The CIMIC Group Ltd (ASX: CIM) share price will be one to watch on Wednesday following the afterhours release of its full year results.
How did CIMIC perform in the FY 2019?
For the 12 months ended December 31, CIMIC reported revenue of $14.7 billion and a statutory net loss after tax of $1 billion. Net profit after tax (excluding the BICC business) came in at $800 billion, which was a 3% lift on the prior corresponding period.
The company’s statutory profits were negatively impacted by a one-off post tax impact of $1.8 billion. This relates to the company’s exposure to the non-controlling financial investment in BICC, as a result of its decision to exit the Middle East.
Operating cash flow came in at $1.7 billion (no variation in factoring), representing 80% EBITDA cash conversion (excl. BICC).
CIMIC’s executive chairman, Marcelino Fernández Verdes, was pleased with the performance of the majority of its businesses in FY 2019.
He said: “Our construction, mining and mineral processing, services and public private partnership operations continued to perform well during 2019, in line with our expectations.”
“Our decision to exit our financial investment in the Middle East will allow us to focus our resources and capital allocation on the growth opportunities in our core markets in Australia, New Zealand and the Asia Pacific. Notwithstanding the one-off impact on our 2019 financial results, leaving the region is the appropriate long-term decision for our business and our shareholders,” he added.
The executive chairman is positive on FY 2020 and notes its strong work in hand of $37.5 billion. This is the equivalent of more than two years’ worth of revenue, which he feels provides good visibility.
Mr Fernández Verdes added: “Looking ahead, our focus for 2020 is sustainable growth and returns. Our opportunities continue to strengthen, as governments and private clients in our markets further prioritise social and economic infrastructure projects to support the growth in urbanisation and respond to environmental challenges globally.”
The company has provided FY 2020 net profit after tax guidance in the range of $810 million to $850 million, subject to market conditions. This represents year on year growth of 1.25% to 6.25%.
New CEO appointed.
Leading the company in FY 2020, however, will be Juan Santamaria.
Mr Santamaria has been promoted to the role of chief executive officer and managing director, effective February 5. The company’s new CEO was previously the managing director of its CPB Contractors business.
CIMIC’s current CEO, Michael Wright, has accepted a new leadership role within CIMIC. Details of which will be announced in the near future.
The post CIMIC shares on watch after $1 billion loss and appointment of new CEO appeared first on Motley Fool Australia.
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