SEA - 4th March 2009 (b)
Carillion plc
Annual Results for the year ended 31 December 2008
19% growth in underlying earnings per share
Underlying results
• Total revenue up 32% to £5.2bn (2007: £4.0bn)(1)
• Underlying profit before taxation up 55% to £157.5m (2007: £101.8m)(2)
• Underlying earnings per share up 19% to 34.3p (2007: 28.9p)(3)
Reported results
• Profit before taxation up 23% to £115.9m (2007: £94.4m)(1)
• Basic earnings per share up 5% to 28.4p (2007: 27.1p)(4)
• Proposed dividend up 18% to 13.0p (2007: 11.0p)
• Net borrowing at 31 December 2008 of £226.7m (2007: £44.9m)
Strategic highlights
• Alfred McAlpine successfully integrated - integration and re-organisation cost savings target increased by 67% with savings of £15m in 2008, £35m in 2009 and £50m in 2010.
• Balance sheet remains robust - strong cash flow with cash backed profit, net borrowing reduced well ahead of target and secured financing until 2012.
• Strong revenue growth in support services - operating margin improved to 4.6% (2007:4.1%).
• Public Private Partnership projects creating significant value - 23 investments sold over the last five years for £179m generating a pre-tax profit of £104m.
• Strong revenue growth in Middle East business - strong and rising contribution from Abu Dhabi keeps us on track to increase revenue to around £600m by the end of 2009 (2008: £464.2m)
• Satisfactory performance in construction services (excluding the Middle East) - operating margin increased to 1.4% (2007: 1.0%).
• Underlying effective tax rate reduced to 20% (2007: 25%).
• £20.4bn order book (2007: £16.0bn).
• Expect to deliver materially enhanced earnings in 2009.
Philip Rogerson, Chairman, commented:
“2008 was another strong year for Carillion, notwithstanding the wider economic background. Alfred McAlpine has been successfully integrated into the Group further strengthening Carillion’s position as a leading support services company. Carillion is a well-balanced and resilient business with a strong balance sheet and the Board continues to expect the Group to deliver materially enhanced earnings in 2009.”
A telephone dial in facility (+44 (0) 208 515 2302) will be available from 09.00am for analysts and investors who are unable to attend the presentation. The presentation can be viewed on Carillion’s website at www.carillionplc.com/investors/investors_presentations.asp.
For further information contact:
Richard Adam, Group Finance Director tel: +44 (0) 1902 422431
John Denning, Group Corporate Affairs Director tel: +44 (0) 1902 316426
4 March 2009
Notes to editors
Carillion is one of the UK’s leading support services, Public Private Partnership project and construction companies. The Group has annual revenue of around £5 billion, employs some 50,000 people and operates across the UK, in the Middle East, Canada and the Caribbean.
In the UK, Carillion’s principal market sectors are Defence, Education, Health, Facilities Management & Services, Rail, Roads, Building, Civil Engineering and Utilities Services.
In the Middle East, Carillion’s principal market sectors are Construction and Facilities Management. In Canada and the Caribbean, the Group’s main sectors are Health, Roads Maintenance and Construction.
Carillion has a substantial portfolio of equity investments in Public Private Partnership projects, particularly in the Defence, Education, Health and Transport sectors.
In the inaugural Sunday Times Best Green Companies Awards in May 2008, Carillion secured first place in the category for large and medium-sized companies with high environmental impact and second place overall.
This and other Carillion news releases can be found at www.carillionplc.com
For further information contact
John Denning, Director Group Corporate Affairs, Carillion plc 01902 316426
