Carillion has reported a 'strong' growth in its construction activities despite a decline a new orders.
The company experienced a 21% increase in revenue for the first six months ended 30 June 2015, with a leap from £1,871.0m last year to £2,258.6m in 2015.
Pre-tax profit remained steady at £67.5m, the same figure as last year.
Underlying profit rose 16% from £97.4m in 2014 to £112.5m in 2015.
However, while underlying profit and earnings grew strongly, substantial costs were incurred due to mobilising new contracts and the expected effect of the margin in Construction services (excluding the Middle East) trending down towards a 'more normal' level.
After picking up lots of order in 2014, a slow down in business was attributed to the effect of the general election.
The value of new orders and probable orders in the first half totalled £1bn, while in 2014 this figure stood at £3.2bn.
The order book, including probably orders, was worth £17.1bn at 30 June 2015, down from £18.6bn at the start of the year.
However, pipeline contract opportunities increased to £40.5bn from £39.2bn.
Carillion Chairman, Philip Green, said: "I am pleased to report that Carillion has continued to perform in line with expectations, which reflects the actions we took during the economic downturn to position our businesses in markets where we can now achieve revenue growth, consistent with our targets for margins and cash flow.
"We have also made good progress with mobilising a number of major new contracts won in 2014.
"Therefore, with a strong order book, a growing pipeline of contract opportunities and the prospect of market conditions continuing to improve, our expectations for 2015 and the medium term remain unchanged."
(LM)
Time and date
CONSTRUCTION DIRECTORY
Latest Construction News
25/11/2024
Estilo Interiors has been selected to help Bruntwood SciTech as they invest a further £2.4 million into Birmingham as part of a plan to transform its Mclaren innovation hub. The project, located less than five minutes' walk from the future HS2 Curzon Street Station, will involve the building ...
25/11/2024
Cambridge Investment Partnership (CIP) has reached a significant milestone at Aylesborough Close in Arbury, with the completion of a topping-out ceremony. CIP board members, ward councillors, One Public Estate, Homes England and the CIP team gathered to lay the final brick at the highest point of ...
25/11/2024
Lovell has appointed Nicola Colley as head of land in the West Midlands, boosting the business' expertise in land opportunities. Having previously worked at Lovell for 12 years, Nicola has returned to a brand-new role at the national housebuilder, bringing with her experience from Taylor Wimpey ...
25/11/2024
Stepnell has commenced enabling works for a significant £9 million refurbishment of the Grade II listed Town Hall in Hugh Town, located on St Mary's in the Isles of Scilly. Spearheaded by the Council of the Isles of Scilly in partnership with Scilly Arts & Heritage, the project marks a pivotal ...
25/11/2024
Morgan Sindall Construction has successfully completed the restoration of West Bromwich Town Hall and Library, restoring the significant building to its former glory for the community to enjoy. Prior to the project's handover, Morgan Sindall gave a presentation to the SMBC Members and Town ...
25/11/2024
Persimmon Homes Severn Valley has donated 10,000 bricks to AccXel, the Construction Skills Accelerator Centre in Cinderford. The contribution will enable students at the Gloucestershire-based facility to gain hands-on experience and develop essential skills for the construction industry. The ...
25/11/2024
Nearly a year after work began, significant progress is being made at Huddersfield station as part of the Transpennine Route Upgrade (TRU). This transformative project aims to modernise the key northern transport hub while preserving its rich heritage as a Grade I listed building. One of the ...
25/11/2024
Renovating a property can be a challenging and complex process, especially when integrating new and existing building elements. At R Elliott Associates Ltd, we specialise in helping clients navigate these challenges by providing expert planning, design, and support to pre-empt any potential ...
25/11/2024
Northumbrian Water has announced a significant investment of £3.5 million at its Great Ayton Sewage Treatment Works (STW) to enhance its capacity to manage stormwater. The project involves the installation of a new storm tank capable of holding up to 317 cubic meters of combined rainwater and ...
25/11/2024
Balfour Beatty Flannery, a partnership between Balfour Beatty and Flannery Plant Hire, has trained its 1,000th student at its Operator Skills Hub. With over 250,000 additional workers needed in the construction industry by 2028, Balfour Beatty Flannery's Operator Skills Hub is key in addressing ...