Carillion on course as it pursues support service contracts

WOLVERHAMPTON construction and service sector giant Carillion says it is trading in line with expectations.

In a third quarter interim statement, the firm said that following its strong work winning performance in the first half of the year, during which it won new orders and probable orders worth approximately £3.2bn, the successful mobilisation of new contracts, particularly in support services, will continue to be a major focus during the balance of 2014 and in the first half of 2015. 

“Importantly, in winning new work we have maintained our highly selective approach to the contracts for which we bid and therefore the group continues to target revenue growth in 2014 at an operating margin in line with expectations,” the statement said. 

“The group also continues to have a robust balance sheet with strong cash flow and net borrowing reducing in line with expectations. 

“Our cash flow performance continues to follow the profile we have consistently forecast, namely that following the completion of the planned rescaling of our UK construction activities the group would return to positive net cash generation, as evidenced by our first-half results.”    
   
Carillion said that with trading in line with expectations, a strong order book and a substantial pipeline of contract opportunities, the board’s expectations for 2014 and the group’s prospects for growth over the medium term, remain unchanged.   

In the summer Carillion pursued a merger with rival Balfour Beatty but walked away in late August after its offer was rejected for the second time.

 

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