Carillion posts solid results for 2015, but profit slides in UK and Canada construction
Carillion has posted a dip in construction profit for 2015, in otherwise solid financial results for the calendar year.
Operating profit at Carillion鈥檚 UK and Canada construction businesses - which the firm reports together - fell 9% to 拢37.8m, down from 拢41.5m.
Carillion said the dip reflected a drop in its operating margin to 3% across these businesses, down from 3.8%, which it said reflected the loss of the 鈥渢emporary benefits to profit from rescaling UK construction activities鈥�. It expects this margin to trend back to between 2.5% and 3%.
Carillion鈥檚 UK construction revenue topped 拢1bn in 2015, hitting 拢1.1bn, boosted by major jobs for large clients including Highways England and Argent. In 2014 Carillion clocked up 拢900m of UK construction revenue.
Carillion also disclosed it took a 拢5m hit on its investment in the UK鈥檚 Green Deal Finance Company in 2015, after the goverment鈥檚 pulled funding for the energy efficiency scheme.
Overall, the Carillion group posted a 9% rise in pre-tax profit for 2015 to 拢155.1m, up from 拢142.6m, while revenue jumped 13% to 拢4.6bn, up from 拢4.1bn.
Profit increased across Carillion鈥檚 support services, public private partnerships and Middle East construction businesses.
Carillion amassed new and probable orders worth 拢3.7bn over 2015, down on 拢5.1bn in 2014, which it said reflected the impact of last year鈥檚 UK general election. Its pipeline of contract opportunities however increased to 拢41.4bn, up from 拢39.2bn.
During 2015 Carillion reached financial close on the planned 拢430m Midland Metropolitan hospital (pictured).
Carillion chairman Philip Green said: 鈥淥ur performance in 2015 reflects the benefits of our consistent and successful strategy, which enabled us to rescale and reposition our business during the economic downturn in order to take advantage of opportunities for growth as market conditions improve.
鈥淲ith a strong, high-quality order book, a large and growing pipeline of contract opportunities and the financial strength to support our strategy for growth, the Group is well positioned to make further progress in 2016.鈥�
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