Carillion predicts improvements following challenging year

 WOLVERHAMPTON construction and support services firm Carillion has revealed revenue for the year to December 2014 stayed the same as the previous year at £4.1bn.

The firm saw underlying profit before tax dip slightly at £172.9m (2013: £174.7m).

Carillion pointed toimproved margin performances in support services and Middle East construction services, with overall group margin maintained at 5.6%. 

Net borrowing reduced to £177.3m (2013: £215.2 million) despite investing £38.5m in business acquisitions. 

The firm said it has £1.3bn of committed funding and a strong balance sheet to support strategy for growth over the medium term.
 
It has £5.1bn of new orders and probable orders in the year (2013: £4.9 bn).

The pipeline of contract opportunities increased to £39.2bn (2013: £37.5 bn).

Carillion hairman Philip Green said:  “In 2014, our markets remained challenging and we continued to be very selective in choosing the contracts for which we bid in order to maintain margin discipline, which continues to be a key element of our strategy. 

“Looking forward, we expect the steady improvement in our markets that began in 2014 to continue in 2015, subject to a sustained macro-economic recovery. 

“We have also continued to strengthen the group’s position in growth markets, notably in support services through a further bolt-on acquisition in Canada. 

“Therefore, with strong cash flow, a high-quality order book, record revenue visibility and a growing pipeline of contract opportunities, we continue to believe the group is well-positioned to make progress over the medium term.”

Meanwhile, Carillion has been appointed by Scape Group as the sole provider for a new facilities management framework with a value of up to £1.5bn over a six-year period.

Scape, which is a public sector owned built environment specialist, selected Carillion ahead of other competitors saying it offered the best quality and value for money.

This is the first framework of its kind, which is available to any public sector body in the UK, that offers a full suite of both “hard, ” (including preventative and planned maintenance) and “soft” (including cleaning, catering, front of house) facilities management services. 

Other services that are also available through the framework include car park management, health and safety advice, consultancy, grounds maintenance and the management of internal office mail and messaging services.

 

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