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Carillion reports 55pc profit growth

Carillion continues to grow in strength after reporting a 55 per cent in pre-tax profit and an order book of more than £20 billion.

The building and support services group’s pre-tax profit for the year ended 31 December totalled £157.5 million, up from £101.8 million in 2007.

Revenue increased 32 per cent to £5.2 billion compared with £4 billion in 2007.

Carillion’s forward order book now stands at £20.4 billion up from £16 billion in 2007.

The results were driven by strong growth in public sector projects and in its Middle East businesses.

The company, whose facilities management, utility services and road maintenance units performed particularly well in 2008, said the long-term nature of many of its contracts had made it more resilient to worsening economic conditions.

Carillion said last year’s acquisition of peer Alfred McAlpine had been successfully integrated, with the group expecting it to deliver cost savings of £35 million by the year-end.

Carillion added that growing construction revenues in Abu Dhabi had more than offset the slowing Dubai market and that it was still targeting annual revenues of over £600 million from the Middle East by the end of 2009.

Net borrowing totalled £226.7 million, up from £44.9 million the previous year.

Chairman Philip Rogerson said: “2008 was another strong year for Carillion, notwithstanding the wider economic background.

“Alfred McAlpine has been successfully integrated into the group further strengthening Carillion’s position as a leading support services company.

“Carillion is a well-balanced and resilient business with a strong balance sheet and the board continues to expect the group to deliver materially enhanced earnings in 2009.”

In a separate announcement today Carillion revealed it has been named preferred bidder for a £1.6 billion PPP hospital development in Southmead, Bristol.

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