Interim Management Statement (5854C)
May 02 2012 - 8:04AM
UK Regulatory
TIDMCLLN
RNS Number : 5854C
Carillion PLC
02 May 2012
2 MAY 2012
CARILLION PLC
AGM AND INTERIM MANAGEMENT STATEMENT
"PROGRESS IN LINE WITH EXPECTATIONS"
At Carillion plc's Annual General Meeting today, Chairman,
Philip Rogerson, made the following comments on trading in the
period 1 January to 2 May 2012.
"Carillion has made a solid start to the year, with progress in
line with the Board's expectations.
Market conditions remain challenging, but we continue to have a
strong order book and a record pipeline of contract opportunities.
Encouragingly, we are beginning to see the award of some of the
larger, more complex Local Authority support services contracts
that are designed to help these Authorities deliver savings, while
maintaining good quality, value-for-money services. In April 2012,
we were delighted to be selected by Oxfordshire County Council to
provide property and facilities management services that are
expected to be worth up to GBP700 million over the initial 10-year
contract period, with an option for the contract to be extended for
a further 10 years, subject to performance.
In support services, we remain focused on our strategy for
growth, which is supported by recent contract wins, such as that
for Oxfordshire County Council, and our pipeline of contract
opportunities.
Our portfolio of investments in Public Private Partnership
projects is performing well and we will continue our policy of
selling equity investments in mature projects and reinvesting the
proceeds in new projects.
In Middle East construction services, we continue to target
revenue growth, but as we indicated at the time of our 2011
Preliminary Results, revenue will be weighted towards the
second-half of the year due to the timing of project starts and
completions. As previously announced, the operating margin in this
segment continues to move back towards six per cent, as negotiated
contracts are replaced with contracts that have been competitively
tendered.
In construction services (excluding the Middle East), we
continue to benefit from the decision we took in 2010 to re-scale
our UK business to align it with a shrinking market, by being very
selective in terms of the contracts for which we bid. We expect to
complete this re-scaling by the end of 2012, with the operating
margin remaining strong as a result of our selective approach.
Carillion continues to have a strong balance sheet and we expect
to maintain our track record of delivering cash-backed profit,
after adjusting for the effect of completing the re-scaling of UK
construction, which, as previously indicated, will result in an
outflow of working capital in 2012.
Despite challenging market conditions, with a strong order book
and record pipeline of contract opportunities, we remain focused on
our strategic objectives of growing support services and of
doubling revenues in the Middle East and in Canada, in each case to
around GBP1 billion, by 2015".
Presentation for analysts
Carillion will be holding a presentation for analysts on this
statement, focusing on the contract for Oxfordshire County Council
and the outlook for public sector outsourcing. The presentation
will contain no new material information and will be available on
Carillion's website.
For further information contact
Richard Adam, Group Finance Director tel: +44 (0) 1902
422431
John Denning, Group Corporate Affairs Director tel: +44 (0) 1902
316426
Finsbury
James Murgatroyd
Gordon Simpson tel: +44(0) 20 7251 3801
Notes to Editors
Carillion is a leading support services company with a
substantial portfolio of Public Private Partnership projects and
extensive construction capabilities. The Group had annual revenue
in 2011 of GBP5.1 billion, employs around 45,000 people and
operates across the UK, in the Middle East and Canada. The Group
has four business segments.
Support services - this includes facilities management,
facilities services, energy services, utility services, road
maintenance, rail services and consultancy services.
Public Private Partnership (PPP) projects - this includes our
investing activities in PPP projects in our chosen sectors of
Defence, Health, Education, Transport, Secure and other Government
accommodation.
Middle East construction services - this includes our building
and civil engineering activities in the Middle East.
Construction services (excluding the Middle East) - this
includes building, civil engineering and our development activities
in the UK and our construction activities in Canada.
This and other Carillion news releases can be found at
www.carillionplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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