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 top funds to invest in
Funds

The top funds to invest in

Investors continue to favour passive funds in April though figures reveal an actively managed money market fund also caught their eye. We look at wher…
3 May 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
20 Apr 2023
Best junior stocks and shares ISA platforms
Isas

Best junior stocks and shares ISA platforms

A junior stocks and shares ISA is a great way to save for your child tax-efficiently. But it can be confusing deciding which investment platform to ch…
28 Mar 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023

Most Popular

Nationwide to give £100 cash boost to customers
Personal finance

Nationwide to give £100 cash boost to customers

Nationwide Building Society is giving customers £100 as it reinvests profits. Dubbed the Nationwide Fairer Share scheme, we look at who is eligible.
22 May 2023
Share tips of the week – 26 May
Investments

Share tips of the week – 26 May

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
25 May 2023
The best one-year fixed savings accounts - May 2023
Savings

The best one-year fixed savings accounts - May 2023

You can now earn 5% on 1 year fixed savings accounts - the best rate seen in 14 years. We have all the latest rates available now.
26 May 2023