Trading update says £544m acquisition has improved growth prospects of the business

Carillion has identified 60% of the £30m cost savings it promised from the £554m acquisition of Alfred McAlpine in February.

In a trading update it said: “The group noted that the acquisition, which has generated one of the UK’s largest support services businesses, has further enhanced the resilience and growth prospects of the business.”

In a trading update for the first quarter of 2008, it said its performance had been “healthy”.

Chairman Philip Rogerson said: “Carillion has continued to build on its strong performance in 2007. The group has maintained its strong financial position with cash flow and net debt in line with our expectations.”

It also said it would double the turnover from its Middle East business to £600m in the next two years.