Construction giant tells City it will make a profit and reduce debt despite fall in UK building work
Construction giant Carillion is on track to increase its turnover this year, despite a fall in building work in the UK, the firm said today.
In an interim management statement to the city, Carillion said it would turn a profit and reduce debt to below the £146m recorded at the half year mark. It added that it would achieve higher profit in its support services division, the largest part of its work, despite the fact private clients were reducing the scope of outsourced contracts.
It confirmed it was still planning to increase turnover in the Middle East from £464m to £600m in 2009, mainly through expansion into Abu Dhabi, off-setting the fall in revenues from Dubai.
In the firm's construction business, it said: “We expect overall revenue to increase in 2009, with a small reduction in UK revenue being offset by growth in Canada.” However, the increase in Canada is mainly due to the acquisition of a PPP specialist, Vanbots.