Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

UK to send help to Turkey and East Timor; Demerger boosts Carillion and Tarmac half year profits

News

CARILLION AND Tarmac reported rising half year profits this week, following the £28M demerger of the aggregates and contracting group earlier this year.

Carillion reported an operating profit up 43% to 14M, while Tarmac announced profits of £68.8M for the first half of 1999, up 12.5%. The demerged companies have been trading as separate entities on the stock market since 30 July.

Carillion chairman Sir Neville Simms announced improved margins from 1.1 to 1.6% in a market swinging away from building and capital projects towards infrastructure management, services and Private Finance Initiative projects.

Profits were up in building (£4.9M), services(4.1M), and infrastructure management (£5.2M) but down in capital projects (£1.1M) and PFI (£1M).

Simms forecast strong growth in road maintenance contracts from local authorities when the Government's Best Value proposals, replacing Compulsory Competitive Tendering, were implem- ented. More outsourcing was expected from a market which had grown to £1.8bn in value.

Tarmac chief executive Roy Harrison forecast more acquisitions for the aggregates group despite £0.5bn debts which included an estimated £100M taken on from the contracting side of the business. Having announced a £48.1M investment on deals to buy two limestone quarries from British Steel and £26M last month for Marley Paving, more would follow, he said.

Efficiency savings from the Tarmac demerger included the sale of the Tarmac helicopter for a reported £300,000 and the imminent £2M sale of the country house HQ Hilton Hall.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.