Carillion has good revenue visibility after in-line results

5th Mar 2014 10:00

Carillion shares moved higher following the company's in-line results as the integrated support services company said it had good revenue visibility going forward and unveiled two acquisitions. Revenue for the 12 months ended December 31st fell 7% to £4.1bn from £4.4bn a year earlier, primarily due to the rescaling of the UK construction business. Reported pre-tax profit plunged by a third to £110.6m, although on an underlying basis profit was down 13% from £200m to £174.7m, reflecting business rescaling and an increase in the net financial expense. Underlying earnings per share fell 14% from 40.4p to 34.7p. However, the full-year dividend was increased by 0.25p to 17.50p a share. Chairman Philip Rogerson said: "In 2013, Carillion has continued to respond decisively to challenging market conditions, including completing the rescaling of its UK construction activities and the restructuring of its energy services business, which are now aligned in size to their respective markets, while continuing to develop and strengthen its positions in new and existing markets that offer good opportunities for growth. "Overall, we expect market conditions to remain challenging in 2014, but with a strong order book, good revenue visibility and substantial pipeline of contract opportunities the group is now well positioned for the future."Looking ahead its revenue visibility was 81%, up from 75% at the same point in 2012. Multiple contract wins unveiledThe company also announced that it has won support services contracts worth over £370m having been selected as the preferred bidder by Canada Natural Resources and Royal Bank of Scotland, as well as winning a contract with Arqiva. The group's joint venture business in the United Arab Emirates, Al Futtaim Carillion, was also awarded a contract in the Middle East worth in the region of £150m.The share price had risen 2.25% to 386.50p by 10:00. NR