Carillion, one of the UK’s leading support services and construction companies, said it has made a positive start to 2011 following a strong performance in 2010 in its latest trading update issued this morning.
In a statement Carillion said it expects to report continuing good growth in underlying profit before tax and underlying earnings per share with year-end net cash of well over £100 million.
In its support services division, the firm has secure and probable orders worth in the region of £190 million including a £25 million, 5-year contract with the Land Registry, a Joint Venture worth some £80 million over the next five years (including contracts for Dow and property management services for Enexis) and a three year contract with BAA to provide services at Heathrow Airport worth up to £75 million shared with two other contractors.
Carillion has also signed a Memorandum of Understanding with the UK Government under its Supplier Engagement Programme identifying how Carillion can work together with the Government to help re-engineer procurement and service delivery. The company is also seeking to reduce its supplier base down to 5000 companies from the current 25,000.
Commenting, John McDonough, Group Chief Executive, said:
“We have made a positive start to 2011, following our strong performance in 2010, for which we expect to report good profit and earnings growth, and year-end net cash of well over £100 million. New order intake remains healthy and we have secured new orders plus probable orders worth some £350 million.
“I am also pleased to report that we have signed a Memorandum of Understanding with the UK Government. We look forward to working with our customers to provide value-for-money services that support their business objectives and with Government customers specifically to improve efficiency and deliver savings that will enable them to reduce running costs.”
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