REPORTING SEASON: Leighton Holdings (LEI)

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Figure 1: Leighton Holdings 12 month chart


Leighton Holdings Limited (LEI) Special dividend thrilled investors

 Construction and stgelopment contract firm, Leighton Holdings (LEI) 2014 full year result was helped by funds from asset sales with its underlying profit hitting the top end of LEI’s own guidance.

 Leighton’s total revenue fell 1% while revenue from continuing operations lifted by 4% to $16.9 million, slightly better than expected. Gains from its asset sales delivered $973 million in pre-tax profit. Construction revenue lifted 10% to $12.4 billion helped by its LNG (GAS) contracts in WA, QLD and the NT as well as new rail projects in QLD and VIC. Revenue from its Contract Mining division fell as expected and group expenses fell by 3%.

 Total work in hand was $37.2 billion at 31 December 2014 Leighton has focused on tighter controls in its pre-contract risk assessment phase to ensure less slack of overspend over the life of projects. LEI’s long-term pipeline is now at record levels (of tenders) with individual values over $1 billion.

 Cash inflows lifted over the period with a high proportion of its cash generated in the second half of 2014 which is a positive sign for Leighton.

 Leighton said it forecasts FY 2015 NPAT to be in the range of $450 -$520 million, slightly below the markets expectation of $544.20 million.

 LEI will pay a $0.53 final dividend and a $0.15 special dividend to shareholders on the 10th of April 2015. The cash for the special dividend was funded from its sale of John Holland and the Services investment partnership in FY14.


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Juliana Roadley, Market Analyst,