Contractor says integration of Mowlem is 'substantially' complete as order book hits £16bn
Carillion shares soared 4.5% this morning as it announced that earnings for the second half of 2006 would beat market forecasts.
Shares rose 17.50 to 404p in response to a trading statement which stated that Carillion's order book at 31 December was expected to be about £16 billion.
The contractor announced a reduction in average debt in 2006 to about £110m. This is £90m below what was expected at the time of acquiring Mowlem. Net debt at 31 December was expected to be about £112m.
The contractor said that good progress had been made with the integration of Mowlem and the process was ‘substantially’ complete. The integration of Mowlem and the restructuring of Carillion Rail are expected to cost the company £20m.
Carillion made an exceptional profit of £22m on the sale of eight equity investments in PPP projects.
As a results of the order book and contract wins so far in 2007 Carillion said that it was on track to deliver enhanced earnings this year.
Carillion also announced today that it had been appointed for around £100m of work on Ministry of Defence sites.
The new contracts include infrastructure, support facilities, training facilities and airfield works with projects in Yorkshire, Anglesey and the Midlands.
The work will form part of the Regional Prime Central contract, whereby, in joint venture with Enterprise, Carillion provides support services across 8500 MoD buildings.
In addition, Carillion has been appointed preferred bidder on a five-year contract to deliver local community-based clinical services to NHS patients across North London.
Carillion is working in joint venture with Lodestone Patient Care, the diagnostic imaging services provider.
Results for the year ended 31 December will be announced on 7 March 2007.