Company targets expansion in Canada and the Middle East
Carillion has reported a record pipeline of contract opportunities despite scaling back its UK business.
In a trading update to the City the firm announced a strong order book despite implementing a selective approach to the UK market.
Real-time Share PriceThe rescaling of its UK operations coincides with the firms plans to expand its operations in the Middle East and Canada.
Carillion’s net debt is below £125m following the £298.4m acquisition of Eaga in April. The firm expects the synergy cost savings from the acquisition to rise from the previously announced cumulative total of £9m per annum by 2013 to £15m per annum.
The statement added: “Despite the fact that market conditions remain challenging, we expect the group to build on its strong first-half performance to deliver earnings growth in the full year.”
“Our ability to perform well continues to reflect the strength and resilience of our well balanced UK support services and international business mix, good revenue visibility and record pipeline of contract opportunities.”
“Our medium term objectives for organic growth remain unchanged, namely to deliver substantial growth in support services from 2012 onwards and to double our annual revenues in the Middle East and in Canada over three to five years, in each case to around £1bn.”