Earnings up at building group Carillion on better margins and good order book

City A.M. Reporter
BUILDING firm Carillion said first-half underlying earnings grew strongly, helped by improved margins in its support services unit, and added it was well placed to deliver growth in 2011.

“Margins are moving forwards in both support services and construction services. This statement puts Carillion on track for the eighth successive year of exceeding market expectations,” an Investec analyst said in a note.

Carillion, which also operates in Canada and the Middle East, said its order book was strong and expected double-digit growth for the half year in its bid pipeline, which it said stood at £25bn in December.

“The bid pipeline has really grown very strongly in the first half, particularly reflecting the increase in local authority and central government starting to come to market now with these large transformational outsourcing deals,” said chief executive John McDonough.