Carillion Plc Regulatory News (CLLN)

4 OCTOBER 2012

CARILLION PLC

2012 THIRD QUARTER INTERIM MANAGEMENT STATEMENT

"PERFORMANCE IN LINE WITH PREVIOUS GUIDANCE"

Following the Group's first-half eight per cent increase in operating profit, we continue to expect to deliver improvements in operating profit and total operating margin in the full year. We also continue to expect full-year revenue to be lower than in 2011, primarily due to the planned re-scaling of our UK construction activities to align these activities with the shrinking UK market. The expected increase in the Group's net financial expense in 2012, due largely to a higher interest charge relating to pensions, remains unchanged from the guidance we gave when we announced our half-year results.

The performance of, and outlook for, our four business segments, namely support services, Public Private Partnership projects, Middle East construction services and construction services (excluding the Middle East), remains in line with those we announced at the half year.

Our pipeline of contract opportunities remains strong and since the half year we have continued to win new orders and probable orders, notably in the Middle East where our businesses have won new and probable orders with a total value to Carillion of some £185 million. The largest of these orders is a £113 million contract to build a mixed use development for the Oman Public Authority for Social Insurance, on which work has already commenced.

During the third quarter, we completed the sale of further equity investments in Public Private Partnership projects, generating cash proceeds of £15.4 million.

Year-end net debt is expected to be around the same level as it was at the half year, namely £115 million, in line with previous guidance.

Outlook

In addition to remaining on track to deliver full-year results in 2012 in line with expectations, we also remain well positioned to achieve our medium-term targets, namely to deliver growth in support services and to double our annual revenues in the Middle East and in Canada in the five year period to 2015, in each case to around £1 billion.

Pre-close trading update

Carillion will issue a pre-close update on trading for 2012 on 12 December 2012, in advance of its preliminary full-year results announcement on 27 February 2013. 

For further information contact

Richard Adam, Group Finance Director + 44 (0) 1902 422431

John Denning, Director Group Corporate Affairs + 44 (0) 1902 316426

Finsbury

James Murgatroyd or Gordon Simpson + 44 (0) 2072513801

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 has annual revenue of around £5 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 our building, civil engineering and developments activities in the UK and our construction activities in Canada.

This and other Carillion news releases can be found at www.carillionplc.com

Photographs:

High resolution photographs are available free of charge to the media at www.newscast.co.uk telephone

+ 44 (0) 207 608 1000.

Cautionary statement

This announcement may contain indications of likely future developments and other forward-looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. These and other factors could adversely affect the Group's results, strategy and prospects. Forward-looking statements involve risks, uncertainties and assumptions. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ materially from those currently anticipated. No obligation is assumed to update any forward-looking statements, whether as a result of new information, future events or otherwise.