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Carillion cashes in on Middle East work

Carillion has reported a 40 per cent increase in first half profit following the integration of Mowlem.

Profit before tax for the six months ended June 30 jumped to £19.5 million from £13.9 million a year ago. Revenue was 12 per cent higher at £1.93 billion.

The group said the integration of Mowlem had been achieved earlier than expected and is on track to deliver £26 million per year of savings. The firm’s order book now stands at £15.8 billion.

Carillion also announced that its joint venture business in the Middle East has been appointed preferred bidder for construction projects worth £470 million with framework agreements for up to a further £5.3 billion of construction work.

The firm’s joint venture business in the Middle East , Al Futtaim-Carillion, has been appointed preferred bidder for the first phase of construction of the Cairo Festival City project, which has an estimated construction value of £2 billion, by its partner and the project developer, the Al Futtaim Group.

Work on the first phase of construction, a £220 million retail shopping mall, will start in January 2008 and is scheduled to complete in October 2010.

In Abu Dhabi in the United Arab Emirates , a Carillion joint venture has been appointed preferred bidder on its first major contract for developer, Aldar, worth approximately £250 million over three years.

Carillion's chief executive, John McDonough said: “The progress we are making in the Middle East represents a further major step towards delivering Carillion's previously announced strategic objective of more than doubling revenue from this region over the next five years through extending our existing operations in Dubai and Oman into new territories.”