Construction group says strategy of ‘selective bidding’ paying off

Birmingham Library built by Carillion and designed by Menacoo

Carillion has reported record pre-tax profit in full-year results for the year to December 2014 and said its strategy of “very selective” bidding is paying off.

The construction group reported a rise in pre-tax profit of 29% to £142.6m, up from £110.6m, while revenue remained unchanged at £4.1m.

The firm’s underlying pre-tax profit, which strips out non-recurring costs, was £172.9m, down marginally from £174.7m.

The firm said it had amassed an order book and probable orders worth £18.6bn, up from £18bn the previous year.

Carillion confirmed it has been appointed by contracting authority Scape as the sole provider on a £1.5bn facilities management framework for public sector clients.

Carillion chairman Philip Green said: “In 2014, our markets remained challenging and we continued to be very selective in choosing the contracts for which we bid in order to maintain margin discipline, which continues to be a key element of our strategy. 

“Looking forward, we expect the steady improvement in our markets that began in 2014 to continue in 2015, subject to a sustained macro-economic recovery.”