Revenue for the year to 31st December 2017 was up 9% to 拢2,793m (2016: 拢2,562m). Pre-tax profit was up 48% to 拢64.9m (2016: 拢47.4m).
Operating profit was up 41% to 拢68.6m (2016: 拢48.8m), resulting in an operating margin of 2.5%, up from 1.9% in 2016.
Revenue from the Fit Out business grew 16% to 拢735m, with an improved margin of 5.3% (2016: 4.3%) giving an operating profit up 42% to 拢39.1m (2016: 拢27.5m).听
The Construction & Infrastructure division contributed an operating profit of 拢20.4m (2016: 拢8.9m) at an operating margin of 1.5%, up from 0.7% in 2016.
The target for Construction (including Design) is an operating margin of 2%, while the target for Infrastructure is an operating margin of 2.5%, the company said, adding that: 鈥�2018 is expected to show further progress towards these targets, supported by the quality of core sector work in the division's secured order book鈥�.听
The Property Services division was impacted by restructuring costs in the year and so made a loss of 拢1.3m.听听
Chief executive John Morgan said: "These strong results are evidence of the significant operational progress being made across the group and are a testament to the high quality and commitment of our people.
"Our positive cash generation and increase in average net cash in the year has further strengthened our balance sheet and provides us with the flexibility to invest in our regeneration activities whilst allowing us to continue being highly selective with bidding in our construction activities.
"Looking ahead to 2018, we expect continued margin progression in Construction & Infrastructure, another strong performance from Fit Out, further growth from Urban Regeneration and Partnership Housing and positive contributions from Property Services and Investments.听
"Consequently, we are confident of another good year of progress and with this positive momentum, are well-placed to deliver a result for the year which is slightly above our previous expectations."
|
Results by business segment |
Revenue |
Operating Profit/(Loss) |
Operating Margin |
|||
| 听 |
拢尘 |
change |
拢尘 |
change |
% |
change |
|
Construction & Infrastructure |
1,395 |
+6% |
20.4 |
+129% |
1.5% |
+80bps |
|
Fit Out |
735 |
+16% |
39.1 |
+42% |
5.3% |
+100bps |
|
Property Services |
66 |
+20% |
(1.3) |
n/a |
(2.0%) |
-330bps |
|
Partnership Housing |
474 |
+9% |
14.1 |
+5% |
3.0% |
-10bps |
|
Urban Regeneration |
175 |
+12% |
10.0 |
-25% |
n/a |
n/a |
|
Investments |
11 |
n/a |
0.5 |
n/a |
n/a |
n/a |
|
Central/Eliminations |
(63) |
听 |
(14.2) |
听 | 听 | 听 |
|
Total |
2,793 |
+9% |
68.6 |
+41% |
2.5% |
+60bps |
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