Carillion sees strong growth and welcomes new man to board
SUPPORT services group Carillion today said that it was performing well despite challenging markets and it expected to see strong growth in earnings this year.
In an interim management statement, the Wolverhampton-based business said its earnings growth is being driven by the £298m acquisition of Eaga in April and by improvements in its total operating margin thanks to what it says is a focus on “applying strict contract selectivity, financial discipline and cost management”.
The group said that cash flow remained strong and it expected year-end net debt to be below £125m, lower than its target debt figure of £150m.
Being more selective with bidding for contracts has helped win it work worth up to £670m which includes local government facilities management, energy and construction services and rail infrastructure work in the UK as well as road maintenance services in Canada and construction services in the Middle East.
The group said it was well positioned to achieve its medium-term aims of doubling its revenues in both Canada and the Middle East to £1bn in each territory within the next three to five years.
Carillion also announced the appointment of Andrew Dougal as a non-executive director today.
The 60-year-old former chief executive of Hanson is a non-executive director of Premier Farnell and Creston and has also served on the boards of Taylor Wimpey and BPB.
Mr Dougal will become chairman of the audit committee at Carillion and replaces David Maloney, who is stepping down from the board.
Carillion chairman Philip Rogerson said: “David Maloney has made a substantial contribution to Carillion’s development and success and leaves the board with our grateful thanks and best wishes for the future.
“We are delighted that Andrew Dougal has joined the board, where his considerable experience as an international business leader will enable him to make a valuable contribution to the future development of Carillion.”
