Carillion leans further on support services
Carillion has reported 10% revenue growth for the first half of 2016 but flat profits.
Carillion’s revenue for the six months to 30th June 2016 was £2,487.1m (2015 H1: £2,258.6m). Underlying profit before tax was £84.5m, identical to 2015. The underlying operating margin slid a couple of points to 4.9% from 5.1% for the same period last year.
Revenue growth was led by support services, which accounted for £75.9m (60%) of the £113m total underlying operating profit. This was a 30% rise in profit from support services from revenue up 8% to £1,336.0m
Construction services (excluding Middle East) contributed £20.7m of underlying operating profit, up 7% from £19.3m last year. This was from revenue up 12% to £687m. There was a £10.5m provision for payments being made through the Construction Worker Compensation Scheme for blacklisted workers.
Middle East construction services made an underlying operating profit of £11.7m (down 38%) on revenue of £320.3m (down 2%)
Chairman Philip Green said the results were in line with expectations. “New order intake in the first half of the year has been strong and continues to reflect the success of our strategy and strength of our business model,” he said. “Overall, we remain on track to make further progress in 2016.”
Carillion also announced that finance director Richard Adam will retire at the end of the year, to be succeeded by Zafar Khan, 48, who has been group financial controller at Carillion since 2013.
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This article was published on 24 Aug 2016 (last updated on 24 Aug 2016).