Chairman's statement

The results for the six months ended 30 June 2013 show a much improved first-half performance, with three out of four of the Group’s divisions significantly more profitable than in the same period last year.
Group revenue was up 5% at £644.6m (2012: £613.8m)and operating profit more than doubled to £28.6m (2012: £13.3m). The operating margin was 4.4%, compared
with last year’s 2.2%. This margin improvement reflects a combination of the successful completion of several major projects, cost reduction measures, benefits from the business improvement initiatives started in 2012 and relatively benign winter weather in North America.Profit before tax was £26.8m (2012: £11.0m) and earnings per share were 28.1p (2012: 12.4p). In light of these improved results and the Board’s confidence in the future prospects of the business, the Board has decided to increase the interim dividend by 5% to 8.0pper share (2012: 7.6p). The dividend will be paid on 1 November 2013 to shareholders on the register at the close of business on 11 October 2013.Cash generated from operations was £30.2m, substantially up on last year’s £9.0m, as a result of the
Group’s improved profitability and the continuing focus on maximising cash generation. Net debt at 30 June 2013 was £24.5m (June 2012: £118.9m). This substantial reduction is in large part due to the receipt on 14 June
2013 of the £57.6m net proceeds from a placing of 6.6m shares in connection with the acquisition of the piling business of North American Energy Partners Inc. (‘North American Piling’), which completed in July 2013, after the period end. Capital expenditure in the first half remained below depreciation at £19.5m (2012: £12.8m).