"Total revenue in 2011 is expected to be broadly similar to that in 2010, because increased revenues in support services and our international business will be offset by lower revenue in UK construction, in line with our previously announced objective of re-scaling our UK construction activities. In 2011, we remain firmly on track to deliver strong growth in underlying profit and earnings, in line with market expectations."
Highlights
· Underlying profit before tax(1) and underlying earnings per share(2) are expected to increase strongly, in line with market expectations
· Cash flow remains strong with year-end net debt now expected to be below £100m and significantly better than our previous target of below £125m
· Group operating margin expected to increase significantly, including strong support services margin
· First contract won in Qatar, worth over £316m to Carillion
· Integration of Carillion Energy Services (CES) is ahead of expectations and we continue to target strong returns from this acquisition
· CES cost savings expected to increase from £15m to £25m, with the one-off cost of delivery expected to increase from £20m to £40m driven by the Government's proposed changes to Feed in Tariffs
· Strong order book continues to provide good revenue visibility
· Pipeline of contract opportunities remains well over £30bn
· Group continues to be well positioned to make further progress in 2012 and over the medium term
