CIMIC Group announced a solid result for the three months to 31 March 2018, as the Group strengthened its market position and increased revenue and cash-backed profit.
Highlights of the result compared with 1Q17 were:
- NPAT of $172 million, up 7%
- Revenue of $3.2 billion, up 7%, with solid contributions from all core businesses
- Strong EBIT, PBT and NPAT margins6 of 7.8%, 7.3% and 5.3% respectively
- Cash flows from operating activities of $118 million; $1.5 billion in LTM. EBITDA conversion rate of 100% in LTM
- Free operating cash flow7 of $1.1 billion in LTM
- Strong net cash position of $912 million, up $634 million
- Work in hand of $34.6 billion, equivalent to more than two years’ revenue; growth of $2.7 billion or 10% in core businesses
- Guidance confirmed for 2018 NPAT in the range of $720 million to $780 million, subject to market conditions
CIMIC Group Executive Chairman Marcelino Fernández Verdes said: “CIMIC’s positive momentum continued in the first quarter of 2018, highlighting the strength of our global business. We have increased revenue and cash-backed profit, and maintain a positive outlook.
“Our balance sheet remains strong, and we continue to consider ways to use our capital that will create long-term value in the best interests of our shareholders.
“This includes taking advantage of growth opportunities, both organic and strategic, that leverage or expand our existing competencies, including investing in public private partnerships.”
CIMIC Group Chief Executive Officer Michael Wright said: “We continued to optimise operational performance during the period, being disciplined in cost management and increasing the value we deliver for our clients.
“Our work in hand remains at a high level, providing assurance of future revenues, and the pipeline of opportunities for our business is strong.”
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.