Turnover for the six months to 30 June increased five per cent compared to the same reporting period last year, a rise chairman Sir Neville Simms said was the result of growth in facilities management.
Operating profit in the facilities management division of the business increased by 18 per cent to £5.3m, bolstered by the now fully operational British Telecommunications contract.
The contract between BT and Monteray (in which Carillion is a partner) has set a new benchmark within the company for outsourcing integrated facilities management.
However, total operating profits for the period fell to £10.5m from £14.5m, a reduction due to the significant increase in investment in PFI.
The loss is not expected to continue into the second half when projects the company is bidding for reach preferred bidder stage.
Pre-tax profits also fell from £12.6m to £9m primarily as a result of the equity outlay for PFI projects, excluding these investments pre-tax profits across the group improved compared to the same reporting period last year.
Operating losses for private finance were £2.6m compared with a profit of £3m in the same reporting period last year. 'The first-half operating loss reflects the lumpy nature of accounting for bid costs,' said Sir Neville.
More than 86 per cent of the £4.7bn forward orders relates to private finance and service-related projects.
The group also announced an aggressive restructuring programme, which will result in the loss of 400 jobs as the company rationalises its back-office operations including IT, personnel and legal services.
Source
The Facilities Business