Shares rise 3.7% as Carillion announces underlying half-year profit of 拢34.3m
Carillion has announced that the faster than expected integration with Mowlem will deliver 拢26m in savings.
Carillion said the integration helped increase underling profit before tax by 28% to 拢34.3m for the six months ended 30 June.
Revenue increased 12% to 拢1,928.6m and the order book stood at 拢15.8bn. Carillion said it had probable new orders of a further 拢2.0bn.
Shares rose 3.7% on the news this morning, increasing by 20p to 433p.
Carillion said that there were opportunities to double its Middle East earnings of 拢274.3m over the next five years.
Commenting on the results chairman Philip Rogerson said: 鈥淭he successful integration of the Mowlem business has contributed to a strong first half performance.鈥�
鈥淲ith a positive overall outlook in our key markets, we expect to make further good progress in the second half of 2007 and deliver materially enhanced earnings in the full year鈥�.
Additionally, it has been announced today that Carillion's joint venture in the Middle East (Al Futtaim-Carillion) has been appointed preferred bidder on several major projects in both that region and North Africa. The potential value of these agreements has a value to Carillion of up to 拢2.6bn over the next seven years.
The first of these projects to be announced is the first phase of construction of the Cairo Festival City project, a 拢220m retail shopping mall. The construction value of the project is estimated by Carillion to be 拢2bn. Work begins in 2008, and is scheduled for completion in 2010.
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