Partner Article

Profits dip at Carillion but multi-million pound international deals on the horizon

British construction firm Carillion say underlying pre-tax profits fell by 13% in 2013, due to downsizing of its UK operations.

Carillion’s UK energy services restructured to reflect lower expectations for Green Deal and Energy Company Obligation markets.

Pre-tax profits reached £174.7 million, down from £200 million the year before.

Despite the dip in profitability, Carillion reported a pipeline of contract opportunities worth some £37.5 billion.

The firm’s joint venture in the United Arab Emirates, Al Futtaim Carillion, has just secured a £150 million contract to work on a family entertainment and shopping development in Dubai.

Elsewhere Carillion has secured facilities management work with Canada Natural Resources Limited (CNRL), Royal Bank of Scotland (RBS) and telecoms firm Arqiva.

Carillion chairman, Philip Rogerson, commented: “In 2013, Carillion has continued to respond decisively to challenging market conditions, including completing the rescaling of its UK construction activities and the restructuring of its energy services business, which are now aligned in size to their respective markets, while continuing to develop and strengthen its positions in new and existing markets that offer good opportunities for growth.

“Overall, we expect market conditions to remain challenging in 2014, but with a strong order book, good revenue visibility and substantial pipeline of contract opportunities the Group is now well positioned for the future.”

This was posted in Bdaily's Members' News section by Tom Keighley .