Carillion expects profits boost despite turnover fall
Carillion expects to report pre-tax profit growth for the 12 months to 31 December 2010. This is despite the Wolverhampton-based construction company experiencing "tough market conditions" again this year and lower revenues.
The company expects revenue to be lower than 2009, having sold a number of non-core business and public private partnership equity investments last year.
However, with these interests contributing £17m in underlying profit, Carillion expects its continuing UK and international growth to "more than offset" this lost income.
The company said: "The strategic decision we announced in May 2010, to reduce revenue in our UK construction business by one third over the next three years, has put us in a strong position to manage the impact of the reduction in capital investment by the UK government over the next four years that was announced in the Spending Review on 20 October.
"We continue to have good revenue visibility and in the second half of the year additions to the group's order book have so far exceeded £1bn.
"The group also has a substantial and growing pipeline of contract opportunities, which supports our objectives for medium term growth."
