Growth momentum confirmed and major successes in Concessions.
The first half of 2019 has confirmed the Group’s strong growth momentum. Volumes rose sharply in Contracting (up 14% overall), as much in France (up 14.3%) as outside France (up 13.2%). The ramp-up of the Grand Paris Express projects, favourable economic conditions for the Group’s road construction and maintenance business in France, strong business and property development performance, as well as the results of the new entities in Switzerland and the Netherlands having joined the Group in 2018, all contributed to volume growth in the period. Operating profit on ordinary activities for Contracting was up 16.2%. In Concessions, amid a slight decline in motorway traffic in France, revenue grew 1.3% while operating profit on ordinary activities was up 1.8%.
The Group’s results for the first half of the year also benefited from a further significant reduction in finance costs in Concessions. The Group’s share of net profit thus rose 33.6% to €290 million.
On the strength of these results and an order book remaining at a high level (€14.9 billion, up 3% year on year), Eiffage confirms its full-year outlook for revenue and earnings growth in 2019.
Net financial debt(2) remained stable(3) year on year at €10.7 billion, given the Group’s solid free cash flow generation and the major growth investments carried out since June 2018, including the acquisition of a stake in Getlink at the end of last year.
Also in the first half of 2019, Eiffage won the 20-year concession contract for the Lille airport (as a member of a consortium) and was named as the single preferred bidder for the 48-year concession to be awarded for the Route Centre-Europe Atlantique (RCEA) motorway upgrade project. These successes have further strengthened and diversified the Group’s portfolio in Concessions. Together, they confirm the relevance of its integrated model as a construction contractor and concession operator.
(1) Before IFRIC 12.
(2) Excluding IFRS 16 liabilities, fair value of CNA debt and swaps.
(3) Adjusted for finance lease liabilities under IAS 17 (reported liability of €11.0 billion at 30 June 2018, less finance lease liability of €0.3 billion).