Contractor Carillion’s construction services division has seen its profits surge by 69% in the first six months of this year, its interim results revealed today.
The firm said pre-tax profits rose from £15.3M in the first six months of 2011 to £25.9M for the same period this year for its construction services division, which predominantly cover the UK but also include Canada. Turnover fell 34% from £943M for the first six months of 2011 to £632M during the first half of this year.
Operating profit in its construction division grew to 4.1% in the first six months of 2012, up from 1.6% for the same period in 2011.
The firm said the reduction in turnover was because it had taken a “highly selective approach” on bidding for contracts and it had also been able to reduce bid costs and focusing on cost management, according to the results.
Carillion chairman Philip Rogerson said the firm had delivered a “robust first half performance, despite market conditions remaining challenging”.
“We remain on track to deliver full-year results in line with expectations and to achieve our medium-term targets, namely to deliver growth in support services and to double our annual revenues in the Middle East and in Canada in the five-year period to 2015, in each case to around £1bn,” said Rogerson.
The firm’s turnover dropped 12% in the first six months of 2012, from £2.45bn in 2011 to £2.16bn for the same period in the year. But its profit margin grew from 3.3% for the first half of 2011 to 4.1% during the same period this year, while pre-tax profits rose slightly from £72.5M in the first six months of 2011 to £73.1M for the first six months of this year.