3rd Oct 2013 07:09
LONDON (Alliance News) - Carillion PLC Thursday said third quarter trading is in line with guidance and expects to deliver full-year underlying profit and earnings in line with market expectations.
In an interim management statement, the construction company said its order book and pipeline of contract work remains strong and support its expectations for 2013.
Since the company published its interim results in August, the company has won a number of important deals, it said.
These include a 12-year maintenance contract worth around GBP100 million in Ontario and a GBP90 million contract to build the Kempinski Wave Hotel in Oman.
Carillion also has been selected as the preferred bidder by West Sussex Council for a support services contract worth GBP100 million over 10 years.
However, the construction firm said its energy division had been affected by slow pick-up of UK government's flagship energy-saving scheme, the Green Deal.
As a result Carillion has decided to restructure the division to ensure that it is "aligned in size to the markets in which it operates". The restructuring of the division is expected to result in total non-recurring operating charges of GBP40 million.
Carillion said cash flows are in line with expectations, while net borrowing is expected to be below GBP270 million, despite costs associated with restructuring the energy-services division.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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