Carillion on track for year as it snaps up Canadian firm

Support services firm Carillion said this morning it was on track to deliver a “robust” full-year performance, adding that the value of its pipeline is expected to be larger than previously thought by the year-end.

Carillion, which maintains roads, railways and military bases, said in a trading update that revenue will be lower this year than last largely due to a cutting back of its UK construction business, although the group’s total operating margin is expected to increase.

“We continue to be opportunity rich in markets that support our targets for growth and we expect the value of our pipeline of potential contract opportunities to be slightly higher at the year end than the £35bn previously reported,” the FTSE 250 firm said this morning.

Carillion added that its investment in Public Private Partnership projects has begun to pay off, most notably in Canada. Separately, it announced today the acquisition of a 49 per cent interest in Canadian support services business Bouchier Group for £24m.