10th May 2006 12:10
Carillion PLC10 May 2006 10 May 2006 2006 AGM Trading update Speaking at Carillion's Annual General Meeting today, Chairman Philip Rogersonmade the following comments on trading in 2006. Trading conditions in our key markets continue to be positive and in line withour expectations. New order intake has remained very strong and in the year todate Carillion has won orders worth around £5.5 billion, the largest of whichbeing the Allenby and Connaught PPP project for the Ministry of Defence.Carillion will invest £60 million of equity in this project, which willtransform living accommodation and other facilities for Army garrisons in theSouth of England. As announced on 24 April, additional cost savings have been identified since theacquisition of Mowlem plc that will increase the running rate of savings from£10 million per annum to £15 million per annum by the end of 2006 and from £15million per annum to £23 million per annum by the end of 2007. After a one-offcost of around £5 million in 2006 to deliver these incremental savings, inaddition to the one-off cost of £10 million already announced, there will be afurther increase in earnings beyond the material enhancement already expected in2007. The announcement on 24 April also included a number of fair value and otheradjustments to net assets that revised the provisional assessment set out in theoffer for Mowlem in December 2005. This reflected the Board's firm view of theseadjustments, which have no material effect on forecast debt or expectedearnings. With trading conditions in our main markets expected to remain positive, astrong, highly visible order book and the good progress being made with theintegration of Mowlem, the Board is confident that Carillion will make furtherprogress in 2006. For further information contactJohn Denning, Director Group Corporate Affairs, Carillion plc 01902 316384 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Carillion Plc