Amec
Foster Wheeler plc
|
Jonathan Refoy
(media)
Rupert
Green (investors)
|
+ 44
(0)20 7429 7500
|
£m unless
stated
|
2017
|
2016
|
Continuing
operations
|
|
|
Revenue
|
2,333
|
2,842
|
Profit/(loss)
before net financing expense
|
116
|
(414)
|
Profit/(loss)
before tax
|
77
|
(446)
|
Cash
flow from operations
|
(50)
|
21
|
Diluted
earnings/(loss) per share
|
14.6p
|
(112.7)p
|
Dividend
per share
|
-
|
7.4p
|
£m unless
stated
|
2017
|
2016
|
Change
|
Underlyingchange7
|
Continuing operations
|
|
|
|
|
Revenue
|
2,333
|
2,842
|
-18%
|
-24%
|
Trading
profit1
|
162
|
177
|
-8%
|
-14%
|
Trading
margin2
|
7.0%
|
6.2%
|
+80bps
|
|
Adjusted
profit before tax3
|
123
|
140
|
-12%
|
|
Trading
cash flow4
|
81
|
125
|
-35%
|
|
Cash
conversion5
|
50%
|
71%
|
|
|
Adjusted
diluted earnings per share6
|
24.8p
|
28.2p
|
-12%
|
|
|
2017
|
2016
|
Underlying %
|
Oil, Gas & Chemicals
|
994
|
1,151
|
-18%
|
Mining
|
137
|
137
|
-12%
|
Power & Process
|
417
|
792
|
-52%
|
Environment & Infrastructure
|
522
|
451
|
7%
|
Investment services
|
79
|
64
|
22%
|
Centre/eliminations/adjustments
|
(32)
|
(27)
|
|
Retained operations
|
2,117
|
2,568
|
-24%
|
Disposals
|
216
|
274
|
|
Total
|
2,333
|
2,842
|
-24%
|
|
2017
|
2016
|
Underlying %
|
Oil, Gas & Chemicals
|
83
|
67
|
17%
|
Mining
|
22
|
12
|
74%
|
Power & Process
|
21
|
43
|
-56%
|
Environment & Infrastructure
|
31
|
34
|
-16%
|
Investment services
|
15
|
3
|
400%
|
Centre/eliminations/adjustments
|
(22)
|
(22)
|
|
Retained operations
|
150
|
137
|
in line
|
Disposals
|
12
|
40
|
-70%
|
Total
|
162
|
177
|
-14%
|
|
2017
|
2016
|
Change
|
||
Oil, Gas & Chemicals
|
8.4%
|
5.9%
|
250bp
|
||
Mining
|
16.3%
|
8.5%
|
780bp
|
||
Power & Process
|
5.1%
|
5.1%
|
-
|
||
Environment & Infrastructure
|
5.9%
|
7.4%
|
-150bp
|
||
Retained operations
|
7.1%
|
5.3%
|
180bp
|
||
Disposals
|
5.7%
|
14.1%
|
-840bp
|
||
Total
|
7.0%
|
6.2%
|
80bp
|
Customer
|
Market
|
Description
|
Country
|
Yara Pilbara
|
OGC
|
5 year contract for maintenance services
|
Australia
|
Total
|
OGC
|
FEED for clean fuels investment in Donges refinery
|
France
|
Gruyere
|
M
|
EPC for Gruyere Gold Project
|
Australia
|
Nordgold
|
M
|
Design and supply overland conveyor systems
|
Russia
|
Crown Comm'
|
E&I
|
4 year design services framework
|
UK
|
Arrow Energy
|
OGC
|
Engineering MSA for coal seam gas production
|
Australia
|
BP
|
OGC
|
EPCm for revamp for Castellon refinery
|
Spain
|
Saudi Aramco
|
OGC
|
Pre FEED, FEED and PMC for Marjan field development
|
KSA
|
ISAB
|
OGC
|
Engineering for revamp for Priolo refinery
|
Italy
|
BP
|
OGC
|
2 year global MSA extension for completions and
commissioning
|
Global
|
Bruce Power
|
P&P
|
14 year strategic supplier MSA for nuclear plant life
extension
|
Canada
|
US Navy
|
E&I
|
5 year radiological remediation contract
|
US
|
US Army
|
E&I
|
EPC for Bunker Hill water treatment site
|
US
|
BP
|
OGC
|
3 year pre FEED and FEED global engineering services
framework
|
Global
|
US AF
|
E&I
|
5 year engineering and construction sustain and improve
contract
|
Global
|
Centrica
|
OGC
|
Engineering, construction and project support for Morecambe Bay gas
field
|
UK
|
EDF
|
P&P
|
5 year extension for operational support for UK nuclear
fleet
|
UK
|
KPC
|
OGC
|
Pre FEED and PMC for integrated chemicals plant at
Al-Zour
|
Kuwait
|
Brunei Shell
|
OGC
|
5 year rejuvenation project for on and offshore assets
|
Brunei
|
GNL Quintero
|
OGC
|
Owners engineer for regasification terminal
|
Chile
|
Eni
|
OGC
|
EPC for steam reforming plant at Gela refinery
|
Italy
|
Shell
|
OGC
|
5 year global downstream enterprise framework
|
Global
|
Berkeley
|
M
|
FEED for Salamanca uranium project
|
Spain
|
|
|
|
|
|
H1 2017
|
FY 2016
|
H1 2016
|
||
Oil, Gas & Chemicals
|
2.9
|
3.0
|
3.4
|
||
Mining
|
0.2
|
0.1
|
0.2
|
||
Power & Process
|
1.4
|
1.1
|
1.1
|
||
Environment & Infrastructure
|
0.9
|
0.9
|
0.9
|
||
Investment services
|
0.1
|
0.3
|
0.3
|
||
Retained operations
|
5.5
|
5.4
|
5.9
|
||
Disposals
|
0.1
|
0.4
|
0.3
|
||
Total
|
5.6
|
5.8
|
6.2
|
||
|
|
|
|
|
|
£m unless stated
|
2017
|
2016
|
Change
|
Underlying
change1
|
Revenue
|
2,333
|
2,842
|
-18%
|
-24%
|
Profit/(loss) before net financing expense
|
116
|
(414)
|
|
|
-
Amortisation of intangibles
|
51
|
66
|
|
|
-
Impairment
|
30
|
440
|
|
|
-
Net asbestos-related items
|
8
|
21
|
|
|
-
Exceptional items
|
(49)
|
51
|
|
|
-
Share of trading profit of joint ventures
|
6
|
13
|
|
|
Trading profit1
|
162
|
177
|
-8%
|
-14%
|
Trading margin1
|
7.0%
|
6.2%
|
+80bps
|
|
|
2017
|
2016
|
Six
months ended 30 June
|
£m
|
£m
|
Trading
cash flow
|
81
|
125
|
Difference
between retirement benefit contributions and current service
cost
|
2
|
-
|
Capital
expenditure
|
(6)
|
(9)
|
Acquisitions
and disposals (net)
|
159
|
(5)
|
Interest
and tax
|
(56)
|
(41)
|
Cash
outflow on exceptional and asbestos-related items
|
(73)
|
(44)
|
Longview
settlement
|
-
|
(49)
|
Dividends
paid
|
(29)
|
(58)
|
Other*
|
(49)
|
(1)
|
Movement
in net debt
|
29
|
(82)
|
Exchange
movements
|
3
|
(56)
|
Opening
net debt
|
(1,021)
|
(946)
|
Closing
net debt
|
(989)
|
(1,084)
|
|
2017
|
2016
|
As at
30 June
|
£m
|
£m
|
Cash
and cash equivalents
|
133
|
313
|
Cash
and cash equivalents (held in assets held for sale)
|
171
|
6
|
Bank
deposits (less than three months)
|
25
|
129
|
Bank
deposits (more than three months)
|
17
|
21
|
Bank
loans (net of facility fees)
|
(1,311)
|
(1,479)
|
Bank
loans (held in liabilities held for sale)
|
-
|
(26)
|
Financial
derivatives
|
17
|
12
|
Finance
lease obligations
|
(41)
|
(60)
|
Net
debt
|
(989)
|
(1,084)
|
|
30 June 2017
|
30 June 2016
|
31 December 2016
|
|
£m
|
£m
|
£m
|
Asbestos-related
litigation
|
386
|
425
|
413
|
Legal
claims and actions
|
75
|
115
|
89
|
Obligations
relating to disposed businesses
|
64
|
64
|
60
|
Property-related
provisions
|
16
|
23
|
17
|
Other
provisions
|
41
|
43
|
40
|
|
582
|
670
|
619
|
|
H1 2017
£m
|
H1
2016
£m
|
Continuing operations
|
|
|
Profit/(loss)
before net financing expense
|
116
|
(414)
|
Intangibles
amortisation and impairments
|
81
|
506
|
Exceptional
items
|
(49)
|
51
|
Net
asbestos-related items
|
8
|
21
|
Share
of trading profit of joint ventures
|
6
|
13
|
Trading
profit
|
162
|
177
|
£m
unless stated
|
H1 2017
|
H1 2016
|
Continuing operations
|
|
|
Revenue
|
2,333
|
2,842
|
Trading
profit
|
162
|
177
|
Trading
margin
|
7.0%
|
6.2%
|
|
H1 2017
£m
|
H1 2016
£m
|
Continuing operations
|
|
|
Profit/(loss)
before tax
|
77
|
(446)
|
Intangibles
amortisation and impairments
|
81
|
506
|
Exceptional
items
|
(47)
|
53
|
Net
asbestos-related costs
|
11
|
24
|
Share
of income tax of joint ventures
|
1
|
3
|
Adjusted
profit before tax
|
123
|
140
|
|
H1 2017
£m
|
H1
2016
£m
|
Cash
(used in)/generated from operations
|
(50)
|
21
|
Net
asbestos-related payments
|
18
|
12
|
Difference
between pension contributions and current service cost
|
(2)
|
-
|
Cash
outflow on exceptional items (including Longview settlement in
2016)
|
97
|
81
|
Proceeds
from disposal of property, plant and equipment
|
11
|
-
|
Currency
translation and other movements
|
6
|
(16)
|
Dividends
received from joint ventures
|
1
|
27
|
Trading
cash flow
|
81
|
125
|
£m
unless stated otherwise
|
H1 2017
|
H1 2016
|
Trading
cash flow
|
81
|
125
|
Trading
profit
|
162
|
177
|
Cash
conversion
|
50%
|
71%
|
Risk
|
Mitigation
|
Geopolitical and economic conditions
Amec
Foster Wheeler expects to derive the majority of its revenues from
Europe, the US and Canada and is therefore particularly affected by
political and economic conditions in those markets.
Changes
in general economic conditions may influence customers' decisions
on capital investment and/or asset maintenance, which could lead to
volatility in the development of Amec Foster Wheeler's order
intake. These may also lead to changes in the customer base,
competition and in the way customers procure the services we
provide. An increase in competition for new contracts may lead to
different, less favourable contract terms and
conditions.
Continuing
and escalating unrest and insurgency activity in the Middle East
may have a negative impact on existing and future opportunities in
the region.
The new
presidential administration in the United States may cause
uncertainty and unpredictability for a period of time which may
impact confidence and spending levels. In addition, following the
majority vote in June 2016 for the United Kingdom to leave the
European Union, there is uncertainty as to the effects an exit may
have on economic or market conditions in the United Kingdom, Europe
or globally. Such uncertainty has the potential to lead to
decreased or delayed investments in projects in the United Kingdom.
Political and economic uncertainty has also increased in the UK
following the UK general election in June 2017 and this may impact
on the UK's BREXIT negotiating position with the EU.
|
Amec
Foster Wheeler seeks to maintain a balanced geographic presence
and, through acquisitions and organic growth, will continue to
increase its exposure to other attractive regions of the
world.
The
risk associated with economic conditions resulting in a downturn
and affecting the demand for Amec Foster Wheeler's services has
been addressed, as far as practicable, by seeking to maintain a
balanced business portfolio in terms of geographies, markets,
clients and service offering/business model.
In
light of continuing global economic uncertainties, steps have been
taken to assess and monitor any potential impact on Amec Foster
Wheeler's business opportunities and address potential increased
supply chain and, more broadly, counterparty risk.
In
January 2017 we implemented a new operating model, involving the
reorganisation of Amec Foster Wheeler into four end markets - Oil,
Gas & Chemicals, Environment & Infrastructure, Power &
Process and Mining, which will enable us to be more agile and
responsive to the customers and the markets we serve.
The
business development team is focused on realising the synergies
across our customers, markets, geographies, service offerings and
relationships.
|
Changes in commodity prices
A
sustained and significant reduction in oil & gas or commodity
prices would have an adverse impact on the level of customer
spending in Amec Foster Wheeler's markets and consequently
represents a risk to organic growth.
The
fall in oil prices has had an impact on the investment behaviour of
Amec Foster Wheeler's customers in this sector, with pressure on
capital expenditure leading to a greater focus on smaller projects
and operating expenditure and an increase in competition for new
contracts.
|
This
risk is mitigated by maintaining a balanced business portfolio of
geographies, markets, clients and service offerings.
Improved
efficiencies through increased workflow between offices and the
effective use of centres of excellence and our India operations
also contribute to addressing this risk.
|
Project delivery
Failing
to maintain discipline and meet customer expectations on project
delivery could result in damage to reputation, loss of repeat
business and potentially lead to litigation and/or claims against
Amec Foster Wheeler.
|
The
Technical Functions provide assurance, drive project execution and
support the development, training and mobilisation of personnel to
enhance execution competencies.
In
addition the system of globally applied policies and procedures,
combined with comprehensive management oversight, the risk
management process, project reviews, internal audit, peer reviews
and customer feedback, mitigate the risk to successful project
delivery.
|
Lump sum contracts
Lump
sum contracts carry different risks than reimbursable contracts,
with the contractor agreeing the contract price at the start of the
contract and accepting the risk of cost overruns in completing the
project.
Lump
sum contracts have accounted for an increasing proportion of the
Company's revenue and order book and are expected to continue to
grow in the medium term.
|
This
risk is mitigated by having skills and competencies fully aligned
with the project scope. It is further mitigated by having a clear,
delegated authority structure in place, combined with the formal
global mandatory procedures relating to contracting principles and
the tender review process. In addition, the Technical Functions
perform reviews, provide assurance and drive project
execution.
|
Staff recruitment and retention
An
inability to attract and retain sufficient high calibre employees
could become a barrier to the continued success and growth of Amec
Foster Wheeler.
Senior
management departures or prolonged absences could also adversely
affect our ability to implement our strategy and manage our
operations efficiently.
The
uncertainties about the effects of the recommended all share offer
for Amec Foster Wheeler plc by John Wood Group could hinder our
ability to attract new employees and retain our existing
employees.
|
This
risk is mitigated with a clear HR strategy, which is aligned to the
business strategy and focused on attracting, developing and
retaining the best people for the Company with succession planning
as appropriate. It is underpinned by an employee framework which
describes how we manage our people consistently and we have
introduced talent and performance management systems to help us
identify and nurture talent.
In
addition, there is a continual review of compensation and benefits
to ensure sector and geographic competitiveness and there are
localised recruitment teams capable of recruiting large numbers
into Amec Foster Wheeler.
The
additional recruitment and attrition challenges being faced as a
result of the planned takeover are being mitigated by retention
measures.
|
Health, safety, security and environment
Amec
Foster Wheeler is involved in activities and environments that have
the potential to cause serious injury to personnel or damage to
property or the environment and damage to our
reputation.
These
activities may involve operations such as design, construction,
commissioning and decommissioning, which have potential to cause
serious environmental damage, pollution and habitat
destruction.
|
In
order to control risk and prevent harm, Amec Foster Wheeler is
focused on achieving the highest standards of health, safety and
security management. This is achieved through setting of an
effective policy and putting in place clear standards which
underpin our health, safety, security and environmental management
systems.
We have
put in place processes to assure that our systems work effectively
throughout the organisation and health and safety performance is
regularly reviewed against agreed targets to facilitate continual
improvement.
Amec
Foster Wheeler employs environmental and engineering specialists to
support projects in implementing comprehensive project management
planning at all stages of a project. These processes are governed
by appropriate quality management systems and are supported by risk
identification tools aimed at identifying and managing all aspects
of project environmental risk.
|
Environmental licences
Amec
Foster Wheeler's build/own/operate facilities and
fabrication/manufacturing sites rely on maintaining environmental
licences to operate, which includes protecting the environment and
achieving legally enforceable operating parameters. Failure to
maintain these standards may result in the revocation of all or
part of the licence and the suspension of operation, resulting in
criminal or civil action and/or financial risk to the business.
Failure to maintain assets and/or pollution abatement equipment may
result in a failure to meet legally binding objectives and targets
for the operation.
|
Environmental
management systems are in place to monitor and mitigate this
risk.
Planned
preventative maintenance schedules are in place to further mitigate
this risk.
|
Information technology (IT)
Amec
Foster Wheeler is exposed to the risk that the IT systems on which
it relies fail, are breached or are exploited by cyber-attack with
a corresponding impact on the confidentiality, integrity and/or the
availability of sensitive data held by the Company.
|
Appropriate
controls are in place to mitigate the risk of systems failure and
data loss, including systems back-up procedures, data security
breach response plans, disaster recovery plans and globally
distributed data centres providing a secure and reliable
environment for hosting critical applications. There is also
appropriate virus protection, malware detection and remediation,
network security controls and penetration testing and encryption of
mobile devices.
|
Ethical breach
A
substantive ethical breach and/or non-compliance with laws or
regulations could potentially lead to damage to Amec Foster
Wheeler's reputation, fines, litigation and claims for
compensation.
|
Amec
Foster Wheeler has a number of measures in place to mitigate the
risk of a substantive ethical breach and/or non-compliance with
laws or regulations, including:
●
embedded policies and procedures
●
Code of Business Conduct
●
segregation of duties
●
management oversight
●
financial and operational controls
●
independent whistle-blowing mechanism
●
appointment of Head of Ethics and Compliance and
ethics and compliance champions
●
anti-fraud and other internal audits
●
legal team advice
●
training programmes supporting the Code of Business
Conduct, anti-bribery and corruption and competition
law
●
gifts and hospitality procedure with annual internal
audits
●
oversight by the HSSEE committee
|
Financial - breach of covenant, counterparty and
liquidity
Potential
breach of the leverage ratio covenant which would result in default
and the Company's debts would become due and payable
immediately.
If a
counterparty is unable to repay deposits, fund a loan in a
committed loan relationship or fund a position under foreign
exchange arrangements then the Company faces the risk of capital
loss.
The
Company is subject to liquidity risk from being unable to generate
sufficient cash from operations for either growth or to repay debt.
If Sterling weakens this may impact on our overall liquidity as
part of our debt is drawn in currency and our facilities are
Sterling denominated.
|
The
Company had been preparing to launch a rights issue of
approximately £500m on 21 March 2017 which would have
addressed the risk of a breach of the leverage ratio covenant but
as a consequence of the recommended all share offer for the Company
by John Wood Group, the Company instead approached its banking
group and successfully agreed a waiver to increase the leverage
covenant in its banking facilities to provide additional headroom
through to the reporting period ending 30 June 2018.
In the
event that the acquisition of the Company by John Wood Group does
not proceed, the Company will consider recommencing preparations
for a rights issue. The Company has suspended dividend payments
until the Company is generating sustainable free cash
flow.
Amec
Foster Wheeler seeks to mitigate the counterparty risk by limiting
the amount that can be invested with any one counterparty. Limits
are arrived at by ratings and a review of factors such as five year
credit default swap prices, economic and national
considerations.
Bank
ratings are monitored to ensure security of counterparty for both
deposits and lending.
If
Sterling continues to weaken and liquidity comes under pressure we
would seek additional funding from the banking group.
|
Pensions
Amec
Foster Wheeler operates a number of defined benefit pension
schemes, where careful judgement is required in determining the
assumptions for future salary and pension increases, discount rate,
inflation, investment returns and member longevity. There is a risk
of underestimating this liability.
|
This
risk to Amec Foster Wheeler's pension schemes is mitigated
by:
●
maintaining a relatively strong funding position over
time
●
taking advice from independent qualified actuaries
and other professional advisers
●
agreeing appropriate investment policies with the
trustees
●
close monitoring of changes in the funding position,
with reparatory action agreed with the trustees in the event that a
sustained deficit emerges
|
Legacy risks
Litigation
and business claims from divested and non-core businesses remain a
risk to Amec Foster Wheeler.
Managing
non-core legacy assets until divestment may require skills that are
not common to the rest of the Company.
Ground
contaminants remain at some former Amec Foster Wheeler operational
localities where the pollutant may have been as a result of the
Company's operations, or the Company is responsible for its
clean-up. There is a risk that pollution may result in a risk to
human health or the environment. There is potential for civil
and/or criminal action against the Company for such
pollutants.
|
The
established legacy team manages these claims with internal and
external legal advice. The aim is to seek cost-effective management
of litigation and promote commercially sensible settlements where
appropriate.
Amec
Foster Wheeler has made provisions for the legacy issues that are
believed to be adequate and is not aware of any other current
issues relating to disposed businesses which are likely to have a
material impact. Specialist teams with the appropriate knowledge
are brought in as required.
In the
case of any known contaminated land, strategies have been developed
to minimise the risk posed by such contaminated land, including
asset management and land remediation projects and they remain
under continuing review.
|
Asbestos liability
The
legacy Foster Wheeler business is exposed to significant numbers of
claims relating to alleged exposure to asbestos. The quantum of
these claims is actuarially forecast each year and provisions are
held against these loss projections. However there is a risk that
these loss projections will be exceeded and the provisions could be
inadequate to meet the liabilities.
|
There
is a dedicated in-house finance and legal resource including a team
of specialist asbestos lawyers who manage the claims, assisted by
National Co-ordinating Counsel (NCC) and local counsel. A claims
strategy has been developed with the NCC and regular reviews are
undertaken.
The
team monitors legal developments in these claims and the strategy
to deal with them on a regular basis.
The
quantum of these claims is actuarially forecast each year and
provisions are held against the ultimate loss
projections.
|
|
Six months ended 30 June 2017
|
|
|
|
Before
|
|
Impairment,
|
|
|
|
|
|
impairment,
|
|
amortisation,
|
|
|
|
|
|
amortisation,
|
|
exceptional
|
|
|
|
|
|
exceptional
|
|
items
|
|
|
|
|
|
items
|
|
and asbestos-
|
|
|
|
|
|
and asbestos-
|
|
related items
|
|
|
|
|
|
related items
|
|
(note 4)
|
|
|
Total
|
|
Note
|
£m
|
|
£m
|
|
|
£m
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
3
|
2,333
|
|
-
|
|
|
2,333
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
(2,014)
|
|
-
|
|
|
(2,014)
|
|
|
|
|
|
|
|
|
Gross profit
|
|
319
|
|
-
|
|
|
319
|
|
|
|
|
|
|
|
|
Administrative
expenses
|
|
(163)
|
|
(141)
|
|
|
(304)
|
|
|
|
|
|
|
|
|
Profit
on business disposals and closures
|
|
-
|
|
101
|
|
|
101
|
|
|
|
|
|
|
|
|
Profit/(loss) before net financing expense
|
|
156
|
|
(40)
|
|
|
116
|
|
|
|
|
|
|
|
|
Financial
income
|
|
14
|
|
-
|
|
|
14
|
Financial
expense
|
|
(53)
|
|
(5)
|
|
|
(58)
|
|
|
|
|
|
|
|
|
Net
financing expense
|
|
(39)
|
|
(5)
|
|
|
(44)
|
|
|
|
|
|
|
|
|
Share
of post-tax results of joint ventures
|
|
5
|
|
-
|
|
|
5
|
|
|
|
|
|
|
|
|
Profit/(loss) before income tax
|
3
|
122
|
|
(45)
|
|
|
77
|
|
|
|
|
|
|
|
|
Income
tax
|
5
|
(27)
|
|
9
|
|
|
(18)
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period from continuing
|
|
|
|
|
|
|
|
operations
|
|
95
|
|
(36)
|
|
|
59
|
|
|
|
|
|
|
|
|
Loss for the period from discontinued
|
|
|
|
|
|
|
|
operations
|
6
|
-
|
|
(2)
|
|
|
(2)
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period
|
|
95
|
|
(38)
|
|
|
57
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
Equity
holders of the parent
|
|
|
|
|
|
|
57
|
Non-controlling
interests
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings/(loss) per share:
|
9
|
|
|
|
|
|
|
Continuing
operations
|
|
24.9p
|
|
|
|
|
15.3p
|
Discontinued
operations
|
|
-
|
|
|
|
|
(0.6)p
|
|
|
|
|
|
|
|
|
|
|
24.9p
|
|
|
|
|
14.7p
|
|
|
|
|
|
|
|
|
Diluted earnings/(loss) per share:
|
9
|
|
|
|
|
|
|
Continuing
operations
|
|
24.8p
|
|
|
|
|
15.2p
|
Discontinued
operations
|
|
-
|
|
|
|
|
(0.6)p
|
|
|
|
|
|
|
|
|
|
|
24.8p
|
|
|
|
|
14.6p
|
|
Six months ended 30 June 2016
|
|
|
|
Before
|
|
Impairment,
|
|
|
|
|
|
impairment,
|
|
amortisation,
|
|
|
|
|
|
amortisation,
|
|
exceptional
|
|
|
|
|
|
exceptional
|
|
items
|
|
|
|
|
|
items
|
|
and asbestos-
|
|
|
|
|
|
and asbestos-
|
|
related items
|
|
|
|
|
|
related items
|
|
(note 4)
|
|
|
Total
|
|
Note
|
£m
|
|
£m
|
|
|
£m
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
3
|
2,842
|
|
-
|
|
|
2,842
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
(2,517)
|
|
-
|
|
|
(2,517)
|
|
|
|
|
|
|
|
|
Gross profit
|
|
325
|
|
-
|
|
|
325
|
|
|
|
|
|
|
|
|
Administrative
expenses
|
|
(161)
|
|
(580)
|
|
|
(741)
|
|
|
|
|
|
|
|
|
Profit
on business disposals and closures
|
|
-
|
|
2
|
|
|
2
|
|
|
|
|
|
|
|
|
Profit/(loss) before net financing expense
|
|
164
|
|
(578)
|
|
|
(414)
|
|
|
|
|
|
|
|
|
Financial
income
|
|
15
|
|
-
|
|
|
15
|
Financial
expense
|
|
(50)
|
|
(5)
|
|
|
(55)
|
|
|
|
|
|
|
|
|
Net
financing expense
|
|
(35)
|
|
(5)
|
|
|
(40)
|
|
|
|
|
|
|
|
|
Share
of post-tax results of joint ventures
|
|
8
|
|
-
|
|
|
8
|
|
|
|
|
|
|
|
|
Profit/(loss) before income tax
|
3
|
137
|
|
(583)
|
|
|
(446)
|
|
|
|
|
|
|
|
|
Income
tax
|
5
|
(26)
|
|
31
|
|
|
5
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period from continuing
|
|
|
|
|
|
|
|
operations
|
|
111
|
|
(552)
|
|
|
(441)
|
|
|
|
|
|
|
|
|
Profit for the period from discontinued
|
|
|
|
|
|
|
|
operations
|
6
|
5
|
|
7
|
|
|
12
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period
|
|
116
|
|
(545)
|
|
|
(429)
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
Equity
holders of the parent
|
|
|
|
|
|
|
(431)
|
Non-controlling
interests
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(429)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings/(loss) per share:
|
9
|
|
|
|
|
|
|
Continuing
operations
|
|
28.3p
|
|
|
|
|
(115.8)p
|
Discontinued
operations
|
|
1.3p
|
|
|
|
|
3.1p
|
|
|
|
|
|
|
|
|
|
|
29.6p
|
|
|
|
|
(112.7)p
|
|
|
|
|
|
|
|
|
Diluted earnings/(loss) per share:
|
9
|
|
|
|
|
|
|
Continuing
operations
|
|
28.2p
|
|
|
|
|
(115.8)p
|
Discontinued
operations
|
|
1.3p
|
|
|
|
|
3.1p
|
|
|
|
|
|
|
|
|
|
|
29.5p
|
|
|
|
|
(112.7)p
|
|
Year ended 31 December 2016
|
|
|
|
Before
|
|
Impairment,
|
|
|
|
|
|
impairment,
|
|
amortisation,
|
|
|
|
|
|
amortisation,
|
|
exceptional items
|
|
|
|
|
|
exceptional items
|
|
and asbestos-
|
|
|
|
|
|
and asbestos-
|
|
related items
|
|
|
|
|
|
related items
|
|
(note 4)
|
|
Total
|
|
|
|
£m
|
|
£m
|
|
£m
|
|
Continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
3
|
5,440
|
|
-
|
|
5,440
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
(4,852)
|
|
-
|
|
(4,852)
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
588
|
|
-
|
|
588
|
|
|
|
|
|
|
|
|
|
Administrative
expenses
|
|
(288)
|
|
(784)
|
|
(1,072)
|
|
|
|
|
|
|
|
|
|
Profit
on business disposals and closures
|
|
-
|
|
2
|
|
2
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before net financing expense
|
|
300
|
|
(782)
|
|
(482)
|
|
|
|
|
|
|
|
|
|
Financial
income
|
|
16
|
|
-
|
|
16
|
|
Financial
expense
|
|
(77)
|
|
(10)
|
|
(87)
|
|
|
|
|
|
|
|
|
|
Net
financing expense
|
|
(61)
|
|
(10)
|
|
(71)
|
|
|
|
|
|
|
|
|
|
Share
of post-tax results of joint ventures
|
|
11
|
|
-
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before income tax
|
3
|
250
|
|
(792)
|
|
(542)
|
|
|
|
|
|
|
|
|
|
Income
tax
|
5
|
(53)
|
|
69
|
|
16
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the year from continuing
|
|
197
|
|
(723)
|
|
(526)
|
|
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year from discontinued
|
|
|
|
|
|
|
|
operations
|
6
|
5
|
|
7
|
|
12
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the year
|
|
202
|
|
(716)
|
|
(514)
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
Equity
holders of the parent
|
|
|
|
|
|
(518)
|
|
Non-controlling
interests
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(514)
|
|
|
|
|
|
|
|
|
|
Basic earnings/(loss) per share:
|
9
|
|
|
|
|
|
|
Continuing
operations
|
|
50.7p
|
|
|
|
(138.9)p
|
|
Discontinued
operations
|
|
1.4p
|
|
|
|
3.3p
|
|
|
|
|
|
|
|
|
|
|
|
52.1p
|
|
|
|
(135.6)p
|
|
|
|
|
|
|
|
|
|
Diluted earnings/(loss) per share:
|
9
|
|
|
|
|
|
|
Continuing
operations
|
|
50.4p
|
|
|
|
(138.9)p
|
|
Discontinued
operations
|
|
1.4p
|
|
|
|
3.3p
|
|
|
|
|
|
|
|
|
|
|
|
51.8p
|
|
|
|
(135.6)p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend per share:
|
10
|
|
|
|
|
7.4p
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
|
|
Six
months
|
|
Year
|
|
|
ended
|
|
ended
|
|
ended
|
|
|
30 June
|
|
30
June
|
|
31
December
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
Profit/(loss) for the period
|
|
57
|
|
(429)
|
|
(514)
|
|
|
|
|
|
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items
that may be reclassified to profit and loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange movements on translation of
|
|
|
|
|
|
|
foreign subsidiaries
|
|
(26)
|
|
222
|
|
315
|
Cumulative exchange movement recognised in profit on
disposal
|
|
(56)
|
|
-
|
|
(10)
|
Net gain/(loss) on hedges of net
|
|
|
|
|
|
|
investment in foreign subsidiaries
|
|
3
|
|
(92)
|
|
(127)
|
|
|
|
|
|
|
|
Cash flow hedges:
|
|
|
|
|
|
|
Effective portion of changes in fair value
|
|
9
|
|
(4)
|
|
(2)
|
Tax on effective portion of changes in fair value
|
|
-
|
|
1
|
|
-
|
Transferred to the income statement
|
|
-
|
|
1
|
|
2
|
|
|
(70)
|
|
128
|
|
178
|
Items
that will not be reclassified to profit and loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gains/(losses) on defined benefit pension
schemes
|
|
19
|
|
(147)
|
|
(169)
|
|
|
|
|
|
|
|
Tax on actuarial gains/(losses)
|
|
(3)
|
|
16
|
|
31
|
|
|
16
|
|
(131)
|
|
(138)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive (loss)/income
|
(54)
|
|
(3)
|
|
40
|
|
|
|
|
|
|
|
|
Total comprehensive income/(loss)
|
3
|
|
(432)
|
|
(474)
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Equity holders of the parent
|
|
3
|
|
(435)
|
|
(480)
|
Non-controlling interests
|
|
-
|
|
3
|
|
6
|
|
|
|
|
|
|
|
Total comprehensive income/(loss)
|
3
|
|
(432)
|
|
(474)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2017
|
|
30 June
2016
|
|
31
December 2016
|
|
Note
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Property,
plant and equipment
|
|
58
|
|
83
|
|
71
|
Intangible
assets
|
11
|
2,405
|
|
2,833
|
|
2,675
|
Interests
in joint ventures
|
|
42
|
|
40
|
|
38
|
Derivative
financial instruments
|
13
|
17
|
|
24
|
|
28
|
Retirement
benefit assets
|
|
91
|
|
145
|
|
70
|
Other
receivables
|
|
134
|
|
152
|
|
140
|
Deferred
tax assets
|
|
74
|
|
65
|
|
85
|
|
|
|
|
|
|
|
Total non-current assets
|
|
2,821
|
|
3,342
|
|
3,107
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Inventories
|
|
4
|
|
13
|
|
9
|
Trade
and other receivables
|
|
1,262
|
|
1,632
|
|
1,418
|
Derivative
financial instruments
|
13
|
22
|
|
2
|
|
9
|
Current
tax receivable
|
|
26
|
|
29
|
|
30
|
Bank
deposits (more than three months)
|
|
17
|
|
21
|
|
22
|
Cash
and cash equivalents
|
|
158
|
|
442
|
|
342
|
Assets
classified as held for sale
|
7
|
573
|
|
95
|
|
336
|
|
|
|
|
|
|
|
Total current assets
|
|
2,062
|
|
2,234
|
|
2,166
|
|
|
|
|
|
|
|
Total assets
|
|
4,883
|
|
5,576
|
|
5,273
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Interest
bearing loans and borrowings
|
13
|
(224)
|
|
(5)
|
|
(109)
|
Trade
and other payables
|
|
(1,243)
|
|
(1,638)
|
|
(1,412)
|
Derivative
financial instruments
|
13
|
(36)
|
|
(38)
|
|
(45)
|
Current
tax payable
|
|
(124)
|
|
(100)
|
|
(118)
|
Liabilities
classified as held for sale
|
7
|
(240)
|
|
(42)
|
|
(187)
|
Provisions
|
12
|
(5)
|
|
-
|
|
(9)
|
|
|
|
|
|
|
|
Total current liabilities
|
|
(1,872)
|
|
(1,823)
|
|
(1,880)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
Interest
bearing loans and borrowings
|
13
|
(1,128)
|
|
(1,534)
|
|
(1,317)
|
Trade
and other payables
|
|
(126)
|
|
(140)
|
|
(149)
|
Derivative
financial instruments
|
13
|
(25)
|
|
(22)
|
|
(28)
|
Retirement
benefit liabilities
|
|
(129)
|
|
(254)
|
|
(207)
|
Deferred
tax liabilities
|
|
(31)
|
|
(69)
|
|
(57)
|
Provisions
|
12
|
(577)
|
|
(670)
|
|
(610)
|
|
|
|
|
|
|
|
Total non-current liabilities
|
|
(2,016)
|
|
(2,689)
|
|
(2,368)
|
|
|
|
|
|
|
|
Total liabilities
|
|
(3,888)
|
|
(4,512)
|
|
(4,248)
|
|
|
|
|
|
|
|
Net assets
|
|
995
|
|
1,064
|
|
1,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Share
capital
|
|
197
|
|
197
|
|
197
|
Share
premium account
|
|
133
|
|
133
|
|
133
|
Merger
reserve
|
|
33
|
|
33
|
|
33
|
Hedging
and translation reserves
|
|
80
|
|
101
|
|
150
|
Capital
redemption reserve
|
|
34
|
|
34
|
|
34
|
Retained
earnings
|
|
515
|
|
555
|
|
467
|
Total equity attributable to equity holders
|
|
|
|
|
|
|
of the parent
|
|
992
|
|
1,053
|
|
1,014
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
3
|
|
11
|
|
11
|
|
|
|
|
|
|
|
Total equity
|
|
995
|
|
1,064
|
|
1,025
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
Non-
|
|
|
|
|
Share
|
|
Share
|
|
Merger
|
|
Hedging
|
|
Transl'n
|
|
redemption
|
|
Retained
|
|
|
|
controlling
|
|
Total
|
|
|
capital
|
|
premium
|
|
reserve
|
|
reserve
|
|
reserve
|
|
reserve
|
|
Earnings
|
|
Total
|
|
interests
|
|
equity
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1 Jan 2017
|
|
197
|
|
133
|
|
33
|
|
-
|
|
150
|
|
34
|
|
467
|
|
1,014
|
|
11
|
|
1,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
57
|
|
57
|
|
-
|
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial
gains on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
defined
benefit pension
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schemes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
19
|
|
19
|
|
-
|
|
19
|
Tax on
actuarial gains
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3)
|
|
(3)
|
|
-
|
|
(3)
|
Exchange
movements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on
translation of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
foreign
subsidiaries
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(26)
|
|
-
|
|
-
|
|
(26)
|
|
-
|
|
(26)
|
Cumulative
exchange movement recognised in profit on disposal
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(56)
|
|
-
|
|
-
|
|
(56)
|
|
-
|
|
(56)
|
Net
loss on hedges of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net
investment in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
foreign
subsidiaries
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3
|
|
-
|
|
-
|
|
3
|
|
-
|
|
3
|
Effective
portion of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
changes
in fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of cash
flow hedges
|
|
-
|
|
-
|
|
-
|
|
9
|
|
-
|
|
-
|
|
-
|
|
9
|
|
-
|
|
9
|
Tax on
effective portion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of
changes in fair
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
value
of cash flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedges
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Cash
flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
transferred
to the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
statement
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
loss for the period
|
|
-
|
|
-
|
|
-
|
|
9
|
|
(79)
|
|
-
|
|
16
|
|
(54)
|
|
-
|
|
(54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income for the period
|
|
-
|
|
-
|
|
-
|
|
9
|
|
(79)
|
|
-
|
|
73
|
|
3
|
|
-
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(29)
|
|
(29)
|
|
(3)
|
|
(32)
|
Equity
settled share based payments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5
|
|
5
|
|
-
|
|
5
|
Tax on
equity settled share based payments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
(1)
|
|
-
|
|
(1)
|
Disposal
of non-controlling interests
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(5)
|
|
(5)
|
As at 30 Jun 2017
|
|
197
|
|
133
|
|
33
|
|
9
|
|
71
|
|
34
|
|
515
|
|
992
|
|
3
|
|
995
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
Non-
|
|
|
|
|
Share
|
|
Share
|
|
Merger
|
|
Hedging
|
|
Transl'n
|
|
redemption
|
|
Retained
|
|
|
|
controlling
|
|
Total
|
|
|
capital
|
|
premium
|
|
reserve
|
|
reserve
|
|
reserve
|
|
reserve
|
|
earnings
|
|
Total
|
|
interests
|
|
equity
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1 Jan 2016
|
|
197
|
|
133
|
|
540
|
|
-
|
|
(26)
|
|
34
|
|
721
|
|
1,599
|
|
9
|
|
1,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(431)
|
|
(431)
|
|
2
|
|
(429)
|
Actuarial
losses on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
defined
benefit pension
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
schemes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(147)
|
|
(147)
|
|
-
|
|
(147)
|
Tax on
actuarial losses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
16
|
|
16
|
|
-
|
|
16
|
Exchange
movements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on
translation of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
foreign
subsidiaries
|
|
-
|
|
-
|
|
-
|
|
-
|
|
221
|
|
-
|
|
-
|
|
221
|
|
1
|
|
222
|
Net
loss on hedges of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net
investment in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
foreign
subsidiaries
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(92)
|
|
-
|
|
-
|
|
(92)
|
|
-
|
|
(92)
|
Effective
portion of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
changes
in fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of cash
flow hedges
|
|
-
|
|
-
|
|
-
|
|
(4)
|
|
-
|
|
-
|
|
-
|
|
(4)
|
|
-
|
|
(4)
|
Tax on
effective portion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of
changes in fair
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
value
of cash flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
hedges
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
1
|
Cash
flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
transferred
to the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
statement
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
loss for the period
|
|
-
|
|
-
|
|
-
|
|
(2)
|
|
129
|
|
-
|
|
(131)
|
|
(4)
|
|
1
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the period
|
|
-
|
|
-
|
|
-
|
|
(2)
|
|
129
|
|
-
|
|
(562)
|
|
(435)
|
|
3
|
|
(432)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(113)
|
|
(113)
|
|
(1)
|
|
(114)
|
Equity
settled share based payments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3
|
|
3
|
|
-
|
|
3
|
Tax on
equity settled share based payments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
(1)
|
|
-
|
|
(1)
|
Transfer
to merger reserve
|
|
-
|
|
-
|
|
(507)
|
|
-
|
|
-
|
|
-
|
|
507
|
|
-
|
|
-
|
|
-
|
As at 30 Jun 2016
|
|
197
|
|
133
|
|
33
|
|
(2)
|
|
103
|
|
34
|
|
555
|
|
1,053
|
|
11
|
|
1,064
|
|
|
|
|
|
|
|
|
|
|
|
Six months
|
|
Six
months
|
|
Year
|
|
|
|
ended
|
|
ended
|
|
ended
|
|
|
|
30 June
|
|
30
June
|
|
31
December
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
£m
|
|
£m
|
|
£m
|
Cash flow from operating activities
|
|
|
|
|
|
|
|
Profit/(loss)
before income tax from continuing operations
|
|
|
77
|
|
(446)
|
|
(542)
|
(Loss)/profit
before income tax from discontinued operations
|
|
|
(3)
|
|
14
|
|
15
|
|
|
|
|
|
|
|
|
Profit/(loss)
before income tax
|
|
|
74
|
|
(432)
|
|
(527)
|
Financial
income
|
|
|
(14)
|
|
(15)
|
|
(16)
|
Financial
expense
|
|
|
58
|
|
55
|
|
87
|
Share
of post-tax results of joint ventures
|
|
|
(5)
|
|
(8)
|
|
(11)
|
Intangible
impairment and amortisation
|
|
|
81
|
|
471
|
|
629
|
Impairment
of assets held for sale
|
|
|
10
|
|
35
|
|
26
|
Depreciation
of property, plant & equipment
|
|
|
9
|
|
13
|
|
29
|
Profit
on disposal of businesses
|
|
|
(98)
|
|
(8)
|
|
(9)
|
Difference
between contributions to retirement benefit
|
|
|
|
|
|
|
|
schemes
and amount charged to profit before net financing
|
|
|
|
|
|
|
|
expense
|
|
|
2
|
|
-
|
|
(4)
|
Profit
on disposal of property, plant and equipment
|
|
|
(6)
|
|
-
|
|
-
|
Equity
settled share-based payments
|
|
|
5
|
|
3
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
116
|
|
114
|
|
214
|
Decrease
in inventories
|
|
|
(2)
|
|
-
|
|
-
|
Increase
in trade and other receivables
|
|
|
(84)
|
|
(198)
|
|
(39)
|
(Decrease)/increase
in trade and other payables and provisions
|
|
|
(80)
|
|
105
|
|
(5)
|
|
|
|
|
|
|
|
|
Cash (used in)/generated from operations
|
|
|
(50)
|
|
21
|
|
170
|
Tax
paid
|
|
|
(24)
|
|
(31)
|
|
(32)
|
|
|
|
|
|
|
|
|
Net cash flow from operating activities
|
|
|
(74)
|
|
(10)
|
|
138
|
|
|
|
|
|
|
|
|
Cash flow from investing activities
|
|
|
|
|
|
|
|
Acquisition
of businesses (net of cash acquired)
|
|
|
-
|
|
-
|
|
(2)
|
Investment
in joint ventures
|
|
|
-
|
|
(1)
|
|
(2)
|
Purchase
of property, plant and equipment
|
|
|
(6)
|
|
(3)
|
|
(16)
|
Purchase
of intangible assets
|
|
|
-
|
|
(7)
|
|
(10)
|
Movement
in bank deposits (more than three months)
|
|
|
5
|
|
2
|
|
1
|
Disposal
of businesses (net of cash disposed of)
|
|
|
128
|
|
(4)
|
|
(5)
|
Disposal
of joint ventures
|
|
|
-
|
|
-
|
|
40
|
Disposal
of property, plant and equipment
|
|
|
11
|
|
1
|
|
2
|
Advanced
disposal proceeds
|
|
|
-
|
|
-
|
|
30
|
Interest
received
|
|
|
2
|
|
9
|
|
11
|
Dividends
received from joint ventures
|
|
|
1
|
|
27
|
|
34
|
Dividends
received from joint ventures classified as assets held for
sale
|
|
|
-
|
|
-
|
|
1
|
Amounts
paid on maturity of net investment hedges
|
|
|
-
|
|
(16)
|
|
(16)
|
|
|
|
|
|
|
|
|
Net cash flow from investing activities
|
|
|
141
|
|
8
|
|
68
|
|
|
|
|
|
|
|
|
Net cash flow before financing activities
|
|
67
|
|
(2)
|
|
206
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
|
|
|
Proceeds
from other borrowings
|
|
|
117
|
|
1,430
|
|
1,333
|
Repayments
of other borrowings
|
|
|
(173)
|
|
(1,294)
|
|
(1,345)
|
Cash
flows in respect of facility arrangement fees
|
|
|
(3)
|
|
(18)
|
|
(18)
|
Interest
paid
|
|
|
(34)
|
|
(19)
|
|
(58)
|
Dividends
paid
|
|
|
(29)
|
|
(58)
|
|
(113)
|
Cash
received in respect of debt related cash flow hedges
|
|
|
-
|
|
30
|
|
30
|
Dividends
paid to non-controlling interests
|
|
|
(3)
|
|
(1)
|
|
(4)
|
Acquisition
of shares by trustees of the Employee Share Trust
|
|
|
-
|
|
-
|
|
(2)
|
|
|
|
|
|
|
|
|
Net cash flow from financing activities
|
|
|
(125)
|
|
70
|
|
(177)
|
|
|
|
|
|
|
|
|
|
|
|
30 June
|
|
30
June
|
|
31
December
|
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
(Decrease)/increase in cash and cash equivalents
|
|
|
(58)
|
|
68
|
|
29
|
|
Cash
and cash equivalents as at the beginning of the period
|
|
|
388
|
|
340
|
|
340
|
|
Exchange
(losses)/gains on cash and cash equivalents
|
|
|
(1)
|
|
40
|
|
19
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents as at the end of the period
|
|
|
329
|
|
448
|
|
388
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents consist of:
|
|
|
|
|
|
|
|
|
Cash at
bank and in hand
|
|
|
133
|
|
313
|
|
286
|
|
Bank
deposits (less than three months)
|
|
|
25
|
|
129
|
|
56
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents as at the end of the period (excluding
cash classified as asset held for sale)
|
|
|
158
|
|
442
|
|
342
|
|
Cash
classified as held for sale (note 7)
|
|
|
171
|
|
6
|
|
46
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents as at the end of the period
|
|
|
329
|
|
448
|
|
388
|
|
|
|
|
|
|
|
|
|
|
Bank
deposits (more than three months)
|
|
|
17
|
|
21
|
|
22
|
|
Bank
loans
|
|
|
(1,324)
|
|
(1,496)
|
|
(1,388)
|
|
Loan
payable to joint venture
|
|
|
(2)
|
`
|
-
|
|
(2)
|
|
Bank
loans classified as held for sale
|
|
|
-
|
|
(26)
|
|
(25)
|
|
Fees
capitalised against bank facilities
|
|
|
15
|
|
17
|
|
15
|
|
Derivatives
classified as net debt
|
|
|
17
|
|
12
|
|
27
|
|
Finance
leases
|
|
|
(41)
|
|
(60)
|
|
(51)
|
|
Finance
leases classified as held for sale
|
|
|
-
|
|
-
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
Net debt as at the end of the period
|
|
|
(989)
|
|
(1,084)
|
|
(1,021)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
Profit/(loss)
|
|||||||||
|
|
Six
|
|
Six
|
|
|
|
Six
|
|
Six
|
|
|
|
|
months
|
|
months
|
|
Year
|
|
months
|
|
months
|
|
Year
|
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
|
30 June
|
|
30
June
|
|
31
December
|
|
30 June
|
|
30
June
|
|
31
December
|
|
|
2017
|
|
2016
|
|
2016
|
|
2017
|
|
2016
|
|
2016
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
Class of business:
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil,
Gas & Chemicals
|
|
994
|
|
1,151
|
|
2,234
|
|
83
|
|
67
|
|
166
|
Mining
|
|
137
|
|
137
|
|
280
|
|
22
|
|
12
|
|
30
|
Power
& Process
|
|
417
|
|
792
|
|
1,368
|
|
21
|
|
43
|
|
82
|
Environment
& Infrastructure
|
|
522
|
|
451
|
|
954
|
|
31
|
|
34
|
|
28
|
Investment
Services
|
|
79
|
|
64
|
|
143
|
|
15
|
|
3
|
|
(15)
|
|
|
2,149
|
|
2,595
|
|
4,979
|
|
172
|
|
159
|
|
291
|
Internal
revenue
|
|
(32)
|
|
(27)
|
|
(60)
|
|
-
|
|
-
|
|
-
|
Disposals
|
|
216
|
|
274
|
|
521
|
|
12
|
|
40
|
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External
revenue
|
|
2,333
|
|
2,842
|
|
5,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
costs1
|
|
|
|
|
|
|
|
(22)
|
|
(22)
|
|
(39)
|
Trading
profit2
|
|
|
|
|
|
|
|
162
|
|
177
|
|
318
|
Net
financing expense3
|
|
|
|
|
|
|
|
(39)
|
|
(37)
|
|
(64)
|
Adjusted
profit before income tax
|
|
|
|
|
|
123
|
|
140
|
|
254
|
||
Share
of tax expense of joint ventures4
|
|
|
|
|
|
(1)
|
|
(3)
|
|
(4)
|
||
|
|
|
|
|
|
|
|
122
|
|
137
|
|
250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
amortisation and impairments
|
|
|
|
|
|
(81)
|
|
(506)
|
|
(655)
|
||
Exceptional
and asbestos-related items
|
|
|
|
|
|
36
|
|
(77)
|
|
(137)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before income tax
|
|
|
|
|
|
77
|
|
(446)
|
|
(542)
|
|
|
|
|
|
|
|
|
Six
|
|
Six
|
|
|
|
|
|
|
|
|
|
|
months
|
|
months
|
|
Year
|
|
|
|
|
|
|
|
|
ended
|
|
ended
|
|
ended
|
|
|
|
|
|
|
|
|
30 June
|
|
30
June
|
|
31
December
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading
profit
|
|
|
|
|
|
|
|
6
|
|
13
|
|
18
|
Net
financing expense
|
|
|
|
|
|
|
|
-
|
|
(2)
|
|
(3)
|
Tax
|
|
|
|
|
|
|
|
(1)
|
|
(3)
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
8
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
|
|
Six
months
|
|
|
|
|
ended
|
|
ended
|
|
Year
ended
|
|
|
30 June
|
|
30
June
|
|
31
December
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
Continuing
operations:
|
|
|
|
|
|
|
Administrative expenses - exceptional and asbestos-related
items
|
|
(60)
|
|
(74)
|
|
(129)
|
Administrative expenses - intangible amortisation and
impairments
|
|
(81)
|
|
(506)
|
|
(655)
|
|
|
(141)
|
|
(580)
|
|
(784)
|
Profit
on business disposals and closures
|
|
101
|
|
2
|
|
2
|
Net
financing expense
|
|
(5)
|
|
(5)
|
|
(10)
|
|
|
(45)
|
|
(583)
|
|
(792)
|
Taxation
(charge)/credit on exceptional and asbestos-related items of
continuing operations
|
|
(4)
|
|
4
|
|
26
|
Taxation
credit on intangible amortisation and impairments
|
|
13
|
|
27
|
|
43
|
|
|
9
|
|
31
|
|
69
|
Post-tax
amortisation, impairments, exceptional and asbestos-related items
of continuing operations
|
|
(36)
|
|
(552)
|
|
(723)
|
Exceptional
items of discontinued operations (post-tax)
|
|
(2)
|
|
7
|
|
7
|
Post-tax
amortisation, impairments, exceptional and asbestos-related
items
|
|
(38)
|
|
(545)
|
|
(716)
|
|
|
|
|
|
|
|
Post-tax
exceptional and asbestos-related items
|
|
30
|
|
(66)
|
|
(104)
|
Post-tax
intangible amortisation and impairments
|
|
(68)
|
|
(479)
|
|
(612)
|
|
|
(38)
|
|
(545)
|
|
(716)
|
|
|
|
|
|
|
|
|
|
Six months
|
|
Six
months
|
|
|
|
|
ended
|
|
ended
|
|
Year
ended
|
|
|
30 June
|
|
30
June
|
|
31
December
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
Intangible
amortisation (note 11)
|
|
51
|
|
66
|
|
129
|
Impairment of
goodwill and intangible assets (note 11)
|
|
20
|
|
405
|
|
500
|
Impairment of
assets on classification as held for sale (note 7)
|
|
10
|
|
35
|
|
26
|
|
|
81
|
|
506
|
|
655
|
Six months ended 30 June 2017
|
|
Profit in
|
|
Profit on
|
|
|
|
|
|
|
|
|
|
|
respect of
|
|
business
|
|
Asbestos-
|
|
Other
|
|
|
|
Profit on
|
|
business
|
|
disposals
|
|
related
|
|
exceptional
|
|
|
|
disposals
|
|
closures
|
|
and closures
|
|
items
|
|
items
|
|
Total
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
101
|
|
-
|
|
101
|
|
(11)
|
|
(54)
|
|
36
|
Discontinued
operations
|
(3)
|
|
-
|
|
(3)
|
|
-
|
|
-
|
|
(3)
|
Profit/(loss)
before tax
|
98
|
|
-
|
|
98
|
|
(11)
|
|
(54)
|
|
33
|
Tax
|
(8)
|
|
-
|
|
(8)
|
|
-
|
|
5
|
|
(3)
|
Profit/(loss) after tax
|
90
|
|
-
|
|
90
|
|
(11)
|
|
(49)
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended 30 June 2016
|
|
Profit in
|
|
Profit on
|
|
|
|
|
|
|
|
|
|
|
respect of
|
|
business
|
|
Asbestos-
|
|
Other
|
|
|
|
Profit on
|
|
business
|
|
disposals
|
|
related
|
|
exceptional
|
|
|
|
disposals
|
|
closures
|
|
and closures
|
|
items
|
|
items
|
|
Total
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
-
|
|
2
|
|
2
|
|
(24)
|
|
(55)
|
|
(77)
|
Discontinued
operations
|
8
|
|
-
|
|
8
|
|
-
|
|
-
|
|
8
|
Profit/(loss)
before tax
|
8
|
|
2
|
|
10
|
|
(24)
|
|
(55)
|
|
(69)
|
Tax
|
(1)
|
|
-
|
|
(1)
|
|
-
|
|
4
|
|
3
|
Profit/(loss) after tax
|
7
|
|
2
|
|
9
|
|
(24)
|
|
(51)
|
|
(66)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit in
|
|
Profit on
|
|
|
|
|
|
|
|
|
|
respect of
|
|
business
|
|
Asbestos-
|
|
Other
|
|
|
|
Profit on
|
|
business
|
|
disposals
|
|
related
|
|
exceptional
|
|
|
|
disposals
|
|
closures
|
|
and closures
|
|
items
|
|
items
|
|
Total
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
-
|
|
2
|
|
2
|
|
(4)
|
|
(135)
|
|
(137)
|
Discontinued
operations
|
9
|
|
-
|
|
9
|
|
-
|
|
-
|
|
9
|
Profit/(loss)
before tax
|
9
|
|
2
|
|
11
|
|
(4)
|
|
(135)
|
|
(128)
|
Tax on
exceptional items
|
(2)
|
|
1
|
|
(1)
|
|
-
|
|
25
|
|
24
|
Profit/(loss)
after tax
|
7
|
|
3
|
|
10
|
|
(4)
|
|
(110)
|
|
(104)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
30 June 2017
|
|
Six
months ended
30 June
2016
|
|
Year
ended
31
December 2016
|
|
|
£m
|
|
£m
|
|
£m
|
Revenue
|
|
-
|
|
(7)
|
|
(7)
|
Cost of
sales and net operating expenses
|
|
-
|
|
13
|
|
13
|
Profit
before exceptional items and income tax
|
|
-
|
|
6
|
|
6
|
Attributable
tax
|
|
-
|
|
(1)
|
|
(1)
|
|
|
-
|
|
5
|
|
5
|
(Loss)/profit
on disposal
|
|
(3)
|
|
8
|
|
9
|
Tax on
(loss)/profit on disposal
|
|
1
|
|
(1)
|
|
(2)
|
|
|
|
|
|
|
|
(Loss)/profit
for the period from discontinued operations
|
|
(2)
|
|
12
|
|
12
|
|
|
Six months ended
30 June 2017
|
|
Six
months ended
30 June
2016
|
|
Year
ended
31
December 2016
|
|
|
£m
|
|
£m
|
|
£m
|
Net
cash flow from operating activities
|
|
-
|
|
17
|
|
8
|
Net
cash flow from investing activities
|
|
(1)
|
|
(1)
|
|
(5)
|
|
|
|
|
|
|
|
|
|
(1)
|
|
16
|
|
3
|
Disposal group
|
Classification
|
Date classified as held for sale
|
Date of disposal
|
Location
|
Incheon
Bridge Co. Ltd
|
Equity
Joint Venture
|
H1
2016
|
N/A
|
Korea
|
Amec
Foster Wheeler Power SRL
|
Subsidiary
|
H1
2016
|
31 May
2017
|
Italy
|
Aquenta
Consulting Pty Limited
|
Subsidiary
|
H2
2016
|
27
January 2017
|
Australia
|
GPG -
core boiler business
|
Subsidiary
|
H2
2016
|
23 June
2017
|
Global
|
GPG -
industrial business
|
Subsidiary
|
H1
2017
|
N/A
|
Global
|
North
American nuclear business
|
Subsidiary
|
H1
2017
|
N/A
|
North
America
|
UK
North Sea business
|
Subsidiary
|
H1
2017
|
N/A
|
United
Kingdom
|
|
30 June 2017
|
30 June 2016
|
31 December 2016
|
|
£m
|
£m
|
£m
|
Assets
|
|
|
|
Property,
plant and equipment
|
6
|
35
|
47
|
Intangible
assets
|
144
|
-
|
143
|
Interests
in joint ventures
|
17
|
41
|
16
|
Deferred
tax asset
|
8
|
2
|
6
|
Trade
and other receivables
|
221
|
10
|
73
|
Inventories
|
4
|
-
|
4
|
Current
tax receivable
|
2
|
1
|
1
|
Cash
and cash equivalents
|
171
|
6
|
46
|
Assets
held for sale
|
573
|
95
|
336
|
Liabilities
|
|
|
|
Trade
and other payables
|
(155)
|
(2)
|
(132)
|
Current
tax payable
|
(2)
|
(3)
|
(3)
|
Interest-bearing
loans and borrowings
|
-
|
(26)
|
(32)
|
Derivative
financial instruments
|
-
|
(4)
|
(7)
|
Deferred
tax liabilities
|
(6)
|
(7)
|
(5)
|
Provisions
|
(1)
|
-
|
(8)
|
Retirement
benefit liability
|
(76)
|
-
|
-
|
Liabilities
directly associated with assets held for sale
|
(240)
|
(42)
|
(187)
|
|
|
|
|
Net
assets directly associated with disposal group
|
333
|
53
|
149
|
|
|
|
|
|
Aquenta
|
FW Power
|
GPG-CFB
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
Property,
plant & equipment
|
-
|
47
|
10
|
57
|
Intangible
assets
|
17
|
-
|
120
|
137
|
Current
tax
|
-
|
-
|
(1)
|
(1)
|
Deferred
tax
|
-
|
(5)
|
8
|
3
|
Inventories
|
-
|
-
|
5
|
5
|
Trade
& other receivables
|
5
|
8
|
74
|
87
|
Cash
& cash equivalents
|
2
|
9
|
59
|
70
|
Trade
& other payables
|
(4)
|
(13)
|
(155)
|
(172)
|
Derivative
financial instruments
|
-
|
(3)
|
-
|
(3)
|
Bank
other loans
|
-
|
(24)
|
(7)
|
(31)
|
Provisions
for liabilities and charges
|
-
|
-
|
(8)
|
(8)
|
Net
assets sold
|
20
|
19
|
105
|
144
|
|
|
|
|
|
Minority
interest in net assets sold
|
-
|
-
|
(5)
|
(5)
|
|
20
|
19
|
100
|
139
|
Amounts
recognised in profit on disposal from the hedging & translation
reserves
|
1
|
(2)
|
(55)
|
(56)
|
|
21
|
17
|
45
|
83
|
|
|
|
|
|
Cash
consideration received
|
21
|
18
|
159
|
198
|
Costs
of disposal
|
(1)
|
(1)
|
(7)
|
(9)
|
Net
consideration
|
20
|
17
|
152
|
189
|
|
|
|
|
|
|
|
|
|
|
Net consideration less net assets sold
|
(1)
|
-
|
107
|
106
|
Provision
made in respect of indemnities
|
-
|
-
|
(5)
|
(5)
|
Profit/(loss) on disposal
|
(1)
|
-
|
102
|
101
|
|
|
|
|
|
|
Six months ended 30 June 2017
|
Six
months ended 30 June 2016
|
Year
ended 31 December 2016
|
||||||
|
|
Weighted
|
|
|
Weighted
|
|
|
Weighted
|
|
|
|
average
|
|
|
average
|
|
|
average
|
|
|
|
shares
|
Earnings
|
|
shares
|
Loss
|
|
shares
|
Loss
|
|
Earnings
|
number
|
per share
|
Loss
|
number
|
per
share
|
Loss
|
number
|
per
share
|
|
£m
|
million
|
pence
|
£m
|
million
|
pence
|
£m
|
million
|
pence
|
|
|
|
|
|
|
|
|
|
|
Basic earnings/(loss) from continuing operations
|
59
|
382
|
15.3
|
(443)
|
383
|
(115.8)
|
(530)
|
383
|
(138.9)
|
|
|
|
|
|
|
|
|
|
|
Employee
share and
|
|
|
|
|
|
|
|
|
|
incentive
schemes
|
-
|
2
|
(0.1)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings/(loss) from continuing operations
|
59
|
384
|
15.2
|
(443)
|
383
|
(115.8)
|
(530)
|
383
|
(138.9)
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended 30 June 2017
|
Six
months ended 30 June 2016
|
Year
ended 31 December 2016
|
||||||
|
|
Weighted
|
|
|
Weighted
|
|
|
Weighted
|
|
|
|
average
|
|
|
average
|
|
|
average
|
|
|
|
Shares
|
Loss
|
|
shares
|
Earnings
|
|
shares
|
Earnings
|
|
Loss
|
number
|
per share
|
Earnings
|
number
|
per
share
|
Earnings
|
number
|
per
share
|
|
£m
|
million
|
pence
|
£m
|
million
|
pence
|
£m
|
million
|
pence
|
|
|
|
|
|
|
|
|
|
|
Basic (loss)/earnings
|
|
|
|
|
|
|
|
|
|
from discontinued
|
|
|
|
|
|
|
|
|
|
operations
|
(2)
|
382
|
(0.6)
|
12
|
383
|
3.1
|
12
|
383
|
3.3
|
|
|
|
|
|
|
|
|
|
|
Employee
share and
|
|
|
|
|
|
|
|
|
|
incentive
schemes
|
-
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)/earnings from discontinued operations
|
(2)
|
384
|
(0.6)
|
12
|
383
|
3.1
|
12
|
383
|
3.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
|
|
Six
months
|
|
Year
|
|
|
ended
|
|
ended
|
|
ended
|
|
|
30 June
|
|
30
June
|
|
31
December
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
for the period from continuing operations
|
|
59
|
|
(441)
|
|
(526)
|
Profit
attributable to non-controlling interests
|
|
-
|
|
(2)
|
|
(4)
|
Basic
and diluted profit/(loss) from continuing operations
|
|
59
|
|
(443)
|
|
(530)
|
|
Six months ended 30 June 2017
|
Six
months ended 30 June 2016
|
||||
|
|
Weighted
|
|
|
Weighted
|
|
|
|
average
|
|
|
average
|
(Loss)/
|
|
|
shares
|
Earnings
|
(Loss)/
|
shares
|
earnings
|
|
Earnings
|
number
|
per share
|
earnings
|
number
|
per
share
|
|
£m
|
million
|
pence
|
£m
|
million
|
pence
|
|
|
|
|
|
|
|
Basic earnings/(loss) from continuing operations
|
59
|
382
|
15.3
|
(443)
|
383
|
(115.8)
|
Exceptional
items and asbestos-related items (post-tax)
|
(32)
|
-
|
(8.4)
|
73
|
-
|
18.9
|
Amortisation
and impairment (post-tax)
|
68
|
-
|
18.0
|
479
|
-
|
125.2
|
|
|
|
|
|
|
|
Basic earnings from continuing operations
|
|
|
|
|
|
|
before impairment, amortisation, exceptional items and
asbestos-related items
|
95
|
382
|
24.9
|
109
|
383
|
28.3
|
Employee
share and incentive schemes
|
-
|
2
|
(0.1)
|
-
|
2
|
(0.1)
|
|
|
|
|
|
|
|
Diluted earnings from continuing operations
|
|
|
|
|
|
|
before impairment, amortisation, exceptional items and
asbestos-related items
|
95
|
384
|
24.8
|
109
|
385
|
28.2
|
|
|
|
|
|
|
|
|
|
Year
ended 31 December 2016
|
||
|
|
|
Weighted
|
(Loss)/
|
|
|
(Loss)/
|
average
|
earnings
|
|
|
earnings
|
shares
|
per
share
|
|
|
£m
|
million
|
pence
|
|
|
|
|
|
Basic loss from continuing operations
|
|
(530)
|
383
|
(138.9)
|
Exceptional
items and asbestos-related items (post-tax)
|
|
111
|
-
|
29.4
|
Amortisation
and impairment (post-tax)
|
|
612
|
-
|
160.2
|
|
|
|
|
|
Basic earnings from continuing operations
|
|
|
|
|
before impairment, amortisation, exceptional items and
asbestos-related items
|
|
193
|
383
|
50.7
|
Employee
share and incentive schemes
|
|
-
|
2
|
(0.3)
|
|
|
|
|
|
Diluted earnings from continuing operations
|
|
|
|
|
before impairment, amortisation, exceptional items and
asbestos-related items
|
|
193
|
385
|
50.4
|
|
|
|
|
|
|
Six months ended 30 June 2017
|
Six
months ended 30 June 2016
|
||||
|
|
Weighted
|
|
|
Weighted
|
|
|
|
average
|
|
|
average
|
|
|
|
shares
|
Loss
|
|
shares
|
Earnings
|
|
Loss
|
number
|
per share
|
Earnings
|
number
|
per
share
|
|
£m
|
million
|
pence
|
£m
|
million
|
pence
|
|
|
|
|
|
|
|
Basic (loss)/earnings from discontinued operations
|
(2)
|
382
|
(0.6)
|
12
|
383
|
3.1
|
Exceptional
items (post-tax)
|
2
|
-
|
0.6
|
(7)
|
-
|
(1.8)
|
|
|
|
|
|
|
|
Basic (loss)/earnings from discontinued operations
|
|
|
|
|
|
|
before exceptional items
|
-
|
382
|
-
|
5
|
383
|
1.3
|
Employee
share and incentive schemes
|
-
|
2
|
-
|
-
|
2
|
-
|
|
|
|
|
|
|
|
Diluted (loss)/earnings from discontinued operations
|
|
|
|
|
|
|
before exceptional items
|
-
|
384
|
-
|
5
|
385
|
1.3
|
|
|
|
|
|
|
|
|
|
Year
ended 31 December 2016
|
||
|
|
|
Weighted
|
|
|
|
|
average
|
|
|
|
|
shares
|
Earnings
|
|
|
Earnings
|
number
|
per
share
|
|
|
£m
|
million
|
pence
|
|
|
|
|
|
Basic earnings from discontinued operations
|
|
12
|
383
|
3.3
|
Exceptional
items (post-tax)
|
|
(7)
|
-
|
(1.9)
|
|
|
|
|
|
Basic earnings from discontinued operations
|
|
|
|
|
before exceptional items
|
|
5
|
383
|
1.4
|
Employee
share and incentive schemes
|
|
-
|
2
|
-
|
|
|
|
|
|
Diluted earnings from discontinued operations
|
|
|
|
|
before exceptional items
|
|
5
|
385
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer
|
|
Brands/
|
|
Order
|
|
|
|
|
|
|
|
|
Goodwill
|
|
relationships
|
|
trademarks
|
|
backlog
|
|
Patents
|
|
Software
|
|
Total
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1
January 2017
|
|
2,277
|
|
595
|
|
215
|
|
141
|
|
48
|
|
162
|
|
3,438
|
Exchange
and other movements
|
|
(49)
|
|
(10)
|
|
(9)
|
|
(3)
|
|
(3)
|
|
(2)
|
|
(76)
|
Additions
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
1
|
Reclassification
to assets held for sale
|
|
(114)
|
|
(40)
|
|
(15)
|
|
(7)
|
|
(24)
|
|
(3)
|
|
(203)
|
As at 30 June 2017
|
|
2,114
|
|
545
|
|
191
|
|
131
|
|
21
|
|
158
|
|
3,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortisation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1
January 2017
|
|
113
|
|
357
|
|
50
|
|
112
|
|
7
|
|
124
|
|
763
|
Exchange
and other movements
|
|
(14)
|
|
(10)
|
|
(1)
|
|
(3)
|
|
(1)
|
|
(1)
|
|
(30)
|
Impairment
loss
|
|
-
|
|
20
|
|
-
|
|
-
|
|
-
|
|
-
|
|
20
|
Provided
during the period
|
|
-
|
|
20
|
|
5
|
|
17
|
|
2
|
|
7
|
|
51
|
Reclassification
to assets held for sale
|
|
-
|
|
(25)
|
|
(12)
|
|
(6)
|
|
(4)
|
|
(2)
|
|
(49)
|
As at 30 June 2017
|
|
99
|
|
362
|
|
42
|
|
120
|
|
4
|
|
128
|
|
755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net book value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30 June 2017
|
|
2,015
|
|
183
|
|
149
|
|
11
|
|
17
|
|
30
|
|
2,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31 December 2016
|
|
2,164
|
|
238
|
|
165
|
|
29
|
|
41
|
|
38
|
|
2,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer
|
|
Brands/
|
|
Order
|
|
|
|
|
|
|
|
|
Goodwill
|
|
relationships
|
|
Trademarks
|
|
Backlog
|
|
Patents
|
|
Software
|
|
Total
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1
January 2016
|
|
2,531
|
|
530
|
|
194
|
|
137
|
|
117
|
|
145
|
|
3,654
|
Exchange
and other movements
|
|
258
|
|
40
|
|
19
|
|
12
|
|
12
|
|
6
|
|
347
|
Additions
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6
|
|
6
|
Reclassification
to assets held for sale
|
|
(11)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(11)
|
As at 30 June 2016
|
|
2,778
|
|
570
|
|
213
|
|
149
|
|
129
|
|
157
|
|
3,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortisation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1
January 2016
|
|
339
|
|
119
|
|
32
|
|
65
|
|
9
|
|
65
|
|
629
|
Exchange
and other movements
|
|
40
|
|
9
|
|
3
|
|
6
|
|
1
|
|
4
|
|
63
|
Impairment
loss
|
|
214
|
|
157
|
|
-
|
|
-
|
|
-
|
|
34
|
|
405
|
Provided
during the period
|
|
-
|
|
21
|
|
5
|
|
22
|
|
4
|
|
14
|
|
66
|
As at 30 June 2016
|
|
593
|
|
306
|
|
40
|
|
93
|
|
14
|
|
117
|
|
1,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net book value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30 June 2016
|
|
2,185
|
|
264
|
|
173
|
|
56
|
|
115
|
|
40
|
|
2,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Project
|
|
Obligations
|
|
|
|
|
|
|
|
|
Asbestos
|
|
and
|
|
relating to
|
|
Property
|
|
|
|
|
|
|
related
|
|
environment
|
|
disposed
|
|
related
|
|
|
|
|
|
|
litigation
|
|
litigation
|
|
businesses
|
|
provisions
|
|
Other
|
|
Total
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1
January 2017
|
|
413
|
|
89
|
|
60
|
|
17
|
|
40
|
|
619
|
Exchange
and other movements
|
|
(17)
|
|
(3)
|
|
-
|
|
-
|
|
-
|
|
(20)
|
Transfers
to held for sale
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
(1)
|
Transfers
to/from trade payables
|
|
2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2
|
Utilised
|
|
(21)
|
|
(6)
|
|
(1)
|
|
-
|
|
(1)
|
|
(29)
|
Provided
|
|
-
|
|
-
|
|
5
|
|
2
|
|
2
|
|
9
|
Released
|
|
(2)
|
|
(5)
|
|
-
|
|
(2)
|
|
-
|
|
(9)
|
Change
in discount rate
|
|
7
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7
|
Unwind
of discount
|
|
4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4
|
As at 30 June 2017
|
|
386
|
|
75
|
|
64
|
|
16
|
|
41
|
|
582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provisions
classified as current liabilities
|
|
-
|
|
-
|
|
1
|
|
1
|
|
3
|
|
5
|
Provisions
classified as non-current liabilities
|
|
386
|
|
75
|
|
63
|
|
15
|
|
38
|
|
577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
|
|
Fair
|
|
Carrying
|
|
Fair
|
|
Carrying
|
|
Fair
|
|
|
Value
|
|
Value
|
|
Value
|
|
Value
|
|
Value
|
|
Value
|
|
|
30 June 2017
|
|
30 June 2017
|
|
30 June 2016
|
|
30 June 2016
|
|
31 December 2016
|
|
31 December 2016
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
derivatives - assets
|
|
39
|
|
39
|
|
26
|
|
26
|
|
37
|
|
37
|
Bank
loans
|
|
(1,324)
|
|
(1,324)
|
|
(1,496)
|
|
(1,496)
|
|
(1,388)
|
|
(1,388)
|
Loans
payable to joint venture
|
|
(2)
|
|
(2)
|
|
-
|
|
-
|
|
(2)
|
|
(2)
|
Bank
loans (classified as held for
sale)
|
|
-
|
|
-
|
|
(26)
|
|
(26)
|
|
(25)
|
|
(25)
|
Fees
capitalised against bank
|
|
|
|
|
|
|
|
|
|
|
|
|
facilities
|
|
15
|
|
15
|
|
17
|
|
17
|
|
15
|
|
15
|
Finance
leases
|
|
(41)
|
|
(41)
|
|
(60)
|
|
(60)
|
|
(51)
|
|
(51)
|
Finance
leases (classified as held for sale)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(7)
|
|
(7)
|
Financial
derivatives - liabilities
|
|
(61)
|
|
(61)
|
|
(60)
|
|
(60)
|
|
(73)
|
|
(73)
|
Financial
derivatives - liabilities (classified
as held for sale)
|
|
-
|
|
-
|
|
(4)
|
|
(4)
|
|
(7)
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Value of transactions
|
|
Outstanding balance
|
||||
|
Six months
|
|
Six
months
|
|
|
|
|
|
ended
|
|
ended
|
|
30 June
|
|
30
June
|
|
30 June 2017
|
|
30 June
2016
|
|
2017
|
|
2016
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
Services
received
|
1
|
|
-
|
|
-
|
|
-
|
Services
rendered
|
2
|
|
7
|
|
5
|
|
13
|
Provision
of finance
|
3
|
|
2
|
|
27
|
|
18
|
Receipt
of finance
|
-
|
|
-
|
|
2
|
|
-
|
|
|
|
|
|
|
|
|
Date:
10 August 2017
|
|
|
|
|
Amec
Foster Wheeler plc (Registrant)
|
|
|
|
|
By:
|
/s/
Alison Yapp
|
|
|
|
|
|
|
|
|
Name:
Alison Yapp
|
|
|
Title:
General Counsel & Company Secretary
|