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

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021