2019 FINAL RESULTS rpsgroup.com rpsgroup.com Investing in a - - PowerPoint PPT Presentation
2019 FINAL RESULTS rpsgroup.com rpsgroup.com Investing in a sustainable future 19 FEBRUARY 2020 Agenda People changes Overview Group financial results Segmental overview A sustainable business with significant upside
rpsgroup.com
rpsgroup.com
19 FEBRUARY 2020
2
Agenda
Agenda
3
Group Finance Director succession
re-election at AGM
to the business to support the transition
Finance Director
400 to a Group of 5,000
the last 2.5 years
successor Five years at RPS
Ireland
Ricardo Plc
People changes
Gary Young Judith Cottrell
4
Strong Group Leadership Team – with ongoing renewal
People changes
Halvard Kilde CEO Norway
Ross Thompson
CEO Australia Asia Pacific John Chubb
CEO Consulting UK & IRE
Paul Aitken CEO Services UK & NL *Doug Matthys CEO North America Chantalle Meijer Group Marketing Director Kelly Olsen Chief Information Officer John Tompson CEO Energy Gary Young Group Finance Director
John Douglas
Liza Kane Group People Director
CEO
*Peter Fearn retired January 2020
Judith Cottrell Group Strategy Director
5
Agenda
Agenda
6
Positive outlook in unsettled times A sustainable business with significant upside Ongoing progress against strategic priorities
Investing in a sustainable future
Pacific goodwill impairment - £19.8m
Overview
dealt with
benefit to come
natural resources
Financials in line with expectations
7
Agenda
Agenda
8
In line with expectations
FY 2019 FY 2018 FY 2018 cc1 cc growth Organic growth
Revenue (£m) 612.6 637.4 634.3 (3%) (5%) Fees (£m) 556.5 574.2 571.4 (3%) (4%) Operating profit2 (£m) 43.4 54.0 53.8 (19%) (21%) Operating profit margin2 7.8% 9.4% 9.4% PBTA3 (£m) 37.3 50.2 49.9 (25%) (27%) Tax rate on PBTA 25.4% 26.8% 26.8% Diluted eps3 (p) 12.31 16.34 16.24 (24%) Dividend per share4 (p) 4.42 9.88 9.88
1 2018 results at 2019 currency rates 2 pre amortisation of acquired intangibles, transaction related costs and exceptional items 3 pre amortisation of acquired intangibles, transaction related costs and exceptional items and tax thereon 4 In the Half Year Results, the Group announced the rebase of the dividend to 40% of adjusted earnings (being profit after tax and before amortisation of intangibles
and transaction-related costs and tax thereon
Group financial results
9
Exceptional items
Group financial results
Rebranding costs £1.0m
New brand delivered – no further cost
ERP implementation £1.2m
Data migration and change management costs association with implementation of Microsoft Dynamics 365 in the Netherlands and part of AAP. Further costs will be incurred in FY2020
Legal fees £1.4m
Investigation of potential issues regarding administration of government contracts in USA. Contingent liability originally disclosed HY 2019. Further legal costs will be incurred in FY2020 A legacy issue – business de-risked through greater operational control
Goodwill impairment £19.8m
Non-cash charge in respect of Australia Asia Pacific
Total £23.4m
10
Strong cash conversion – ERP impacted year-end collections
£m FY 2019 FY 2018 Operating profit1 43.4 54.0 Exceptional items (3.6)
19.3 8.3 Share scheme costs 2.7 2.3 Other (0.5) (0.5) EBITDAS 61.3 64.2 Working capital (6.4) (3.8) Cash from operations 54.9 60.4 Conversion of profit into cash 90% 94% Interest (5.7) (3.5) Tax (11.6) (12.3) Net cash from operating activities 37.6 44.5
1 before amortisation and impairment of acquired intangibles, transaction-related costs and
exceptional items
Depreciation in 2019 includes IFRS16 adjustment £10.0m
Group financial results
11
Improved cash cycle Average lock up days down by two days despite ERP pilot impact
58 60 62 64 66 68 70 72 74 76 78 80 December January February March April May June July August September October November December
Historical lock up trends
2018 2019
Jun 18 73 days Dec 18 65 days Jun 19 67 days 1 Jan 18 70 days 1 Jan 19 65 days
Lock up days 80 78 76 74 72 70 68 66 64 62 60 58 31/12/19
Dec 19 69 days Average: 2018 – 71 2019 - 69 Group financial results
12
Cash outflow as we invest
£m FY 2019 FY 2018
Net cash from operating activities 37.6 44.5 Capex (20.7) (11.7) Lease funding (9.2)
7.7 32.8 Acquisitions (10.1)
(0.1) (1.6) Dividends (16.9) (22.1) Other
Cash flow (19.4) 8.9
IFRS16 accounting change Group financial results ERP 2019 - £7.6m 2018 - £2.1m
13
Borrowings up following investment
£m FY 2019 FY 2018 Opening net bank borrowings (73.9) (80.6) Cash flow (19.4) 8.9 FX and other (0.8) (2.2) Closing net bank borrowings (94.1) (73.9) Opening deferred consideration (0.3) (1.8) Consideration payment 0.1 1.6 FX and other 0.3 (0.1) Acquisitions (8.8)
(8.7) (0.3) Total closing borrowings (102.8) (74.2)
Group financial results
14
0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x
Well inside leverage limit
Bank leverage limit
Dec 17 1.3x Jun 18 1.4x Dec 18 1.3x Jun 19 2.0x Dec 19 2.0x
Bank definition used that excludes the impact of IFRS16
Group financial results
15
Revolving credit facility refinanced with extended maturity
£ 50m £ 100m £ 150m £ 200m
Jan 2020 2021 2022 2023 2024 Sept 2021 Jul 2022 2025 Jul 2024
£ 220m
UNCOMMITTED £60M ACCORDION FACILITY
Group financial results
16
Agenda
Agenda
17
Segmental performance
Segment Headline Energy
Strong growth - reflecting expansion in renewables and ongoing recovery in gas and oil markets
Consulting (UK & Ireland)
4/6 divisions grew fees with particularly strong growth in Ireland
Services (UK & Netherlands)
Netherlands grew. Water down, as anticipated, with the AMP regulatory cycle
Norway
H1 growth following integration. Competitive pressures impacted margins in H2
North America
A difficult year in a good market. Strong Oceans and Coastal
Australia Asia Pacific
Very challenging market in 2019 but improving trajectory for 2020
Segmental
18
£m H1 2019 H2 2019 FY 2019 FY 2018 FY 2018 cc1 cc growth Energy 50.5 60.1 110.6 101.1 102.1 8% Consulting (UK & Ireland) 63.4 64.2 127.6 122.1 121.8 5% Services (UK & Netherlands) 53.3 48.1 101.4 110.6 110.2 (8%) Norway 36.2 28.6 64.7 69.0 66.4 (2%) North America 29.8 28.5 58.3 58.7 61.3 (5%) Australia Asia Pacific (AAP) 49.3 49.0 98.3 116.8 113.8 (14%) Segment fees 282.5 278.4 560.9 578.2 575.3 (3%) Eliminations (2.2) (2.2) (4.4) (4.1) (4.0) 11% Group fees 280.3 276.3 556.5 574.2 571.4 (3%)
1 2018 results at 2019 currency rates
Fee income – small overall reduction driven by Australia, AMP cycle and North America
Segmental
19
£m H1 2019 H2 2019 FY 2019 FY 2018 FY 2018 cc1 cc growth Energy 4.5 6.6 11.1 8.9 9.1 22% Consulting (UK & Ireland) 7.1 8.0 15.1 15.4 15.4 (2%) Services (UK & Netherlands) 6.1 4.7 10.8 13.5 13.5 (20%) Norway 3.7 2.3 6.0 6.2 5.9 1% North America 2.0 1.4 3.4 5.1 5.4 (38%) Australia Asia Pacific (AAP) 2.6 3.8 6.4 13.3 12.9 (51%) Segment profit 25.9 26.7 52.7 62.4 62.2 (15%) Unallocated expenses (3.9) (5.4) (9.3) (8.4) (8.4) 11% Operating profit2 22.0 21.3 43.4 54.0 53.8 (19%) Interest (2.9) (3.1) (6.1) (3.9) (3.9) (54%) PBTA 19.1 18.2 37.3 50.2 49.9 (25%)
1 2018 results at 2019 currency rates 2 pre amortisation of acquired intangibles, transaction related costs and exceptional items
Profit - Energy performs in an otherwise tough year
Segmental
20
People - capacity matched to markets while retaining capability
Segment H1 2019 FY 2019 FY 2018 Energy 390 400 350 Consulting (UK & Ireland) 1,660 1,600 1,650 Services (UK & Netherlands) 1,470 1,450 1,850 Norway 250 230 240 North America 350 340 420 Australia Asia Pacific (AAP) 910 930 1,000 Central services (inc. Group Technology) 95 100 90 Group 5,125 5,050 5,600
Segmental
21
Agenda
Agenda
22
42 40.8 17.8 7.4 8 8.9 11.1
10 20 30 40 50 60 70 2013 2014 2015 2016 2017 2018 2019
Group PBTA
Reduced dependence on oil Energy business reshaped
A sustainable business
Other businesses Reshaped Energy
£M
Oil and Gas
23
63.0 21.9 3.0 34.0 53.9 10 20 30 40 50 60 70 2013 PBTA Energy decline Acquisitions Other 2017 PBTA
2013-2017 – rapid acquisitions replaced Energy profits
Group PBTA £M
A sustainable business
24
53.9 c.3.7 c.9.5 c.11.7 0.9 37.3 10 20 30 40 50 60 2017 PBTA End of acquisition lock in periods Investment Energy recovery Other 2019 PBTA
2017-2019 – end of acquisitions lock-in period, investment, Energy recovery
£M Group PBTA
A sustainable business Investment in People, Brand and Connectivity
25
End of acquisition lock-in impact
Acquisition company Acquisition Date Profit at acquisition £m Lock in expiry Whelans Corporation Pty Ltd Feb-14 Feb-16 Clear Environmental Consultants Limited Apr-14 1.8 May-17 GaiaTech Holdings Inc USA May-14 2.9 Nov-15 CgMs Holdings Limited Aug-14 2.1 Aug-16 Delphi AS Aug-14 Aug-16 Point Project Management Pty Ltd 1 Sep-14 3.5 Sep-16 Klotz Feb-15 2.4 Feb-17 Metier Apr-15 3.0 Apr-17 Iris Oct-15 1.5 Oct-17 Everything Infrastructure Group Oct-15 2.7 Oct-17 DBK Apr-16 2.0 Apr-18 Total 21.9 Corview Feb-19 2.8 Feb-22 Reservoir Imaging Limited (RIL) Sep-19 0.6 Sep-21
A sustainable business
26
2019 acquisition performance - rapid integration of Corview Senior staff locked in, strong order book in 2020
Corview Feb 2019 RIL Sep 2019 Annualised profit at acquisition (£m) 2.8 0.6 Number of months of ownership 11 3 Pro rata profit for 2019 (£m) 2.6 0.1 Integration costs (£m) (1.0)
1.6 0.1 Actual profit 20191 0.8 0.1
1 Corview integrated into the business hence 2019 actual profit is estimated
A sustainable business
27
Functional investments at industry norms – significant upside still to come
Spend as % of fee 2017 2019 2020 budget Industry ‘norms’
People 0.6% 0.9% 1.1% 0.8 - 1% Finance 2.3% 2.5% 2.5% 1.5 – 2.0% Marketing and sales 3.5% 4.2% 4.2% 4.0 – 4.5% Technology 2.5% 3.8% 4.1% 3.2 - 3.7% Total 8.9% 11.4% 11.9% 9.5 - 11. 2%
A sustainable business
28
Proportion of fees generated by segment
FY 2019 fee income £556.5m
Consulting - UK & Ireland Australia Asia Pacific Services - UK & Netherlands Energy North America Norway
SEGMENTS
Public / private sector exposure
FY 2019 fee income £556.5m
SECTORS
Private Public
Well balanced
A sustainable business
29
Well diversified – plays to our key thematics: sustainability, urbanisation and natural resources
Proportion of fee income generated by sector and service
SECTORS FY 2019 fee income £556.5m
Resources Transport Energy Property Water Defence and government services Planning and approvals Oceans and coastal Design and development Environment Advisory and management consulting Project and program management Training Laboratories Exploration and development Water services Health, safety and risk
SERVICES
Communications, creative and digital A sustainable business
30
A sustainable business with significant upside
Tighter, better integrated group with acquisition risk dealt with
Investment made – yielding results with more benefit to come
Well balanced, well diversified
Great thematics – sustainability, urbanisation and natural resources
A sustainable business
31
Agenda
Agenda
32
Ongoing progress against five strategic priorities
Progress against
People
Brand
Connectivity
Energy
Organic growth and selective acquisition
33
People – a deliberate plan
Progress against
HR leadership
right mix of internal promotion and external hires
Listen to our people
actions implemented (sabbatical / family friendly / global mobility policies)
Performance
new performance and development framework
to the new framework
Clarity around reward
globally
line of sight to performance
Learning & Development
Talent
media and professionalise onboarding
succession planning framework
34
People - showing results
2017 50% 2018 80% 2019 >95%
% global workforce receiving a quality performance and development conversation with their manager
Quality conversations Managing under-performance
20% exited through performance management
Solid, improving trend – voluntary turnover
Excludes Services Water Operations leavers driven by the AMP regulatory cycle
15% 12% 2019 Industry Progress against
35
A bold, client driven brand, delivered effectively
Progress against
36
Progress against
A new website
Since 14 January 2019
70 new features:
increase in sites visits compared to H1 18 page views web service enquiries
Measurable impact
37 North America and Consulting UK & Ireland
Connectivity – selling digital capability across segments Expansion of Houston’s I- 10 Highway
The solution – make complex easy Use virtual reality to allow stakeholders to fully understand how the proposed infrastructure will be developed within the existing landscape and address concerns Team from Consulting Ireland provided sophisticated 3D visualisation expertise to create an immersive virtual reality experience, allowing the North America client team to provide comprehensive planning, design and environmental permitting services RPS source of expertise – Consulting, UK & Ireland RPS leveraging expertise – North America Value – US$12.6m The complexity Houston’s major interstate highway is one of the most congested in the
to high-speed rail, light rail transit, rapid bus transit and improve freight mobility, I- 10 needs to be expanded Progress against
Goal
for additional capacity The requirement Engage stakeholders on the key elements of the project and options available to get buy-in
38 Consulting – UK & Ireland
Connectivity – selling within segments Transforming Haulbowline Island’s East Tip, Ireland
Client: Cork County Council Original RPS appointment: Outline remediation design, environmental impact assessment, landscape design, waste licence and planning Progress against
Creating shared value: Local community benefits - environmental/health risk removed, increased house prices, connectivity and safer spaces for island residents Steelworks waste transformed into 22 hectare recreational park with landscaping, sports pitches, paths for cycling and walking and electric vehicle parking points Template model for efficient delivery of public infrastructure spend for Cork County Council and public sector clients Delivered comfortably under budget – construction out turn cost for project 50%
Expanded to: detailed design, procurement and construction supervision services for the East Tip and other related projects Efficiencies: Solution delivered for 50% of the
Recognition: Won Engineers Ireland Engineering Project of the Year and Local Authority Engineering Initiative Award – November 2019
39 Objective Single, modernised, robust in-country platforms Transferred North America - Deltek Norway - Agresso A single common platform £14m investment to connect our global segments and business systems with a new ERP Phase 1 – live with lumps Global design delivered on budget Global construction completed Pilots in parts of Australia and the Netherlands Invoices out but too slowly Suppliers paid Books closed Employee experience sub-
Phase 2 – planning Improved employee experience Drive greater efficiencies Australia stage 2 scheduled for H2 Assess timeline for UK and Ireland migration
UK and Ireland go live All UK, Australia, Ireland and the Netherlands on one common system, North America on modern platform Norway on modern platform
ERP – a pragmatic plan to modernise while controlling risk
Connectivity – linking people through improved systems
>20 systems
2016
Progress against
40
Energy sector is growing
£0 £20,000,000 £40,000,000 £60,000,000 £80,000,000 £100,000,000 £120,000,000 £140,000,000 £160,000,000 2016 2017 2018 2019
Fee revenue Renewables Gas Oil Oil + gas Other (mainly Nuclear)
Progress against
Fee revenue – generated across all six RPS segments
Gas + Oil
41
Establishing a presence in Asia
Offshore wind – seizing the opportunity
Overlap between gas and oil and
gives us competitive advantage
c£10bn
Asia Pacific annual investment
(Source: IEA)
TenneT in both Netherlands and Germany with Master Service Agreements signed for UXO services related to offshore renewable projects (five years)
globally applicable especially in new, emerging markets
markets in Asia
work
Deep expertise in offshore wind and marine environments Following existing clients into new and emerging markets
integrated it into a buoy with power, data, storage and satellite communication
wind energy project
Progress against
42
£m FY 2019 Fees FY 2019 Profit
Consulting (ROI) 19% 26% Energy* 8% 21% Services (Netherlands) 5% 13% Consulting (UK) 0% (8%) Norway (2%) 1% Services (UK) (14%) (31%) North America (5%) (38%) Australia Asia Pacific* (19%) (57%) Group (4%) (21%)
Improving organic growth remains a key focus
*Organic growth excludes the impact of Corview and Reservoir Imaging Ltd. Including Corview and Reservoir Imaging Ltd, constant currency fee decline for the Group is 3%
Progress against
43
Acquisitions will remain VERY selective as we invest and manage the balance sheet
Value creating Congruent with our brand and culture Add data and expertise Add density, not greater diversity
Progress against
44
2019 five strategic Priorities
CONNECTIVITY
Exploit revenue synergies where they exist but not where they don’t
BRAND
Tell our story better
PEOPLE
Invest in people and reduce staff turnover
ENERGY
Revitalise the Energy business
ORGANIC GROWTH AND SELECTIVE ACQUISITION
Density not diversity
2020 three strategic priorities
Evolving priorities for 2020 – growing Energy and a focus on organic growth a given
PEOPLE CLIENTS CONNECTIVITY
Make RPS a great place to do great work Grow our business by delivering great work for our clients Make it easy to work together
Safety and well-being Performance and development conversations Fair reward Learning and development Build on existing competitive advantage Invest in sales and project management capability Cross-sell services Continue roll-out of ERP Leverage power of our data
Progress against
45
Agenda
Agenda
46
Strong competitive positions
Segment Competitive position Outlook
Energy Strong Continue push into renewables. Some global energy price
Consulting (UK & Ireland) Strong Consulting well placed to take advantage of political certainty in 2020 Services (UK & Netherlands) Strong Opportunities with AMP7 in 2020 Continued organic growth expected in the Netherlands Improvement in Laboratories anticipated Norway Strong Will continue to defend our leading position North America Underweight Robust market fundamentals and strong demand for services Improved order book expected to strengthen margin performance Strategy review underway Australia Asia Pacific Strong - improving State government committed to ongoing infrastructure spend Defence procurement expected to continue to pick up Property sector uncertain but some signs of recovery
Group outlook
47
Managing volatility
We stay close to our clients to understand our future work We match capacity to markets while holding capability We manage cash tightly – with a clear focus on reducing lock-up days We maintain a disciplined balance sheet – with target leverage of 1.0 to 2.0 We talk to markets at least four times a year – because things change in three months
Many of our specialist businesses have a three-month order book - provides opportunities as well as challenges
Group outlook
48
A rapidly changing world
Group outlook
FX £ $US $AUD NOK
The Board remains confident in the medium term outlook for the Group and anticipates that the year ahead will be broadly in line with 2019 with growth accelerating in 2021.
49
Positive outlook in unsettled times A sustainable business with significant upside Ongoing progress against strategic priorities
Investing in a sustainable future
Pacific goodwill impairment - £19.8m
Overview
dealt with
benefit to come
natural resources
Financials in line with expectations
51
Safety Detailed segmental performance IFRS16 impact Board
Appendix
52
Safe
* RIDDOR – reporting of Injuries Diseases and Dangerous Occurrence Regulations
0.5 1 1.5 2 2.5 3 3.5 4 4.5
RIDDOR* Reportable Injury Frequency Rate (IFR )
(Injuries per 1,000,000 work-hours)
0.5 1 1.5 2 2.5 3 RPS Construction Manufacturing Professional, Scientific and Technical Activities
RIDDOR Reportable Injury Frequency Rate (IFR) Appendix
53
Energy
Proportion of fees by sector and service
FY 2019 fee income £110.6m
Energy Resources
SECTOR
Private Public
SECTOR
Exploration and development Advisory and management consulting Laboratories Training Environment Oceans and coastal Health, safety and risk
SERVICES
Appendix
54
Energy
FY 2019
Outlook
Strong growth - reflecting expansion in renewables and ongoing recovery in gas and oil markets
£m H1 2019 H2 2019 FY 2019 FY 2018 FY 2018 cc cc growth Organic growth
Fee income 50.5 60.1 110.6 101.1 102.1 8% 8% Segment profit 4.5 6.6 11.1 8.9 9.1 22% 21% Margin 8.9% 10.9% 10.0% 8.8% 8.9% Adjusted for bad debt provision reversals Segment profit 10.7 7.6 7.8 37% 35% Margin 9.7% 7.6% 7.6%
Appendix
55
Consulting – UK & Ireland
Water services Design and development Project and program management Oceans and coastal Health, safety and risk Environment Planning and approvals Advisory and management consulting
SERVICES
FY 2019 fee income £127.6m
Proportion of fees by sector and service
Defence and government services Property Energy
SECTORS
Resources Transport Water Private Public
SECTORS
Communication and creative services Appendix
56
Consulting - UK & Ireland
FY 2019
Outlook
£m H1 2019 H2 2019 FY 2019 FY 2018 FY 2018 cc cc growth Fee income 63.4 64.2 127.6 122.1 121.8 5% Segment profit 7.1 8.0 15.1 15.4 15.4 (2%) Margin 11.2% 12.4% 11.8% 12.6% 12.7% 4/6 divisions grew fees with particularly strong growth in Ireland
Appendix
57
Services – UK & Netherlands
Water services Health, safety & risk Project and program management Design and development Laboratories Environment
SERVICES FY 2019 fee income £101.4m
Proportion of fees by sector and service
Property Resources Water Transport
SECTORS
Energy Defence and government services Private Public
SECTORS
Appendix
58
FY 2019
Outlook
Services - UK & Netherlands
Netherlands grew. Water down, as anticipated, with the AMP regulatory cycle £m H1 2019 H2 2019 FY 2019 FY 2018 FY 2018 cc cc growth Fee income 53.3 48.1 101.4 110.6 110.2 (8%) Segment profit 6.1 4.7 10.8 13.5 13.5 (20%) Margin 11.4% 9.8% 10.6% 12.2% 12.2%
Appendix
59
Norway
FY 2019 fee income £64.7m
Proportion of fees by sector and service
Project and program management Training Advisory and management consulting
SERVICES
Transport Defence and government services
SECTORS
Property Energy Public Private
SECTORS
Appendix
60
Norway
FY 2019
Outlook
£m H1 2019 H2 2019 FY 2019 FY 2018 FY 2018 cc cc growth Fee income 36.2 28.6 64.7 69.0 66.4 (2%) Segment profit 3.7 2.3 6.0 6.2 5.9 1% Margin 10.2% 8.0% 9.2% 9.0% 8.9% H1 growth following integration. Competitive pressures impacted margins in H2
Appendix
61
North America
FY 2019 fee income £58.3m
Proportion of fees by sector and service
Energy Property Transport Water Defence and government services
SECTORS
Design and development Oceans and coastal Advisory and management consulting Environment
SERVICES
Private Public
SECTORS
Communication and creative services Appendix
62
North America
FY 2019
Outlook
A difficult year in a good market. Strong Oceans and coastal business. New leadership reviewing the business. £m H1 2019 H2 2019 FY 2019 FY 2018 FY 2018 cc cc growth Fee income 29.8 28.5 58.3 58.7 61.3 (5%) Segment profit 2.0 1.4 3.4 5.1 5.4 (38%) Margin 6.6% 5.0% 5.8% 8.7% 8.9%
Appendix
63
Transport Defence and government services
SECTORS
Water Resources Environment Water services Project and program management Communications, creative and digital Design and development Advisory and management consulting Planning and approvals
SERVICES
Australia Asia Pacific
FY 2019 fee income £98.3m
Proportion of fees by sector and service
Energy Private Public
SECTORS
Property Appendix
64
Australia Asia Pacific
FY 2019
started to pick up in H2
Outlook
£m H1 2019 H2 2019 FY 2019 FY 2018 FY 2018 cc cc growth Organic growth
Fee income 49.3 49.0 98.3 116.8 113.8 (14%) (19%) Segment profit 2.6 3.8 6.4 13.3 12.9 (51%) (57%) Margin 5.3% 7.7% 6.5% 11.4% 11.3% Very challenging market in 2019 but improving trajectory for 2020
Appendix
65
Cash flow impact in FY 2019 Cash from operations 11.1 Interest paid (1.9) Lease funding (9.2)
IFRS16 changes have no impact on leverage calculations
Balance sheet effect at 31 December 2019 Right of use asset 44.8 Lease liability (49.8) Other net assets 3.2 Reserves (1.8) Income statement impact in FY 2019 Depreciation (10.0) Operating lease expense 11.3 Operating profit 1.3 Interest (1.9) PBTA (0.6)
Bank leverage calculations based on pre IFRS16 lease accounting
Appendix
66
Renewed Board – good mix of background, skill, geography and gender
Allison Bainbridge
Audit Chair Appointed 2017
Michael McKelvy
Independent Non-Executive Appointed 2018
Catherine Glickman
Remuneration Chair Appointed 2018
David Gormley
Company Secretary Appointed 2018
John Douglas
Chief Executive Appointed 2017
Ken Lever
Non-Executive Chairman Appointed 2016
Gary Young
Finance Director
Appointed 2000
Liz Peace
Senior Independent Non-Executive Appointed 2017
Appendix
Judith Cottrell
Finance Director succession -
Appointment April 2020