Carillion is No.1 in UK support services

Carillion is the biggest player in the UK support services market, reckons the group’s finance director Richard Adams.

As a result of its acquisition of Alfred McAlpine, Carillion has jumped to the top slot with an annual turnover of £2.5bn in its support services operations.

The graph below illustrates the UK's market leaders in support services.

Support services continues to be a major diver of Carillion’s growth, said Adams, with turnover in this division rising by a chunky 43%.

The operating profit in support services ran to £39m, well ahead of the figure of £24m in the previous comparable period.

Carillion’s forward orderbook for support services work runs to £12bn, up from £8bn at the start of 2008. On top of this, there is a pipeline of probably new orders worth a further £500m.

“The outlook continues to be positive,” said Adams, “with bidding activity remaining at a high level.”

Adams sees opportunities in:

• Canada: roads maintenance, FM and PPP hospitals;
• Middle East: FM.

Carillion’s top four support services contracts are:

• Norwich Union. Carillion’s annual revenue: £150m. Contract term: four years.
• BT. Carillion’s annual revenue: £130m. Contract term: six years.
• Ministry of Defence (Allenby Connaught). Carillion’s 50% share of annual revenue: £95m. Contract term: 35 years.
• Ministry of Defence (Regional Prime Central). Carillion’s 50% share of annual revenue: £83m. Contract term: seven years.