WOLVERHAMPTON-based support services firm Carillion said today it remained “firmly on track” to deliver strong growth for 2011.
In a pre-close trading update for the year ended December 31, the Black Country plc said it expected to make further progress in 2012 and remained well positioned to achieve its growth targets in UK support services from 2012 onwards.
These targets were in addition, it said, to plans to double its revenues in the Middle East and Canada to around £1bn each over the next three to five years.
It said cash flow remained strong with year-end net debt now expected to be below £100m, below its previous target of below £125m.
Integration of Carillion Energy Services was progressing ahead of expectations it said, although this includes plans to shed around 4,500 jobs across the country, with cost savings expected to increase from £15m to £25m.
The announcement followed the government’s decision to cut in half a subsidy for the supply of solar power to the National Grid by December 12.
Its pipeline of contract opportunities remains well over £30bn, it said.
In support services, which continues to account for around half of the group’s underlying operating profit, it said it expected growth in revenue and profit in 2011 as a result of the acquisition and integration of Carillion Energy Services.
Progress with the original integration of this business was well ahead expectations, it added.
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