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

Imperial Brands has an 8.3% dividend yield – but what’s the catch?
Share tips

Imperial Brands has an 8.3% dividend yield – but what’s the catch?

With an impressive dividend yield of 8.3%, Imperial Brands looks to be one of the most attractive income stocks in the FTSE 100 . But investors should…
6 Jul 2022
Can Royal Mail continue to deliver its 7.6% yield?
Share tips

Can Royal Mail continue to deliver its 7.6% yield?

Royal Mail shares are yielding 7.6% this year. But it’s facing some huge challenges, says Rupert Hargreaves. So is Royal Mail’s dividend sustainable?
6 Jul 2022
Saga’s figures are heading in the right direction – so should you buy?
Share tips

Saga’s figures are heading in the right direction – so should you buy?

Saga the over-50s travel and financial services specialist, has been struggling for years. But now, with the pandemic behind, it it is planning for fu…
5 Jul 2022
Director dealings w/e 1 July: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 1 July: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
5 Jul 2022

Most Popular

Is inflation about to drop as recession takes hold?
UK Economy

Is inflation about to drop as recession takes hold?

Central banks are raising interest rates in an attempt to curb soaring inflation. But will that push the economy into recession? John Stepek looks at …
5 Jul 2022
Ray Dalio’s shrewd $10bn bet on the collapse of European stocks
European stockmarkets

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks

Ray Dalio’s Bridgewater hedge fund is putting its money on a collapse in European stocks. It’s likely to pay off, says Matthew Lynn.
3 Jul 2022
Is it OK to buy Scottish Mortgage investment trust again?
Investment trusts

Is it OK to buy Scottish Mortgage investment trust again?

Scottish Mortgage investment was hit hard by the tech-stock crash, and it is still being buffeted by headwinds. Should new investors wait for those to…
5 Jul 2022