Contractor Carillion yesterday told shareholders at its AGM that the firm remained on track with a record order book
“Carillion has continued to make good progress in line with our strategy and the objective of delivering materially enhanced earnings in 2009, reflecting the resilience of our business mix,” said chairman Philip Rogerson, commenting on trading in the period 1 January to 5 May 2009.
“The Group has maintained its strong financial position with net debt in line with our expectations. New order intake has remained healthy and we have maintained our record order book.
“As a result of successfully integrating the Carillion and Alfred McAlpine businesses, we delivered annual cost savings of £15M in 2008 and we remain firmly on track to deliver total annual cost savings of £35M in 2009 and £50M in 2010. The one-off cost of delivering these savings remains unchanged at £55M, all of which was charged to profit in 2008.”
In support services, which accounts for over half the Group’s operating profit, the firm said it continued to benefit from a strong order book of long-term contracts for Government and high quality private sector customers. It added that the current economic environment is creating opportunities to extend existing contracts and bid for new ones, as private and public sector customers seek to reduce operating costs by outsourcing facilities management and other non-core services.
In Public Private Partnerships, since the end of 2008 it has achieved financial close on three further projects, the £300M Tameside Building Schools for the Future programme, the £31M Surgicentre at the Lister Hospital in Stevenage and the £144M Royal Victoria Hospital in Canada. It has also been selected as the preferred bidder for a new £1.6bn hospital project at Southmead, Bristol and for the £500M Building Schools for the Future programme in Durham.