Carillion Plc Regulatory News (CLLN)

3 OCTOBER 2013

CARILLION PLC

2013 THIRD QUARTER INTERIM MANAGEMENT STATEMENT

Trading in the third quarter of 2013 has remained in line with the guidance we gave at the time of our half-year results announcement and we expect to deliver full-year underlying(1) profit and earnings in line with market expectations.

Our order book and pipeline of contract opportunities both remain strong and continue to support our expectations for 2013 and our medium-term targets for growth, which remain unchanged. Since we announced our half-year results on 22 August, we have been awarded a number of further significant contracts. In Canada, we have won a 12-year Area Maintenance Contract in Ontario, worth over £100 million, in Oman we have signed a £90 million contract to build the Kempinski Wave Hotel, which was classified as a probable order at the half year, and in the UK we have been selected as the preferred bidder by West Sussex for a support services contract worth some £100 million over 10 years.

In our half-year results announcement, we noted the slow start to the whole of the Green Deal market, which, together with the delayed start to the Energy Company Obligation (ECO) market, is affecting our revenue expectations from energy services. The development of the Green Deal market continues to be slow and ECO may now be subject to further delays. Consequently, we will restructure this area of our business during the remainder of 2013 to ensure that it is aligned in size to the markets in which it operates. We are still assessing the extent of the restructuring required, while ensuring we maintain an effective offering and service delivery model. Currently, we expect total non-recurring operating charges of some £40 million in 2013.

Cash flow remains in line with previous guidance and we continue to expect net borrowing at the year end to be lower than the £270 million we reported at 30 June 2013, despite the expected additional costs associated with restructuring the Group's energy services activities.

(1) After Joint Ventures net financial expense and taxation and before intangible amortisation, non-recurring operating items and non operating items.

Pre-close trading update

Carillion will issue a pre-close update on trading for 2013 on 11 December 2013, in advance of its preliminary full-year results announcement on 5 March 2014. 

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 and Gordon Simpson + 44 (0) 207 2513801

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 businesses in the UK, Canada and the Middle East.

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

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.