Carillion on target

Carillion is on target to deliver full year pre-tax profit of not less than the £50m achieved in 2002, the group told the City this morning.

A trading statement issued to the Stock Exchange added that the strong first half performance in business services was sustained in the second half.

The group's assessment of the effects of Network Rail's decision to take all rail maintenance in-house is a £7m reduction in operating profit in 2004. This will be followed by a further £15m reduction in 2005 and beyond. The group has not assessed how much of the £50m goodwill associated with its rail business will be written off in the 2003 accounts.