Preliminary Results 2008

UK support services and construction company Carillion plc announces its results for the year ended 31 December 2008.

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

(1) Continuing operations

(2) Continuing operations after Joint Venture taxation of £10.7m (2007: £9.0m) and before intangible amortisation, impairment of other investments, curtailment gain, restructuring costs and non-operating items (see notes 3 and 4 to the financial information on page 29)

(3) Continuing operations before intangible amortisation, impairment of other investments, curtailment gain, restructuring costs and non-operating items (see notes 3 and 4 to the financial information on page 29)

(4) Continuing and discontinued operations

Preliminary Results 2008

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Analysts Presentation

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