At Carillion’s AGM chairman Philip Rogerson said the firm is “making good progress” in reducing its UK construction business
At an annual general meeting today, Rogerson said the Carillion group has a “good cash flow from operations and a strong balance sheet”, but added that it is still slashing its UK construction division.
The firm is aiming to reduce construction turnover from the £1.8bn achieved last year to £1.2bn in 2012.
Rogerson said the cuts are protecting its Public Private Partnership ambitions, whilst also making allowances for the “decline we expect in other market sectors”.
The pruning has made him confident that an operating margin for construction worldwide will head “towards 3% in 2010”.
Discussing his support services division, he said Carillion is confident of picking up more work in the industry, predicting that public and private sector organisations will outsource services to reduce costs.
He added: “Furthermore, we remain confident that as we move through 2011 and into 2012 this trend will accelerate in the public sector, as following the UK general election there will be growing pressure on both central and local government to reduce costs and improve the quality of public services.”