Public sector penny pinching a boon for Carillion

7th Oct 2010 08:12

Construction and engineering group Carillion says it has its strongest ever pipeline of contract opportunities as Britain's public sector looks to cut back on costs by outsourcing work.Support services, the firm's largest division in terms of profits, continues to have good visibility.'We have our largest ever pipeline of contract opportunities, which has continued to increase due to a growing number of outsourcing opportunities for UK public sector customers, notably local authorities, arising from the pressure they are under to reduce costs substantially,' the company said.The whole company continues to perform well, Carillion says, with investments in public private partnerships generating value, revenue growing in the Middle East, and growth in the Canadian construction business helping to offset a planned reduction in the UK.'With a well-balanced and resilient UK and international business mix, an order book and probable orders that provide excellent revenue visibility and substantial pipelines of contract opportunities in our main market sectors, the group remains well positioned for both the short and medium term,' Carillion said.