Group says focus on UK support services and international markets will see rise in 2010 profit
Carillion’s decision to scale back on UK construction work will result in a growth in underlying profit for 2010.
In a trading update for the year to 31 December 2010, it said that growing profits in its international and UK support services markets had helped offset the loss of income and profit from the sale of non-core businesses.
The group said its decision in May to cut UK construction work by a third was vindicated as margins continued to be squeezed by government cuts in capital spending.
It said overall margins for 2010 would improve on last year’s figure of 3.8%.
While scaling back UK construction from £1.8bn to £1.2bn in 2010 Carillion said it was looking to double construction earnings from Canada to around a £1bn.
Carillion said revenue growth in the Middle East was strong due to buoyant markets in Abu Dhabi, Oman and Qatar. The group said it was on track to double revenues from the region to £1bn over the next three-to-five years.