2012 Preliminary Results

Annual results for the year ended 31 December 2012

27th February 2013

 Robust financial performance

• Revenue reduced as previously guided, primarily due to the planned rescaling of UK construction
•   Underlying profit from operations(2) increased, reflecting an improvement in total operating margin
• Reported profit before taxation and basic earnings per share both increased substantially, due to minimal non-recurring and non-operating items
• Underlying profit before taxation(2) and underlying earnings per share(2) reduced slightly, due to a higher  net financial expense, including an increase in the non-cash interest charge relating to pensions

Strong balance sheet

• Net borrowing of £155.8 million (2011: £50.7 million) reflects the expected outflow of working capital, primarily due to the rescaling of UK construction, and the acquisition of the Bouchier Group in Canada
• Over £1 billion of committed borrowing facilities and private placement funding

Strong order book and record pipeline of contract opportunities

• £5.2 billion of new and probable orders in 2012
• Total order book plus probable orders of £18.1 billion (2011: £19.1 billion), with the reduction on 2011 due primarily to the sale of equity investments in Public Private Partnership (PPP) projects and the rescaling of UK construction
• 75% revenue visibility(3) for 2013 (2011: 77% for 2012)
• Pipeline of contract opportunities worth some £35.2 billion (2011: £33.1 billion)

 Proposed full year dividend increased by 2% to 17.25p (2011: 16.9p)

(1) Restated following the change in presentation of profits from the disposal of Public Private Partnership equity investments from non-operating items to operating items (amounting to £13.2 million in 2012 and £11.5 million in 2011).

(2) The underlying results stated above are based on the definitions included in the key financial figures on page 3.

(3) Based on expected revenue and secure and probable orders, which exclude variable work and re-bids.