Carillion profits up to £67.5m despite fall in revenues

National construction firm Carillion have increased pre-tax profits despite an expected fall in revenue of 5%

Carillion workers
Carillion workers

Construction firm Carillion, which operates a Gosforth office and employs around 1,500 in the North East, says pre-tax profits have increased 5% in the first half of its current financial year.

Despite an expected fall in revenue of 5% the international facilities management and construction firm increased profits from £64.2m in the same period last year to £67.5m.

Carillion, which recently saw merger talks with Balfour Beatty fall through over a change in the terms of its Parsons Brinckerhoff business, said it had achieved £3.2bn of new orders and probable orders in the first half.

Total orders plus probable orders increased to £19.5bn at June 30 2014, from £18bn at December 31, 2013.

Carillion chairman, Philip Green, said: “Carillion continues to perform in line with the Board’s expectations, reflecting the benefits of the early actions we took in response to the economic downturn, notably the planned rescaling of our UK construction business, together with our continuing strong work-winning performance.

“Having realigned our businesses to the size of the markets in which we operate, the Group is well positioned to benefit from its strong work-winning performance over the last 18 months and from its high-quality pipeline of contract opportunities across our target markets.

“Consequently, the Board’s expectations for 2014 remain unchanged and we expect to make further progress in the medium term.”

Carillion’s net borrowing at June 30 was £203.6m, down from £270.9m at the same point last year.

The firm’s interim dividend increased by 2% to 5.6p during the period.


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