Pre-tax profit up 26 per cent at Carillion

Profit before taxation rose 26 per cent in the year ended December 31st at FTSE 250-listed construction company Carillion.

Profit before taxation rose 26 per cent in the year ended December 31st at FTSE 250-listed construction company Carillion.

In its annual results for the year, the group reported that pre-tax profit has jumped to £179.5m from £142.8m one year earlier. Basic earnings per share rose 16% to 37.2p and the proposed full year dividend increased by 2.0% to 17.25p.

Underlying profit from operations rose 2.0% to £232.4m while revenue fell to £4.4bn from £5.1bn a year earlier.

The rise in underlying profit from operations reflected an improvement in total operating margin and reported profit before taxation and basic earnings per share both increased substantially due to minimal non-recurring and non-operating items.

However, the company reported that the revenue reduced "as previously guided, primarily due to the planned rescaling of UK construction".

Philip Rogerson, Carillion Chairman, commented: "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.

"Looking forward, we expect market conditions to remain challenging in 2013. However, with a resilient business model, a strong order book and a substantial pipeline of contract opportunities, the group remains well positioned to achieve its targets of delivering annual growth in support services and of doubling annual revenues in the Middle East and in Canada, in each case to around £1.0bn, in the five-year period from 2010 to 2015."

MF

Recommended

Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021
What the best-performing investment trusts of the past 20 years can teach us
Investment trusts

What the best-performing investment trusts of the past 20 years can teach us

Forty-two trusts have risen more than tenfold over the last two decades. What made the winners stand out? And how can we identify future outperformers…
12 Oct 2021
Activision Blizzard: a cheap play on videogames
Share tips

Activision Blizzard: a cheap play on videogames

Videogame maker Activision Blizzard has been in the news for the wrong reasons lately. But it has a bright future, says Stephen Connolly.
11 Oct 2021

Most Popular

How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Inflation is still one of the biggest threats to your personal finances
Investment strategy

Inflation is still one of the biggest threats to your personal finances

Central bankers and economists insist inflation will be gone by next year. We're not so sure, says Merryn Somerset Webb. So if you haven’t started to …
1 Oct 2021
How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021