Chief executive singles out support services and Middle East as star performers
Support services and construction group Carillion has posted a 13% jump in turnover from £2.4bn to £2.7bn in the first half of 2009.
Pre-tax profit climbed 92% from £27m to £52m and the company cut its debt from £264m to £146m.
John McDonough, chief executive, said: “All business segments showed improvement but support services is where the real momentum was in the UK. For example, the BT contract we have a letter of intent for was the largest outsourcing job in the UK this year.” The joint venture deal is worth £1bn.
Elsewhere, McDonough cited the Middle East as the other “stand out performer”, where profit climbed 90% in the first half of 2009.
He attributed the rise to work won in Abu Dhabi, which grew from £11m in the first six months of 2008 to £190m this year.
Work in Dubai fell from £112m to £74m and McDonough said that work in the emirate was “ticking along at a lower level”, adding: “It's not a basket case.”
The City reacted well to the figures and the share price rose 2% to 314p in early trading.
Asked whether he was concerned about proposed cuts in the level of public sector spending, the Carillion chief executive said: “The government will have to face up to the reality of the books.”
He also welcomed the planned appointment by the government of a chief construction officer. He said: “The important thing to establish is the role and responsibility the person will have, which will make or break who is attracted to the job. It needs to be someone with a construction background that can work Whitehall.”