Carillion on track to meet expectations

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Support services firm Carillion said it was on track to achieve full-year revenue growth after it posted a strong first half helped by contracts won in 2014 and multiple orders secured in 2015.

The company, which maintains British railways, roads and military bases, said first-half group revenue rose by 21 per cent to £2.3bn for the period ended June 30 from £1.9bn a year earlier.

Carillion said underlying profit and earnings grew strongly, despite substantial costs of mobilising new contracts and the expected effect of the margin in construction services, excluding the Middle East, trending down towards a more normal level

Philip Green, Carillion chairman, said: “I am pleased to report that Carillion has continued to perform in line with expectations, which reflects the actions we took during the economic downturn to position our businesses in markets where we can now achieve revenue growth, consistent with our targets for margins and cash flow.

“We have also made good progress with mobilising a number of major new contracts won in 2014.

“Therefore, with a strong order book, a growing pipeline of contract opportunities and the prospect of market conditions continuing to improve, our expectations for 2015 and the medium term remain unchanged.”

Carillion had said in July it expected to see a return to growth in annual revenue for the first time in five years in a trading update.