Carillion had aimed to get net debt down to £150m by the end of the year, but in a third quarter interim management statement today it reveals that it is on course to getyear-end net debt below £125m.
Eaga, now called Carillion Energy Services, was purchased in April and is proving to be the key driver of earnings growth for Carillion.
The group is also benefiting from scaling back its exposure to UK construction, strategically reducing annual revenue by £600m to around £1.2bn by 2013 and avoiding low margin work.
In its trading update, the board said: “We continue to win new contracts, preferred bidder positions and framework agreements in line with our selectivity criteria, with a number of notable successes since we announced our half-year results six weeks ago on 24 August that are expected to be worth up to some £670m. These comprise local government facilities management, energy services, construction services and rail infrastructure services in the UK, road maintenance services in Canada and construction services in the Middle East.”