Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on FERROVIAL SA. We currently have 6 research reports from 1 professional analysts.
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2016 P&L impacted by exceptional items; strong cash generation
28 Feb 17
Results The group’s revenue was up 10.9% (+1.2% lfl) and came in 2% above market expectations. EBITDA was down by 8% (-4% lfl), still 4% above consensus, while net income was down by 47.7% and came in 7% below market expectations, at €376m (AV €379m). For 2017, the board proposed a €0.74 per share scrip dividend (compared to €0.719 last year) and announced the launch of a new €275m share buy-back programme, in line with last year’s programme. On 31 December 2016, the projects’ net debt stood at €4,963m, down from €6,057m a year earlier, mostly reflecting the deconsolidation of the SH-130 and Portuguese toll roads debt (see below). Excluding infrastructure projects, the net cash position stood at €697m, down from €1,514m. As a consequence, the group’s consolidated net debt was €4,266m (vs. €4,542m in 2015). Recent developments In October 2016, the group was awarded the I-66 project in Virginia, USA. The €3bn concession consists of a managed lanes project with dynamic tolling. Cintra, together with the Meridiam infrastructure fund, will be responsible for the design, construction, financing and O&M of the toll road. Construction is expected to be completed by 2022 and the concession is to be granted for 50 years. The financing should be finalised by H2 17. The SH-130 concession, which filed under Chapter 11 in March 2016, was deconsolidated from Ferrovial’s financial statements on 31 December 2016. This had a positive impact on the group’s net income (+€30m), while €1,421m of net debt was removed from Ferrovial’s balance sheet.
Feel the Brexit
27 Oct 16
Results Ferrovial release a disappointing 9-month release. Consolidated revenue were up 6.4% and reached €7,697m. Group EBITDA came in at €650m, down 20.3% yoy. The results were mostly driven by the strong toll road business (+20% lfl) which continued performing well during the third quarter whereas all three other divisions were weak. Construction was down 6.2% and Services’ margins declined strongly. The Airport division was strongly down due to a loss on hedges following Brexit (higher inflation expectation and lower interest rates in the UK). As a result, the Airport equity associates’ contribution was strongly down, from c.€119m in 9m15 to €-56m in 9m16. Reported EBIT was up 5.5% at €684m with a margin of 8.9%, down 10bp. Attributable net profit fell 42.2%, mainly reflecting the fair value adjustments at Heathrow. Debt Net consolidated debt reached €5,693m, with €5,993m of concession projects (vs. €6,057m in December 2015) while the net cash position ex-infrastructure projects stood at €300m on 30 September (vs. €1,514m in December 2015), mainly reflecting the acquisition of Broadspectrum (€934m). New developments The company listed several pending bidding processes: Ferrovial confirmed that Cintra has presented a bid for the I-66 project, a $2.1bn toll concession project in Virginia, USA. The consortium has been put on the local authorities’ short list and the award should be announced in the fourth quarter of this year (expected in November). Cintra has been pre-qualified in the US for the design, construction and maintenance of an airport shuttle to connect Los Angeles International Airport’s terminals. Cintra has also presented a bid for the extension and widening of Highway 427 in Toronto. Lastly, a consortium including Cintra and Agroman has been pre-qualified for the Melbourne Metro project, for the design, construction, financing and maintenance of a 9km tunnel and five underground stations. Ferrovial also announced the completion of the Transchile acquisition announced in September. Once funded, the operation will represent an investment of $72m.
Strong Brexit sensitivity
10 Aug 16
The H1 16 results are down mainly due to sterling depreciation and the lower results of the service division in the UK: - H1 16 revenues -1.8% lfl (vs reported -0.8%); - H1 16 EBITDA -17.6% lfl (reported -21.8%); - Net profit after fair value adjustments €189m (of which +€268m disposals and impairments and €5m from equity associates) vs €268m for H1 15 (of which +€58m disposals and impairments and €55m from equity associates). In July, a consortium led by Ferrovial was selected by Denver airport to start negotiations about remodelling and the operation of its main terminal.
Negative forex effects and disappointment from the UK service division recently acquired
09 May 16
Q1 16 results were marked by another negative impact from UK activity in services and negative forex effects which were not offset by the strong traffic growth at Ferrovial’s airports & toll roads despite the positive calendar year effect. Consolidated revenues & EBITDA were both down by 3.0% and 7.4% respectively and lfl revenues were +0.4% and EBITDA -2.8%. Net profit increased by +32.3% to €157m thanks to capital gains (Chicago Skyway €110m; Irish toll roads €20m).
The founding family's control is reduced to 30% (from 40%)
14 Mar 16
Information released with the FY 15 annual report In August 2015, Portman Baela SL and Karlovy SL, transferred all the capital that they held in Ferrovial to their associates and the previous shareholder agreement regarding Ferrovial SA has been dissolved. On 13/01/2016, UBS Limited sold a block of 30,387,965 shares in Ferrovial SA, representing around 4.15% of the capital, on the orders of Siemprelara SL (at €19.07/share, which were placed with qualified investors. On 21/01/2016, Mr Leopoldo del Pino y Calvo-Sotelo gave notice of his resignation as a Director on Ferrovial’s Board. The significant shareholdings in Ferrovial SA are now: Rijn Capital BV (company controlled by Rafael del Pino y Calvo-Sotelo): 20.3% Menosmares SLU (company controlled by Maria del Pino y Calvo-Sotelo): 8.2% Siemprelara SLU (company controlled by Leopoldo del Pino y Calvo-Sotelo): 4.2% (vs formerly 8.35%) Soziancor SLU (company controlled by Joaquin del Pino y Calvo-Sotelo): 2.5%
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
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N+1 Singer - Augean - Double digit growth in ’16, good start to ‘17
21 Mar 17
Augean reported another year of double digit growth for 2016, with profits in line with our forecasts. Sales grew by 21% excluding landfill tax, while adjusted PBT grew by 18% to £7.1m before amortisation of acquired intangibles. DPS was increased by 54% to 1.0p, 25% ahead of our estimate. The business units made further strategic progress, with revenues from their top 20 customers increasing from 42% to 43% of the total, of which 88% was under contract or a framework agreement, increasing forward visibility. There has been an encouraging start to 2017 and management is confident of delivering another year of profits growth. The shares trade on undemanding single digit multiples, offering good value.