CIMIC Group’s strong performance continued in the 12 months to 31 December 2017, with the achievement of substantial profit growth and cash flow generation and increased work in hand.
Highlights of the 2017 result compared with 2016 were:
CIMIC Group Executive Chairman Marcelino Fernández Verdes said: “CIMIC Group finished 2017 in a strong position. We again reached the top of our profit guidance range and further strengthened our balance sheet, positioning us well for strategic growth opportunities, including public private partnerships, and sustained shareholder returns.
“This performance was reflected in a 47.3% increase in CIMIC Group’s share price during the year. Combining the share price appreciation and dividends paid in 2017, we achieved a total shareholder return of 51%.
“Innovation continued to be a priority area, with the development of technologies that improve productivity and results for our clients. Reflecting this, we were the first Australasian company to achieve Kitemark certification7 for excellence in building information modelling (BIM).”
Board has declared a 100% franked final dividend of 75 cents per share
to be paid on 4 July 2018. Total dividends declared for 2017 were 135
cents per share, a 22.7% increase compared with 2016.
CIMIC Group Chief Executive Officer Michael Wright said: “In 2017 we leveraged our competitive position and favourable market conditions to produce an outstanding operating performance and further diversify our order book across construction, mining, services and public private partnerships.
“We increased our focus on the development of our people during the year, and will further this in 2018 to ensure our performance based culture provides long-term, rewarding careers for our people.
“All of our
core businesses contributed to the diversification and growth of work in
hand, with new work of $18.4 billion in 2017.”
Looking forward, there is at least $110 billion of tenders relevant to CIMIC Group to be bid and/or awarded in 2018, and around $285 billion of projects coming to the market in 2019 and beyond, including about $65 billion worth of public private partnership projects.
Mr Fernández Verdes said: “Our focus is to continue to develop our safety and performance culture, further develop our presence in the public private partnership market and deliver additional client value through collaboration opportunities amongst our companies.”