Last weeks trading statement from this support/construction business proved what a strong position the company is in.

looks to be plenty of growth going forward.......

RNS Number : 8437J
Carillion PLC
10 December 2008



10 DECEMBER 2008




PRE-CLOSE UPDATE ON TRADING IN 2008

UNDERLYING EARNINGS PER SHARE TO GROW BY 15% SUPPORTED BY ROBUST BALANCE SHEET







Leading UK support services company, Carillon plc, is providing this pre-close update on trading in 2008, ahead of announcing its preliminary results on 4 March 2009.




Highlights




Continuing strong performance supported by a reduction in the Group's underlying effective tax rate to around 20% - underlying earnings per share(1) for the 12 months to 31 December 2008 expected to grow by approximately 15%, some 5% ahead of previous expectations.

Alfred McAlpine successfully integrated with integration and re-organisation cost savings increased by 10 million to a run rate of 50 million per annum by the end of 2009.

Balance sheet remains robust - cash flow remains strong with net borrowing expected to be below 275 million at the year end.

Expect strong revenue growth in support services at margins in excess of the 4.1% achieved in 2007.

Public Private Partnership projects creating significant value - 6 investments sold for 59.7 million in 2008.

Middle East business expected to deliver strong growth with an increasing contribution from projects in Abu Dhabi - margins expected to be at least 6%.

Satisfactory performance in construction services (excluding the Middle East) - operating margin expected to be in excess of the 1% achieved in 2007.

Underlying effective tax rate expected to reduce from 25% to around 20% in 2008 and to remain at this level for the foreseeable future.

.

Business performance




Our results are expected to reflect the strong progress the Group has made in 2008, enhanced by the acquisition of Alfred McAlpine in February 2008. This acquisition created the UK's largest support services business and further increased the Group's resilience, in line with our strategy for growth.




Support services




Support services continues to be a major driver of earnings growth and continues to account for over half the Group's underlying operating profit (1) . Revenue is expected to increase substantially in 2008, primarily reflecting the acquisition of Alfred McAlpine. The operating margin is also expected to increase, within our target range of four to five per cent, largely due to the effect of integration cost savings.










(1) Continuing operations before intangible amortisation, impairment, restructuring costs and non-operating items.










New order intake has remained strong and we continue to have our largest ever pipeline of opportunities for new contracts.




Public Private Partnership (PPP) projects




Our investments in PPP projects continue to generate substantial value. During the year a further six investments in mature projects were sold, generating total cash proceeds of 59.7 million. As indicated in our 2008 Interim Report, this reflected a net present value for the cash flows from these investments based on an average underlying discount rate of under 5.5 per cent. Carillion has now sold a total of 23 mature investments in PPP projects over the last five years, generating cash proceeds of 179 million and a pre-tax profit of 104 million.




We expect to continue to make good progress in this segment. During 2008, we achieved financial close or preferred bidder positions on four further projects in which we expect to invest 11.2 million of equity. In addition, we have a healthy pipeline of potential new projects, including eight projects for which we are currently shortlisted.




Middle East construction services




In Middle East construction services, we expect to report further strong growth in 2008, driven by increased activity levels in Dubai and Oman, together with contributions from Abu Dhabi and Cairo, where we began operations at the beginning of the year. Going forward, we expect growth to be increasingly driven by Abu Dhabi, where we negotiated substantial new work in 2008 worth over 1 billion and also increased our pipeline of potential opportunities.




We therefore continue to expect long-term sustainable growth in this region and remain confident that we will achieve our objective of broadly doubling revenue in this segment from the 2007 level of 337 million to a run rate of over 600 million by the end of 2009, at an operating margin of some six per cent.




Construction services (excluding the Middle East)




In this segment, we remain focused on project selectivity, in line with our objective of increasing margins rather than revenue, in order to improve the combined operating margin for all our construction activities, including the Middle East, towards three per cent over the next three years. This strategy is supported by our substantial, high-quality order book and probable new orders, which provide sufficient visibility for us to be confident of achieving our expectations for 2009.




Following the acquisition in October 2008 of the Vanbots Group, a well established construction management services group in Canada, the integration of this business is progressing to plan. This acquisition has significantly enhanced our ability to provide fully integrated solutions, especially for PPP projects, further strengthening our market leadership in Canada, particularly in the health sector.




Balance sheet




The Group continues to deliver strong cash flow and net borrowing at the year end is expected to be below 275 million and below our target of 300 million.




Taxation




Carillion has been successful in agreeing with the tax authorities certain prior year tax issues and a mechanism for the use in 2008 and beyond of certain tax losses acquired with Alfred McAlpine. Consequently, the Group's effective tax rate is expected to reduce from 25 per cent in 2007 to around 20 per cent in 2008. The Group's ability to maintain its effective tax rate at this level for the foreseeable future will be further underpinned by the UK Government's proposal to exempt UK companies from taxation on foreign earnings from April 2009, announced in its 2008 Pre-Budget Report on 24 November 2008.



Acquisition and integration of Alfred McAlpine




The benefits of acquiring and successfully integrating Alfred McAlpine continue to exceed our expectations. Integration and reorganisation cost savings are now expected to reach an annual run rate of 50 million by the end of 2009, an increase of 10 million on the previously announced run rate of 40 million. Additional cost savings have been identified across most areas of our enlarged business as integration has progressed, notably through the adoption of Carillion's shared central services and the outsourcing and off-shoring of back-office processes. All savings have either been delivered, or firmly secured for delivery, with absolute savings expected to be 15 million in 2008, 35 million in 2009 and 50 million in 2010, an increase of 5 million in 2009 and 10 million in 2010. The one-off cost of delivering these savings will increase from the previously announced figure of 40 million to 55 million.










Outlook




The wider economic background will undoubtedly become increasingly difficult and make delivery of our business objectives more challenging. However, Carillion is a well-balanced and resilient business, with strong positions in its chosen market sectors in the UK, the Middle East and Canada. Therefore, with a robust balance sheet, a strong order book and continuing opportunities in our main market sectors, Carillion continues to expect to build on its strong performance in 2008 and deliver materially enhanced earnings in 2009.




Carillion Chief Executive, John McDonough and Group Finance Director, Richard Adam, will host a conference call on this statement for analysts and investors at 9:00am today, Wednesday 10 December. The telephone number to join the conference call is + 44 (0) 207 190 1232.




For further information contact:




Richard Adam, Group Finance Director + 44 (0) 1902 422431

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oi Dily

have you see me posting here lately
that should tell you something

if not ask the old 3 leg sheep

Yep it tells me you've been clueless on these.

WHY ARE YOU SO OBSESSED WITH 'CLUELESS'?

better than the 3 leg sheep

Lol which one is you ?

A sad demise.

Don't worry mate , mentor will be along soon with another buy recommendation.

That'll really feck up them up.

I wonder when the shorters will close out. They still seem relentlessly determined.

Even the fish in post 301 has lost interest!

Looks like someones dawdling with the rescue package , mind you with the lack of awareness pre results it's not surprising really , can it work at 10p .

Announcement of 2017 interim results

This announcement will be on 29 September 2017.

Can't believe declared short interest is still 23%. Might be a squeeze when results are out on the 29th.

Probably chuck the kitchen sink in with the interims and announce a strategic revue of the strategic revue.

Still sat on the fence waiting for mentor to recommend selling.

The reason for the strong bounce:
http://www.cityam.com/272752/carillion-middle-east-suitor-plots-takeover-attempt-and

someone has to buy some "dill" for the fish sauce

take the heels off, not time to go out for a walkie yet

Didn't I read today a rumour there is/was a Foreign Investor about to pounce? This might give "shorters" a nasty taste..... but theTrading Results will have been concluded a few days/weeks before any recent rumours circulate, so even if it's true... it's unlikely to be mentioned in the Report itself.
Maybe expect a Co. RNS denying . . . . ?

Predictably awful results.

Financial results for the six months ended 30 June 2017
Strategic and operational review update
Carillion plc ("Carillion", the "Group" or the "Company") announces its H1 results and an update on its strategic review.

H1 financial performance weaker
· Total revenue flat at £2.5bn
· Underlying pre-tax profit down 40% due to:
- The phasing of PPP equity disposals; and
- The trading of contracts with H1 provisions at zero margin
· Contracts review finalised:
- No change to previously announced provision of £845m for construction contracts
- Further £200m provision for support services contracts, but minimal impact on cash
· Goodwill impairment charge of £134m in respect of UK and Canadian construction businesses
· Average net debt in H1 £694m
· New H1 orders plus probable orders of £2.6bn, with total orders plus probables stable at £16bn

Strategic review and balance sheet update
· Business refocused on core strengths and markets - support services, infrastructure and building
· New leadership team and operating model - delayered structure, greater accountability and transparency
· Initial cost reduction target of £75m by mid-2019
· Actions underway to improve cash flow and strengthen balance sheet
· Expected proceeds from non-core business disposals increased to £300m from £125m
· Discussions ongoing regarding sales of Carillion's business in Canada and the UK Healthcare business
· Pension deficit reduction of £80m, potential to reduce further by £120m
· Agreed further £140m committed facility with a number of banks
Revised full-year outlook
· Full-year results to be lower than current market expectations
· Total revenue expected to be between £4.6bn and £4.8bn (previously £4.8bn to £5.0bn)
· 2017 H1/H2 profit split similar to recent years, before £10m of cost savings and business disposals
· Full-year average net debt expected to be between £825m and £850m
· Estimated further restructuring costs of £75m to £100m in H2.
Commenting Keith Cochrane, Interim Chief Executive, said:
"This is a disappointing set of results which reflects the issues we flagged in July and the additional £200m provision for our Support Services business that we have announced today. We now expect results for the full year to be lower than current market expectations.

"The Strategic Review that we launched in July has enabled us to get a firm handle on the Group's problems and we have implemented a clear plan to address them. Our objective is to be a lower risk, lower cost, higher quality business generating sustainable cash backed earnings. In the immediate short term, our focus is to complete the disposal programme, accelerate our action to take cost out of the business and get our balance sheet back to a place where it can support Carillion going forward.

"No one is in any doubt of the challenge that lies ahead. We have made an encouraging start and the ambition is there to build on that progress. At the heart of this company, there is a strong core. Supported by an operating model that manages risk much more effectively and led by a fresh management team with a mandate to drive cultural change, I am confident that a strong business can emerge."

Is the clever coaks reporter ( Oliver Gill - middle-east-suitor-plots-takeover-attempt ) another fools report in order for some to get out late yesterday ahead of today's yet again of another profit warning ?

It sound like this so far ( paid for it ),
I am glad not in anymore and only for the - cat bounce earlier -

i do not hold either, but of course any predator might be very happy to wait until the crap results were published thus making a low bid more attractive


btw, TCM had a very odd rns yesterday, and though again this is not one i hold, i'ld have thought short was a much better bet than long

Peel Hunt today reaffirms its reduce investment rating on Carillion PLC (LON:CLLN) and cut its price target to 40p (from 50p).