Carillion expects resumption of revenue growth in UK construction in 2014, according to its Inierim Management Statement published today.
Commenting on the Group's performance, Carillion plc Chairman, Philip Rogerson:
"Trading in the year to date is in line with our expectations and work winning has remained healthy.”
"We continue to expect the Group to resume revenue growth in 2014, including the resumption of revenue growth in UK construction in the full year. As indicated when we announced our 2013 results, the Group's first-half revenue is likely to be slightly lower than in the first half of 2013, primarily because the planned rescaling of our UK construction activities continued throughout 2013, which resulted in the Group having a lower revenue run-rate at the year end.
"Being very selective in terms of the contracts for which we bid remains central to our strategy for supporting margins, which continue to be in line with our expectations. The investments we make in Public Private Partnership projects are also performing in line with our expectations. As previously indicated, the first-half and full-year contributions to Group profit from these investments will be lower than in 2013, because we plan to sell fewer investments in both periods in 2014.”
Carillion expects the Group to deliver cash-backed profit in 2014 and to return to positive net cash generation, with a consequent reduction in net borrowing at the year end.
The firm said that work winning has continued to be healthy with £1.5 billion of new orders and probable orders in the year to date, while its pipeline of contract opportunities also remains strong.
Philip Rogerson added:
"In summary, although markets continue to be challenging, our expectations for 2014 remain unchanged. Furthermore, we believe the Group remains well positioned for the future as the medium-term outlook across our markets continues to improve."
United Utilities has separately announced that Steve Mogford, chief executive officer of both United Utilities Group PLC and United Utilities Water PLC, has been appointed as the senior independent director of Carillion plc with immediate effect from 7 May 2014.
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