Carillion eyes support services as governments slash spending

BUILDING and support services company Carillion plans to double revenue from its international business and expand its UK support services arm as governments look to cut costs by contracting out more services.

Carillion said its Middle Eastern construction business had done well and annual earnings were on track to meet hopes. The firm works in Abu Dhabi, Oman and Qatar and hopes to expand into Saudi Arabia.

Carillion said its decision in May 2010 to reduce the size of its UK construction business by a third had put it in a strong position to manage reduced capital investment by the government in the next four years.

The group said support service revenue would be lower than in 2009 due to the sale of non-core operations, but there was a record number of contract opportunities as local councils tender more services.

Carillion also forecast good growth in pre-tax profit in 2010.

It said: “The group is well positioned to make further progress in 2011 and to deliver its objectives for medium term growth, namely doubling the revenues of our international businesses, while delivering substantial growth in UK support services.”