Profit up at Carillion despite lost revenue

SUPPORT services firm Carillion reported a modest rise in first-half profits yesterday, despite revenues falling by 12 per cent.

Pre-tax profit rose by one per cent in the six months to 30 June to £73.1m, from £72.5m the year before.

Revenue at Carillion, which maintains some of the UK’s railways and military bases as well as construction projects in the Middle East, was hurt by the planned reduction in its UK construction arm and delays to contracts in the Middle East. It fell to £2.2m over the first half of 2012.

Middle East construction revenue was down 21 per cent, but the firm expects full-year results to be in line with expectations.

Carillion’s pipeline of contract opportunities stood at £35.6bn, flattered by major UK public sector projects and private finance projects in Canada, including the C$35bn (£22.7bn) Infrastructure Ontario programme.