Carillion sees strong growth in fourth quarter
Engineering and support services business Carillion (LON:CLLN) this morning announced strong growth in its profit during the current quarter. Shares in the firm were up 4.6 per cent at 320 pence each in early trading today.
The firm said that underlying profit before tax and underlying earnings per share are both expected to increase strongly during the three months to the end of December 2011, in line with market expectations.
Cash flow at the group remains strong with year-end net debt now expected to be below £100 million and significantly better than the firm's previous target of below £125 million, said Carillion.
The firm said that the integration of its Carillion Energy Services business, which was acquired for £298 million in April this year, was ahead of expectations and that the group is continuing "to target strong returns from this acquisition". It said that Carillion Energy Services cost savings are expected to increase from £15 million to £25 million, with one-off cost of delivery expected to double to £40 million due to the government's proposed changes to solar feed-in tariffs.
Meanwhile, a strong order book continues to provide good revenue visibility, said Carillion, which stated that its pipeline of contract opportunities remains well over £30 billion.
Carillion's preliminary results are expected on February 29.
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