Last checked at 4 May 2011 12:20
4 MAY 2011
CARILLION PLC
AGM AND INTERIM MANAGEMENT STATEMENT
"EARNINGS GROWING IN LINE WITH EXPECTATIONS"
At Carillion plc's Annual General Meeting today, Chairman, Philip Rogerson, made the following comments on trading to date in 2011.
"Trading conditions in our key market sectors continue to be in line with our expectations. Therefore our previously announced objectives for growth, backed by strong operating cash flow, remain unchanged.
"Although UK market conditions are still challenging, we remain focused on optimising margins through applying strict contract selectivity, financial discipline and cost management. Since the start of the year, Carillion has secured a number of notable new contracts worth some £510 million. These include support services contracts for the UK Ministry of Defence, the Land Registry, Nationwide Building Society, BAA and Virgin Media worth some £330 million, together with construction contracts in total worth nearly £180 million for the Ministry of Defence and Argent in the UK and for Morguard Investments Ltd and the Queensway Carlton Hospital in Canada.
"On 21 April 2011, we completed the acquisition of Eaga plc. The combination of Carillion and Eaga brings together two highly complementary businesses and will significantly extend the scope of our integrated support services offering for new and existing customers. Our expectations for this acquisition remain unchanged, namely that it will be immediately earnings enhancing and add to our previously announced prospects for growth in 2011 and over the medium term.
"Since the acquisition was announced on 11 February 2011, Eaga, which has been rebranded as Carillion Energy Services, has itself secured a number of important new contracts worth in the region of £630 million. These include a privately financed, £300 million project to install and provide life-time maintenance services for Solar Photovoltaic panels on the roofs of over 30,000 domestic dwellings in the UK, an extension to its contract with the UK Department of Energy and Climate Change to deliver the Warm Front Scheme across England for which it will receive funding of £210 million over the period to March 2013, and contracts to deliver carbon reduction measures for energy companies worth approximately £120 million.
"The Group therefore continues to expect to make further progress in 2011 and, over the medium term, to target strong international growth alongside substantial growth in UK support services".
For further information contact
Richard Adam, Group Finance Director tel: +44 (0) 1902 422431
John Denning, Group Corporate Affairs Director tel: +44 (0) 1902 316426
Finsbury
James Murgatroyd
Gordon Simpson tel: +44(0) 20 7251 3801
Notes to Editors
Carillion is a leading support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities. The Group has annual revenue of over £5 billion, employs around 46,000 people and operates across the UK, in the Middle East, Canada and the Caribbean.In the UK, Carillion's principal market sectors are Defence, Education, Health, Facilities Management & Services, Rail, Roads, Building, Civil Engineering and Utilities Services.
In the Middle East, Carillion's principal market sectors are Construction and Facilities Management. In Canada and the Caribbean, the Group's main sectors are Health, Roads Maintenance and Construction.
Carillion's portfolio of equity investments in Public Private Partnership projects includes projects in the UK and Canada, particularly in the Defence, Education, Health and Transport sectors.
Carillion Energy Services (CES) is a leading green support services business and one of the largest installers of renewable technologies in the UK. CES employs around 4,500 people and operates across three main markets: carbon services where CES is a market leader in the provision of carbon savings to energy generators and utilities to assist them in meeting their regulatory obligations; Heating and Renewables Services where CES is one of the largest installers of domestic heating and renewable technologies; and Managed Services where (CES) provides outsourced solutions to a range of customers.
This and other Carillion news releases can be found at www.carillionplc.com