News on 10 January 2001
The Private Finance Initiative and facilities management are central to Carillion’s plans for growth and its future as an independent public company.
Carillion announced second half trading "in line with expectations" as rumours of a takeover bid, possibly from Swedish construction giant Skanska, resurfaced.
The company, which announces its preliminary results on 14 March, said it had made "further progress" towards generating a growing stream of more visible and predictable earnings. The Group’s full year result is expected to be in line with the current consensus forecast of around £40m in pre-tax profits before the exceptional charge of £34m for losses incurred at the Crown House engineering subsidiary.
Carillion highlights private finance, infrastructure and facilities management, as drivers for earnings growth, although it will continue to maintain "a selective approach" to construction. The company is continuing to implement programmes for restructuring, cost reduction and implementation of new financial and risk management procedures.
A spokesman for Carillion said that the company was delighted with progress since it split from Tarmac and was not considering either a sale or going private.
Carillion has had considerable success in winning private finance bids and now has almost 40 people in its PFI team. It expects turnover on the 14 projects that have reached financial close to exceed £3bn over the next 30 years and is shortlisted on a further 20 projects.
Carillion is leading the consortium which won BT’s Project Jaguar and mobilisation to manage BT’s 8,500 properties and provide support services, is nearing completion. The company has been assured that its contract will be unaffected by BT’s recently announced decision to transfer its entire estate (see News story). The spokesman said Carillion had relinquished its property role when it demerged and would not be bidding to take on BT’s assets.
