Australia: Leighton HY13 Net Profit Rises

Leighton Holdings Limited announced an improved result for the six months to 30 June 2013 (HY13) demonstrating the resilience of its operations.

The result showed the positive progress of the Group’s ‘stabilise, rebase and grow’ strategy, combined with the benefits of diversification by brand, market sector and geography, in challenging macroeconomic conditions.

The highlights of the result were:

• Revenue of $11.5 billion, up 4% on HY12
• Net Profit after Tax (NPAT) of $366 million, up 218% on HY12
• Underlying NPAT1 of $255 million, up 122% on HY12
• Underlying NPAT margin of 2.2% of revenue, up from 1% in HY12
• Interim dividend of 45 cents per share, 50% franked
• Gearing2 of 36%, down from 47.7% at 31 March 2013
• Cash inflows from operating activities of $148 million
• Work in hand of $40.1 billion, down 5% from 31 March 2013. A further $3.9 billion of work won since 30 June 2013
• On track to deliver 2013 full year underlying NPAT of $520 to $600 million and a gearing level within the target band of 25 to 35% by year-end, subject to market conditions and any unforeseen circumstances

Better financial performance, margin improvement Leighton Holdings Chief Executive Officer, Mr Hamish Tyrwhitt, said: “The higher revenue, margin and net profit achieved during the first half shows the clear turnaround of our business. The result demonstrates the strength of our business model and the relevance of our strategy amid challenging market conditions.

“Leighton’s diversity – not just by market sector, geography and brand, but also by contract type and size, activity, and customer – allowed the Group to withstand headwinds in contract mining during the period and enabled us to deliver an improved operating performance.

“There are still challenges within our business. However, for each challenge we have a clear pathway to resolution and we are making good progress. During the second half of 2013, we will accelerate the rebase element of our strategy in order to expand the underlying NPAT margin and position the Group to meet the infrastructure demand in our addressable markets.”