This morning Lendlease Group (ASX: LLC) released its results for the financial year ending June 30, 2019. Below is a summary of the results with comparisons to the prior year.
- Net profit $467.7 million, down 41%
- Sales of $16,538, down 0.1%
- Earnings per share 82.4c
- Unfranked final dividend 30cps, full year dividends 42cps
- Return on equity 7.4%
- Core businesses produced a profit after tax of $804m, (ROE 12.8%)
- Engineering & services business (non core) loss of $337m, sale process underway
- Gearing at 9.9%
FY 2019 was a tough year for Lendlease as its core businesses of construction, development and investments saw profit fall around 16% to $804 million, but still produced a respectable return on equity of 12.8%.
The group also reports its core business is positioned to grow with a record pipeline of development projects and $3 billion in available liquidity to finance opportunities.
The worst part of the year was the underperformance of its 'engineering and services' business that swung to a $337 million loss and is now up for sale with Lendlease reporting strong buyer interest.
It has also flagged $450 million to $550 million in pre-tax restructuring costs as a result of the problems, although this amount excludes any proceeds from the sale.
The shares are down around 35% over the past year and at $13.54 sell for 16.4x FY 2019's earnings with a 3.1% dividend yield.
The group declined to provide any specific financial guidance for FY 2020.
