Construction giant on course to hit end-of-year targets, with strong workflows extending into 2016
Carillion, the British multinational construction services company, says it is gearing up its operations after securing contracts and framework wins worth $2.61 billion in the second half of 2015.
In a trading statement released on October 12, the firm said it was on course to hit its end-of-year targets, with strong workflows extending into 2016. This statement came in the wake of a period of poor share trading performance, with shares dropping by 17%, from a mid-summer peak of 362p to 302p.
“As we expected, the pace of work winning in the second half of the year has started to pick up,” said Richard Howson, chief executive of Carillion, in the trading statement.
“With cash flow remaining healthy and these recent contract successes, we remain confident of achieving this year’s targets, including ending the year with strong revenue visibility for 2016.”
Carillion’s UK infrastructure arm has secured work from Network Rail, which is expected to generate more than $614 million in revenue. This includes the Midland Main Line Electrification project, which recently resumed work. Other projects include the Northwest Electrification project and the electrification of the Schotts line in Scotland.
The company’s UK construction arm also secured $477.75 million worth of work or preferred bidder wins. It’s Canadian operation also reached financial close on two hospital projects, which are expected to generate more than $553 million in work.
Al Futtaim Carillion, the company’s Middle Eastern joint venture, is also set to begin work on two commercial development projects in Dubai, which are estimated to be worth $138.25 million.
In February of this year, Al Futtaim Carillion was awarded two major contracts by the Dubai-based developer Meraas.
One project is a $350 million contract to build a mixed-use development on the Dubai Creek waterfront, while the other is the $240 million ‘La Mer’ project in the Jumeirah area of Dubai. This project includes the construction of a mixture of high-end retail and public-facility buildings, in addition to substantial landscaping to create more than 1km of beach-themed frontage.