Aukett Fitzroy Robinson Group Plc
Monday 12 August 2013
At the time of the interim results we reported that the UK operation had commenced a recovery in its profitability. This recovery has continued into the second half with continuing instructions from Blackstone, Fenwick, Imperial College/Voreda, PRUPIM and Sir Robert McAlpine, along with new project wins. This improvement coincides with the recent reporting of a rise in UK services sector output in the first half of 2013. The higher revenues that are now being achieved in the UK operation have resulted in continued growth in staff numbers and the operation materially outperforming our previous expectations.
Additionally, our jointly owned European operations are continuing to provide a significant, and greater than the prior year, contribution to group profitability. This is being led by the Berlin operation, whilst the Frankfurt operation is now making a positive contribution following new commissions from Microsoft and Jaguar Land Rover.
Both the Russian and Middle East operations reported first half losses. However, the Russian operation has recently won some new commissions including concept work on the new Skolkovo innovation centre. This should allow the Russian operation to breakeven in the second half but not recover its first half losses.
The Middle East operation has recently won a hotel project for Majid Al Futtaim that should return it to profitability next year, but the gap in project work prior to this means the operation is expected to continue to be loss making in the second half of this year.
The Chairman’s 2012 statement referred to the board’s aim to recommence dividend payments in the medium term, when profits and cash flow allow. A continuation of current performance may make this possible in 2014.
Having considered the operational performances of the group’s geographical sectors in the second half, the board now expects that group profitability for the current financial year to September 2013 will be comfortably higher than previous expectations.
Aukett Fitzroy Robinson – 020 7843 3000
Nicholas Thompson, Chief Executive Officer
Duncan Harper, Group Finance Director
finnCap – 020 7220 0500
Corporate Finance – Matt Goode / Rose Herbert
Corporate Broking – Simon Starr / Stephen Norcross
Hermes Financial PR
Chris Steele – 07979 604687
Trevor Phillips – 07889 153628