Interim Management Statement

RNS Number : 4739G

Carillion PLC

07 May 2014

 



7 MAY 2014

CARILLION PLC

AGM AND INTERIM MANAGEMENT STATEMENT

TRADING IN LINE WITH EXPECTATIONS

At Carillion plc's Annual General Meeting today, Chairman, Philip Rogerson, made the following comments on the Group's performance.

"Trading in the year to date is in line with our expectations and work winning has remained healthy.          

"We continue to expect the Group to resume revenue growth in 2014, including the resumption of revenue growth in UK construction in the full year.   As indicated when we announced our  2013 results, the Group's first-half revenue is likely to be slightly lower than in the first half of 2013, primarily because the planned rescaling of our UK construction activities continued throughout 2013, which resulted in the Group having a lower revenue run-rate at the year end.   

"Being very selective in terms of the contracts for which we bid remains central to our strategy for supporting margins, which continue to be in line with our expectations.  The investments we make in Public Private Partnership projects are also performing in line with our expectations.  As previously indicated, the first-half and full-year contributions to Group profit from these investments will be lower than in 2013, because we plan to sell fewer investments in both periods in 2014.  

"We continue to expect the Group to deliver cash-backed profit in 2014 and to return to positive net cash generation, with a consequent reduction in net borrowing at the year end.  At the half year, net borrowing is expected to increase, compared with the position at 31 December 2013, primarily because payment of the final dividend in respect of 2013 will be made in June 2014.  We continue to expect average net borrowing to fall in both the first half and full year.       

"Work winning has continued to be healthy with £1.5 billion of new orders and probable orders in the year to date. Notable successes in support services include signing contracts for Royal Bank of Scotland, Arqiva and Canadian Natural Resources that together are worth £370 million.  We have also been selected as the preferred bidder by the Nottingham University Hospitals NHS Trust for a support services contract worth approximately £200 million and as one of four framework contractors to deliver a £2 billion electrification programme for Network Rail.   In the Middle East, we have signed contracts to build the Hard Rock Hotel in Abu Dhabi, Phase 1 of the Dubai World Trade Centre and Phase 2 of The Avenue Citywalk development in Dubai that together are worth £320 million.  In addition, our pipeline of contract opportunities remains strong.

"In summary, although markets continue to be challenging, our expectations for 2014 remain unchanged.  Furthermore, we believe the Group remains well positioned for the future as the medium-term outlook across our markets continues to improve." 

For further information contact

Richard Adam, Group Finance Director                                                              tel: [phone]

John Denning, Group Corporate Affairs Director                                                   tel: [phone]

Finsbury

James Murgatroyd

Gordon Simpson                                                                                              tel:  [phone]

  Notes to Editors

Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership

projects and extensive construction capabilities.  The Group had annual revenue in 2013 of some £4.1 billion, employs

around 40,000 people and operates across the UK, in the Middle East and Canada. 

 The Group has four business segments:

 Support services - this includes facilities management, facilities services, energy services, utility services, road

 maintenance, rail services and consultancy services.

 Public Private Partnership (PPP) projects - this includes investing activities in PPP projects for Government buildings  

 and infrastructure, mainly in the Defence, Health, Education, Transport and Secure accommodation sectors.

 Middle East construction services - this includes building and civil engineering activities in the Middle East.

 Construction services (excluding the Middle East) - this includes building, civil engineering and developments activities in 

 the UK and construction activities in Canada.

 This and other Carillion news releases can be found at www.carillionplc.com

 

END

 

 

IMSUBAARSWAVRAR