Construction firm Carillion secures new orders

Construction company Carillion has won new and probable orders this year worth an estimated 650m pounds.

Construction company Carillion has won new and probable orders this year worth an estimated 650m pounds.

The group said it has strengthened its position in the Middle East, securing probable orders worth about £210m for projects in Oman, Abu Dhabi and Saudi Arabia.

New and probable orders worth some £280m in support services were also achieved including facilities management contracts in the UK and Canada, a highways maintenance contract in Canada and Energy Company Obligation (ECO) contracts in the UK.

In construction services, excluding the Middle East, the company received orders worth approximately £160m, for long-term public and private sector customers.

"Although markets remain challenging, we have made a good start to the year in terms of new orders and probable orders and I am particularly pleased with our progress in the Middle East and in the ECO market," said Chief Executive, Richard Howson.

"We have also remained selective in terms of the contracts for which we bid in order to support margins, by focusing on contracts where we can use the breadth of our skills and the scale of our resources to differentiate our offering."

The announcement came alongside the company's results for the year to December 31st, 2012, during which profit before tax jumped 26% to £179.5m despite revenues falling 13% to £4.4bn from £5.1bn a year earlier.

The firm said it benefited from its decision to downsize its construction business and bid selectively for work. This in turn caused a slump in turnover but saw operating margin rise from 3.1% to an industry-beating 5.6%.

Philip Rogerson, Carillion Chairman, said: "Carillion has continued to deliver a robust performance, with underlying earnings per share slightly ahead of the market consensus forecast.

"Having rescaled our UK construction activities, we have also further improved the risk profile and the overall quality of our business."

Recommended

Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Three hidden gems from Japan’s overlooked stockmarket
Share tips

Three hidden gems from Japan’s overlooked stockmarket

Professional investor Eiji Saito of JPMorgan’s Japan Small Cap Growth & Income fund picks three promising stocks from Japan's vibrant but under-resear…
13 Sep 2021

Most Popular

Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
How you can profit from the power of the grey pound
Share tips

How you can profit from the power of the grey pound

Higher life expectancy and surging asset prices have proved a boon for the baby-boomer generation, which has accumulated vast wealth. Younger generati…
10 Sep 2021