Carillion Expects Increase In 1H Underlying Earnings

7th Jul 2010 07:15

LONDON (Dow Jones)--Carillion PLC (CLLN.LN), U.K.-based support services company, said Wednesday underlying earnings the first six months of 2010 is expected to increase, more than offsetting the effects of disposing of non-core businesses and of selling investments in Public Private Partnership projects. MAIN FACTS: -Balance sheet remains robust and the company expects to maintain a positive net cash position at the half year (2009: GBP24.9 million). -Future revenue visibility remains strong, with some 97% of expected full-year revenue in 2010 covered by the order book and probable orders. -Value of order book and probable orders at the half year is expected to be similar to that at Dec. 31, 2009 (GBP19.7 billion). -Support services continues to perform in line with expectations - margins improving and on track to achieve company's full-year margin target of 5%. -Investments in Public Private Partnership projects continue to generate substantial value. -Middle East construction services performing in line with expectations; Company continues to expect revenue and profit to be second half weighted, due to the timing of project starts and completions, with first half margins expected to be significantly ahead of original target, and close to the 2009 level of 7.7%. -Construction services, excluding the Middle East, performing satisfactorily; Revenue growth in Canada expected to more than offset the planned reduction in U.K. revenue. -U.K. Government's Emergency Budget in line with expectations; Potential to create medium term growth opportunities in support services. -U.K. government's announcement concerning the Building Schools for the Future program will not have a material impact on the group's order book and probable orders. -Continues to expect market conditions to remain challenging; On track to make further progress in the second half of 2010 in line with market expectations. -Shares on Tuesday closed at 313.9 pence, valuing the company at GBP1.25 billion. -By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, [email protected] (END) Dow Jones Newswires July 07, 2010 02:15 ET (06:15 GMT)