Carillion is expected to sell some of its PFI portfolio, including a stake in the Dartford and Gravesend hospital.
City analysts say the firm plans to sell most of its PFI investments and to invest the cash gained in other PFI schemes.

The news comes as Carillion announced a pre-tax profit of £10.5m on turnover of £933m for the first half of 2003.

The profit was £6.7m less than the same period last year as a result of a £10m provision for losses on the Nottingham Express Transit tram scheme.

Chief executive John McDonough has announced a business strategy focusing on four areas: transport, health, prisons and defence.

McDonough said: "We want to be sector-focused, and choose key sectors where we know there'll be growth in the next few years."

Carillion announced it had been selected as preferred bidder, with joint venture partners, for the £60m Royal Ottawa Hospital, the company's second PPP hospital in Canada.

McDonough said Carillion's PFI activity will take off over the next two years, with £100m of PFI construction activity next year.

He added that Carillion had withdrawn from the trams sector. He said: "We pulled out of the Southampton tram scheme, leaving one bidder, and now I believe there are no bidders."

Regarding Liverpool FC's plans for a new stadium, he said: "We're working with them to try to get a scheme that they can afford. If we can't do that then we won't do the scheme."

He added: "We are looking to expand in the two overseas markets we know and love, where we have been doing business for 50 years, namely Canada and the Middle East."

McDonough denied Carillion is bidding to build the Burj Dubai, a mixed-use scheme set to become the world's tallest building.

  • Contractor Mansell announced a pre-tax profit increase of £500,000 to £4.4m for the six months to 30 June 2003. The firm's turnover grew 10% to £265m.