Carillion storms the £2bn revenue barrier

WOLVERHAMPTON construction and support services giant Carillion has seen its six month revenue total surge past the £2bn mark.

In its half year financial report for the six months ended June 30, the firm revealed a revenue total of £2.258bn, a 21% increase on the £1.871bn achieved in the corresponding period last year.

Profit before tax remained constant at £67.5m, although in underlying terms it was up by 11% to £84.5m.
 
Carillon said that the strong first-half revenue growth reflected the exceptional volume of new contracts won in 2014.

It said that while underlying profit grew strongly it had faced the substantial costs of mobilising new contracts and the expected effect of the margin in construction services (excluding the Middle East) trending down towards a more normal level.

Net borrowing was also up – £1999.6m at 30 June 2015 compared to £177.3m at 31 December 2014. Carillion said this reflected increases in non-operating cash flow items, including business acquisition costs and other investments.

The firm’s balance sheet remains strong with more than £1.3bn of committed funding available to the group.
 
Carillon also reports a strong, high-quality order book and a growing pipeline of contract opportunities.

New first-half orders plus probable orders of £1bn (2014: £3.2bn) reflected the expected pause in public sector contract awards due to the UK General Election. 

But total secure orders plus probable orders remained strong at £17.1bn at 30 June 2015 (31 December 2014: £18.6bn), after removing £0.2bn from the order book due to PPP equity sales.

Carillion also reports it has framework contracts worth up to £2.5bn, which are not included in orders or probable orders.

And its pipeline of contract opportunities increased to £40.5bn (31 December 2014: £39.2 bn). 
 
Chairman Philip Green said: “I am pleased to report that Carillion has continued to perform in line with expectations, which reflects the actions we took during the economic downturn to position our businesses in markets where we can now achieve revenue growth, consistent with our targets for margins and cash flow. 

“We have also made good progress with mobilising a number of major new contracts won in 2014.  Therefore, with a strong order book, a growing pipeline of contract opportunities and the prospect of market conditions continuing to improve, our expectations for 2015 and the medium term remain unchanged.”

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