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Langley Holdings publishes 2018 annual report

Published by , Editorial Assistant
World Cement,

Parent company of Claudius Peters, Langley Holdings Plc, has published its IFRS annual report and accounts for the year ending 31 December 2018.

The group recorded revenues of €848.4 million, compared to €903.5 million in 2017. It has been reported that a profit before tax of €103.5 million was generated, compared to €111.8 million in 2017. Profit after tax was €73.8 million, compared to €74.4 million in 2017. No shareholder dividends were paid during the period and at the year end net assets stood at €722.6 million (compared to €647.4 million in 2017). The group had nil debt throughout the period and consolidated cash balance stood at €379.5 million, compared to €323 million in 2017. Orders on hand at the year end were €208.4 million, compared to €275.8 million in 2017.

The group has reported that it saw an anticipated slowdown in 2018, after successive record profit years, with 2017 being its best ever, and adjusting for currency effects. Revenues were reduced by around 6% compared to the previous year and pre-tax profits were down by a similar percentage. The company has noted that in 2017 the result was burdened with a negative currency effect of €9 million, where 2018 included a currency gain of €8.6 million. However, net assets reached a new record high at €722.6 million, as did the group’s cash position, at €379.5 million.

At year end 2018, the group’s cash position of €379.5 million was represented by 32% euros, 41% US dollars, 21% pounds sterling, and 6% other currencies. Principally with relation to US dollars, it is the translation of the non-euro currency values to a relatively weak euro that has given rise to the currency gain in these accounts.

Ignoring currency effects, the group’s underlying profit before tax was down from €120.8 million to €94.9 million. That being said, the group has noted that the overall 2018 result was still very satisfactory and ahead of the budget that the board approved in March. At €726 million, net assets were at a new record high at year end.

Claudius Peters division

The group has reported that Claudius Peters had another disappointing year. However, the business remained profitable on still very low volumes. In what the group has called an otherwise a very lack-lustre performance, only China exceeded its expectations. Claudius Peters in the US managed to exceed its budgeted profit due to a more favourable business.

The Group has also stated that Claudius Peters came into 2018 with a healthier order book that 2017 and a better performance was expected. However, a number of major projects were postponed, principally in Russia, and an overspend on one major contract in Germany also contributed to the malaise.

Conclusion and outlook

The group has stated that, although 2018 did not see the stellar results of recent years, its overall performance was satisfactory. Currency effects boosted the operating results by €8.6 million and the group continued to strengthen its balance sheet and cash position.

Looking ahead to 2019, the group has stated that the opening order book of €208.4 million is much reduced compared to previous years. Timing effects are thought to have partly contributed, but the company has stated that this is a further indication that 2019 may not be an outstandingly good year. However, the group is confidently optimistic that 2019 will be another satisfactory year.

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European cement news Cement news 2018