Carillion positive despite challenges

11th Dec 2009 07:02

Support services and construction company Carillion expects market conditions to remain challenging but said it believes it will make further progress in 2010. Underlying earnings per share are expected to grow by at least 10% in the 12 month ended 31 December. In support services, margins are expected to improve from the 4.6% achieved in 2008, reflecting contract selectivity and the benefit of the Alfred McAlpine integration cost savings. New order intake has remained healthy, with the most notable second half win being a £1bn.Middle East construction services continues to perform strongly, according to the group. Revenue is expected to grow from £464m in 2008 to around £600m in 2009, at an operating margin in excess of Carillion's original target of some 6%.'Carillion has demonstrated that it has a resilient business mix, including strong international businesses, a substantial order book, a good pipeline of contract opportunities, good cash flow and a strong balance sheet,' said the group.'Consequently, the group continues to be well positioned and believes it will make further progress in 2010,' it added.