Carillion unveils interim turnover of £1.9bn

Carillion enjoyed an interim pre-tax profit of £20m in the first half of 2007, as turnover climbed to a record £1.9bn.

Continual growth has put Carillion in line to become a £4bn-a-year player in the full year.

Philip Rogerson, chairman, said: “The successful integration of the Mowlem business has contributed to a strong first-half performance. With a positive overall outlook in our key markets, we expect to make further progress in the second half of 2007.”

Rogerson listed Carillion’s key objectives for 2007 and also described how well they are being achieved:

• Deliver Mowlem integration cost savings of £26m a year by the end of 2007 – good progress and on course to achieve the figure by the year-end
• generate cash-backed operating profit – cash flow represented 122% of operating profit at the half-year
• Cut average net debt to £150m by the end of the year – plan is on track. 

The average net debt in the first half was £160m and at 30 June the figure stood at £140m.

The group has three business segments and the operating profits they recorded were:

• support services – £25m
• construction services - £19m
• investments - £12m 

All in all, Carillion had an operating profit of £46m but this figure was then trimmed back by a whole string of group costs. These included financing expenses (£6m), goodwill impairment (£10m) and restructuring costs (£6m) with most of the latter being property exit costs triggered by a review of requirements after Mowlem came on board.

Carillion’s defined benefit pension scheme was reviewed by the group’s actuary on 30 June 2007 and based on his sums, the scheme’s net deficit was put at £38m. The figure is a chunky drop on the shortfall of £75m only six months earlier.