Sign up Australia
Proactive Investors - Run By Investors For Investors

Carillion wins £1bn of business and sees market improvements

Carillion said it was on track to achieve full-year targets
Carillion wins £1bn of business and sees market improvements
The pace of second-half contract wins, renewals or extensions continued to pick up

Construction group Carillion (LON:CLLN) unveiled new business worth about £1bn and said it was seeing signs of improvement in its markets.

Carillion said it had won or was in talks about support service contracts worth more than £350mln including facility management deals or deal extensions with insurer Direct Line, US telecoms group Verizon and Virgin Media.

In construction, Carillion has secured preferred bidder positions and new contracts worth more than £550mln.

Carillion said the pace of contract wins, renewals or extensions in the second half had continued to pick up as it had expected.

It said it was on track to achieve full-year targets and revenue had increased strongly with operating profit in line with hopes.

The group expected secured orders plus probable orders to stay strong at about £17bn and it had a good idea of where 80% of its 2016 expected revenue was coming from.

And its line-up of contract opportunities was set to increase to more than £41bn.

Chief executive Richard Howson said: ''Much of the £1bn of new work announced today reflects our continuing success in winning repeat work for long-term customers, consistent with our selective approach to contracts and margins.
"We also continue to see some improvements in market conditions, especially in the UK, and following the UK Government's spending review, we expect to see further opportunities for outsourcing and capital projects over the medium term."

Carillion said it had extended its main revolving debt facility by nearly three years to November 2020 at improved pricing.

Meanwhile, rival Balfour Beatty (LON:BBY) has agreed a new £400mln syndicated revolving credit facility, refinancing the existing facilities that had been due to expire in 2016.
It has reduced the size of the facility in line with the group's ongoing capital requirements and the underlying strength of its balance sheet.
The new facility extends through to 2018, with the option for two extra one-year extensions through to 2020.

View full CLLN profile View Profile

Carillion Timeline

Related Articles

Office space
June 28 2018
"This has been another successful year in which the group has achieved a 25% uplift in NAV, significant lettings successes across recently completed developments leading to a 21.49% increase in contracted rent and a strong performance across our key metrics," said the CEO, John Arnold.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use