Revenues drop £530m at Carillion
REVENUES at Wolverhampton-based support services firm Carillion have dropped by around £530m while underlying pre-tax profit has risen by 10%.
In addition, its chief executive John McDonough CBE is to step down at the end of 2011, it was revealed today.
In its half-year results for the six months ended June 30, 2011, the Black Country firm reports a fall in revenue from £2.507bn in 2010 to £2.453bn this year, a drop of 2%.
Underlying pre-tax profit rose from £65.7m to £72.5m while pre-tax profit dropped sharply from £58.8m to £38.2m.
Interim dividend per share has risen 10% from 5.3p to 4.8p, which the company said reflected a positive outlook.
Reductions in pre-tax profit could be attributed to £28m of one-off costs relating to the £298.4m acquisition and integration of Carillion Energy Services, it said.
Net debt sits at £93.7m, which was “substantially better than expectations” following the acquisition.
Its order book along with probable orders was worth £19.4bn at the end of last year.
In other Carillion news announced today, group chief executive John McDonough will be retiring from its board and the company at the end of the year, having reached the age of 60.
He will be succeeded as group chief executive by Richard Howson, currently chief operating officer.
Carillion has also secured contract and preferred bidder positions for long-term road maintenance and local authority facilities management contracts worth up to £250 million in Canada.
The contract win is in Ontario and preferred bidder position in Alberta for road maintenance work worth in the region of £200m over 11 years.
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