Joint venture plans to offset Dubai dip with expansion into Abu Dhabi
Al-Futtaim Carillion is planning to increase turnover in the Middle East from £464m to £600m in 2009. It plans to achieve this mainly through expansion into Abu Dhabi, with which it aims to offset a fall in revenues from Dubai.
The news came in an interim management statement from one half of joint venture, UK-based Carillion, today to the City of London. The statement said Carillion was on track to increase its turnover this year, despite a fall in building work in the UK.
Carillion said it would turn a profit and reduce debt to below the £146m recorded at the half year mark. It added that it would achieve higher profit in its support services division, the largest part of its business, despite the fact private clients were reducing the scope of outsourced contracts.
Carillion said: “We expect overall revenue to increase in 2009, with a small reduction in UK revenue being offset by growth in Canada.” However, the increase in Canada is mainly due to the acquisition of a PPP specialist, Vanbots.
Al-Futtaim Carillion’s key contracts ion the Middle East include a £550m deal won in February to build the Al Muneera development in Abu Dhabi for giant UAE developer Aldar.