
North
South
Market Sectors
Water
Rail
Infrastructure
Health Education
PFI/PPP
Commercial
Interiors
Affordable Housing
Telecommunications
Ground Engineering
Growth gt10
Growth 5-10
Growth 0-5
Decline 5-10
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Construction - Water

• Scottish Water
• AMP 4 Renewals
• Welsh Water
• United Utilities
• Anglian Water
• Yorkshire Water

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Construction - Health

• LIFT Programme
• Liverpool Sefton (60m)
• Barnet, Enfield Haringey (32m)
• Coventry (42m)
• DTC Frameworks

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Construction - Education

• 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

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Construction - Rail

• Frameworks Continue
• TOCs
• Virgin Rail Framework

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Construction Affordable Housing

• Changes in Procurement Route
• PFI
• Joint Development
• Key Worker Accommodation

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Construction Forward Order Book
Work In Hand (m)
Turnover (m) Half Year to Dec 03
Total Work In Hand Non Price Competitive
Market Sectors
Non Price Competitive
Total
35.0 Water 213.6 213.6
17.2 Rail 65.6 65.6
15.3 Infrastructure 48.0 42.0
13.5 Health 136.8 136.8
35.7 Education 98.9 50.1
63.8 Commercial 48.2 17.3
34.0 Interiors 24.2 20.1
27.2 Affordable Housing 28.5 27.6
20.8 Telecommunications 6.5 6.5
6.2 Ground Engineering 3.3 3.3
268.7 673.6 580.1
86
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Construction Key Success Factors

• Sector Focus
• Earliest Involvement in Life Cycle of Project
• Collaborative Working
• Design Management
• Our People
• Risk Management
• Ability to Say No

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Housebuilding
Greg Fitzgerald Managing Director
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Housebuilding Strong Regional Brands
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39
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Housebuilding - Highlights

• 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

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Housebuilding Key Statistics
6 months to 31st Dec
2003
2002
Increase
Units 367 318 15.4
ASP [phone] 10.7
Income per sq foot () 197 171 15.2
Turnover (m) 87.6 73.2 19.7
Operating Profit (m) 11.2 10.5 6.7
Margin () 12.8 14.3 (1.5)
ROCE () 21.6 21.8 (0.2)
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
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Housebuilding Planned Growth
Units CompletedJune 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
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Housebuilding - Summary

• 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

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Summary and Outlook
David Calverley - Chief Executive
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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

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Interim Results Presentation 2004
Galliford Try plc
Interim Results Presentation 2004