Last checked at 1 May 2013 12:30
1 MAY 2013
CARILLION PLC
AGM AND INTERIM MANAGEMENT STATEMENT
EXPECTATIONS FOR 2013 UNCHANGED
OVER £1.6 BILLION OF NEW ORDERS AND PROBABLE ORDERS IN THE YEAR TO DATE
At Carillion plc's Annual General Meeting today, Chairman, Philip Rogerson, made the following comments on the Group's performance in 2013.
"The Group's expectations for 2013 that were announced with our 2012 results remain unchanged, despite market conditions remaining challenging.
The Group's healthy work-winning performance in 2012 has continued in 2013 with new orders and probable orders in the year to date of over £1.6 billion. In addition, Carillion has been selected by National Grid as one of six framework contractors to deliver its £1.5 billion sub-station construction programme over the next five years. This follows Carillion's appointment as one of four framework contractors that will support the National Grid's £3.2 billion programme to renew and refurbish high voltage overhead line cables over the next eight years.
As expected, revenue in the first half of 2013 is likely to be lower than in the corresponding period in 2012, primarily because the rescaling of our UK construction activities resulted in the Group having a lower revenue run-rate. However, having achieved this rescaling over the past two years by being selective in terms of the contracts for which we bid, we now have a higher quality UK construction business, which is targeting revenue growth consistent with our selective approach of focusing on national construction projects and long-term customers, in order to achieve our target margins. In 2013, the contribution to Group profit from support services, Middle East construction services and construction services (excluding the Middle East) is expected to be second-half weighted. However, profit from Public Private Partnership projects is expected to be weighted towards the first half of the year, due to the timing of equity sales.
The Group's balance sheet remains strong and we continue to target cash-backed profit in 2013, after adjusting for
the final phase of the working capital outflow arising from rescaling UK construction, in line with previous guidance.
Therefore, with a strong order book and a substantial pipeline of contract opportunities, our expectations for 2013 and medium-term targets for growth, remain unchanged."
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 integrated support services company with a substantial portfolio of Public Private Partnership
projects and extensive construction capabilities. The Group had annual revenue in 2012 of some £4.4 billion, employs
around 40,000 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 investing activities in PPP projects for Government buildings
and infrastructure, mainly in the Defence, Health, Education, Transport and Secure accommodation sectors.
Middle East construction services - this includes building and civil engineering activities in the Middle East.
Construction services (excluding the Middle East) - this includes building, civil engineering and developments activities in
the UK and construction activities in Canada.
This and other Carillion news releases can be found at www.carillionplc.com