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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Interim Management Statement.

Carillion, a leading UK integrated support services company, continues to perform well despite market conditions remaining challenging and expects earnings in 2011 to grow strongly, in line with market expectations.

Carillion PLC
Re Contract
RNS Number : 7272R
Carillion PLC
09 November 2011

9 November 2011

Carillion selected for support services contracts by Fulcrum and National Grid, worth approximately 450 million.

Leading support services company, Carillion, has signed a five-year framework contract to provide gas and multi-utility services for Fulcrum, potentially worth 70 million. Carillion, in joint venture with Eltel Networks, has also been selected as the preferred bidder by National Grid to provide refurbishment and upgrade services for its 400kV overhead transmission network in England and Wales, potentially worth up to 375 million over five years.

Under the framework contract with Fulcrum, which will commence immediately, Carillion will deliver gas and multi-utility connections across the North of England, North & Central Wales, West Midlands, East Midlands and East Anglia. This success further enhances Carillion's position as one of the largest providers of gas connection services in the UK.

Carillion-Eltel Networks, a 50:50 partnership, will work in alliance with National Grid under a framework agreement to deliver overhead line transmission services, which are potentially worth up to some 375 million over five years and form part of National Grid's 22 billion investment programme. The main contract will commence in April 2012, with the volume of work allocated to the Joint Venture increasing annually, subject to performance.

Carillion Chief Executive, John McDonough, said: "We are delighted to have been selected to deliver these key services for Fulcrum and National Grid that further underpin our strong order book and pipeline. The contract for Fulcrum enhances Carillion's position as one of the largest providers of gas connection services in the UK and our selection as the preferred bidder to deliver overhead line services for the National Grid underlines the strength of Carillion's offering as a leader in this market sector. We look forward to working with Fulcrum and in alliance with National Grid to deliver these important programmes."

RE Contract.


Carillion Joint Venture wins 395 million contract in Qatar

Carillion, in an 80:20 Joint Venture with Qatar Building Company, has been awarded a 395 million contract for a major phase of the Msheireb Downtown Doha project developed by Msheireb Properties, a subsidiary of Qatar Foundation for Education, Science and Community Development.

Securing this prestigious contract, Carillion's first contract in Qatar, underlines the reputation that Carillion has established in the Middle East region over the last 40 years for quality and delivery. The contract, which is worth some 316 million to Carillion, will begin in December 2011.

The Msheireb Downtown Doha project, a mixed-use development comprising retail, commercial, residential, leisure, cultural and community facilities, is located close to the historic origins of Qatar's capital city next to the Amiri Diwan. The project involves the development and regeneration of 31 hectares in the centre of Doha, to meet the vision and objectives set by the Emir, His Highness Sheikh Hamad Bin Khalifa Al Thani and Her Highness Sheikha Moza bint Nasser. It is a unique opportunity to regenerate the core of
the city as a place to live and work, and to reflect the growing international importance of Doha.

Carillion's sector-leading capabilities in delivering sustainable solutions will play a key role in delivering this project, to meet the objectives of Msheireb Properties in achieving a "Platinum to Gold" rating under the LEED Green Building Rating system of the U.S. Green Building Council.

Commenting, Carillion Group Chief Executive, John McDonough, said: "We are delighted to have been selected to deliver this prestigious project, which will make a major contribution to the regeneration of the centre of Doha. We look forward to working with Msheireb Properties to deliver a visionary solution that will meet the high standards of sustainability that have been set for this transformational development."

Trading Statement.

Highlights

Underlying profit before tax(1) and underlying earnings per share(2) are expected to increase strongly, in line with market expectations

Cash flow remains strong with year-end net debt now expected to be below 100m and significantly better than our previous target of below 125m

Group operating margin expected to increase significantly, including strong support services margin

First contract won in Qatar, worth over 316m to Carillion

Integration of Carillion Energy Services (CES) is ahead of expectations and we continue to target strong returns from this acquisition

CES cost savings expected to increase from 15m to 25m, with the one-off cost of delivery expected to increase from 20m to 40m driven by the Government's proposed changes to Feed in Tariffs

Strong order book continues to provide good revenue visibility

Pipeline of contract opportunities remains well over 30bn

Group continues to be well positioned to make further progress in 2012 and over the medium term

Carillion contract win

StockMarketWire.com

Carillion has been awarded a £104.9m contract to transform another section of the M6 in Birmingham - between Junctions 5 and 8 - into a managed motorway.

Managed motorways use a range of innovative technology combined with new operating procedures to actively control traffic flow. This includes variable mandatory speed limits and opening up the hard shoulder to traffic to reduce congestion and improve journey times and safety.

Carillion is one of the Highways Agency's four delivery partners for the managed motorway national framework and this award strengthens Carillion's position as a leading provider of managed motorway upgrades and follows the successful delivery of two previous phases of the managed motorway programme around Birmingham.

Advance works for the contract are due to start at the end of January 2012 and the main works by June 2012, subject to the completion of the statutory process, with contract completion scheduled for 2014-15.

Commenting, Carillion CEO, Richard Howson, said: "We are delighted to have been chosen to work with the Highways Agency as its delivery partner for this latest managed motorway contract, which further reinforces Carillion's position as one of the leading suppliers for the Agency's managed motorway programme."

Carillion appointed preferred bidder for 12-year highway maintenance contract in Canada worth over £100 million.

Carillion Canada has been named as the preferred bidder for the Area Maintenance Contract (AMC) 2011-12 London, a 12-year contract worth in excess of £100 million.

The contract will commence in May 2012 and involves the provision of year-round routine maintenance services for Provincial Highways in the London area of Ontario. Under the contract, Carillion will also provide preventative maintenance services, when required, for which additional payments will be received, adding to the overall value of the contract.

This contract follows Carillion's recent success in being awarded similar highways maintenance contracts for the Huntsville area of Ontario and the Eastern Central Region of Alberta, together worth some £200 million over 11 years.

These contract successes have reinforced Carillion's position as the largest provider of outsourced highway maintenance services in Canada and reflects our ability to provide high-quality, cost-effective solutions tailored to the needs of our customers, with whom we have developed long-term partnerships.

Commenting, Carillion Chief Executive, Richard Howson, said: "We are delighted to have been chosen to work in partnership with the Ministry of Transportation, Ontario, to deliver highway maintenance services for the London area of Ontario. This announcement further reinforces Carillion's position as the leading private sector provider of highway maintenance services in Canada".

Speedy Hire ("Speedy")

Carillion awards major three year extension to preferred supplier agreement with Speedy Hire

Speedy Hire today announces it has signed a three year extension to its existing preferred supplier agreement with Carillion. The contract will now run from 2012 until 2016 and is expected to be worth in excess of £50m over the next four years.

The agreement reinforces Speedy's relationship with Carillion as its preferred supplier for a full range of products and services across all Carillion's UK operations including joint ventures where it is the lead company.

Steve Corcoran, Chief Executive, said: "I am delighted that we continue to develop our relationship with Carillion, one of the UK's largest construction and support services companies. This new agreement is another important step in our growth in our key markets of water, waste, energy and transport, all of which are undertaking major new infrastructure projects in the UK."

Final Results.

Results look OK but SP spiralling down. What's the problem?

28 March 2012


Carillion wins UK support services and construction contracts worth £95 million

Carillion has been awarded a five-year contract to provide facilities (FM) services for Centrica. The contract is worth some £50 million over five years and will extend the Centrica relationship to 2017. Carillion has provided Centrica with FM services since 2005 and under this new contract, Carillion will provide a wide range of FM and energy efficiency services for 92 properties with a total area of some 8.6 million square feet.
After achieving a place on the Gatwick Airport Limited Major Framework, Carillion has been selected for one of the first major contracts to be let under this framework, namely the Pier 5 Reconfiguration project. This £45 million contract involves delivering an improved pier service to meet future growth in passenger numbers at Gatwick's North terminal. Work is due to commence in March 2012 with completion planned for April 2014.
Commenting, Carillion Chief Executive, Richard Howson, said: "Winning these contracts reflects our focus on delivering excellent customer service and value for money. This is the foundation for our continuing success in winning contracts across our chosen market sectors and we look forward to working in partnership with Centrica and Gatwick Airport to deliver these contracts".

Carillion awarded 10-year contract by Oxfordshire County Council for property and facilities management services worth up to £700 million

Oxfordshire County Council has awarded a 10-year contract to Carillion for the provision of property and facilities management services worth up to £500 million to Carillion. The Council will achieve revenue savings of at least £550,000 per annum. This is the first time that the Council has grouped all of its property services into one contract and this is the first Local Authority contract of this kind in the UK.

Trading Statement

Highlights

· First-half trading is in line with expectations.

· As expected, the planned re-scaling of UK construction, together with the timing of project starts in the Middle East, means total revenue will be lower than in the first half of 2011.

· Total operating margin is expected to increase.

· Cash flow and balance sheet remain strong with net debt expected to be around £125m.

· A further £20m of equity in Public Private Partnership (PPP) projects has been sold.

· Total first-half new orders and probable orders worth up to £2.2bn.

· Operational integration of Carillion Energy Services is largely complete, with integration cost savings expected to reach our target of £25m by end 2013.

· Underlying(1) profit and earnings are on track to meet full-year expectations, despite market conditions remaining challenging.

Group performance

Despite challenging market conditions, trading in the first six months of 2012 is in line with the Board's expectations, as the Group continues to benefit from a resilient business mix and from adhering to the strict selectivity criteria we apply to choosing the contracts for which we bid.

As expected, total revenue will be lower than in the first half of 2011. This is due primarily to lower UK construction revenue, as we continue the planned re-scaling of our UK construction activities to align them with the shrinking UK market and, as also previously announced, to Middle East construction revenue being second-half weighted, which reflects the timing of project starts.

The Group's total first-half operating margin is expected to increase, reflecting the benefit to margins of re-scaling our UK construction business, together with our group-wide focus on contract selectivity.

The value of the Group's order book and probable orders is expected to remain strong at around £18.0 billion and the Group's pipeline of contract opportunities is expected to have increased to some £35 billion.

Net borrowing at the half year is expected to be approximately £125 million.




(1) Before intangible amortisation, non-recurring operating items and non-operating items.

You seem to like your support services companies, skinny. Not a sector that inspires me during a recession and the graph for this one is a bit too southerly pointing for my liking! Lots of upbeat RNS over the last year or so, but not reflected in the sp so far.

Harry - the only one I actually hold atm is ISG - and I was very tempted to sell them earlier in the week before today's statement - but I didn't!

I still follow BBY,CLLN,COST,GFRD and more recently, KIER.

The only builder I currently hold is TW and they are effectively free.

Interim Results

· Financial performance in line with expectations

- First-half revenue reduced, primarily due to the continued re-scaling of UK construction and the timing of project awards in the Middle East
- Strong growth in underlying profit from operations reflects a continuing improvement in operating margin
- Underlying profit before taxation and underlying earnings per share increased, despite a higher net financial expense
- Substantial increases in reported profit before taxation and basic earnings per share, included a contribution from the sale of equity investments in Public Private Partnership projects

· Strong balance sheet

- Net borrowing better than expected
- Over £800m of long-term borrowing facilities

· Good revenue visibility: strong order book plus probable orders; record pipeline of opportunities

- 92% revenue visibility(5) for 2012
- £2.2bn of new and probable orders won in the first half, with total orders and probable orders worth £18.3bn at 30 June 2012 (31 December 2011: £19.1bn)
- Record pipeline of contract opportunities of £35.6bn (31 December 2011: £33.1bn), including major UK public sector outsourcing opportunities, supports targets for growth

· Interim dividend increased by 2% to 5.4p (2011: 5.3p)

Interim Management Statement

"PERFORMANCE IN LINE WITH PREVIOUS GUIDANCE"

Following the Group's first-half eight per cent increase in operating profit, we continue to expect to deliver improvements in operating profit and total operating margin in the full year. We also continue to expect full-year revenue to be lower than in 2011, primarily due to the planned re-scaling of our UK construction activities to align these activities with the shrinking UK market. The expected increase in the Group's net financial expense in 2012, due largely to a higher interest charge relating to pensions, remains unchanged from the guidance we gave when we announced our half-year results.

The performance of, and outlook for, our four business segments, namely support services, Public Private Partnership projects, Middle East construction services and construction services (excluding the Middle East), remains in line with those we announced at the half year.

Our pipeline of contract opportunities remains strong and since the half year we have continued to win new orders and probable orders, notably in the Middle East where our businesses have won new and probable orders with a total value to Carillion of some £185 million. The largest of these orders is a £113 million contract to build a mixed use development for the Oman Public Authority for Social Insurance, on which work has already commenced.

During the third quarter, we completed the sale of further equity investments in Public Private Partnership projects, generating cash proceeds of £15.4 million.

Year-end net debt is expected to be around the same level as it was at the half year, namely £115 million, in line with previous guidance.

Outlook

In addition to remaining on track to deliver full-year results in 2012 in line with expectations, we also remain well positioned to achieve our medium-term targets, namely to deliver growth in support services and to double our annual revenues in the Middle East and in Canada in the five year period to 2015, in each case to around £1 billion.

Improved prospects for the uk construction and encouraging order book in the Middle East could prompta re-rating.
Carrillion has just won a £600m contract withy Birmingham city council to improve the energy effciency of 60,000 homes and offices,and the deal could be extended throughout the West Midlands, boosting its value to £1.5bn. And news is expected soon on the Royal Liverpool hospital project for which carrillion has been shortlisted-
this could be worth another £750m. Yet even before these the order book looked healthy. It stood at £18.3bn at the end of June when Carillion also had a record £35.6bn- worth of contracts in its bidding pipeline.
But it gets better. Earlier this month , the government announced new guidelines for PFI schemes, a string of projects that were on hold will now be released. Chief executive Richard Howson believes there could be £2.5 bn of priority schoolswork up for grabs in the first quarter of next year and thats just for starters.

Trading on forward PE ratio of just seven and offers a prospective yield of nearly 6%, while the order book stands at over £18bn in addition to a record £35bn- worth of contracts in its bidding pipeline. Going to take a while before the momentum builds but required spending on infrustructure does not go away, its simply being piled up.

Carillion: Investec reduces target price from 380p to 350p and reiterates a buy rating.

Pre-close Trading Update

Carillion expects to deliver a robust financial performance in 2012, with growth in operating profit despite market conditions remaining challenging. As guided, revenue will be lower than in 2011, due principally to the planned re-scaling of UK construction, but the Group's total operating margin is expected to increase as the overall quality of our business continues to improve.

Underlying earnings per share are expected to be broadly in line with market expectations. From 2012, profit from selling equity investments in Public Private Partnership (PPP) projects will be treated as part of underlying operating profit, (previously treated as non-operating); although this is not expected to have a material effect on underlying earnings per share, it is expected to move underlying earnings per share slightly ahead of the market consensus forecast for 2012.

Reported profit before tax and earnings per share are expected to increase substantially.

Carillion acquires 49 per cent interest in Canadian support services business for some £24 million

Integrated support services company, Carillion plc, has acquired a 49 per cent interest in The Bouchier Group for a consideration of £23.75 million. The consideration will be paid in cash in phased installments over the period to January 2014, with instalments adjusted to ensure the acquisition is completed on a debt free, cash free basis.

Carillion HM contract in Canada £525m

Carillion Canada has been selected for long-term contracts to provide year-round routine maintenance services for Provincial Highways in Ontario and Alberta, worth some £525 million.