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CIMIC Group Limited Annual Report 2016 |
Operating and Financial Review
SHAREHOLDER RETURNS
Shareholder returns
2016
2015
Closing share price
$34.94
$24.30
Market capitalisation ($m)
$11,329.4
$8,225.6
Final dividend per share
62c
50c
Interim dividend per share
48c
46c
Total dividends per share
110c
96c
EPS (basic)
176.6c
153.7c
Payout ratio for ordinary dividends (2016 estimated at the time the dividend is paid)
61.5%
61.6%
PERFORMANCE OF CIMIC SHARES
CIMIC’s share price performed strongly during the year and closed 2016 at $34.94 (representing a market capitalisation of $11.3 billion as
at 31 December 2016), an increase of 43.8% or $10.64 per share. By comparison the ASX 200 index increased 7.0% to 5,665.8 points
during the same period and the All Ordinaries index increased 7.0% to 5,719.1 points.
Indexed performance of CIMIC shares
TOTAL SHAREHOLDER RETURN
Combining the share price appreciation and dividends in respect of the 2016 Financial Year, CIMIC delivered a total shareholder return of
48% in 2016.
DIVIDENDS
The Group seeks to reward shareholders by paying dividends over time in line with profits. In the year under review, CIMIC delivered on
this approach. Ordinary dividends for the year totalled 110 cents per share and comprised:
•
an interim dividend of 48 cents per share, franked at 100%, paid on 5 October 2016; and
•
a final dividend of 62 cents per share, franked at 100%, to be paid on 4 July 2017.
SHARE BUY-BACK PROGRAM
On 28 December 2016, CIMIC concluded its on-market share buy-back of up to 10% of its fully paid ordinary shares over 12 months.
During the buy-back, CIMIC purchased and cancelled 14,249,466 shares (equivalent to 4.2% of the capital stock at the beginning of the
share buy-back program) an average price of $29.89 per share.
On 12 December 2016, CIMIC announced a further on-market share buy-back of up to 10% of its fully paid ordinary shares for a period of
12 months commencing on 29 December 2016. The initiative continues to reflect CIMIC’s strong balance sheet position, strong cash flow
generation and a disciplined approach to capital management. The further buy-back is being funded by a combination of CIMIC’s existing
cash balances and working capital facilities. The timing and number of shares purchased will depend on CIMIC’s share price and market
conditions.
EPS (basic) was 176.6 cents, an increase of 14.9% on FY15 (compared to an 11.5% increase in NPAT), as well as being boosted by the
benefits of the share buy-back.
-10%
0%
10%
20%
30%
40%
50%
60%
70%
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
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