Group says growth in acquired firm's markets will contribute to increased earnings in 2007

Carillion has confirmed that the integration of Mowlem will generate £26m of cost savings for 2007.

John McDonough
Carillion chief executive John McDonough

In a half-year trading statement the support services and construction company said that its markets remained positive and that it expected to deliver ‘materially enhanced earnings’ in 2007.

It said that its strong order book of about £16bn and opportunities for long-term growth would see the company make further progress in the second half of the year.

The group said it was on course to reduce net debt below £100m by the year end. Average first-half debt was £165m.

Shares increased 5.75p this morning to 418p.