Underlying profits increase to £55.5m as support services firm embarks on reorganisation after Mowlem acquisition.
Support services and construction company Carillion has posted a strong performance as the firm began restructuring in the wake of its acquisition of Mowlem.
Announcing its preliminary results for the year ended 31 December 2005, the firm recorded turnover up 15% from £1.96bn to £2.29bn. Underlying pre-tax profits rose from £48.1m to £55.5m.
However, pre-tax profits were reduced from £66.8m in 2004 to £51.9m in 2005, because underlying profit is net of tax on profit from joint ventures and excludes non-operating items, amortisation of intangible assets and goodwill impairment. The 2004 results also showed a one-off increase in profit of £7.2m relating to the transfer of rail maintenance to Network Rail
Commenting, chairman Philip Rogerson said, "I am pleased to report that in 2005 Carillion achieved all its key financial targets and made substantial strategic progress to deliver further profitable growth, both organically and through the acquisition of mechanical and electrical engineering maintenance company, PME."
"In December 2005, we announced the terms of a recommended cash and shares offer for the acquisition of Mowlem. This acquisition, which received the overwhelming support of Carillion and Mowlem shareholders, was completed in February 2006 and, in line with our strategy, represents a step change in Carillion's transformation."
