Carillion profit set to slump by £10m

Carillion plc, the business and construction services company, has admitted today (Thursday) that profit in construction services for the first six months of 2003 is likely to be £10m lower than expectations.

Carillion's update on trading for the six months ended 30 June 2003, in advance of its interim results announcement on 10 September 2003, said that the shortfall is due to difficulties relating to the delivery of the Nottingham Express Transit PPP project.

Business services, however, had a strong first half with volumes ahead of expectations. The trend, Carillion said, is likely to continue for the rest of 2003, which should enable the group to deliver full year profit before tax and goodwill of not less than that achieved in 2002.

Debt at the half year is expected to be around £25m, which is slightly better than anticipated at the time of the group's preliminary results announcement in March 2003.

Carillion's order book remains strong and it remains encouraged by prospects in its key markets.