Full Year 2008 audited financial results
2 April 2009
URENCO Group – Full Year 2008 Audited Financial Results Confidence in the Future
Highlights
- Strong business performance continues: Confidence in the future
- Growing market position: Long term order book supports further expansion
- Capacity expansion programme: Project execution on target and within budget
| |
2008
|
2007
|
|
|
€m
|
€m
|
| Turnover |
1,129.7 |
1,023.8 |
| EBITDA |
654.3 |
542.4 |
| Income from operating activities |
460.6 |
353.2 |
| Net Income before exceptional items |
254.1 |
238.5 |
| Net Income |
239.7 |
238.5 |
| Capital Expenditure |
820.8 |
517.3 |
| Cash generated from operations (before interest & tax) |
616.0 |
577.8 |
|
|
|
|
Strong business performance and financial position
-
Our strong operational performance is evidenced by growth in turnover, EBITDA and net income, giving us confidence in the future.
The success of URENCO’s growth through investment strategy was again evidenced by a robust business performance in the year and achieved strong results with a growth in turnover of 10% to €1,130 (2007: €1,024 million).
EBITDA rose by 21% to €654 million (2007: €542 million) after significant start-up costs for the National Enrichment Facility in the US (2008: €58 million; 2007: €43 million). The growth in EBITDA was achieved largely due to economies of scale following increased capacity, and the weaker sterling-to-euro exchange rates.
Net income, after increased finance costs but before exceptional items, grew by 7% during the period. It was affected by an extra tax charge following the abolition of Industrial Building Allowances in the UK which constituted an exceptional item and reduced net income by €14 million.
The increase in capital expenditure in the year resulted from good progress on capacity expansion across the Group as well as successful project execution.
The Group’s internal cash generation remained strong, with cash generated from operations increasing significantly to €616 million (2007: €578 million).
-
Growing market position and long-term order book
URENCO continued to be a leading supplier of enriched uranium to the global nuclear power industry and this was reflected in an increased global market share to 25%, providing us with confidence in the future. Demand for our services continues to increase and our already strong order book is maintained at €18 billion and extends beyond 2025.
-
Capital investments and capacity expansion
Capital investment for the year totalled €821 million, a rise of 59% compared with 2007.
The capacity installation across the URENCO Group was achieved on target and within budget and led to an increased capacity of 15%, from 9,600 tSW/a at the end of 2007 to 11,000 tSW/a by the end of 2008.
In the US, significant progress was made on the construction of URENCO’s fourth enrichment plant. LES’s National Enrichment Facility will be ready to operate by the end of 2009.
-
Investment funding and credit rating
The Group’s strong internal cash generation remains the major funding source of the Group’s expansion programme. However, as external financing continues to be required in coming years, URENCO remains alert to changing circumstances in the international markets and was successful in attracting more than €600 million in new funds during 2008. URENCO strives to retain its high investment grade credit rating based on a solid financial position and a strong long-term order book providing tangible cash flows. ·
Confidence in the future
-
Capacity expansion programmes
The successful execution of the expansion programme in Europe continued on target and within budget. This, together with the new US facility which is in its final construction phase, will help to meet current and future demand. The near-term goal is to increase installed capacity to achieve production of 18,000 tSW/a by 2015.
-
Risk Management
URENCO continues to work hard to strengthen the business to meet future opportunities. Risk Management is considered to be a critical management tool for the identification and measuring of risks. Risk management is an integral part of our day-to-day business. All risks to the business are managed at their point of origin and co-ordinated, assessed and reported at a Group level. This approach ensures future business risks are well managed. Never has this function been more important than during the current turmoil in financial markets.
-
Employee dialogue
In order to develop our employees it is important to have a clear understanding of their needs and requirements. In this respect URENCO conducted its second Group-wide employee survey. The high response rate (83%) reflects a highly committed workforce, evidenced by an above-the-benchmark result for satisfaction.
When compared with the generic external benchmarks (European and US) the majority of areas score well above average. Our focus on continual improvement has led to the development of an action plan which will steer the Group towards even greater future success.
-
Consistently safe, reliable, high quality operations
Throughout 2008 the Group has operated to the highest standards of safety, environmental and security requirements with all sites retaining ISO 14001 certification. This demonstrates URENCO’s continued commitment to responsible environmental management. Such commitment has also ensured the successful execution of the on-going investment programme.
Helmut Engelbrecht, Chief Executive of the URENCO Group commenting on the 2008 results said:
“Another robust business performance in 2008 saw turnover grow by 10% to €1.1 billion. This resulted in increased EBITDA which also benefited from economies of scale and the positive foreign exchange impact on our UK cost base. Net income before exceptional items grew by 7% to €254 million.
"URENCO is uniquely placed in the current economic climate, having the benefit of a stable long-term business in a growing market with strong global customers, and this gives us confidence in the future, enabling us to continue with our growth through investment strategy.”
Contact: Name:
Title:
Direct Tel:
Email: | Navreet Doad
Investor Relations
+44 (0) 1628 402279
nkd@urenco.com |
Name:
Title:
Direct Tel:
Email: | Jayne Hallett
Head of Group Communications
+44 (0) 1628 402297
jh@urenco.com |
Name:
Title:
Direct Tel:
Email: | Howard Lee or Dudley White
HeadLand Consultancy
+44 (0) 207 367 5225 or 5228
hlee@headlandconsultancy.co.uk or
dwhite@headlandconsultancy.co.uk |
Click here to download the full press release