– Strong first-half revenue growth reflected the exceptional volume of new contracts won in 2014
– Underlying profit and earnings grew strongly, despite substantial costs of mobilising new contracts and the expected effect of the margin in Construction services (excluding the Middle East) trending down towards a more normal level
– Strong cash flow from operations with underlying operating cash conversion(1) of 101% (2014: 127%)
– Net borrowing at 30 June 2015 of £199.6 million (31 December 2014: £177.3 million) reflected increases in non-operating cash flow items, including business acquisition costs and other investments
– Balance sheet remains strong with over £1.3 billion of committed funding available to the Group
• Strong, high-quality order book and growing pipeline of contract opportunities
– New first-half orders plus probable orders of £1.0 billion (2014: £3.2 billion) reflected the expected pause in public sector contract awards due to the UK General Election
– Total secure orders plus probable orders remained strong at £17.1 billion at 30 June 2015 (31 December 2014: £18.6 billion), after removing £0.2 billion from the order book due to PPP equity sales
– Revenue visibility(2) for 2015 of 96% at 30 June 2015 (2014: 93%)
– Framework contracts worth up to £2.5 billion, which are not included in orders or probable orders
– Pipeline of contract opportunities increased to £40.5 billion (31 December 2014: £39.2 billion)
• Interim dividend increased by 2% to 5.7p (2014: 5.6p)
• On track to deliver full-year revenue growth with profit and earnings in line with expectations
Carillion Chairman, Philip Green, commented:
“I am pleased to report that Carillion has continued to perform in line with expectations, which reflects the actions we took during the economic downturn to position our businesses in markets where we can now achieve revenue growth, consistent with our targets for margins and cash flow. We have also made good progress with mobilising a number of major new contracts won in 2014. Therefore, with a strong order book, a growing pipeline of contract opportunities and the prospect of market conditions continuing to improve, our expectations for 2015 and the medium term remain unchanged.”
